The word 'Bank' is derived from Italian word 'Banco' which means a bench. Perviously Italian Goldsmith used to perform the monetary task sitting on the bench not in the market . So,'Banco' was used to denote monetary transactions.
Generally the bank refers to those organized institutions whichh are established under rhe provisions of current laws , rules and regulations to perform work related ro cirrency . Pratical Nepali Dictionary (2061) defines it as the institute which accepts deposits and grants loans and the person can withdraw deposited amount at any time. Nepali Encyclopedia takes as bank to those commercial , government or non-government institutes which accept deposit , provides interest on it , pays whenn demanded , provides loan , Tejarath work etc.
Now-a-days the word Bank refers to those institutions which are established under law for dealing with monetary transactions . It means; those institutions are treated as banks which accept the deposit of public and grant loan to the needy person or businessman against security deposit. We cann say in a sentence that banks are those institutions, which are established under a current act to perform monetary and credit transactions.
Bank ias an institute which deals with currency and performs work related to credit. Money denotes coins and paper notes which are issued against security. Payment of such currency is assured by the Nepal Rastra bank to the public. If the works are performed more than the value of currency, such activity denotes credit creation. Bank refers to the government, semi-government and non-government organizations which perform work of monetary mobilization and credit creation and controls . Thus, Bank is taken as an institute which accepts deposits of public and institutions for its securoty and makes payment when ndemanded. Bank provides money as loan to other needy person or institution against security deposit or without security deposit.
In the banking history of Nepal, Nepal Bank Ltd. is the first bank of Nepal which was established in 1994 B.S. After that, Nepal Rastra Bank, Rastriya Banjiya Bank, Agriculture Development Bank and Nepal Industrial Development Bank were esrablished. After the restoration of multiparty democracy in Nepal, government took liberal policy in the banking sector. So, now-a-days ,there are a number of commercial banks in Nepal with th venture of foreign banks. Nepal Arab Bank Ltd., Himalayan Bank Ltd., Bank of Kathmandu are some of such banks.
It is very difficult to give particular meaning of ban in this modern age. Different economists have given different definitions of bank. Some of them assume that it needs to perform all the financial transactions.
