Principles / Ideologies of Modern Bank.

Principle means established & settled indications or rules those are obeyed and followed by all for achieving organizational goals and objectives. So, bank like other organizations or institutions has few principles are given below :

1. Principles of solvency :

 Solvency is the ability of an economic unit to pay its debts or liabilities as they become due. A bank is to be financially solvent. Financial solvency of bank is expressed if its own fund (own capital + loaned capital) is high that means minimum 10 millions of  money as paid-up capital for each commercial bank.

2. Principles of liquidity :

Liquidity means the capacity to pay cash on demand. A bank is to have or preserve necessary liquidity to its volt to meet on-spot demand of its clients.

3. Principles of safety :

The duty of bank is to ensure the safety and security of deposited money and precious assets of  clients. Safety of funds is the first and main principle of investment. If bank becomes failure to ensure the security of money, the confidence of mass on bank is not achieved.

4. Principles of honesty & Reliability :

Bank tries to be reliable to general people performing its jobs with honesty. If any bank faces the questions of honesty and reliability, it can't exist to competition with other. So, every bank must do its job with the most honesty & reliability.

5. Principles of Services :

The establishment, favourites and goodwill of bank depends on better services &  variety of services providing. This is why bank is to ensure better and maximum services for its goodwill.

6. Principles of efficiency :

Well discipline and variety of services shows the efficiency of bank. So, the bankers are to effectively & efficiently perform their jobs. A efficient management can gain the success, Goodwill & prosperity of bank.

7. Principles of publicity :

Depending on the quote 'Widening  depends on publicity', bank is to highly & vigorously advertise itself as well as its products have already been newly arrived for clients and mass.

8. Principles of profitability :

The success of bank depends on gaining profits and bank exists into competition through profits. So, bank also highly try to maximization of profits through distribution of loans at higher rate of interests than the interest given to the depositors at lower rate.

9. Principles of location :

Sometimes the success of bank depends on its location. So, its location should be the most secured, at commercial & industrial area, at prosperous, recognized, developed and important places where better communication is available.

10. Principles of secrecy :

The duty of bank is to maintain the  secrecy of assets and account of its clients. Because, every client wants to hide the information of his assets. So, bank will only disclose it according to the necessity of clients and moreover when the court wants to know it.

11. Principles of credit :

Credit policy of back Will be combination of easy conditions, more safety, on handsome amount and to authentic clients.

12. Principles of specialization :

Specialization means to achieve adeptness on specific or particular area. In this principle, bank will create and provide special offers, separate opportunities, exclusive services or schemes and moderate thinking which will express to a bank exclusively.

13. Principles of goodwill :

Goodwill means to gained skill and discipline of long period of time. According to the principle, bank will try heart and soul to achieve goodwill and to preserve that gained goodwill.

14. Principles of economy :

Bank should be more economy  in every stage of every sector so that the amount of its profits should be increased.

15. Principles of investment :

Bank should invest its funds to more profitable and welfare fields and areas so-that  the confidences of clients on bank should be lift up.

16. Principles of modernization :

Bank has to build up modern and technology dependent products and services to adapt & exist with the  competitive world or market.

At last it is said, the success of bank depends on principles. The bank which is capable to establish more principles and ideality  can earn maximum success.