Banking Exam Question - What are the Major Reasons for Commercial Bank goes to Losses ? Explain

Introduction - Reason for Bank goes in Loss

A commercial bank is an institution that provides services such as accepting deposits, providing business loans, and offering basic investment products. A business bank is an establishment that gives administrations, for example, tolerating stores, giving business credits, and offering essential venture items. The general population stores are utilized by business banks to grant credits to people and organizations. 

Business banks concede advances as overdraft, money credit, and marking down bills of trade. In a partial save managing an account framework, business banks are allowed to make cash by enabling various cases to resources on store. Banks make credit that did not already exist when they make advances.

Major reasons for commercial bank losses are mentioned below:

• Non-debt debt,
• Flows should be more than the one who gives the money,
• By investing without a project,
• High political disruptions,
• In the absence of debt at all times,
• Being a lack of transparency in investment and business,
• Manage the efficiency of the management,
• Personal interest in the role of the conductor committee,
• Being more and more employees,
• Ability to abilities and ability,
• Monitoring and supervision reduction,
• Prior to giving us priority,
• The amount of exhausted debt has increased.