Banks are able to lend a major portion of their deposits, and play the role of an intermediary and constitute the payment system because of the understanding that banks will honor their commitments to the people. It the trust is broken for any reason, the banks will not be able to survive.
To retain the trust of the people, banks have to adhere to certain principles while conducting their business. These principles are as follows:
- Liquidity
- Safety
- Profitability
- Secrecy
- Service Quality
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