Fundamentals of Banking Operations

2. Deposit and Credit Management

Deposits and loans constitute the core balance sheet activities of commercial banks. Deposits represent the primary source of funds, while loans and advances represent the principal earning assets. Effective deposit mobilization and prudent credit management are therefore central to profitability, liquidity, and solvency.

This chapter explores the structure of bank liabilities through different deposit products and examines the systematic process of loan appraisal and approval. Emphasis is placed on credit analysis techniques, risk evaluation, and internal control procedures that safeguard financial stability. A sound understanding of deposit and credit management equips banking professionals with the analytical tools necessary to make informed lending decisions