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both of them will effect bank profitability
Well Bank has very limited to its own resources .bank has our Resources interm of Cash etc..
The bank is work in economical enviroment so it need to collection resorces and and how to investment resources
The utilization of financial resources in the conventional banks:
Banks are working on the use of resources in all economic activities. Which is funding the production and service sectors in the economy. There are several methods used by banks to finance these sectors and invest financial resources in them. And it concentrated the most important aspects of the use of the financial resources of banks in the following:
1. Lending
2. Investment in cash assets.
3. Investment in financial markets.
4. direct investment.
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