The word ‘bank’ is derived from the Italian word ‘banca’, which is derived from the German word for ‘bench’. Moneylenders in Northern Italy originally did business in open areas or open rooms where each lender worked from his own bench or table. The very first banks were probably in religious temples of the ancient world. Greek temples as well as private and civic entities conducted financial transactions such as loans, deposits, currency exchange, and the validation of coinage. Charging interest on loans and paying interest on deposits developed in ancient Rome.
A bank is a financial institution that provides banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank that are called non-banks.
The main functions of a bank include raising funds by attracting deposits, borrowing money in the inter-bank market, and issuing financial instruments in the money market or a securities market and then lending out most of these funds to borrowers including companies, individuals or government. Other services rendered by banks are facilitating international payments, issuing credit cards, provisioning safe locker facilities for valuables, project financing, merchant banking facility, online banking, personal banking, and investment banking. Typically, a bank generates profits from transaction fees on financial services and the interest charges on its loans.
There are several different types of banks including central banks, investment banks, merchant banks, private banks, savings banks, offshore banks, commercial banks, retail banks, and universal banks.
Present day banks need highly qualified, dedicated, and reliable staff because of intense competition from other financial institutions like insurance companies that provide some banking services to the public.
Related Articles of Interest :
-
Banking Services
10 August 2010 8:30 PM |
No Comments
The type of services offered by a bank depends upon the nature of the bank and the country where the bank operates. The services provided by banks usually include checking accounts, saving accounts, and investment advice. The main function of most banks is directly accepting...
-
Commercial Banking
10 August 2010 8:30 PM |
No Comments
A commercial bank’s primary liabilities are deposits and primary assets are loans and bonds. As per the U.S. Banking Act of 1971, the “commercial bank” is an institution that offers demand deposits and originates loans.” Therefore, a money market mutual fund is not a commercial...
-
Banks
10 August 2010 8:30 PM |
No Comments
A bank is an institution that provides different types of financial services; this includes mainly taking deposits and offering credit. Currently, the term ‘bank’ refers to an institution that holds a banking license to conduct the most fundamental banking services, such as accepting deposits and...
-
Business Banks
10 August 2010 8:30 PM |
No Comments
Business banks are universal banks, which offer the best of retail banking as well as investment banking. For example, Citigroup, a very large American bank, is involved in commercial and retail lending. It owns a merchant bank (Citicorp Merchant Bank Limited) and an investment bank...
-
Offshore Banking
10 August 2010 8:30 PM |
No Comments
An offshore bank is a bank located outside the country of residence of the depositor in a low- or no- tax jurisdiction. It provides financial and legal advantages like privacy, reduced legal restrictions, and protection against local political or financial instability. Offshore banking has increased...
-
Personal Banking
10 August 2010 8:30 PM |
No Comments
Personal banking is similar to retail banking. The essence is that the products and services of the bank are tailored to meet individual banking and ancillary needs, including everything from a checking account to investment advice. The different products available through personal banking include checking...
-
Investment Banking
10 August 2010 8:30 PM |
No Comments
Investment banks, as opposed to commercial banks, assist public and private corporations in raising funds in the Capital Markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions Indeed the original purpose of...
-
Banking Jobs
10 August 2010 8:30 PM |
No Comments
Modern banks have highly trained staff for delivering top quality service to customers. Other financial institutions like insurance companies now offer most of the services provided by banks. Owing to this intense competition, banks need top quality staff that is talented, reliable, trustworthy, and communicative....
-
Antigua Offshore Banking
10 August 2010 8:30 PM |
No Comments
For many commercial businesses, offshore banking has its attractions. Most people may raise their eyebrows at offshore banking and think it is illegal and unethical. But they cannot be further from the truth. Creating and depositing money in offshore banks are not illegal. In fact,...
-
Banking And Commercial Lending
10 August 2010 8:30 PM |
No Comments
Commercial loans are obtained to further the business or support a new business. However, it is usually taken to acquire property that is to be used for offices, industrial or mixed-use purposes. Banks offer commercial loans to business owners according to their credit standing and...