Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money to earn a profit.

A Bank account is a financial account maintained by a financial institution for a customer. A bank account can be a deposit account, a credit card account, a current account, or any other type of account offered by a financial institution, and represents the funds that a customer has entrusted to the financial institution and from which the customer can make withdrawals. Alternatively, accounts may be loan accounts in which case the customer owes money to the financial institution.

The financial transactions which have occurred within a given period on a bank account are reported to the customer on a bank statement and the balance of the accounts at any point in time is the financial position of the customer with the institution.

The laws of each country specify the manner in which accounts may be opened and operated. They may specify, for example, who may open an account, how the signatories can identify themselves, deposit and withdrawal limits and many other matters.


Banking is an industry that handles cash, credit and other financial transactions. Banks provide a safe place to store extra cash and credit. They offer savings accounts, certificates of deposit and checking accounts. Banks use these deposits to make loans. These loans include home mortgages, business loans and car loans.

Banking is one of the key drivers of the U.S. economy as It provides the liquidity needed for families and businesses to invest for the future.

Bank loans and credit mean families don’t have to save up before going to college or buying a house. Companies can start hiring immediately to build for future demand and expansion.

Banking system is the principle mechanism through which money supply of the country is created and controlled. The banking system enables us to understand commercial banks, secondary banks, central banks, merchant bank or accepting houses and discount houses but to exclude the saving banks and investment and other intermediaries

Types Of Banking:    

Individual Banking—Banks typically offer a variety of services to assist individuals in managing their finances, including:

  • Checking accounts
  • Savings accounts
  • Debit & credit cards
  • Insurance
  • Wealth management

Business Banking— Most banks offer financial services for business owners who need to differentiate professional and personal finances. Different types of business banking services include:

  • Business loans
  • Checking accounts
  • Savings accounts
  • Debit and credit cards
  • Merchant services (credit card processing, reconciliation and reporting, check collection)
  • Cash management (payroll services, deposit services, etc.)

Digital Banking— The ability to manage your finances online from your computer, tablet, or smart phone is becoming more and more important to consumers. Banks will typically offer digital banking services that include:

  • Online, mobile, and tablet banking
  • Mobile check deposit
  • Text alerts
  • E-Statements
  • Online bill pay

 Loans—Loans are a common banking service offered, and they come in all shapes and sizes.  Some common types of loans that banks provide include:

  • Personal loans
  • Home equity loans
  • Home equity lines of credit
  • Home loans
  • Business loans


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