Banking

Banking is the business of managing money for individuals, businesses, and governments. It involves accepting deposits, making loans, and offering financial services like credit cards, investment products, and money transfers.
Here’s a simple breakdown:

Core Functions of Banking:

Accepting Deposits – Banks keep your money safe and let you access it when you need it (e.g., savings accounts, checking accounts).

Lending Money – Banks lend money to people and businesses (e.g., home loans, car loans, business loans) and charge interest on those loans.

Payment Services – They help people and companies send and receive money (e.g., debit/credit cards, online banking, wire transfers).

Wealth Management & Investment Services – Many banks offer services to help customers grow their money through investments, retirement plans, and more.

Types of Banks:

Commercial Banks – For the general public and businesses (e.g., Chase, Bank of America).

Central Banks – Control a country’s money supply and interest rates (e.g., the Federal Reserve in the U.S.).

Investment Banks – Deal with big corporate finance (e.g., mergers, stock offerings).

Online/Digital Banks – Operate without physical branches, offering banking via apps/web.

In short, banking is all about facilitating the flow of money and keeping the financial system running smoothly.