Monday, February 11, 2008
Bank
A banker or bank is a economic tradition that acts as a payment agent for customers, and borrows and lends money. In some countries such as Germany and Japan banks are the primary owners of industrial corporations while in other countries such as the United States banks are proscribed from owning non-financial companies.
The first modern bank was founded in Italy at Genoa in 1406, its name was "Banco di San Giorgio" (St. George Bank). Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also permit customer expenses via other payment methods such as telegraphic transfer, EFTPOS, and ATM.
Banks borrow money by accommodating funds deposited on current account, accepting term deposits and by issuing balance securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making part loans, and by investing in marketable balance securities and other forms of lending.
Banks provide almost all payment services, and a bank account is considered obligatory by most businesses, individuals and governments. Non-banks that provide payment services such as transmittal companies are not normally considered an acceptable surrogate for having a bank account.
Banks borrow most funds borrowed from households and non-financial businesses, and loan most funds lent to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate surrogate for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to.
The first modern bank was founded in Italy at Genoa in 1406, its name was "Banco di San Giorgio" (St. George Bank). Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also permit customer expenses via other payment methods such as telegraphic transfer, EFTPOS, and ATM.
Banks borrow money by accommodating funds deposited on current account, accepting term deposits and by issuing balance securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making part loans, and by investing in marketable balance securities and other forms of lending.
Banks provide almost all payment services, and a bank account is considered obligatory by most businesses, individuals and governments. Non-banks that provide payment services such as transmittal companies are not normally considered an acceptable surrogate for having a bank account.
Banks borrow most funds borrowed from households and non-financial businesses, and loan most funds lent to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate surrogate for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to.
