A Bank is a financial institution licensed to receive deposits and make loans. Bankers or bankers are employees or independent contractors of the bank who handle clients' accounts, including administering finances, making investments, and issuing checks. The term "banker" is also used in the investment banking industry to refer to an investment banker.The business of banking has changed dramatically over time, with the role of the banker changing accordingly. Originally a person with substantial capital was employed by a merchant to facilitate transactions between merchant and customer. In modern times this has become less common as many commercial banks have opened branches and hired additional staff, allowing customers to conduct their business via online banking and other means.Banks are institutions that operate under public authority to which they supply funds and accept deposits from the public on behalf of their depositors, who trust them to keep those funds safe until they need them for some purpose such as regular payments or an unexpected emergency expense (a "demand deposit").The main function of a bank is to accept deposits from customers and make loans (loans are also sometimes called credits). The bank uses these funds to purchase goods and services from other businesses, from other banks, or from the government itself (by way of a government bond). The goods and services purchased by the bank are called "deposits" because they are sourced from outside sources. These funds are then lent out to other individuals or businesses for consumption needs such as consumption goods and services or investment needs such as capital goods and investment loans.Most countries have regulations governing how banks can operate. For example, many countries require minimum reserve requirements which stipulate how much cash a bank must hold on hand versus how much it can lend out..There are several different types of banking institutions including
Retail banks ,
Commercial banks
Investment banks .
Each type has its own unique functions within the over all banking sector .Retail banks are typically smaller institutions that offer basic services such as checking and savings accounts ,loans and credit cards .Commercial banks are larger institutions that offer more complex products such as term loans ,lines of credit and a variety of financial services .Investment banks is a much smaller subset of the commercial bank sector that provides advisory and sales functions related to the securities marketplace.
