Banks and Banking System
Created on Saturday, 18 February 2012 19:47
Officially, banks are considered to be financial institutions that play a role of payment depositories and, in several cases, money lenders or loaners. Speaking about these financial institutions in the United States of America, banks do not have any right to have non-financial corporations. But, mostly in Europe, these financial institutions can be owner of various industrial companies.
Banks provide numerous beneficial services to people and mostly they are closely related to managing you financial resources, in other words, borrowing as well as lending services to individuals and different companies. Banks are a place where you can keep your money and earn but also you can borrow the needed sum of money . The notion “bank” comes from the Italian word banco. In Italian, banco means bench or desk. At the time of the Renaissance, the most of Florentine bankers used this notion to denote the way they deal with each other, they usually performed their business over a desk covered with a cloth. But the principles of the present banking system come to us from further than this. The processes of lening and borrowing money are known in ancient Rome and the can be considered the first and most remarkable examples of the present banking system.
Tough, the first bank appeared in Italy in about 1406. The name for the first bank was Banco di San Giorgio. With years, the fast demand for banking services pushed the banks into solid financial institutions. There are a lot of banking services but the main are still considered being the managing of checking and savings accounts for clients. In other words they are engaged in paying checks drawn by customers and collecting checks that customers deposit into their accounts. You have never thought but banks have a much greater role in commerce and provide other financial services such as the issuance of banknotes, processing online payments, online banking, services on lending money to customers, selling insurance and exchanging currency.
For the comfort of using banking services, banks usually have different ways of serving customers. These ways are closely related to the use of ATM machines or automated teller machines internet banking as well as telephone banking. These approaches to service customers help people perform their tasks much faster as they complete their transactions online. There is one more division of banks in the United States of America. American banks are divided into retail and commercial. Considering the services of retail banks, they perform the general banking services to customers including safety deposit boxes, mortgages to individuals and companies and savings accounts.
Those banks that deal with investing any projects in different spheres of life are called investment banks. They do not generally provide banking services for ordinary people but larger ones can do that. There are also central banks that do not perform any services to customers as they are engaged mainly in monetary policy and regulating particular financial companies. There are other financial institutions that perform a sort of banking services and they are called credit unions. They are non-profit organizations that are owned by the shareholders. Internet banks or online banks are a relatively new type of banks.