The word bank comes from the Italian ‘banco’. In Italian, ‘banco’ means bench. In the early days, people used to sit on a bench dealing with money. Later, the place where the transaction took place was called a bank. Generally, business entities dealing in currency and credit are called banks. A bank is an institution established by law to accept bank deposits, provide loans, deal in letters of credit as well as pay interest at fixed rates on deposits, secure depositors’ deposits, and deal in rupee and credit.
Crowther Says “the bankers business is to take the debt of other people to offer his own in exchange and thereby great money,”
In the general sense, a bank is an institution established by law to deal in money and credit. It accepts deposits from savers and flows loans to demanders on various terms. On the one hand, the bank secures the savings of the people and on the other hand, it provides loans to the farmers, entrepreneurs, businessmen, and the general public.
- A bank is an organization that conducts financial transactions, established by law.
- The bank deals in currency and credit.
- The bank accepts deposits from depositors and offers them fixed interest.
- Banks provide loans to individuals or organizations and charge a fixed interest rate.
- The bank mainly uses the current, term, and savings accounts to collect deposits.