What you need to know about banks and banking activities

Banks are institutions intended for storing money, providing loans and loans, providing payment services, such as banking and savings accounts, debit cards. Banks also offer insurance products and investment opportunities. For the most part, the differences between banks, securities and insurance companies have recently become small, and banks began to offer a wider range of services. Despite these changes, banks still fulfill and support their main role: reception of deposits and lending.

What you need to know about banks and banking activities

Banks provide credit mediation and other related services for consumers and businesses. This ensures the safety of depositors through car loans, investment loans, mortgage loans, credit lines and credit cards.

There are three main types of banks: commercial banks, credit unions, savings, as well as credit associations. Although certain differences between these types of banks have disappeared recently, there are main differences. Commercial state banks offer a fairly wide range of services for governments, individuals, legal entities. They can be of different sizes, including small banking communities, large global banks and medium -sized regional banks. Global banks offer typical banking services, as well as exchange of foreign currency and international lending. Regional banks often have many banking branches and ATMs to provide various services for individuals, local enterprises. Local banks work at the local level, have only a few branches. Now banks have begun to grow and offer financial services completely through the Internet.

What you need to know about banks and banking activities

Credit unions are deposit institutions that are formed by people with common relations: community, work or union. Only people with this bond can become members. Savings accounts and loans are given only to members of the Union. Credit unions are considered non -profit organizations that are controlled by the Council, elected members.

Savings banks and credit associations are the size of a group of depository institutions. For the first time they were created in housing organizations to finance a mortgage so that people could buy at home, and these institutions still satisfy the needs of savings and lending to consumers. The differences between savings and commercial banks today have already disappeared to a large extent.

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