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Bank-any business offering deposits subject to withdrawal on demand (such as by writing a check or making an electronic transfer of funds) and making loans of a commercial or business nature (such as granting credit to private businesses seeking to expand the inventory of goods on their shelves or purchase new equipment)
Roles of the Financial System:
- The primary purpose of the ever chaning financial system is to encourage indivduals and insitutions to save and transfer those savings to those indviduals and institutions planning to invest in new projects
- Provides a variety of supporting services essential to modern living includes:
- -payment services
- -risk protection services
- -liquidity services
- -credit services
Community Banks vs. Money-Cener Banks
- Money-center banks are giant industry leaders, spanning whole regions, nations and continents, offering the widest possible menu of financial services, gobbling up smaller businesses, and facing tough competition from other giant finanical firms around the globe.
- Community banks are usually smaller and service local communities, towns, and cities, offering a significantly narrower, but often more personalized, menu of financial services to the public.
- -Declining in numbers