Banking is a specialized subset of the broader finance sector. While encompasses the entire management of money, investments, and assets, banking specifically refers to the activities of institutions licensed to accept deposits and provide credit. 1. Core Functions of Banks
Banks act as financial intermediaries between savers (those with excess capital) and borrowers (those who need funds). financial*bank
: Issuing personal, business, and mortgage loans, as well as providing overdraft facilities. Banking is a specialized subset of the broader
: Facilitating transactions via wire transfers, Automated Clearing House (ACH) systems, and debit/credit cards. Core Functions of Banks Banks act as financial
: Acting as agents for customers to collect checks, manage portfolios, or provide safety locker facilities. 2. Primary Types of Banking Institutions Different institutions cater to specific market segments: 8 Major Types of Financial Institutions and Banks - BILL