Bank a Financial institution
business, home business
Themeaning of a bank differ from country to country.Under English law, a bank is defined as a person who convey on the commerce of banking, which is specified as: perform current accounts for his clients paying cheques drawn on him, and balance collecting cheques for his customers.
A banker or bank is a financial institution that acts as a compensation agent for customers, and make use of and lends money. In some countries such as Germany, banks are the primary owners of industrial corporations while in other countries such as the United States banks are forbidden from owning non-financial companies. In Japan, banks are usually the nexus of cross share property entity known as zaibatu.
Banks act as payment agents by handling checking or present accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques add to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM.
Banks borrow money by accepting funds deposited on current account, accepting term deposits and by deliver debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making installment loans, and by investing in profitable debt securities and other forms of lending. Banks provide almost all payment services, and a bank account is considered crucial by most businesses, individuals and governments. Non-banks that provide payment assistance such as transmittal companies are not normally considered an adequate substitute for having a bank account.
Banks borrow most funds borrowed from households and non-financial businesses, and lend most funds lent to domestic and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and cash market support, cash management trusts and other non-bank financial institutions in many cases provide an adequate replacement to banks for lending savings to.
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Donald Morris is the author of Loan Modification Help. You can find more information about how to Stop Foreclosure and get Loan Modification Help in our articles.
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