Can You Help Me Define The Banking?

A bank is a business that provides financial services, usually for profit. Traditional banking services include receiving deposits of money, lending money and processing transactions. A commercial bank accepts deposits from customers and in turn makes loans based on those deposits. Many banks offer ancillary financial services to make additional profit; for example: selling insurance products, investment products or stock broking. Currently in most jurisdictions commercial banks are regulated and require permission to operate. Operational authority is granted by bank regulatory authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans.Banks have a long history, and have influenced economies and politics for centuries.

In history, the primary purpose of a bank was to provide liquidity to trading companies. Banks advanced funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Commercial lending today is a very intense activity, with banks carefully analysing the financial condition of its business clients to determine the level of risk in each loan transaction. Banking services have expanded to include services directed at individuals and risk in these much smaller transactions are pooled. In recent history, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also including service charges on array of deposit activities and ancillary services. Economy of any country should not be groomed without their banking system.

The very basic definition of Banking is any thing which deals with issuing and depositing cheques against money is termed as banking. However, the modern definition of banking includes various other functions also. Typically, a bank does the job of providing checking services but due to changes in modern finance which took over the centuries, the basic work of a bank has been changed. Now a bank not only offers checking services but lot of other services are provided also. From offering ATM and debit card facilities to the large syndication loans.a lot of variety of services have not come under the ambit of Banking.
Basic Banking Functions are:
1) Issuing and accepting money to deposit.
2) Issue and accept checks against those deposits.
3) Provide loans to various businesses and individuals.
4) Management and trade of foreign exchange.
5) Provide custodian services.
There are also various other functions which a modern bank performs. The field of derivatives is one such field in which banks are being actively involved. Apart from this, Banks are also offering investment Banking services in order to help organisations to raise capital through stock markets. Therefore, there are many different functions which a bank performs and now come under traditional banking ambit.