What Is Banking And Its Activities?

A bank is a financial institution, which acts as a prime agent for borrowing and lending of money. You will get more clarification about banking from the activities which a bank is supposed to do. Banks are responsible for carrying out current account transactions for the customers. Banks are also responsible for paying cheques and collecting cheques. There are many types of banks, and their activities can vary depending upon the nature of the bank. Generally, banks carry out consumer banking activities and on the basis of consumer banks, following are the types of retail banking: Commercial banks, Community banks, Postal saving banks, Saving banks, Ethical banks, Islamic banks, and Off-shore banks. These banks are responsible for storing money of people. On the other hand, there are two types of investment banks which also carry out different activities and these banks include Merchant banks and Underwrite banks. Banks are the main bodies which act as intermediaries between the borrowers and the creditors.

Banking activities include