Bank

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For other uses, see Bank (disambiguation).
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The Bank of England, established in 1694

Part of a series on financial services

Banking

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Types of banks

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Accounts · Cards

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Funds transfer

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Terms
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A bank is a financial institution that accepts deposits from the public and creates a demand

deposit while simultaneously making loans.[1] Lending activities can be directly performed by the
bank or indirectly through capital markets.
Because banks play an important role in financial stability and the economy of a country, most
jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a
system known as fractional reserve banking, under which banks hold liquid assets equal to only a
portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks
are generally subject to minimum capital requirements based on an international set of capital
standards, the Basel Accords.
Banking in its modern sense evolved in the fourteenth century in the prosperous cities
of Renaissance Italy but in many ways functioned as a continuation of ideas and concepts
of credit and lending that had their roots in the ancient world. In the history of banking, a number
of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs, and
the Rothschilds — have played a central role over many centuries. The oldest existing retail
bank is Banca Monte dei Paschi di Siena (founded in 1472), while the oldest existing merchant
bank is Berenberg Bank (founded in 1590).

Contents

 1History
 2Etymology
 3Definition
o 3.1Standard business
o 3.2Range of activities
o 3.3Channels
o 3.4Business models
o 3.5Products
 3.5.1Retail
 3.5.2Business (or commercial/investment) banking
 4Capital and risk
 5Banks in the economy
o 5.1Economic functions
 6Bank crisis
o 6.1Size of global banking industry
 o 6.2Mergers and acquisitions
 7Regulation
 8Different types of banking
o 8.1Types of bank
o 8.2Types of investment banks
o 8.3Combination banks
o 8.4Other types of banks
 9Challenges within the banking industry
o 9.1United States
o 9.2Loan activities of banks
 10Types of accounts
o 10.1Brokered deposits
o 10.2Custodial accounts
 11Globalization in the banking industry
 12See also
 13References
 14External links