Business, What monetary institution is


by Robert Bell - Date: 2008-12-21 - Word Count: 334 Share This!

The explaination of a bank varies from country to country. Under English law, a bank is defined as a person who transmit on the trade of banking, which is particular as: perform current accounts for his customers 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 loan money. In some countries such as Germany, banks are the primary landlord of manufacturing corporations while in other countries such as the United States banks are bannned 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 behave checking or present accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also allow customer payments via other payment technique such as telegraphic transfer, EFTPOS, and ATM.

Banks borrow money by uncomplaining funds deposited on current account, accepting term deposits and by deliver debt securities such as banknotes and tie. Banks lend money by making advances to customers on current account, by making instalment loans, and by investing in saleable 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 leadership. Non-banks that provide payment assistance such as allowance 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 households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market support, cash management trusts and other non-bank financial institutions in many cases provide an adequate replacement to banks for lending savings to. Freitas is the publisher of Emprestimo. You can find more articles at our bilingual Loan Website.. Visit What economic institution is.


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