Today's Banks Are Not Just For Mortgages, Loans and Investments
Banks are recognized to provide financial services, from storing assets (liquid or elsewhere) to extending credit. From the bank customer's viewpoint, this means services which range from making deposits to requesting a loan. Folks are now even with the capacity of paying their bills & most of these purchases through different banking methods.
Historically, banks have already been viewed as heartless and opportunistic. These were viewed as vicious businesses victimizing the innocent and honest. Needless to say, eventually, through time, this view has drastically changed. Banks today are among the highly-respected and successful business establishments in the united kingdom. Now that folks are more educated concerning the banking operations, they will have learned to trust these lenders with not merely their savings and assets, but with other transactions aswell.
It is said that the term bank originated from the Italian word banca, which originated from Germany and means bench. Money lenders (now popularly referred to as "loan sharks") from Northern Italy used to conduct their business in open areas, each working from their own bench. Similarly, the word bankrupt (this means broke) was produced from the word banca rotta, or perhaps a broken bench.
Now, I'm sure you've heard about central banks, savings banks, commercial banks, private banks, etc. What differentiates one from another? There are lots of forms of banks.
In a nutshell, below are a few of the popular ones and what commonly distinguishes each from others:
Central banks are often charged with controlling the monetary policies, like the money supply. Also, they are tasked with the printing of paper money. Savings banks traditionally offer services like savings and mortgages. But at the moment, they will have expanded to provide other styles of financial assistance. Commercial banks usually offer financial services to large corporations or businesses. Private banks manage the assets of the ultra-rich. They're usually situated in jurisdictions with low taxation and regulation (Yes, those infamous Swiss banks and Swiss accounts...).
There may also be merchant banks, which provide capital to firms by means of shares instead of loans; investment banks, which cope with selling of stocks and bonds sufficient reason for advising on mergers; retail banks, where in fact the primary customers are individuals and; universal banks, that offer diversified financial services and take part in a number of different banking activities.
How does this type of business earn its money? Traditionally, a bank's main resources of income result from transaction fees from its selection of financial services and from the interests it costs for its loans. However in days gone by years, banks have evolved to make sure their continued profitability regardless of the changing market conditions. Banking, investment and insurance functions were merged to focus on the consumer's "one-stop shopping" mentality.
Indeed, banks attended quite a distance from enough time they conducted their business on benches. They're changing because folks are changing. Also it all started on your day when man felt that his valuables were no more safe in their own home. In the end, anyone can sleep more peacefully during the night understanding that his assets are saved in a secure place.