Banking financial institution, depository institution: Financial institution that accept deposit and channel the money into lending activities is called depository institution. Bank: Central Bank Commercial Bank Development Bank Finance Company Microfinance Cooperatives Non banking financial institution, Contractual institution Employee Provident Fund Citizen investment trust Insurance companies Investment institution Brokers Investment bank underwriters
- A banking is a finance institution which deal with deposit, advance and other related services. it received money from those who want to save it in the form of deposit and it lends money to those who need it.
- Bank deals with money and its substitution and provide all the financial services.
- They also generates profit from the fees charged for the service.
- According to Kent, "Bank is organisation which principal operations are concerned with the accumulation of temporary ideal money of general people for the purpose of advancing to other for expenditure.
Banking development; [development of banking]
- Traditional form of banking traced back during the civilization of Greeks, Rome and Mesopotamia
- The terms "Bank" Is derived from the Latin word 'Bancus' which refers to the bench on which banker would keep money and record.
- Some people trace the origin of Italian word 'banks' means the bench.
- In ancient money lender used to conduct a business on bench.
- The early bankers, the Jews in Italy used to conduct their business on bench in the marketplace where a banker fail to meet its obligation, his 'Bench' used to be Broken into pieces by the people which indicate the bankruptcy of the individual banker
- As a public enterprises banking made its first appearance in Italy in 1157 AD when the bank venice was established
- Bank of Amsterdam established in 1609 AD, Bank of England established in 1694 correctly attributed to the London Goldsmith Bank of England was the first to begin the permanent issue of bank loan in 1695 AD
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