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Banking

A Guide to Understanding the Basic Concepts of Banking

by Skills.Money
in Blog, Economy
Reading Time: 4 mins read
A A

Banking is a financial intermediation system consisting of banks, other types of financial institutions, and the various systems they use to issue currencies, make loans, and invest.

A bank is a financial institution that accepts deposits and channelizes these deposits into lending activities, either directly by loaning or indirectly through capital markets.

The primary role of banks is to connect those with funds, such as investors and depositors, to those seeking funds, such as individuals or businesses needing loans.

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