What is the banking industry?
The banking industry is a huge sector of business and finance that has existed in a certain form in human civilization for thousands of years. In the modern world, the banking industry plays a big role in financial negotiations because it is the main and popular means of investing, loans and money storage. Banks exist around the world and are usually strongly regulated by world governments to prevent corruption and protect money to the general public.
Although there is some evidence of the banking industry in ancient Greece and during other early civilizations, it has been believed that they have played an important part of the development of the banking industry in the Middle East and Asia. The word "check" comes from the old Arab word for promising payments in delivery and historical records show some evidence of international banking trade between Islamic nations and China as early as the 9th century.
Many historians follow the foundations of modern banking to Italy 14th century, where rich Italian families have set up banks for loans and investing money intrade and trade. Over the next centuries, banks have emerged all over Europe and concentrated in the large ports of the Old World, where the shop was part of everyday life. With the transition from the precious metal currency to the Fiat Money Systems, the banking industry was less limited by the final resources and could further expand. The development of computer technology also plays a critical role in creating a global industry, since users have no longer been limited to physically visit the bank to manage transactions.
The banking industry provides clients a number of services and possibilities. The most basic function of the bank is to provide customers with a secure and guaranteed record of their accumulated money, usually made through a check -up account that can easily be accessed with selections and deposits. Banks also provide savings accounts that are also easily accessible but provide a slightly higher interest rate for funds. For many people, involvement in the banking industry is limited to these two basic accounts butIt is only what the industry offers.
Banks play a major role in investing and lending money. Most banks can use funds deposited in money lending or investment accounts; This practice allows the constant flow of loans and loans that keeps money circulating throughout the economy. Loans that many banks offer include commercial loans, real estate loans, vehicles for vehicles and credit lines. Investment services offered by many banks include retirement, deposit certificate (CD) and money market accounts.