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Principles of Banking

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Principles of Banking

download word file, 4 pages (37KB)

General Topic: Accounting - Money and Banking
Citation Style: APA
Sources: 5
Views: 122
Words: 1280
Pages: 4
Paper #: 39350717

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Banks are just one of many different types of financial intermediaries. Although banks have expanded their roles over time, they have maintained a relatively strict role for themselves. They accept deposits and lend out the money in the form of mortgages, business loans, credit cards and lines of credit. The banks accept deposits in a variety of forms as well

Banks are just one of many financial intermediaries that comprise the modern financial system. They are the second-largest financial intermediary, after pension funds (Federal Reserve Bank of San Francisco, 2001). Other institutional forms within the system are insurers, mutual funds, finance companies, credit unions and money market funds. Each has a specific role to play. Some of these institutions compete directly with banks in either deposits or lending. The leeway given to banks with respect to doing a wider range of business has helped them establish a strong market share, despite the increased amount of blurring between the different types of financial intermediaries (Marquis, 2001)......

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