Banking refers to the financial business of accepting deposits from the public, providing loans, and offering various financial services. It is primarily conducted by banks and financial institutions, which play a critical role in the economy by facilitating transactions, enabling savings, and providing credit.
Banks serve as intermediaries between depositors, who provide capital, and borrowers, who seek funds for various purposes, such as purchasing homes, financing businesses, or funding projects. The core functions of banking include accepting deposits, extending loans, managing the transfer of money, and offering additional services like checking and savings accounts, wealth management, and investment services.
The banking sector is essential for maintaining liquidity in the economy, influencing interest rates, and ensuring the overall stability of the financial system. Different types of banking institutions include commercial banks, investment banks, credit unions, and savings and loan associations, each serving specific segments of the economy or types of customers. Overall, banking is a fundamental component of the global financial system, facilitating economic growth and development.
The UK banking sector is undergoing a transformation with a significant shift from physical branches to digital services, leading to widespread closures. In March, 21 bank branches in England, Wales,…