Overview of Banks
What Is a Bank?
Banks are licensed financial institutions that offer services like accepting deposits or issuing loans. They may also provide other financial services, such as investments and foreign exchange.
Banks are essential to the economy because they allow businesses and individuals to store their money and make loans.
The national government or individual states regulate them. In some cases, they may be covered by regulations at both levels.
At the state level, the department of banking or the department of financial institutions regulates how banks work, including how much interest they charge.
Banks under their jurisdiction are usually audited and inspected to see if they follow regulations.
There are different types of banks, including commercial banks, savings and loan associations, credit unions, and investment banks. Each type of bank has its own unique set of services.
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True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.