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Banking Jobs |
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A bank is a business that borrows from its customers on current
accounts repayable to its customers' cheques and collects
cheques for its customers' accounts. Banks may also issue bank
notes, and lend money to customers on current account (called
overdraft), accept term deposits and make term loans and provide
other financial services. Banks that issue notes are called
Banks of Issue.
Currently in most jurisdictions the business of banking is
regulated and banks require a licence. Banking licenses are
granted by bank regulatory authorities and provide rights to
conduct the most fundamental banking services such as accepting
deposits and making loans. There are also financial institutions
that provide certain banking services without meeting the legal
definition of a bank, a so called non-banking financial company.
Banks have a long history, and have influenced economies and
politics for centuries.
The word bank is derived from the Italian banca, which is
derived from a Germanic language and means bench. The terms
bankrupt and "broke" are similarly derived from banca rotta,
which refers to an out-of-business bank, having its bench
physically broken. Money lenders in Northern Italy originally
did business in open areas, or big open rooms, with each lender
working from his own bench or table.
Traditionally, a bank generates profits from transaction fees on
financial services and from the interest it charges for lending.
In recent history, with historically low interest rates limiting
banks' ability to earn money by lending deposited funds, much of
a bank's income is provided by overdraft fees and riskier
investments. |
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