Overview of Banking

Definition: Banking refers to the business of accepting deposits, providing loans, and offering other financial services.
Types of Banks:
- Commercial Banks: Provide services to individuals and businesses; accept deposits and make loans.
- Investment Banks: Facilitate the buying and selling of securities, offer advisory services for mergers and acquisitions.
- Central Banks: Manage a country's currency, money supply, and interest rates; oversee monetary policy.
- Savings and Loan Associations: Specialize in accepting savings deposits and making mortgage loans.

Accepting Deposits:
- Savings accounts, checking accounts, time deposits (CDs).
Providing Loans:
- Personal loans, mortgages, business loans.
Facilitating Payments:
- Processing transactions through checks, electronic payments, and debit/credit cards.
Wealth Management:
- Investment services, financial planning, and retirement accounts.
Currency Exchange:
- Buying and selling foreign currencies.

Regulations ensure the stability and integrity of the banking system.
Key regulations include:
- Capital Requirements: Banks must hold a certain level of capital to absorb losses.
- Reserve Requirements: A percentage of deposits must be held as reserves.
- Consumer Protection Laws: Regulations to protect consumers from unfair banking practices.

Online Banking: Provides access to bank services via the internet.
Mobile Banking: Banking transactions through mobile apps.
Fintech: Financial technology innovations like peer-to-peer lending, robo-advisors, and digital wallets.

Digital Transformation: Shift towards online and mobile banking services.
Sustainability: Growing focus on environmentally friendly banking practices.
Cybersecurity: Increasing measures to protect against cyber threats and fraud.
Open Banking: Sharing of financial data with third-party providers to enhance services.

Economic Fluctuations: Impact of interest rates, inflation, and economic downturns.
Regulatory Compliance: Navigating complex regulations and compliance requirements.
Technological Disruption: Adapting to rapid changes in technology and consumer behavior.
Competition: Rivalry from fintech companies and non-bank financial institutions.

Banking encompasses accepting deposits, providing loans, and delivering diverse financial services.
Commercial Banks: Cater to individuals and businesses, holding deposits and granting loans.
Investment Banks: Engage in securities trading, offering advisory for mergers and acquisitions.
Central Banks: Oversee a nation's currency, manage money supply, interest rates, and implement monetary policy.
Savings and Loan Associations: Focus on accepting savings deposits and issuing mortgage loans.

Banks accept deposits through various accounts, including savings, checking, and certificates of deposit (CDs).
Offering various loan types such as personal loans, mortgages, and business loans.
Facilitate payment processes including checks, electronic payments, and the use of debit/credit cards.
Provide wealth management services, including investment advice, financial planning, and retirement solutions.
Engage in currency exchange operations, buying, and selling foreign currencies.

Regulatory frameworks safeguard the stability and integrity of banking systems.
Capital Requirements: Mandate that banks maintain a minimum capital level to absorb potential losses.
Reserve Requirements: Obligate banks to hold a specific percentage of deposits as reserves for stability.
Consumer protection laws are established to shield customers from unfair or deceptive banking practices.

Online Banking: Allows customers to access banking services over the internet, enhancing convenience.
Mobile Banking: Enables transactions and account management through mobile applications.
Fintech: Innovations such as peer-to-peer lending, robo-advisors, and digital wallets revolutionizing traditional banking practices.

Digital Transformation: Marked transition towards increased online and mobile banking services.
Sustainability: Rise in environmentally conscious banking methods and practices.
Cybersecurity: Growing efforts to defend against cyber threats and fraudulent activities.
Open Banking: Encouraging data-sharing with third-party providers to enhance customer services and experiences.

Economic Fluctuations: Banking strategies heavily influenced by interest rates, inflation, and economic downturns.
Regulatory Compliance: Complex regulations pose challenges, demanding thorough navigation and adherence.
Technological Disruption: Banks must continuously adapt to swift technological advancements and changing consumer expectations.
Competition: Increased rivalry from fintech entities and non-bank financial services intensifies the banking landscape.