A bank is a financial institution that accepts deposits from the public and creates credit

A bank is a financial institution that accepts deposits from the public and creates credit.┬áLending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations […]