What is bank

From the moment the banking institutions appeared to serve the business. However, with the evolution of society, they acquire many additional functions, more and more penetrating the daily life of an ordinary person. With the help of banks, many pay wages, pensions, pay utility payments, make translations and more. However, few people deliberate the existence and activities of these organizations.

The Bank is a licensed organization that is engaged in financial maintenance of economic activities of enterprises and individuals. Most of the world banking systems are two-level and include the following types of banks:

the central bank engaged in supervision of the monetary system of the country or group of countries carry out state regulation of the banking sector, monetary emissions;
commercial banks conducted by banking in order to profit.

Banks are forbidden to carry out industrial, insurance and trade activities. The main type of their activities is to attract funds with their subsequent placement on their own behalf on the terms of repayment, payability and urgency. The capital of the bank is divided into its own, who acts as a guarantee of returning to depositors of their funds, and borrowed. Own capital is formed from:

authorized capital, which can not be less than 300 million rubles;
profits of past years, formed in certain funds;
emisy income received by the positive difference between the share of bank shares and their nominal value.

Borrowed capital is formed from:

deposit deposits of the Bank's customers: the Bank takes on the use of funds from its customers (legal entities and individuals), during the prescribed period, multiplied funds are returned to the depositor;
interbank loans: one of the banks is in favor of the creditor, the second - as a borrower;
issued and purchased bills and bonds of the bank.

An important function of the bank is the storage of funds for individuals and legal entities. Many people trust their cash by bank institutions based on security reasons, preferring to keep money in bank accounts, not at home. For commercial organizations, it is advantageous to keep the maximum amount of cash in bank accounts, so as not to carry additional cash protection costs.

Banks produce non-cash payments between legal entities and individuals, allowing you to make various trading operations as quickly as possible, including currency.