What is a Bank. Introduction, Definition and Features of Bank
Post. Gaurav Akrani Date. 2/09/2011 10:15:00 AM IST
What is a Bank. Introduction ↓
The term bank is either derived from old Italian word banca or from a French word banque both mean a Bench or money exchange table. In olden days, European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging.
Image Credits © Tardiskey
A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends
money to those who need it.
Definition of a Bank ↓
Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out on customer's order."
Characteristics / Features of a Bank ↓
1. Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given by depositors.
2. Individual / Firm / Company
A bank may be a person, firm or a company. A banking company means a company which is in the business of banking.