A bank is an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans.
- The primary function of banks it to put their account holder’s money to use by lending it out to other who can then use it to buy homes, businesses.
- When you deposit your money in the bank, your money goes into a big pool of money; when you write checks or make with drawls, that amount is deducted from your account balance.
The ethical banks offer the same banking services as traditional banks. It give priority to ethical valves and to the social and environmental consequences. Ethical banks give a contribution to:
- Sustainable development;
- Social development;
- Improvement in the quality of life;
- Protection of the environment.
The British banking system is the central bank of the UK. It as many roles:
- It sets interest rates in order to meet the Government’s inflation target;
- It acts as banker to other banks;
- It collects and publishes money and banking data.
There are a 4 main types of banks in Britain:
1- Commercial banks which deals with individuals and companies; it offer banking services to the general public and many businesses.
2- Savings banks which provide savings accounts;
3- Merchant banks are institutions specialized in providing services to companies or governments;
4- Building societies which provide savings schemes for investors and specialize in mortgage loans.
The stock exchange is a very complex organization where capital transactions of stocks and bands, funds. The London stock exchange was founded in 1773 and was reorganized in 1986. There is a new screen-based dealing system was introduced putting an end to the traditional trading on the floor and the separate roles of the sock brokers and the jobbers were combined into one: the market maker.
Most banks now offer e-banking in addition to their normal services.
Their customers can carry out electronically a number of transaction, such as checking their accounts, paying bills. There are a various types of e- banking:
- Online banking are virtual banks which don’t have branches their customers can visit: their services the only available to Internet users. It offers higher rates for interest and lower interest on credit card;
- Home banking from where the customers connects for enter in bank’s software.