BANKS

A bank is a type of financial institution that acts as a payment agent for customers, and borrows and lends money. In the United States banks are not allowed to own non-financial companies. Banks operate as payment agents since they conduct checking or current accounts for customers, paying checks, and collecting checks deposited the current accounts. Banks also enable customers to pay via other payment methods which include telegraphic transfer, EFTPOS, and ATM. Banks borrow money since they accept funds placed on current accounts, accept term deposits and issue debt securities. Banks offer almost all types of payment services. The activities of a bank can be subdivided into retail banking, private banking, business banking, and investment banking. Most banks are profit-making and private enterprises. However, some banks are government-run, or non-profits. Central banks, as a rule, are government owned.