Banking

Bank is to provide services related to the storing of value and the extending credit. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services. 

Currently the term bank is generally understood an institution that holds a banking license. Banking licenses are granted by financial supervision authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. 

There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-bank. Banks are a subset of the financial services industry.

Typically, a bank generates profits from transaction fees on financial services or the interest spread on resources it holds in trust for clients while paying them interest on the asset. 

Although the type of services offered by a bank depends upon the type of bank and the country. 

Services provided by banks usually include:

• Directly take deposits from the general public and issue checking and savings accounts .
• Lend out money to companies and individuals.
• Cash checks.
• Facilitate money transactions such as wire transfers and cashiers checks.
• Issue credit cards, ATM, and debit cards.
• Storage of valuables, particularly in a safe deposit box.
• Online banking.

These days online banking is very popular. Online banking (Internet banking) is a term used for performing transactions, payments etc. over the internet through a bank's secure website. Internet banking can be very useful, especially for banking outside bank hours (which tend to be very short) and banking from anywhere where internet access is available. In most cases a web browser is utilized and any normal internet connection is suitable. No special software or hardware is usually needed.

• Central banks: Usually control monetary policy and may be the lender of last resort in the event of a crisis. They are often charged with controlling the money supply, including printing paper money.
• Investment banks: Underwrite stock and bond issues and advise on mergers. 
• Merchant banks: Traditionally banks which engaged in trade financing. The modern definition, however, refers to banks which provides capital to firms in the form of shares rather than loans. Unlike Venture capital firms, they tend not to invest in new companies.
• Private banks: Manage the assets of the very rich. 
• Savings banks: Write mortgages exclusively.
• Offshore banks: Banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks.
• Commercial banks: Primarily lend to businesses (corporate banking)
• Retail banks: Primarily lend to individuals.
• Universal banks: Engage in several of these activities. For example, Citigroup, a large American bank, is involved in commercial and retail lending; it owns a merchant bank (Citicorp Merchant Bank Limited) and an investment bank (Salomon Smith Barney); it operates a private bank (Citigroup Private Bank); finally, its subsidiaries in tax-havens offer offshore banking services to customers in other countries.

The number of customers who choose online banking as the preferred method of dealing with their finances is growing rapidly due to the clear improvement in convenience it offers, including such features as electronic bill payment. There are also more and more banks that operate exclusively online.