A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services, such as wealth management, currency exchange, and safe deposit boxes.
There are two types of banks:In most countries, banks are regulated by the national government or central bank.
Banks offer large number of different products. Some of the basic products examples are:
Each high developed country has its own regulatory institutions to supervise and control banks. The security of the client's deposit are very important and the credibility of the banking system is crucial for the development of business and the efficient functioning of the state. For example in United Kingdom all current or savings accounts and cash ISAs in banks, building societies and credit unions are covered by the Financial Services Compensation Scheme (FSCS). This limit used to be 75,000 GBP but from 30 January 2017 it increased to 85,000 GBP after the pound's post-Brexit fall prompted a review by the Bank of England. But this doesn't mean you'll get 85,000 GBP for every account - the 85,000 GBP is per financial institution. So if the bank fails, you'd get back up to 85,000 GBP per person, per financial institution. The majority should get it within seven working days.
In United States of America the regulatory institution is called the FED (The Federal Reserve) The Federal Reserve is responsible for supervising--monitoring, inspecting, and examining--certain financial institutions to ensure that they comply with rules and regulations, and that they operate in a safe and sound manner. Supervision of financial institutions is tailored based on the size and complexity of the institution.
