How useful are the banks?

Manea Andreea Madalina

 What is a bank?

 A bank is a financial institution whose main object of activity

is to attract deposits and grant loans.
 A bank can provide a variety of services such as currency
exchange, safe deposit boxes, checking accounts, savings
accounts, wealth management, and debit and credit cards.
 Banks are organized in the form of a joint-stock company and
operate under the supervision of the central bank.
Why are the banks so important?

 Banks perform important functions for society.

 Banks take in funds (deposits) and lend them to
those who need funds.
 Banks are intermediaries between depositors and
borrowers.
 Banks provide security for our money and we get
interest on it.
 Banks offer financial advice and related financial
services, such as insurance.
How do the banks help us?

 Safety of deposits
 Bank is known for the security it provides, so
people go and deposit their savings, in this way
they know it is in a safe place.
 Money, valuables, records, and documents are
kept safe in a bank vault or safety deposit
boxes.
 Most deposits in banks are insured.
 Bank Vaults or safety deposit boxes are
intended to protect their contents from theft,
unauthorized use, fire, natural disasters, and
other threats.
How do the banks help us?

 Interest on deposits
 Commercial banks pay interest on
deposits.
 The interest rate for saving accounts is
more significant than for the current
accounts.
 Inflation is one of the factors that can
modify the value of your savings.
 Interest payments on bank savings can
be an important source of income.
 How do the banks help us?

 Loans
 A loan is a sum of money that is expected to be
paid back with interest.
 Bank lending varies from unsecured personal
loans to secured mortgage lending.
 Personal loan may be unsecured (car) and can be
paid back over a few years.
 Business loan is a loan for a firm used to expand
it.
 Mortgage is a loan used for purchasing a house, in
which case the house is owned by the bank until it
is paid back.
How do the banks help us?

 Other features
 Instant access to cash.
 Advice on financial matters.
 Methods to make international payments.
 Offering special offers to customers.
 Evaluation of the role and purpose of banking

 Loans are essentials to enable firms to invest and

expand.
 Protection over our valuables.
 Source of income from interest payments on
savings.
 Customers increasingly need banks to pay for bills
electronically.
 Bank loans and mortgages provide an opportunity
to purchase very expensive items and pay them
back over a long period.
Bibliography

 https://www.investopedia.com/terms/b/bank.asp
 https://ro.wikipedia.org/wiki/Banc%C4%83_(institu%C8%9Bie_financiar%C4%83)
 https://www.economicshelp.org/blog/glossary/banks/
 https://www.investopedia.com/safe-deposit-box-what-to-store-and-not-store-in-yours-4589
854
 https://www.investopedia.com/terms/m/mortgage.a
 https://money.usnews.com/banking/articles/is-my-money-safe-at-the-banksp