Banking is an industry that handles cash, credit, and other financial transactions. Banks provide a safe place to store extra cash and credit. They offer savings accounts, certificates of deposit, and checking accounts. Banks use these deposits to make loans. These loans include home mortgages, business loans, and car loans.
What is Banking?
Banking is one of the key drivers of the economy. It provides the liquidity needed for families and businesses to invest for the future. Bank loans and credit mean families don’t have to save up before going to college or buying a house. Companies use loans to start hiring immediately to build for future demand and expansion.
Meaning and Explanation of Banking
Quite a long time ago, many of us were curious to know about the banking sector. Why do we need a bank, what is banking? the purpose behind the origin and what is bank?
History in making with striking simplicity, the birth, and evolution of banking has many untold stories. It is narrative fascinating that banking introduced in the 14th century in the cities of Italy and the bank of England was the first to begin the permanent issue of banknotes in 1695.
Banking is a financial institution and more about elaboration statics and technical jargon where individuals, ideas and ideologies move hand in hand and are highly regimented.
In today’s progressive world, the banking sector has become the backbone of every economy worldwide just like blood is to the veins and unique because of its formation, staffing and extraordinary services rendered by the industry. Banking sector works in the best interest of the country and due to their contribution in the financial stability, banking is highly regulated in most of the countries.
When the banking industry was born the primary job of banks was to mobilize money from individuals and lend most of the money to the companies. Of course, the major chunk was allocated to so-called priority sector of farming in most parts of the world and small-scale industries. But later the trend of lazy banking changed and scope of dynamism increased.
Definition of Banking
Banking is as per Section 5(1) of Indian Banking Companies Act 1949-
Banking means the accepting, for the purpose of lending or investment of deposits or money from the public, repayable on demand or otherwise and withdrawanable by cheque, draft, order or otherwise.
Kimberly Amadeo says-
Banking is an industry that handles cash, credit, and other financial transactions.
Collins English Dictionary defines as banking-
Banking is the business activity of banks and similar institutions.
Oxford English Dictionary defines banking-
Banking is the business of a Banker, the keeping or management of a bank.