The role of the bank

The role of the bank

A bank is a company that operates money. Its existence facilitates the financing and financing of social funds. It is a very important member of financial institutions. We can see the bank's business. On the one hand, it collects the idle money and small money savings in the society by means of deposits, and then lends it to people who need to add money in the form of loans; here The bank acts as an intermediary between the lender and the borrower. On the other hand, banks handle the collection, payment, and settlement of money for commodity producers and merchants, and they act as payment intermediaries. In short, the bank acts as a credit intermediary. The basic functions of commercial banks include: credit intermediaries, payment intermediaries, credit creation, and financial services.