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Finance-A subset of economics. the science that describes the management, creation and study of money, banking
What is banking?
A bank is a type of financial entity that lends money while both taking deposits from the general public and generating demand deposits. The bank may engage in lending activities directly or indirectly through the capital markets.
Because banks are crucial to the financial stability and economic health of a nation, they are subject to intense regulation in most jurisdictions. The majority of nations have institutionalized the fractional reserve banking system, in which banks keep liquid assets that are only partially equivalent to their current liabilities. Banks are typically subject to minimum capital requirements based on an international set of capital rules, the Basel Accords, in addition to additional restrictions meant to ensure liquidity.
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