Banking refers to the financial activities and services provided by banks, which are institutions that accept deposits, offer loans, and facilitate transactions for individuals, businesses, and governments. The primary functions of banking include accepting savings accounts and time deposits, providing personal and commercial loans, issuing credit, and offering various financial products such as mortgages, investment accounts, and insurance services.
Banks act as intermediaries in the economy, channeling funds from savers (depositors) to borrowers, thus facilitating liquidity and financial stability. They also play a critical role in the payment system, enabling the transfer of money through checks, debit cards, and electronic transfers. In addition to traditional banking, there are also investment banks that deal with securities, mergers, and acquisitions, providing advisory services and underwriting new debt and equity securities.
Banking is essential for economic growth, as it supports consumer spending, business investments, and overall financial health within a society. The banking sector is often subject to regulation to ensure stability, protect consumers, and maintain confidence in the financial system.
Taro Kitabayashi, a seasoned strategist, takes over as chairman of Norinchukin Bank amid financial challenges. The bank faces significant hidden losses from bond holdings, with a projected deficit of 2…