banking system


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Banking

The network of institutions and laws that provide a great variety of financial services. At its most basic, banking involves an institution holding money on behalf of customers that is payable to the customer on demand, either by appearing at the bank for a withdrawal or by writing a check to a third party. The banking system also provides loans to businesses and individuals. Many banks also perform other services for a fee; for instance, they offer certified checks to customers guaranteeing payment to third parties. In some countries, they may provide investment and insurance services. With the exception of Islamic banks, banking almost always involves the payment of interest on deposits and reception of interest on loans. Banking is regulated by the laws and central banks of individual countries.

banking system

a network of COMMERCIAL BANKS and other more specialized BANKS (INVESTMENT BANKS, SAVINGS BANKS, MERCHANT BANKS) which accept deposits and savings from the general public, firms and other institutions, and which provide money transmission and other financial services for customers, operate loan and credit facilities for borrowers and invest in corporate and government securities. The banking system is part of a wider FINANCIAL SYSTEM and exerts a major influence on the functioning of the ‘money economy’ of a country Bank deposits occupy a central position in the country's MONEY SUPPLY and hence the banking system is closely regulated by the monetary authorities. See CENTRAL BANK, BANK OF ENGLAND, CLEARING HOUSE SYSTEM.

banking system

a network of COMMERCIAL BANKS and other more specialized BANKS (INVESTMENT BANKS, SAVINGS BANKS, MERCHANT BANKS) that accept deposits and savings from the general public, firms and other institutions, and provide money transmission and other financial services for customers, operate loan and credit facilities for borrowers, and invest in corporate and government securities. The banking system is part of a wider FINANCIAL SYSTEM and exerts a major influence on the functioning of the ‘money economy’ of a country. Bank deposits occupy a central position in the country's MONEY SUPPLY and hence the banking system is closely regulated by the money authorities. See BANK OF ENGLAND, CENTRAL BANK, CLEARING HOUSE SYSTEM.
References in periodicals archive ?
He called on lending agencies to submit their proposals on how to tackle problems existing in the country's banking system for consideration.
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The Board believes that umbrella supervision is a realistic necessity for the protection of our financial system and to limit any misuse of the sovereign credit, that is, the government's guarantees that support the banking system through the safety net.
The banking system cannot continue to operate as it has in the past--with high-volume, low-margin lending operations--and still be successful in the global economy.
He added however that it was better to clean up the banking system later than never.
Once the Japanese banking system became undercapitalized and started rolling over vast numbers of non-performing loans in the mid-1990s, the credit channel of monetary policy shut down.
Let me begin by pointing out that the overall condition of the American banking system is very strong.
Although the intervention of Bancomer appears to be under control, any broader impact or loss of confidence in the banking system could put the sovereign's creditworthiness at risk, particularly if this begins to negatively affect Guatemala's otherwise benign macroeconomic fundamentals.