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Banking | Open Access Journals
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Journal of Business & Financial Affairs

ISSN: 2167-0234

Open Access

Banking

A bank is a financial institution that accepts people's deposits and recurring accounts and creates Demand Deposit. Lending activities can be carried out through capital markets either directly or indirectly. Because of their importance on a country's financial stability, banks in most countries are highly regulated. Eastern nations have developed a mechanism known as a fractional reserve banking system whereby banks retain liquid assets equal to only a portion of their current liabilities. In addition to other liquidity-based regulations, banks are typically subject to minimum capital requirements based on an international set of capital rules, called the Basel Agreement. Banking in its modern sense originated in the 14th century in the wealthy cities of Renaissance  Italy but was in many respects a continuation of credit and lending ideas and principles that had their origins in the ancient world.

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Citations: 1594

Journal of Business & Financial Affairs received 1594 citations as per google scholar report

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