What is the Business of Banking and Finance:
Banks play a vital role in both the economy and society as a whole. This was demonstrated in no uncertain terms by the global financial crisis when banks' stability – or instability in this case.
It had very real effects not only on the financial markets but on the broader real economy and the individuals and entities that form parts of it. Banks play a pivotal role in relation to "moving money," acting as intermediaries in this process. Their role can be broadly divided into the provision of credit and capital, and money transfer.
Banks take money from those who have no immediate need for it, and give it to those who have such a need. This can be achieved through direct borrowing and lending activities.
Banks take most money in through customer deposits and interbank borrowings, and lend money out through customer loans, mortgages, and other forms of financing. In addition, banks may engage in capital market activities – that is, banks transfer money from lenders to borrowers through activities such as underwriting and distributing securities
