Case Study on Banking System

Banking System Case Study:

A bank in a private or public institution, which functions in the sphere of finance and offers various loaning and depositing services to people.

Banking system appeared in the development of the human civilization with the development of the monetary system. Banks carry out various operations with money with the intention to have high profit. Every bank exists due to the loaning service, that means people and great businessmen who want to improve the quality of their business and invest money into it borrow money from a bank and have to give back bigger sum than they have taken. In order to make even more money banks offer extra services.

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For example with the help of a bank it is possible to pay taxes, send money to another person and pay for goods and services. In order to attract people banks offer deposit services. That means a person who has much money and is afraid of keeping them at home can keep them in a bank and even receive certain monthly or annual percent from the sum. The bank in its turn uses the money placed for the deposit for various purposes, mostly at stock exchange. Evidently, there is certain risk in keeping money in banks, because very often they bankrupt and do not return money to people cause big problems. Nevertheless, banking system is strictly controlled by the government and such problems occur quite rarely. Besides, there state banks which are responsible for the finance and monetary system of the country and they are considered to be the most reliable ones.

Today banking system is extremely developed and influences all the spheres of human life. One can not receive his salary, pay taxes and buy some goods without banks, because the money makes the world go round and banks as components of the system rule the world as well. Young people who research the topic of banking system should devote enough time to reading reliable books and periodicals to understand the key aspects of the phenomenon. One should analyze the advantages and disadvantages of banking system and draw wise conclusions and understand the topic well. The research of the case is more limited and less complicated as that of the whole topic. One should research the cause and effect of the problem of the case to present the full picture of the occurred case.

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