What is a bank
Activitybankand so multifaceted that it is very difficult to identify its essence. In modern conditionsbankand perform an extensive list of operations. They organize cash flow and credit relations, finance various sectors of the economy, buy and sell securities, provide consulting services and even own enterprises.
The most common opinion aboutbanke is his definition as an institution or organization. Of course,bankperforms a public function, but its relation to such terms is insignificant, since an organization is a group of people united by common goals (a charitable organization, a public organization). Banks were historically created by a private person and only later turned into associations.
The bank is closer to the enterprise. It is an independent economic entity, has the rights of a legal entity, produces and sells a product, acts on the principles of economic calculation.The bank, like the enterprise, solves the problems of satisfying social needs, selling the manufactured products and making a profit. Like any other business,bankmust have permission to conduct its activities.
A bank is a trading company. This interpretation of the concept stems from the fact thatbankoperates in the field of exchange, not production. Associationbankand trading enterprise is not accidental. After allbankreally sells and buys resources. It has its sellers, a warehouse (storehouse of valuables), and buyers.
A bank is a credit enterprise. Historically, it functioned as a credit center. A bank is one of the parties to a credit relationship, which can act both as a borrower and as a lender. By it's naturebankassociated with monetary and credit relations. It was at their base, he originated.
Generallybankand can be described as a system of special enterprises, the product of which is credit and equity business. Basis of activitybanka - the organization of the monetary process and the issue of money.
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