Banking: meaning, definitions and examples
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banking
[ˈbæŋkɪŋ ]
Definition
finance sector
Banking refers to the business conduct of accepting deposits, offering loans, and providing other financial services. It is essential for facilitating economic transactions and supporting financial systems by allowing individuals and businesses to manage their money. Banks, credit unions, and other financial institutions engage in banking to help customers with savings accounts, checking accounts, mortgages, and investment services. The banking sector plays a critical role in the economy by influencing the availability of credit and the flow of money.
Synonyms
banking services, finance, financial institution.
Examples of usage
- I need to visit the bank for some banking services.
- He works in the banking industry and specializes in loans.
- The banking system is vital for economic stability.
Interesting Facts
Historical Origins
- The word 'bank' comes from the Italian 'banca,' meaning bench, where moneylenders conducted their business.
- The first banks were established in Mesopotamia over 4,000 years ago, functioning as grain storage facilities.
- In the 17th century, the Bank of England was founded, marking the beginning of modern central banking.
Economics
- Banking plays a crucial role in the economy by providing loans that stimulate business and consumer spending.
- Interest rates set by banks influence how much people save or borrow, affecting the overall economic activity.
- Central banks control monetary policy, which includes managing inflation and employment rates through banking regulations.
Technology
- Online banking emerged in the 1990s, allowing customers to access their accounts and make transactions from home.
- Mobile banking apps are growing in popularity, offering services like money transfers and bill payments directly from smartphones.
- Blockchain technology is set to revolutionize banking by enabling secure, transparent transactions without intermediaries.
Cultural Impact
- Banks have been featured in many films and books, often symbolizing power, greed, or the struggle against corruption.
- Different cultures have unique banking practices; for instance, Islamic banking adheres to Sharia law, prohibiting interest.
- The phrase 'not a bank, but a community!' represents the rise of credit unions as alternatives to traditional banking institutions.
Science
- Behavioral economics studies how psychological factors influence people's banking choices and financial decision-making.
- Experts analyze how stress and anxiety can impact people's relationship with money, often leading to poor financial decisions.
- Neuroscience research indicates that different regions of the brain are activated when making financial decisions, highlighting the cognitive load involved.
Translations
Translations of the word "banking" in other languages:
🇵🇹 bancário
🇮🇳 बैंकिंग
🇩🇪 Bankwesen
🇮🇩 perbankan
🇺🇦 банківська справа
🇵🇱 bankowość
🇯🇵 銀行業
🇫🇷 banque
🇪🇸 banca
🇹🇷 bankacılık
🇰🇷 은행업
🇸🇦 البنكية
🇨🇿 bankovnictví
🇸🇰 bankovníctvo
🇨🇳 银行业
🇸🇮 bančništvo
🇮🇸 banka
🇰🇿 банктік
🇬🇪 ბანკინგი
🇦🇿 bankçılıq
🇲🇽 banca