Basic Functions of Banking
The basic functions of banking are:
The collection of funds from the public.The safeguarding of those funds.The transfer of those funds from one person to another without their leaving the bank (this is done by means of cheques or automatic transfer through the banking system, or via the Internet etc)The lending of that money to other parties for a return or reward called interest.
Loans made by a bank are based on the amount of funds held by the bank at any time, aft.