Bank Management

Term Paper

on

“An Overview of Banks and Their Services”

Main Idea

There is an old joke attributed to comedian Bob Hope that says “a bank is a financial institution where you can borrow money only if you can prove you don’t need it.” Although many of a bank’s borrowing customers may get the impression that old joke is more truth than fiction, the real story is that banks today readily provide hundreds of different services to millions of people, businesses, and governments all over the world. And many of these financial services are vital to our personal well-being and the well-being of the communities and nations where we live.

Banks are the principal source of credit (loan able funds) for millions of individuals and families and for many units of government (school districts, cities, counties, etc.). Moreover, for small businesses ranging from grocery stores to automobile dealers, banks are often the major source of credit to stock shelves with merchandise or to fill a dealer’s lot with new cars. When businesses and consumers must make payments for purchases of goods and services, more often than not they use bank-supplied checks, credit or debit cards, or electronic accounts accessible through a Web site. And when they need financial information and financial advice, it is the banker to whom they turn most frequently for advice and counsel. More than any other financial-service firm, banks have a reputation for public trust.

Worldwide, banks grant more installment loans to consumers (individuals and families) than any other financial-service provider. In most years, they are among the leading buyers of bonds and notes governments issue to finance public facilities, ranging from auditoriums and football stadiums to airports and highways. Banks are among the most important sources of short-term working capital for businesses and have become increasingly active in recent years in making...