Banking System Term Paper

Banking system is the system of work of the financial institutions which provide various sorts of banking services. Naturally, banks appeared in the human civilization centuries ago and their structure, functions and manner and manner work has changed a lot. The primary duty of banks was to make loans lending money to the people and organizations which required money and then returned the money with serious percent. Later on the system of banking services has become more varied and fulfils other services which are more or less connected with economy, politics and social life. Banks are divided into private and state ones, so that there is a reason in the distribution of the capital and the amount of profit. Naturally, private banks work definitely for themselves for their own development and enrichment while the state banks have the duty to work for the sake of the national budget improving the national currency on the international level.

Among the functions and services which are popular in banking system are the monetary operations, depositing and making loans, investment and trade. The highest state central bank works with the country’s currency; other banks use their capital to invest the money into various projects private and state ones, for example, for the reforms of the government, etc. Every bank has a great number of clients who decide to keep their money in the bank depositing into it. So that, the money is kept in the bank and the sum growth constantly, because the bank uses the client’s money for his own purposes. At the same time the bank lends money to clients and takes percent for this service.

Banking system is the complicated system which combines a range of various services provided by banks. The student is able to prepare a quality term paper which would be accepted by the professor if he looks through a range of the quality and reliable sources. One should observe the topic form all sides, think about the origin of banks, touch upon the history of banking system and follow the chronological development of banks and their services. It is important to touch upon the structure, functions, advantages and disadvantages of banking systems of various countries.

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