Bankas

Bankas is a financial institution that accepts deposits, makes loans, and provides a range of financial services to individuals, businesses, and governments. In Lithuanian, the term bankas is used for a bank, with the plural bankai referring to multiple banks. The concept exists in many languages, often with a similar function and regulatory framework.

The core functions of a bank include accepting deposits, which provide the funding for lending; granting loans and credit; enabling payments and money transfers; and offering safekeeping, wealth management, and advisory services. Banks also perform risk management for clients and themselves, facilitate liquidity in the economy, and contribute to monetary policy transmission through reserve requirements and interest rates.

Banks can be categorized into several types, including commercial banks that serve households and businesses, savings or cooperative banks focused on particular communities, investment banks that handle underwriting and advisory work, central banks that oversee monetary policy and financial stability, development banks that support specific sectors, and online or digital banks that primarily operate without physical branches.

Regulation and supervision are central to banking. Banks are generally subject to capital adequacy, liquidity requirements, consumer protection laws, and conduct standards set by national authorities. Deposit insurance schemes and resolution frameworks aim to protect savers and maintain financial stability, while central banks act as lenders of last resort and oversee payment systems.

Historically, banking emerged in medieval and Renaissance Europe with moneylenders and merchants evolving into organized banks. The modern banking system expanded rapidly in the 19th and 20th centuries, evolving with technology, globalization, and financial markets. Today, banking continues to adapt to digital technology, fintech competition, and evolving regulatory expectations, while remaining a cornerstone of the financial system.