Banken

Banken is the plural form of Bank in German and Dutch, and in those languages can refer to financial institutions as well as to banks in a general sense. In economics and law, the term is used to describe the system of financial intermediaries that accept deposits, make loans, and provide payment services. In English, the singular is bank and the plural is banks.

Banks perform core functions that support economic activity. They accept deposits, issue loans, process payments and transfers, and offer advisory, custody, and asset-management services. Through lending, banks create money by credit creation, and they manage risk for customers and themselves. Central banks, by contrast, steer monetary policy and oversee the financial system to maintain stability and liquidity.

Types of banks include commercial or retail banks that serve households and small businesses; corporate banks that handle large clients and complex transactions; savings banks and cooperative banks that emphasize regional or member ownership; and investment banks that focus on markets, underwriting, advisory services, and trading. Central banks are the monetary authorities for a country or currency area.

Banking is regulated to promote safety, reliability, and fair treatment of customers. Regulations cover capital adequacy, liquidity, consumer protection, and anti-money-laundering controls. Deposit insurance protects savers in many countries. The sector is increasingly shaped by digital banking, fintech competition, cybersecurity, and data sharing standards such as open banking.