Banking refers to the financial sector that encompasses institutions such as commercial banks, investment banks, credit unions and other financial entities that offer a variety of financial services, including deposits, loans, wealth management, investments and payment services. These institutions play a central role in the economy, facilitating the allocation of financial resources, intermediating loans and providing essential banking services to consumers, businesses and governments. Banking plays a crucial role in the global financial system and is fundamental to the management of personal and corporate finances.
A financial institution that offers a wide range of financial services, including deposits, loans, wealth management, currency exchange, payment services and other financial products. Banks play a key role in the economy, serving as financial intermediaries that channel funds from depositors to borrowers and offer a variety of financial solutions to their customers. In addition, banks play a crucial role in financial security, risk management and promoting economic growth. They are regulated by financial authorities to ensure the stability of the financial system and the protection of customers' interests.
A formal commitment issued by a financial institution, such as a bank, on behalf of a customer (usually a company or entity) to guarantee the fulfilment of financial or contractual duties towards a third party, often referred to as the beneficiary. This guarantee assures the beneficiary that, in the event of the customer failing to meet its duties, the bank will honour the payments or fulfil the terms of the established agreement.
Person, company or entity that obtains a loan or financial credit from a lender, which can be a financial institution such as a bank, credit union or other entity authorised to lend money. The borrower is the party that receives the borrowed funds and agrees to fulfil the terms and conditions set out in the loan agreement.