A bank is a financial institution licensed to receive deposits and make loans.

Here's a more detailed breakdown:

• Deposits: Banks accept money from customers for safekeeping. These deposits can be in the form of checking accounts, savings accounts, and time deposits (like certificates of deposit).
• Loans: Banks lend money to individuals, businesses, and governments. These loans can be for various purposes, such as buying a home (mortgage), starting a business, or funding government projects.
• Other Services: Beyond deposits and loans, banks offer a range of other services, including:
  • Payment Processing: Facilitating transactions through checks, electronic transfers, and credit/debit cards.
  • Wealth Management: Providing investment advice and managing assets for individuals and institutions.
  • Currency Exchange: Converting one currency into another.
  • Safe Deposit Boxes: Providing secure storage for valuables.

Banks play a crucial role in the economy by channeling funds from savers to borrowers, facilitating economic activity, and providing essential financial services. Banks are highly regulated to ensure their stability and protect depositors.

For more information, you can refer to these resources:

• Investopedia definition of a bank
• FDIC - US Federal Deposit Insurance Corporation