THE BANKING SYSTEM

A bank is an institution with double funtcion. First of all, it functions as a saving bank. Secondly, it lends money to people who need it. It is also, therefore, a money lender.

Anyone can go to bank and deposit money, that is, asking the bank to look after it. He becomes a customer of the bank when he opens a bank account. There are two tpes of bank account. The first is a current Account. He can withdraw money by means of cheque and ATM. The customer has to sign the cheque beforre he does the transaction with that cheque. The other type of account is Time Deposit. On this type of account, the customer can deposits his money for a specific period of time. He can withdraw the money only at the maturity date. Interest is paid for this type of account.

A bank receives money from customers as well as lends money to its customers. A person who wants to borrow money has to give the bank something as collateral; for instance, a certificate showing ownership of a car or a piece of land.