Question

write a note on bank and its negative points and positive points

Answer 1

A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in the prosperous cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties  – notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds  – have played a central role over many centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.

Advantages - 

Credit Unions typically pay higher dividend rates on savingsCredit Unions typically offer lower rates on loansCredit Unions typically provide better service; since they are owned and governed by their membership, they tend to prioritize the needs of their members above all elseCredit Unions operate on a not-for-profit business model, so excess earnings are returned back to the membership in form of competitive rates and lower fees, and sometimes even special dividendsMany Credit Unions offer the same products and services found at banksCredit Unions often have added-value benefits, such as free financial education, discounted theme park tickets, and special member rates for services such as home alarm systems...even discounts at online retailers like Barnes & Noble.

Disadvantages - 

Credit Unions, and in particular smaller local credit unions, struggle to match the level of convenience (ATMs and branches) that many banks provide their customers, although many CUs are part of shared networks which enhance the breadth of delivery channels available to their membersSome Credit Unions are limited in their product offeringsOne must qualify for membershipOne must pay a membership fee to join