Definition of Banking Activity

Banking activity is considered to be all the activities and processes that take place in a Bank or financial entity for the purposes of manage and lend money.

A bank is a institution financial that has the social and economic purpose of managing, lending and carrying out other operations with money. A bank is often a private institution, but it can also be considered as central bank of a economy national in this set of institutions. In other words, there are private, public, mixed, current, specialized, issuance, central and second-tier banks.
The banking system is called the group of entities that in an economy or society carry out the activities considered banking.

Within banking activities passive they are considered to be those through which the bank receives, collects or obtains money from individuals or companies. As a result of these passive operations, the opening of deposits such as checking accounts, savings account or savings account and fixed term, all of them with different characteristics at the interest of the

client. These banking activities are considered fund-raising.

On the contrary, in banking activities there are also active. They are those that involve the placement of money in the market, either through the generation of new money from the money received or through others. resources, and thus they can grant credits and loans under different conditions to that individual or company that requests it. This activity supposes the income of earnings for the bank, since all of them contemplate the collection of interests.

All banking activities in a given economy affect its course, the price of securities and are interdependent on the future of the stock and market in society. That is, production operations, exchange Y consumption of products, goods and services are also cause and consequence of what happens in banking activities.

Topics in Banking Activity