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- Dictionarybank/baŋk/
noun
- 1. the land alongside or sloping down to a river or lake: "willows lined the bank of the stream" Similar
- 2. a long, high mass or mound of a particular substance: "a grassy bank" Similar
verb
- 1. heap (a substance) into a mass or mound: "the rain banked the soil up behind the gate" Similar
- 2. (with reference to an aircraft or vehicle) tilt or cause to tilt sideways in making a turn: "the plane banked as if to return to the airport" Similar
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Learn the meaning of bank as a noun and a verb in different contexts, such as money, river, mass, store, and sports. See how to use bank in sentences and phrases with examples and synonyms.
- Overview
- Principles of banking
finance
Written byGeorge A. Selgin
George A. Selgin
George A. Selgin Professor of Economics, University of Georgia Terry College of Business, Athens, Georgia. Author of Less Than Zero: The Case for a Falling Price Level in a Growing Economy and others.
Fact-checked byThe Editors of Encyclopaedia Britannica
The Editors of Encyclopaedia Britannica
The central practice of banking consists of borrowing and lending. As in other businesses, operations must be based on capital, but banks employ comparatively little of their own capital in relation to the total volume of their transactions. Instead banks use the funds obtained through deposits and, as a precaution, maintain capital and reserve accounts to protect against losses on their loans and investments and to provide for unanticipated cash withdrawals. Genuine banks are distinguished from other kinds of financial intermediaries by the readily transferable or “spendable” nature of at least some of their liabilities (also known as IOUs), which allows those liabilities to serve as means of exchange—that is, as money.
Britannica Quiz
A bank is a financial institution that accepts deposits and makes loans. Learn about the origins and evolution of banking, the different types of banks and the regulations that govern them.
Mar 28, 2023 · A bank is a financial institution that accepts deposits and makes loans. Learn about the different types of banks, such as retail, commercial, and investment banks, and how they are regulated by the government.
- Adam Barone
- 2 min
Learn the meaning of bank as a noun and a verb in different contexts, such as money, river, mass, store, and sports. See how to use bank in sentences and phrases with examples and synonyms.
Learn the various meanings and uses of the word bank, from a mound or slope to a financial institution or a group of objects. See synonyms, examples, etymology, and related phrases for bank.
Learn the meaning of bank as a noun in English, with pictures, pronunciation and usage notes. Find out the different types and functions of banks, idioms, collocations and word origin.
