Definition of A Bank in finance

A bank in the general sense is simply a financial institution which receives customer deposits. Due to the fact that banks have control over the money of the general population, they are usually highly regulated by the government and central bank.

There are two kinds of bank:

• Investment Bank - provides financial services such as asset management, corporate finance, sales & trading, equity research
• Commercial / Retail Bank - manages the money of customers in savings accounts, current accounts and provides services such as loans, credit cards etc.