A banker or bank is a financial institution that acts as a payment agent for customers, and borrows and lends money. The first modern bank was founded in Italy at Genoa in 1406, its name was Banco di San Giorgio(Bank of St.George).
Banks act as patment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTPOS and ATM.
Banks borrow money by accepting funds deposited on current account, accepting term deposites and by issuing debt securities such as bank notes and bonds. Banks lend money by making advances to customers on current account, by making installment loans, and by investing in marketable debt securities and other formsof lending.
Banks provide almost all payment sevices, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account.
Bank borrow most funds borrowed from households and non-financial businesses, and lend most funds lent to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to.
