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Description:

The fundamental function of a bank is to provide services related to the storing of deposits and the extending of credit. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services. Currently the term back is generally understood as an institution that holds a banking license. Banking licenses are granted by financial supervision authorities and provide3 rights to conduct the most fundamental banking service such as accepting deposits and making loans.

Typically, a bank generates profits from transaction fees on financial services and on the interest it charges for lending.