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Banking and Finance depict the dynamic, challenging world of finance, stocks, credit and securities. Finance is a vital component of a modern economy, as it offers the necessary liquidity in the form of cash or securities needed for businesses and individuals to invest in order to secure the future for both. It is one of the most important factors determining a country’s economic growth and position in the world markets.

Banks play a key role in all economic activity. They provide monetary services such as collecting loan payments, granting loans, dealing in various forms of financial transactions such as investing in securities, and many more. The role of banks in society is therefore indispensable and crucial. In fact, without banking and finance, the entire system of the economy would collapse.

There are various types of banking. It includes savings and lending, building and construction, insurance, commodity and stock markets, commerce and finance, and banking and finance . A wide variety of activities is conducted through banks. Moreover, the banking and finance sector helps a country to take various steps for growth and development opportunities. Let us look at the main functions performed by banks in today’s economy.

Business Administration: Major functions performed by banks in today’s economy include business planning, management, and organization of finance and monetary policies. All important decisions are made by senior loan officers, including the CEO, president, managers, and board of directors. Bank managers also constitute the major part of the workforce working in the banking and finance sector. Some of the senior positions are as follows: CEO, president, senior vice president, manager, and loan officers.

Financial Institutions: The banking industry includes major financial institutions such as commercial banks, credit unions, savings and loans, and mortgage banking companies. Most of the financial institutions are classified according to the size of their assets. Larger financial institutions are classified as “bailed out” institutions by the government. Several people were employed in the banking industry who lost their jobs due to financial crisis. Many people have also lost their jobs in the past few years mainly because of the poor economy. To help stabilize the economy, various financial institutions got bailouts from the government.

Finance: The major function performed by banks is to provide finance. This means providing loan officers, whose duty it is to apply for new loans and collect payments from customers. The work of a loan officer requires a bachelor’s degree in business administration. In addition to this, you will also need additional degrees such as accounting, finance, economics, and statistics.

Non-Banking Financial Institutions: The other main category of financial institutions is the non-banking financial services. They are usually not profit making organizations. They provide non-financial services such as pension management, insurance, asset allocation, estate planning, investment, personal loans, merchant banking, cash advance, and international banking. These services are usually performed by employees with master’s degrees in finance.

Basically, the banking and the finance industry play two roles in society. Banks provide services and serve consumers, while non-bank finance service providers to provide financial services. Even though there are some differences between these two groups, both still work together in the interest of the economy.

Finance Law: A large part of banking and the finance industry fall under the area of finance law. This is where contracts, policies, and agreements are processed and monitored. This field also deals with taxation, which is an important component of today’s society. A number of laws govern the way money is financed, including tax laws, banking laws, and consumer protection laws.

Insurance Companies: Similar to banking, insurance companies are also members of the banking and the finance industry. They are involved in a wide range of activities that include risk management, capital budgeting, and insurance product sales. Some parts of the insurance industry deal specifically with property and casualty insurance, including casualty insurance, life insurance, and health insurance. Other parts specialize in one particular field such as annuities or mortgages.

Finally, non-bank finance companies also perform financial services, including venture capital and commercial real estate loans. They often belong to associations that represent multiple financial institutions. Banking and the finance industry are very interrelated because they all form a complex mesh of processes and organizations that support one another.