What does Bank mean?

Probably every person knows about the purpose of a bank and what it is. It is an establishment authorized by a government to pay interest, accept deposits, make loans, clear checks, even act as an intermediary in financial transactions, and provide other types of financial services to its customers.

But this isn’t all, in credit card transactions, for instance, multiple banks are required to be involved, with each financial institution playing different roles in the transaction. One of the banks may issue a credit or debit card to a client, another could be the representative of the vendor or merchant, and a third bank may be responsible for paying certain credit card bills.

In most countries banks are directly supervised by the national government or by the respective country’s central bank.