A bank is a financial institution that provides banking and other financial services. By the term bank is generally understood an institution that holds a banking license. Banking licenses are granted by financial supervision authorities and provides rights to conduct the most fundamental banking services such as accepting deposits and making loans.
There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called Non-bank. The word bank is derived from the Italian banca, which is derived from German and means bench. The terms bankrupt and “broke” are similarly derived from banca rotta, which refers to an out of business bank, having its bench physically broken.
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