Banking activity is considered to be all the activities and processes that take place in a bank or financial institution for the purposes of managing and lending money.
A bank is a financial institution that has the social and economic purpose of managing, lending, and carrying out other operations with money. A bank is often a private institution, but the Central Bank of a national economy can also be considered in this set of institutions. In other words, there are private, public, mixed, current, specialized, issuance, central and second-tier banks.
The banking system is called the group of entities that in an economy or society carry out activities considered banking.
Passive banking activities include those through which the bank receives, collects or obtains money from individuals or companies. As a result of these passive operations, the opening of deposits such as checking accounts, savings account or savings account and fixed term, all of them with different characteristics to the interest of the client . These banking activities are considered fund-raising.
On the contrary, in banking activities there are also active ones . They are those that involve the placement of money in the market, either through the generation of new money from the money received or through other resources , and thus they can grant credits and loans under different conditions to that individual or company that request it. This activity supposes the income of earnings for the bank, since all of them contemplate the collection of interests.
All banking activities in a given economy affect its course, the price of securities and are interdependent on the future of the stock and market in society. In other words, the operations of production, exchange and consumption of products, goods and services are also the cause and consequence of what happens in banking activities.