bank?(n.) customer. Customers are free to withdraw or

bank?(n.) (i) A financial institution whose
chief responsibilities are: to hold and move money from one account to another;
to lend money to customers, often with regular repayments and interest charged in order
to make a profit and mitigate risk;
(ii) The name given to a physical building where: customers can deal with bank
employees; legal tender cash can be provided to account holders either over the
counter or via automated
teller machines (ATMs); a safe can be located to store cash,
legal documents, jewellery and other valuables for safe-keeping; and (iii) The
central financial institution of a country, referred to as the central bank. (v.) (informal) The act of putting money
into a bank.

bank account?A fund held
by a bank whose
monies belong to a customer. Customers are free to withdraw or deposit money either physically
at a branch or by a
transfer arranged with the bank. Modern banks allow users to conduct many of
their everyday transactions online, with limitations agreed in the contract.
Employees’ wages can be paid directly into a bank account, and bills can be
removed electronically, with no physical cash ever being directly involved. Bank
accounts can either be in credit (that is, having
an amount of money greater than zero) or in overdraft (that is, being in negative
figures, where in effect payments or cash advances have been made using the
bank’s money as opposed to the account holder’s). Banks often allow account
holders to go into overdraft if they have a regular income and a good credit rating, although
a maximum amount will be imposed by the bank. Account holders with less stable
financial positions might not receive authorisation for an overdraft and will
have to remain in credit. Accidental overdrafts (for example, where a standing
order is paid whose value exceeds the available funds) might be paid by the
bank to avoid punishment by the payee (for example, late payment charges on
bills) and as a demonstration of goodwill, although interest will usually be
charged and the bank might impose fixed charges of its own.

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banking?The generic
term for the financial activities undertaken by banks. An informal term for putting
money in a bank for safekeeping.

banking (Islamic)?Islamic banking is interest-free
banking inspired by Islamic law. Its mechanisms include mudharabah
(profit sharing), murabahah (advance
purchase with later sale at marked-up price), ijarah
(leasing or long-term credit), and musharakah
(equity sharing). The first modern Islamic banking institutions were farmer
credit unions in Pakistan in the 1950s and the Mit Ghamr Savings Bank in Egypt (1963). Major expansion came in the 1970s
due to oil revenues and growing economies in the Arabian Gulf and the rising need to develop
an Islamic identity in the world economy particularly in Malaysia with its 1983
Takaful Act. There
was also a rising desire for implementation of Islamic values in all spheres,
including economic and financial. Gulf business interests strongly supported
the Islamic banking movement, which has spread beyond the Muslim
world into the West. Islamic banking
today is particularly strong in Malaysia and Indonesia.
Islamic financial instruments are increasingly accepted internationally, even
in non-Islamic countries. In Iran and Pakistan, the financial system was
reorganised in the 1980s to bring it into conformity with Islamic law.


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