What Is a Bank?

The word “bank” evokes different mental pictures for different individuals. Some will think of the quintessential bank building with big stone columns and a large vault. Others will envision a balance sheet showing a bank’s assets, liabilities, and capital. Still others will fall back on the regulatory definition of a bank: generally, an organization that is chartered by either a state or the federal government for the purpose of accepting deposits.

Lesson Objectives

When you finish this section of the course, you should be able to:

  1. define a bank and
  2. describe the role of a bank director.
bank collage