The term Bank It has different uses and meanings. The word can refer to seat where you can sit several people . Banks, which may have support or lack, are often used in parks, plazas and other public places. For example: "We're going to sit on that bench under the tree", “The square was full of people: there was not a single free bank”.
Banks can be built with wood , cement or stone , among other materials. In ancient times, most of the benches were made of stone and were attached to the wall of some building. They also allowed to form the seats that constituted the stands in the theaters and circuses
Bench is also the thick wood that, placed horizontally on four legs, is used as table by carpenters and other craftsmen.
In turn it is known under the concept of Bank of fish to the school whose members belong to the same species and swim in a polarized manner with high synchronization. A sand bank it is, instead, the accumulation of sand in the bed of a river or along the coast.
The bank as a financial entity
In another sense, a bank is a financial entity which is dedicated to the administration of money . The bank offers services such as the deposit of securities and the loan from capital . The banking system, also known as banking, is the set of banks that operate within a economy .
The concept of bank as a financial institution began to develop during the Renaissance . Historians claim that the first modern bank was the Bank of San Giorgio , founded in Genoa (Italy ) in 1406 .
In order to operate these entities they need the support of many solvent people and companies that contribute their capitals, depositing it in this entity and that it can give it on loan to third parties, returning to the first after a certain period an amount stipulated in advance in terms of accrued interest.
In addition, they have the contribution of various shareholders They want to increase their capital and speculate about what they could possess in a certain period. The calculation of the interests that the institution must contribute to its investors is calculated based on the percentages of the money contributed and the time in which the contract they will seal will remain in force, these interests are called the interest rate of collection.
With this money raised, banks can lend to people or institutions that require it loans agreeing in advance the interest they must pay to give the bank the assurance that it will see that money again; from these interests derives the enrichment of financial institutions since the interest rates to be paid by the applicants for these loans are usually higher than the interest rate of collection. The difference between both rates is the gain which is obtained by the financial institution and is known under the Anglo-Saxon term "spread".
Unfortunately, and despite the fact that the foundation of these institutions planned to improve the quality of life of the inhabitants, what happens is exactly the opposite. The power that from governments is it has given the banks has led them to direct the threads that govern life in society and become the enemies of the common citizen.
In Spain, for example, those individuals who requested a mortgage loan to be able to buy a house in installments, they have seen themselves in the terrible circumstance of, after losing their job, being thrown out of their homes because they cannot continue to bear the costs of the mortgage; banks evict people without any scruple and then put that address on sale again, offering other loans and continuing with their enrichment at the expense of work and the illusion of people.