Banking refers to the industry or system that involves the management, investment, and holding of money, alongside the provision of financial services. It encompasses various functions performed by financial institutions known as banks, which facilitate the exchange of money, offer savings and checking accounts, provide loans, and contribute to the overall financial system. Banking can be divided into several categories, including commercial banking, investment banking, and retail banking, each serving different needs such as personal finance, business operations, and capital market services. It plays a critical role in the economy by enabling capital allocation, promoting savings, and fostering economic growth through lending activities.
A recent decision by the European Central Bank (ECB) to cut interest rates has created a fierce competition among banks, resulting in highly attractive mortgage offers for prospective homeowners. This…