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A bank is a business that borrows from its customers on current accounts repayable to its customers' cheques and collects cheques for its customers' accounts. Banks may also issue bank notes, and lend money to customers on current account (called overdraft), accept term deposits and make term loans and provide other financial services. Banks that issue notes are called Banks of Issue.
Currently in most jurisdictions the business of banking is regulated and banks require a licence. Banking licenses are granted by bank regulatory authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-banking financial company.
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