Banking law focuses on banks and other financial institutions. Thus, to understand banking law, one must first understand what a bank is. There are at least three ways to define what a bank is.
First, a bank can be defined by its business entity. Generally, a bank is chartered by a federal or state government. The business entity must include the word bank or trust in the name of its business entity.
Second, a bank can be defined by the services it offers. Generally, a bank accepts deposits and makes loans. While it may provide other services, these are its core services.
Third, a bank can also be defined by its economic function. Banks are financial intermediaries that provide transaction services to customers.
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