the primary purpose of a bank was to provide loans to trading companies.
Banks provided funds to allow businesses to purchase inventory,
and collected those funds back with interest when the goods were
sold. For centuries, the banking industry only dealt with
businesses, not consumers. Commercial lending today is a very
intense activity, with banks carefully analysing the financial
condition of their business clients to determine the level of risk
in each loan transaction. Banking services have expanded to
include services directed at individuals, and risk in these much
smaller transactions are pooled.
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Banks have influenced economies and politics for centuries. Historically,
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Also See:
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