Banks

• Overall


  Banks are one of the main types of financial institutions and one of the main sources of finance for individuals and small businesses

  They provide businesses and individual with both short term finance such as overdrafts and long term finances such as mortgages

  Interest rates on loans will influence a business’ financial decisions
• Role


  receive deposits from individuals, businesses and governments which are then lended to fund business activities. Provides a wide range of roles and supervised by the RBA
• Influence


  businesses must pay interest on the funds they borrow. Interest is then shared with those who save money with the bank. Provide general services to a wide range of different customers