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The essential function of a bank is to provide services related to the storing of value and the extending of
credit. The evolution of banking dates back to the earliest writing, and continues in
the present where a bank is a financial institution that
provides banking and other financial services. Currently the term bank is
generally understood an institution that holds a banking license.
Banking licenses are granted by financial supervision
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-bank. Banks are a subset of the financial
services industry.
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