Difference Between Banks and Finance? Essay

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Difference between banks and finance? Finance is generally related to all types of financial, this could be accounting, insurances, policies. Whereas banking is everything that happens in a bank only. The term Banking and Finance are two very different terms but are often associated together. Difference between commercial and Islamic bank. Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia’h) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba Conventional banking is based on collateral. In conventional banks charging interest does not stop unless specific exception is made to a particular defaulted loan. Interest charged on a loan can be multiple of the principal, depending on the length of the loan period. More than half the population of the world is deprived of the financial services of the conventional banks. what are the challenges of e-banking? Electronic banking is the wave of the future. It provides enormous benefits to consumers in terms of the ease and cost of transactions. But it also poses new challenges for country authorities in regulating and supervising the financial system and in designing and implementing macroeconomic policy. This changing financial landscape brings with it new challenges for bank management and regulatory and supervisory authorities. The major ones stem from increased cross-border transactions resulting from drastically lower transaction costs and the greater ease of banking activities, and from the reliance on technology to provide banking services with the necessary security. Role of commercial bank Commercial banks accept deposits (liabilities) to make loans (assets) and to buy government securities. Deposits are broad in range, including checkable deposits

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