Principles of Islamic banking and finance/PIBF202/Key differences/What is a Bank

Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money). The amount banks pay for deposits and the income they receive on their loans are both called interest. What Is a Bank? FINANCE & DEVELOPMENT, March 2012, Vol. 49, No. 1. Pp. 38-9. by Jeanne Gobat http://www.imf.org/external/pubs/ft/fandd/2012/03/basics.htm by Jeanne Gobat