The banks are commercial enterprises and like many other businesses are organized as companies which are owned by shareholders. These shareholders, or their predecessors, provided the money to set up the banks and to enlarge them. This money is known as a bank’s capital. But the shareholders' money is only a small part of the total amount of money which the clearing banks have at their command. Who provided the rest of this enormous sum? The banks' customers. Banks, in effect, borrow from their customers as well as lend to them.


The money which a bank obtains from its customers is generally known as its “deposits” and represents the balances which customers keep on their accounts with their banks. These accounts are of two main kinds: current accounts on which customers can draw cheques but receive no interest, and deposit and savings accounts on which the banks pay interest for the use of the money.


Many people -- private individuals, manufacturers, traders, companies and official bodies -- choose to keep part of heir resources in the form of money. They need to do this mainly because they are continually having to make payments for the goods and services which they are buying and because they want to have resources immediately available. They could meet these requirements by keeping a stock of cash in the form of bank-notes and coin. But while notes and coins are a practical way of carrying out some small transactions, cash payments are a cumbersome, costly and, unfortunately, sometimes a dangerous method of settling most payments, especially if the money has to be sent any distance. It is more convenient, safer and more efficient to settle payments either by cheques drawn on a bank account, or through the banks’ credit transfer. Most of the payments made by businesses and Government in Britain and a large part of the payments made by private individuals are settled through the clearing banks.


The main reasons why customers keep money on accounts with commercial banks can be summarized as follows:
-- the banks provide an efficient and convenient method of making payments ( cheques, bank giros, standing orders etc. ).
-- a bank deposit is safer and less troublesome than keeping a stock of cash. A commercial bank undertakes to provide cash on demand to a customer who keeps money on current account, and after a few day’s notice to deposit account customers.


-- banks pay interest on deposit and savings accounts.
-- banks provide their customers with many other useful services. They will, for example, look after valuables, deal with investments, make payments to businesses and people abroad and provide financial information.
--banks will lend money to their customers.
For many purposes, “money in the bank” is money in its most convenient form.




The Money in a Bank银行的钱: