why do we need banks?

Question

why do we need banks when many of the functions such as lending can be done person to person? And have you got any links that i can reference from?

Answer 1

check clearing services for business
ATM and checking services for individuals
Investment and safekeeping for individuals
loans

Also check out How Banks Work at http://money.howstuffworks.com/bank1.htm

Answer 2

In the start it is ourselves. When we decide to make it bigger it is our company our corporation etc.
Person to person lending can be done only in the start. There is a big amount of companies that need large amount of money, very large!
But who will lend them? A bank by own is not able to find that money! So people can invest their money with a rate that is profitable for them! Now if these people are a lot, all these money can be lent to the companies cause they are enough now! But if these people wish to take their money back? What then? To solve this and make a bank's life longer, the persons who keep the banks set interests at the companies who borrow money. This way they make profit, they generate money and it is becoming more and more larger, so a bank now is able to give the money back to the person who invested their money! Got it? But today's banks should not act the way they do. What if a poor person cannot pay? They take their house! It's like we live hundreds of years before! Banks should be more humanitarian!

Answer 3

Do We Need Banks

Answer 4

As an individual you probably don't need banks, but look at it from a global aspect. I work for a major producer of goods that are sold world wide. We have sales and service offices world wide. I need to be able to track our money world wide. One of our locations deposits their profits for the day in Alaska, how am I going to get that money? Without checks and wire transfers, how would I pay our bills.
And try getting a home loan of $200,000.00 from your friend.
When you go to collage take Economics and you will begin to see how the banks and different companies and the stock market affect the economy of our country and the world.
I have attached some of the links that i use to track financial trends and crimes.

Answer 5

Banks are a safer place to put your monry away and let it get interest.A banks not that important if you only have $500.00 to your name, but can you imagine having a half mill laying around your house.Plus many people won't loan someone the same amount that a bank will.

Answer 6

Loans are better done in large quantities, for diversification. For the same reason you shouldn't put all your money in one single stock (it might go south), you shouldn't put all your money in one loan (the person might not pay you back). If you can spread your loans across thousands of people, you'll get about the same expected return (i.e. the interest you charge), but the risk of losing your money to defaults goes WAY down. In return, you can charge a somewhat lower interest than a single person can.

Answer 7

the thing is, how will you cash checks without a bank?, and yes you can lend person to person, but what if people are greedy, or people don't know anyone who will lend them money.. people don't trust easily now a days... there is alot more to having banks than lending money

what would people do w/o credit cards?!

Answer 8

the only reason i needs bank is cos i do not want to
lose my money while i am sleeping

Answer 9

whos gonna loan you money? why should they? what happens if you dont pay them back?who has any money to loan in the first place. how much interest would you repay?

Answer 10

to save our money in drrr