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Banks and the Regulatory and Economic Environment

In: Bank Management and Control

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  • Johannes Wernz

Abstract

Banks serving as an interface between investors and borrowers are important for the economy. Banks provide loans and enable private and commercial investment and growth. Most people buying a house or a flat need a loan. Also, most companies can handle larger investments only through loans. Lending and the associated risk assessments are key tasks of the banks’ business. Money from savers, investors, and from central banks is provided to economy. Thus, it is important that the bank can borrow enough money from the central bank, from other commercial banks and from savers and that this supply is not interrupted—as it can happen in times of a crisis.

Suggested Citation

  • Johannes Wernz, 2020. "Banks and the Regulatory and Economic Environment," Management for Professionals, in: Bank Management and Control, edition 2, chapter 0, pages 25-38, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-030-42866-2_3
    DOI: 10.1007/978-3-030-42866-2_3
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