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Banking System

The banking system is a financial network that facilitates the transfer of funds, provides financial services, and manages monetary transactions between individuals, businesses, and governments.

Sectorial Banks:

  • Korea Sectorial Banks
  • Policy Banks

Ontological Signature

Markets

Banks participate in multiple markets depending on their activities, but the primary markets where banks belong include:

  • Financial Markets (broad category): Banks are major players here, dealing with money, credit, and capital.
  • Money Market: Banks borrow and lend short-term funds (e.g., interbank loans, certificates of deposit).
  • Capital Market: Banks issue and trade long-term securities, like bonds and stocks, and provide underwriting services.
  • Foreign Exchange (Forex) Market: Banks trade currencies, facilitating international payments and speculation.
  • Credit Market: Banks provide loans to individuals, firms, and governments.
  • Derivatives Market: Banks trade derivatives for hedging and speculation.
  • Deposit Market: Banks gather deposits from consumers and businesses (though sometimes seen as a retail or service market).

References