A bank is a financial institution licensed to accept deposits from the public and provide loans. It acts as an intermediary by using deposited funds to make loans to individuals, businesses, and other entities, earning interest on these loans while paying interest to depositors

. Banks offer various services including checking and savings accounts, mortgages, personal and business loans, certificates of deposit, currency exchange, and safe deposit boxes. They play a central role in the payments system by enabling bill payments and money transfers

. There are different types of banks, such as retail banks, commercial banks, investment banks, and specialized banks like cooperative or payment banks, depending on the country and regulatory framework

. Banks are regulated by government authorities or central banks to ensure safety and stability. In many countries, deposits are insured up to a certain amount (e.g., $250,000 in the U.S. by the FDIC), protecting customers' money in case of bank failure

. In summary, a bank is a licensed financial institution that safeguards money, facilitates payments, provides loans, and supports economic activity by managing the flow of funds between savers and borrowers