Banking

this could be yours

Why is it Important to Save Money for Emergencies

No one likes to consider the possibility of needing emergency funds, but accidents, illness, and other unforeseen problems arise for almost everyone. While having a bit of extra money in the bank to afford replacing a household appliance might not be a huge expense, things like medical bills can be painfully costly.

Emergency funds allow you to pay for things without going into massive debt from loans or credit card bills. This money on hand can cover large and small emergencies, including:

• Car repairs
• Medical and dental bills
• Prescription medication
• Home repairs
• Job loss
• Recession

Experts agree that you should set aside enough money to cover your cost of living for at least three months, but preferably up to six months. That way, you'll have some wiggle room should you need it.

You may be wondering, why is it important to save money for things like this, when there is insurance available and other safeguards in place? Insurance can be tricky, with lots of fine print and delays in getting your money back from the insurance company. In the case of an economic recession, the cost of everyday items like groceries and electricity all increase, with the added risk of job loss due to the recession. Having money saved for unforeseen circumstances gives you something to fall back on when the unthinkable occurs.

Saving for Retirement

If you're young, it might seem ridiculous to think about your retirement now. Saving for retirement is always a good idea, however, and starting early is the smartest and easiest way to go about it. Over time, your savings will add up and earn more and more interest from the bank. Having a nest egg in place will give you peace of mind, and as it grows you can even consider retiring earlier than you might have planned.

Saving Money for Your Kids

Many parents like to save money for their children, to pay for their education and other defining moments in their lives, such as buying their first car or contributing to their weddings.

Contributing to a fund for education savings will ensure that your child will have the option to attend college, without amassing a huge amount of debt in the process.

A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses.

earning money

Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location. The current set of global bank capital standards are called Basel II. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the keiretsu. In Iceland banks had very light regulation prior to the 2008 collapse.

The oldest bank still in existence is monte dei paschi di siena, headquartered in Siena, Italy, which has been operating continuously since 1472   The World Bank Group (WBG) is a family of five international organizations that makes leveraged loans, generally to poor countries. The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements, which emerged from the United Nations Monetary and Financial Conference (1–22 July 1944). It also provided the foundation of the Osiander-Committee in 1951, responsible for the preparation and evaluation of the World Development Report. Commencing operations on 25 June 1946, it approved its first loan on 9 May 1947 ($250M to France for postwar reconstruction, in real terms the largest loan issued by the Bank to date)