Answer: WOW, 300 words? Ok, here we go.
Banking has been around for hundreds of years and has revoloutinized society because, well it is a place to keep your money. As the primary supplier of credit, it provides money for people to buy cars and homes and for businesses to buy equipment, expand their operations, and meet their payrolls. Banks also provide depositors with a safe place to keep their money (particularly since the advent of the Federal Deposit Insurance Corp. Not to mention, you can get money too. But, there have been recent downfalls. You see, in 2022, a type of "depression" because the country was in debt and that is when it started. Many buisnesses closed down and also banks were not doing so good. The current decline in commercial banks appears to be driven largely by the complete collapse of new bank entry. If entry remains weak and the levels, it is similar to net interest income observed during the recovery from the 2001 recession, and it is actually higher than during the recovery from the 1981–82 recession.
The major risks faced by banks include credit, operational, market, and liquidity risks. Prudent risk management can help banks improve profits as they sustain fewer losses on loans and investments. Understood?
Step-by-step explanation: