As Effects

estment) banking   Business loan
  Capital raising (Equity / Debt / Hybrids)
  Mezzanine finance
  Project finance
  Revolving credit
  Risk management (FX, interest rates, commodities, derivatives)
  Term loan
  Cash Management Services (Lock box, Remote Deposit Capture, Merchant Processing)
[edit]Risk and capitalBanks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Some of the main risks faced by banks include:
  Credit risk: risk of loss[citation needed] arising from a borrower who does not make payments as promised.
  Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).
  Market risk: risk that the value of a portfolio, either an investment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors.
  Operational risk: risk arising from execution of a company's business functions.
  Reputational risk: a type of risk related to the trustworthiness of business.
The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted (see risk-weighted asset).
[edit]Banks in the economySee also: Financial system
[edit]Economic functionsThe economic functions of banks include:
  Issue of money, in the form of banknotes and current accounts subject to check or payment at the customer's order. These claims on banks can act as money because they are negotiable or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a check that the payee may bank or cash.
  Netting and settlement of payments – banks act as both...