Changes

==Loans==

==Loans==

 

When banks make loans they charge a [[rate of interest]] to do so.  That rate is always higher than the rate they pay out for deposits.  The most common form of loan is a [[home loan]], although banks can also make [[personal loans]], [[business loans]] or provide [[home equity line]]s based upon the [[equity]] in a home after all loans against the [[private property|property]] are subtracted.  Loan availability and loan rates usually based upon yearly [[household income]] and [[credit score]]s.

When banks make loans they charge a rate of interest to do so.  That rate is usually higher than the rate they pay out for deposits.  The most common form of loan is a [[home loan]], although banks can also make [[personal loans]] or provide [[home equity line]]s based upon the equity in a home after all loans against the property are subtracted.  Loan availability and loan rates usually based upon yearly [[household income]] and [[credit score]]s.

==Insurance==

==Insurance==

 

Although banks are not part of the [[government]] (see [[Federal Reserve Bank]]), in every major country accounts with a bank are [[FDIC|insured by the government]] up to a certain amount. The goal, as emphasized in the [[Financial Crisis of 2008]], was to prevent "[[bank run]]s" in which people overnight lose confidence and demand all their deposits back.

Although banks are not part of the government, in every major country accounts with a bank are insured by the [[government]] up to a certain amount. The goal, as emphasized in the [[Financial Crisis of 2008]], was to prevent "runs" in which people overnight lose confidence and demand all their deposits back.

==See also==

==See also==