What is a Bank?

The definition of what a bank is can vary quite dramatically. The common definition in this instance is:

"[A] business establishment in which money is kept for saving or commercial purposes or is invested, supplied for loans, or exchanged, or the offices or building in which such an establishment is located."

or

"a financial institution that accepts deposits and channels the money into lending activities." (Wordnet® 1997 Princeton University)

Banking and lending laws vary by state in the United States. Each state has its own commercial and consumer regulatory guidelines. Each state has a banking commission or finance department.