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The most fundamental function of banks is to act as a financial intermediary between savers and borrowers (SparkNotes, 2009). Banks accept deposits a form of safekeeping for money and then lend that money back out. The deposit function is seldom a viable business on its own, but it does serve a valuable purpose with respect to the safeguard of money. Physical forms of wealth are inherently insecure they can be stolen. Thus, banks provide security for such wealth. The lending function is where bankers can make profit. This function allows for economic expansion. It facilities capital investment, be it in housing or in equipment for a business

Banks have expanded their role as facilitators of economic growth and capital preservation over the years. Banks now play a critical role in the creation of money. They lend to each other, in addition to the public. The result of this lending is that banks have a higher system-wide capacity for lending. Since more money can be lend, the needs of more borrowers can be met, spurring growth (Ibid)......

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