Below you have a short written passage about ‘How Banks Work’. Read and understand the passage before writing a summary. The summary should be shorter than the original but still contain all the main information. Remember to use new sentences and vocabulary so that it is different from the original.

The world of banking is a complex and fascinating realm that has long piqued the

interest

of individuals. At its core, a

bank

's primary function is to cater to two distinct customer groups: those who wish to save money and those who seek to borrow it.

While

it is possible for an individual to belong to both categories, understanding the roles of

savers

and

borrowers

is crucial in grasping the fundamental operations of a banking

system

.

This

essay will argue that the interdependence of

savers

and

borrowers

is the backbone of the banking

system

, with each playing a vital role in the other's financial journey. On one hand,

savers

deposit their money into the

bank

, which earns

interest

on their deposited amount, providing an incentive to continue saving.

This

interest

serves as a reward for allowing the

bank

to utilize its deposited

funds

for other purposes.

This

process is made convenient through various channels, including online banking, where deposits can be made electronically, and physical

bank

branches, where cash or cheques can be handed over to a teller. The

savers

,

therefore

, play a crucial role in providing the

bank

with the necessary

funds

to facilitate lending to

borrowers

.

On the other hand

,

borrowers

, who seek to obtain a

loan

from the

bank

, need to meet with the

bank

manager, who assesses their creditworthiness and decides the

loan

amount based on factors

such

as income and repayment capacity. The

bank

manager's assessment is critical in determining the borrower's ability to repay the

loan

, ensuring that the

bank

's risk is minimized. The borrower, in turn, receives the necessary

funds

to finance their projects, businesses, or personal needs. The borrower's ability to repay the

loan

is,

therefore

, dependent on the saver's willingness to deposit their money in the

bank

. The interdependence of

savers

and

borrowers

is the cornerstone of the banking

system

.

Savers

provide the

bank

with the necessary

funds

, which are

then

lent to

borrowers

. The

interest

earned by

savers

is a direct result of the

bank

's ability to lend to

borrowers

, who in turn, repay the

loan

with

interest

.

This

cycle of deposit, lending, and repayment is the lifeblood of the banking

system

. The

bank

,

therefore

, serves as an intermediary, facilitating the flow of

funds

between those who have excess capital and those in need of financing. In conclusion, the banking

system

relies heavily on the interdependence of

savers

and

borrowers

. Each plays a vital role in the other's financial journey, with

savers

providing the necessary

funds

and

borrowers

utilizing these

funds

to achieve their financial goals. The

bank

, as an intermediary, facilitates

this

process, ensuring that the flow of

funds

is smooth and efficient. Understanding the intricacies of banking,

therefore

, requires a comprehensive grasp of the interdependent roles of

savers

and

borrowers

, without which the banking

system

would cease to function.