The Core Functions of Banks and Financial Institutions

The video discusses the financial sector, focusing on the traditional banking model where banks act as intermediaries between savers and borrowers. It explains how banks profit from interest rate differences and their role in preventing market failures. The video also covers different types of banks, including commercial, investment, and universal banks, highlighting their functions and challenges. It emphasizes the importance of banks in maintaining economic stability and managing risks, while also addressing regulatory measures to prevent financial crises.

Discuss the implications of universal banks on the financial sector.

How do banks instill confidence in the economy?