1. Banks are financial institutions that absorb public deposits, issue loans and handle settlement. Most banks implement a partial reserve system, allowing banks to deposit a certain proportion of reserves in the central bank and use the remaining funds for loans and other businesses. When banks issue loans, they will naturally issue new deposits, which makes banks have the ability to create money. Banks play an important role in the financial system and have a great influence on the financial stability of a country and even the world. They are usually subject to strict supervision by financial management authorities in various countries. In addition to meeting the different regulatory rules of financial regulatory authorities in different countries or regions, banks generally have to follow the minimum capital requirements based on the Basel Accord.
2. Local banks, also known as local banks, refer to banking financial institutions whose business scope is restricted by regions, which is contrary to the concepts of central banks and national banks. It can also mean that according to the definition, the affiliated banks of the National Association of Local Banks (hereinafter referred to as the Land Bank Association) have considerable influence on the regional economy (for example, they own real estate developers, act as the main financing banks for major local enterprises, and contact giant banks, etc.). ). Sometimes it is also called the regional bank of American local banks (Japanese: リジョナルバンク), but it also includes the credit vault.