Banking financial institutions should evaluate their risk appetite at least once a year.

It is generally believed that the earliest bank was the bank established in Venice in 1407 in Italy. Later, the Netherlands established banks in Amsterdam, Germany in Hamburg, and the United Kingdom in London. From the end of the 18th century to the beginning of the 19th century, banks developed generally. In the 17th century, some common people got rich through doing business and became wealthy businessmen. They all kept their money in the king's treasury for safety. It should be noted here that there were no banknotes at that time, so saving money meant storing gold.

Because the "free coinage" system was implemented at that time, anyone could take gold nuggets to the mint and cast them into gold coins, so the mint allowed customers to store gold. Unfortunately, these merchants did not realize that the mint belonged to the king, and if the king wanted to use the gold in the mint, there was nothing he could do to stop it.

The role of banks:

A bank is an enterprise that operates money. Its existence facilitates the raising and financing of social funds. It is a very important member of financial institutions. We can see that the business of a bank, on the one hand, collects idle monetary funds and small monetary savings in society by absorbing deposits, and then lends them in the form of loans to people who need to replenish currency; here , banks act as intermediaries between lenders and borrowers.

On the other hand, banks handle currency collection, payment, settlement and other services for commodity producers and merchants, and they also act as payment intermediaries. In short, banks play the role of credit intermediaries. The basic functions of commercial banks include: credit intermediary, payment intermediary, credit creation, and financial services.