The banking system is a network of institutions that provide financial services to individuals and businesses. It includes various types of banks, such as commercial banks, investment banks, and credit unions, which offer services like savings accounts, loans, and investment opportunities. These institutions play a crucial role in the economy by facilitating transactions and providing credit. Banks also help manage the money supply and implement monetary policy, often guided by a country's central bank, such as the Federal Reserve in the United States. By accepting deposits and making loans, banks contribute to economic growth and stability, ensuring that funds are available for various needs.