A banking system is a network of institutions that provide financial services, such as accepting deposits, offering loans, and facilitating transactions. These institutions include commercial banks, credit unions, and investment banks. They play a crucial role in the economy by helping individuals and businesses manage their money and access credit. In a banking system, money flows between savers and borrowers. Depositors place their money in banks, which then use those funds to provide loans to others. This process helps stimulate economic growth by enabling investments and consumption, while also ensuring that people can safely store their money.