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Have you ever wondered, what happens inside the banking system. Or, When you read the financial section of any newspaper or article, you may come across many banking financial terms. Have you ever wondered the meaning of those terms used? This video explains it for you. This video covers the following content: How the banking system works? How money is handled inside the system? How banks make money? What are the interest rates involved in the banking system? Timestamp: SECTION 1: 00:00 Logo intro 00:08 Introduction 00:58 What is bank? 01:11 Categories of banks 02:21 Central bank - Monetary policy 03:51 Commercial bank 04:15 Functions of commercial banks SECTION 2: 06:40 Fractional Reserve Banking 09:03 Money multiplier 10:11 Reserves - Cash & Assets 11:10 How banks make money? SECTION 3: 11:37 Interest rates in banking system 12:39 Repo Rate 13:09 Reverse Repo Rate 14:05 Bank Rate 14:29 Overnight Rate 15:12 Base rate 15:35 Prime lending rate 16:14 Deposit rate SECTION 4: 16:33 Bank run 17:15 Bankruptcy 17:47 Insurance for banks 18:28 Conclusion 18:53 End credits Contact: / anandexplains Attributions: Music: http://instrumentalsfree.com Disclaimer: This channel is for education purpose only and is not affiliated with any financial institution.