The umbrella term "finance & insurance" is used to describe financial and insurance activities. According to Wikipedia, finance & insurance refers to "activities that deal with the management of money, including personal banking (savings, checking accounts, etc), credit cards, consumer loans, corporate finance, and other commercial services." By using fractional reserve banking, banks are able to create money (also known as "digitally created cash") out of thin air and lend it at a profit. As a result, both savings banks and borrowing banks may be referred to as banks. Banks are where you keep your money or credit, after which you lend them out at a higher rate of interest as a loan. This form of reserve-lite banking is referred to as "reserve-lite" banking.
Who is in command of all of these banks? The answer, in most countries, is the central bank. A central bank is a banking monopoly that also acts as a regulator for the country's financial institutions and frequently creates new currency.
