Why do bank exists?

Answer 1

Primarily, to provide a secure place to store wealth held in the form of readily available money.

But like all enterprises staffed by humans, banks also exist in order to make money.

Banks make money by taking a portion of the money that is stored in them and loaning it to other people and companies in exchange for a promise to repay the loan, plus interest. Banks compete for deposits through the interest rates on the money stored in them. The difference between the interest collected by the bank and the interest paid by the bank contributes to the income of the bank. Banks also charge fees for various services, all of which involve moving money from one account to another or issuing checks and credit cards. Plus there are fees for processing loans, etc..

As a result of these various activities - without which the bank would not make any money - banks are now considered vital to economic development through their prudent investment of portions of the wealth stored in them. Banks are also considered integral to various other functions related to the management of the nation's money supply and systems of credit.

However, regardless of what banks now do, they exist first and foremost as a secure place to store wealth held in the form of readily available money. If a bank can't do that, it quickly loses credibility as a bank. Once that happens, it won't be in business for very long.