What is the difference between bank credit and market credit?

What is the difference between bank credit and market credit Introduction: The Importance of Credit Hello everyone, and welcome to our video on the intriguing world of credit. Credit, in its essence, is the trust that allows one party to provide resources to another party with the expectation of repayment. It's a fundamental aspect of the financial system, enabling individuals, businesses, and even governments to access funds for various purposes. However, credit isn't a monolithic concept. Today, we'll be focusing on two prominent types of credit: bank credit and market credit. Bank Credit: The Traditional Path When we think of credit, banks often come to mind. Bank credit refers to the funds provided by a bank to borrowers, be it individuals or organizations. It's a well-established system, with banks acting as intermediaries between those who have surplus funds (lenders) and those who need funds (borrowers). The bank, in this case, assumes the role of a creditor, assessing the creditworthiness of the borrower and setting the terms of the credit. Bank credit can take various forms, such as loans, lines of credit, or credit cards. Market Credit: The Dynamic Landscape