Documente Academic
Documente Profesional
Documente Cultură
OF BANKING
1.1 Introduction to Banking
1.2 Role of Banks in the Economy
1.3 How the Banking System Works
1.4 Other Financial Institutions
A bank is a business.
Banks sell their services to earn money.
Banks must earn a profit to survive.
Commercial banks
Retail banks
Central banks
Bank Country
Mizuho Financial Group Japan
Citigroup United States
Deutsche Bank Germany
JP Morgan Chase Co. United States
Bank of Tokyo-Mitsubishi Japan
HSBC Holdings United Kingdom
Hypo Vereinsbank Germany
UBS Switzerland
BNP Paribas France
Bank of America Corp. United States
Slide 8 © South-Western Publishing
TECHNOLOGY
Impact on bankers
Accounting, auditing, and examining functions have
been taken over by fast and efficient technology.
Funds transfer, record keeping, and financial
analyses have become instantaneous.
Impact on consumers
Automated teller machines (ATMs)
“Smart” cards
Online banking
Slide 9 © South-Western Publishing
COMPETITION
Record keeping
Identification
Enforcement
Transfer security
Sound business practices
Between banks
Between banks and individual customers
Between banks and industry
Between banks and governments
Between governments
Loans to businesses
Loans to governments
Loans to individuals
Credit cards
Home loans
Automobile loans
Branch locations
Extended hours
Drive-up windows
Variety of checking accounts
Savings options
Personal service
Credit cards
Innovative lending
Automated teller machines (ATMs)
Smart cards
Online banking
Depository intermediaries
Obtain funds from the public
Use the funds to finance their business
Nondepository intermediaries
Do not take or hold deposits
Earn their money by selling specific services or
policies
Commercial banks
Savings and loan associations
Mutual savings banks
Credit unions
Insurance companies
Trusts companies/pension funds
Brokerage houses
Loan companies
Currency exchanges