Introduction of banking system
The banking system is considered to be one of the widest and complex system which involves many subsystems and operations that undergo under a banking system. banking system mostly comprises of its staff i.e. employees and managers and having a widespread network around different geographical regions. the branches operate its whole functional in their own jurisdictions and they report to head office regularly with respect to the all their system performances and any laybacks which unable them to achieve these objectives. (brianna whiting, n.d.)
Body of banking system
The banking system comprises of multiple functionalities where all functions that are performed internally and externally are interconnected and
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CONVENTIONAL BANKING (CASH DEPOSITS, CUSTOMERS LOANS)
Conventional banking is ordinary banking which usually found involving cash deposits by clients and lending or financing the clients. This most common banking system involving subsystems operating under it. Banker includes a body of persons, whether incorporated or not, who carry on the business of banking'. Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated. (Stephen D. Simpson, , n.d.)
2. INVESTMENT BANKING (PROVIDING FINANCING OPPORTUNITIES, LETTER OF CREDITS, TRADE ASSISTANCE OVERSEAS, HEDGING, DERIVATIVES)
Investment banking is another type of banking system but its operations or subsystem differ according to its services provided. investment banking usually dealing with the financial management functionality where helping traders by providing financial instruments reducing their level of risk in trading locally or overseas and also help overcome the change in interest rates or currency value. Investment banking much more complex system because it is much more associated with providing assurance to clients with respect the trading that going to be conducted in future. investment banking involves the sophisticated systems to predict the interest rates, the level of risk and the evaluating clients as any transactions could cause the loss of the
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Anon., n.d. Introduction to banking. [Online]
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[Accessed 5 5 2016]. brianna whiting, n.d. Banking System: Definition & Types. [Online]
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Stephen D. Simpson, , n.d. commercial banking. [Online]
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In their work, Plato and Paulo Freire have offered harsh critiques of education and learning. Plato compares people to prisoners in a cave of darkness in relation to knowledge, and Freire refers to a “Banking Concept” of education in which teachers put their thoughts and information into students’ minds much like the deposition of money into a bank. Instead of this money being of value, Freire and Plato acknowledge that the value declines. Although many people refute the concept of accepting new knowledge and admission of mistakes, I claim that both Plato and Freire produce valid points about the corruption of education because people cannot learn unless they have an open mind and truly desire to learn. Ultimately, what is at stake here is the effectiveness of learning and continuing the cycle of education.
But most people within the economy do not know enough about the complexities of the banking system to voice their opinion in opposition to the bankers, politicians, and regulators. This is a central concern of Admati and Hellwig and one of their main motivating factors for writing The Banker’s New Clothes. Admati and Hellwig aimed to “demystify” the banking system in order to raise awareness to weaknesses in banking policies in hopes of triggering necessary reforms to banking principles that only benefit the bankers and politicians. They state, “Expanding the policy discussion beyond the circle of bankers and banking specialists is very important, because more action is urgently needed and yet has not been taken. The banking system is still much too fragile and dangerous. This system works for many bankers, but exposes most of us to unnecessary and costly risk, and it distorts the economy in significant ways (pg. 4).” Admati and Hellwig look to level the playing field for the general public by explaining the banking system and it’s flaws in clear terms that most people can understand. By doing this Admati and Hellwig hope to reduce the recurrent economic booms and busts that have such harsh consequences for people in compromised economic situations; which are
The American investment banking industry has come long ways since its emergence during the Civil War era. In essence, investment bankers are corporate financial advisors interested in assisting their clients with raising money in capital markets, involving themselves heavily in mergers and acquisitions activity, and they also offer different types of financial advisory services. Investment banks are very useful for companies looking to expand or to fund major projects, for example, if company X decided they wanted raise capital by releasing an Initial Public Offering (IPO), they would seek out investment bankers in order to price their new stock price precisely in order to make it as attractive to public investors as possible. The more attractive
Banking online or by phone allows you to make banking transactions such as transferring money, paying a bill, checking your balance or setting up a regular payment on your bank or building society's secure website. Online banking is accessible via a computer/tablet or a mobile phone. Also known as internet banking. Traditional banks were THE original banks, the financial depository institutions first to offer checkable deposits. Traditional banks invariably have the word "bank" in their names and are charted by either the Comptroller of the Currency or one of the fifty state corporation
In The “Banking” Concept of Education the idea of a relationship among a student and a teacher is brought into question. Paulo Freire uses the metaphor to describe the idea that students seeking out knowledge are like empty containers waiting to be filled by a teacher. On page 319, Freire explains that “knowledge is a gift bestowed by those who consider themselves knowledgeable upon those whom they consider to know nothing.” This idea does follow in line with what Freire means by the metaphor he uses, that students are just sitting ducks to teachers that eventually with quench the student’s thirst for knowledge. Based on experiences in my life this conclusion is inaccurate to how the education system works in the real world.
Initially the bank’s core banking system was product oriented, but the need of the hour was to develop a customer oriented system, because the challenge is to build customer loyalty, cross sell, and enhance repeat business.
Generally it is extremely difficult to access branches banking data. And thus, the institutional level will be reconsidered. Assessing the performance of Canadian banks is
A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another.
This system helps all of these banks provide financial secrecy which is that only you and your banker would legally be allowed to know the financial activity within your account. The financial secrecy, completely different from financial privacy, includes many regulations to maintain this asset of secrecy. For example, many banks would n...
... work the banks and other financial institutions would also be required to have a system of reporting. If these reports consist of all the necessary information to predict a future crisis or imprudent behaviour in the banks then procedure can be put in place to guide the banks into the appropriate approach.
Investment banks provide financial services by helping companies and governments raise their capital by issuing securities such as, equity, debt, commercial paper, mid-term notes, and private placements. Investment banks trade and make a market in major equity and fixed income products by providing investment services to their clients. Many of them specialize in block trading. Investment banks also perform research function to maintain large databases that allows them to produce research reports on economies, companies, markets, bonds, and stocks. Function mergers and acquisitions provided by investment to advise their clients about mergers, acquisitions, and divestitures and help companies to become more competitive.
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
First, according to Section 2 IBA 1983, Islamic Banking Business is business whose aims and elements do not involve any element which is not approved by the religion of Islam. Based on the definition stated, it is clear that the Islamic Banking practices must according to or complients with the Shari’ah obliged in the Al-Quran and As-Sunnah. In conjuction with the Shari’ah appliances, the Islamic banking business must not include or prohibited involvement of illegal activities. Unlike Islamic Banking, Conventional Banking practises its system based on man-made laws and not included any religious guidelines to support their systems.
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified