MONEY AND BANKING - PowerPoint PPT Presentation

1 / 17
About This Presentation
Title:

MONEY AND BANKING

Description:

Credit, ATM and debit cards. Cashing cheques. Money transactions. Personal and business loans ... Online banking. Mail. TYPES OF BANKS. Retail banking. Business ... – PowerPoint PPT presentation

Number of Views:11792
Avg rating:3.0/5.0
Slides: 18
Provided by: Tomc65
Category:

less

Transcript and Presenter's Notes

Title: MONEY AND BANKING


1
MONEY AND BANKING
2
MONEY
  • Money is any generally accepted means of payment
    for delivery of goods or settlement
    (porozumienie) of debt. It has four main
    functions
  • a medium of exchange or means of payment
  • a store of value
  • a unit of account
  • a standard of deferred (odraczac) payment

3
MONEY
  • Different kinds of money
  • Commodity money
  • Token money
  • IOU money

4
BANKING SYSTEM
  • A bank is a business that provides financial
    services, usually for profit. Traditional banking
    services include receiving deposits of money,
    lending money and processing transactions.
  • A commercial bank is usually defined as an
    institution that both accepts deposits and makes
    loans.

5
BANKING SYSTEM
  • A little bit of history...
  • The primary purpose of a bank was to provide
    liquidity to trading companies. For centuries,
    the banking industry only dealt with businesses,
    not consumers. Banking services have expanded to
    include services directed at individuals and risk
    in these much smaller transactions are pooled.

6
BANKING SYSTEM
  • A bank generates a profit from the differential
    between what level of interest it pays for
    deposits and other sources of funds, and what
    level of interest it charges in its lending
    activities. This difference is referred to as the
    spread between the cost of funds and the loan
    interest rate. However, lending activities still
    provide the bulk of a commercial bank's income.

7
Services typically offered by banks (1/2)
  • Accounts
  • Current accounts
  • - Packaged accounts
  • - Standard fee free accounts
  • - Basic current accounts
  • Student and Graduate accounts
  • Kids and youth accounts
  • Savings accounts
  • Offset accounts

8
Services typically offered by banks (2/2)
  • Credit, ATM and debit cards
  • Cashing cheques
  • Money transactions
  • Personal and business loans
  • Mortgages
  • Insurence products
  • Pension and retirement planning
  • Storing valuables

9
TRANSACTION CHANNELS
  • A branch, banking centre or financial centre
  • ATM (Asynchronous Transfer Mode)
  • Telephone banking
  • Online banking
  • Mail

10
TYPES OF BANKS
  • Retail banking
  • Business banking
  • Corporate banking
  • Investment banking

11
BANKS IN THE ECONOMY
  • Role in the money supply
  • A bank raises funds by attracting deposits,
    borrowing money in the inter-bank market, or
    issuing financial instruments in the money market
    or a capital market. The bank then lends out most
    of these funds to borrowers.

12
BANKS IN THE ECONOMY
  • Size of global banking industry
  • Worldwide assets of the largest 1,000 banks grew
    15.5 in 2005 to reach a record 60.5 trillion,
    EU banks held the largest share.
  • The US had by far the most banks (7,540 at
    end-2005) and branches (75,000) in the world.

13
BANKS IN THE ECONOMY
  • Banking crisis
  • Liquidity risk
  • Credit risk
  • Interest rate risk

14
BANKING SYSTEM
  • Regulations
  • Bank regulations are a form of government
    regulation which subject banks to certain
    requirements, restrictions and guidelines, aiming
    to uphold the soundness and integrity of the
    financial system.
  • No government can allow its banking system to fail

15
Top five banking groups in the world ranked by
Shareholder equity (m)
 
 
16
Top five banking groups in the world ranked by
assets
 
 
17
THE END
  • THANK YOU FOR ATTENTION !!!
  • ANY QUESTIONS ??
Write a Comment
User Comments (0)
About PowerShow.com