1 practice questions Flashcards
Who are the big 5 retail banks?
RBS, Lloyds, HSBC, Stanchart, Santander
What is a retail banks purpose?
provides services to individuals and SME businesses
What services does a retail bank provide?
money transmission, savings and investments, lending, insurance
How do wholesale banks raise funds?
do not accept deposits – rather they raise funds on the financial markets. Lend large amounts (interest paid back on it).
Raise funds by issuing shares and bonds
What is the purpose of wholesale banks?
provide special services to corporates and government. Advise on M & A
What is the difference between a bank and a building society?
Ownership – Banks have shareholders – BS’s have members (their savers and borrowers)
Not for Profit organisation – surpluses are retained within the business for benefit of members
Who are the top 3 building societies
nationwide
yorkshire
coventry
what is the role of building societies?
Building societiesoffer banking and related financial services, especially savings and mortgage lending. However, rather than promoting thrift and offering unsecured and business loans, the purpose of abuilding societyis to provide home mortgages to members.
How does a building society work?
Abuilding societyis a financial institution owned by its members as a mutual organization.
Building societiesoffer banking and related financial services, especially savings and mortgage lending.
When was the first building society?
1775
What are the 2 main categories of insurers?
insurance companies
lloyds insurance market
What do insurance companies do?
provide insurance to individuals ad companies and cover a wide range of risks
What are examples of insurance companies?
Aviva, AXA –
Who are many insurance companies owned by?
banking and financial services group
Who is the lloyds insurance market made up of?
Made up of groups of members
