Bank and Finance Flashcards
May differ in the type and number of services they provide to customers but many of their “core” services are the same
Financial Institutions
are an internal part of the world of business. Given their primacy, it is inconceivable for any business organization to do business without a bank account or a banking transaction.
Banks and Financial Institutions
In other words, every ________ whatever is its _______, has to have bank ________. Be it a ______ or ________, private limited company or a public limited company, a government department or a society or trust, it has to have banking-related transactions in the course of its business.
- organization
- Structure
- Dealings
- Partnership, Proprietorship
5.
Current, savings and term deposit accounts would involve account opening, issue of cheques, nomination facilities, death claims, stop payment instructions, payment of periodical interest, introduction formalities and so on.
Deposit Facilities
Banks are known to extend a variety of credit facilities such as term loans, cash credit, bills discounting, vehicles loans, agriculture loans, corporate credit, retail loans, guarantees and letters of credit, and a host of such other need-based facilities.
These would involve credit requests, services and sureties, regulation of rates of interest, services charges and other terms and conditions, request for enhancements, waiver of penalties, one-time settlements and so on.
Credit Facilities
These would relate to transfer of funds from one account to the other, from one city to the other, payment of bills, collection of cheques and bills, an ailment of modem payments systems such as Real-Time Gross Settlement (RTGS) Electronic Clearing Service (ECS), National Electronic Funds Transfer (NEFT), and Society for Worldwide Interbank Financial Transfers (SWIFT) and so on.
Remittances and Payments
Banks provide not only various domestic banking facilities, but also international banking services. Export and import credit, foreign letters of credit, cross country payments, currency exchange, remittance from abroad and such other services are provided to individuals as well as business entities.
Export, Import and Foreign Exchange Facilities
These include providing personal banking, asset management, executor and trusteeship arrangements and such other services.
Investment Banking and Wealth Management
Banks also provide a very wide range of auxiliary or subsidiary services
Auxiliary Services
exists in an interest-bearing asset, such as a loan or a bond, due to the possibility of a change in the asset’s value resulting from thevariability of interest rates. I
Interest rate risk
