Module 1: Types Of Banking

Question 1

Retail

Answer 1

(‘personal’ or ‘consumer’ banking)
Proving financial services to individual customers.
Amounts deposited and lend out is small

Question 2

Business

Answer 2

Providing financial services to small/medium sized enterprises (SMEs)
Offered to business less than £6.5 million turnover

Question 3

Corporate

Answer 3

Services that is provided to large companies.
Offered to business with more than £6.5 million turnover
Advice and information is also provided to the service

Question 4

Private banking

Answer 4

Services offered to wealthy high net worth clients.
Banks tailor their services to focus on the long term relationship and offer high level of personal contact

Question 5

Wholesale banking

Answer 5

Borrowing and lending of money between large institutions on a big scale.

Question 6

Investment banking

Answer 6

Financial services to large corporates, pension funds and governments.

Question 7

Investment banking includes:

Answer 7

• Raising capital for big investments and projects
• managing customer investments and shared portfolio
• buying and selling shares and bond

Question 8

International banking

Answer 8

Where banks conduct business across national borders and engaging in activities that involve different currencies

Question 9

Islamic banking

Answer 9

Shariah law prohibits interest
Solutions - offer various profit sharing products