Banking ppt for 11 economics


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Banking ppt for 11 economics

  1. 1. Chapter 8
  2. 2.  ‘Bank 'is usually used in the sense of commercial bank.  Bank seems to have originated from the Germanic word ‘bank’—joint stock fund or heap.  French word ‘banque’and the Italian word ‘banco’
  3. 3.  The Italian word banco refers to a bench at which the money changers used to change one kind of money into another   The first public banking –the Bank of Venice (1157)  The bank of Barcelona and the Bank of Venice –1401 and 1407 respectively.
  4. 4.  Exchange banking was developed after the installation of the Bank of Amsterdam in 1609 and Bank of Hamburg in 1690.  The credit of laying the foundation of modern banking in england goes to the Lombards of Italy  The bankers of lombardy –money lending business in england
  5. 5.  The bank of England -1694  The development of joint stock commercial banking started functioning in 1833.  Modern banking developed in 19th century.  In India ,the first modern bank ‘bank of Bengal’ in 1806
  6. 6. Central bank Commercial bank Apex institution of the monetary and It is only a constituent unit of the banking system banking system Monopoly of note issue Do not have this right Not profit making institution ,but to promote economic policy of the government. It is to earn profit for the shareholders It maintain foreign exchange of the country It deals with foreign exchange under the guidance of central bank It is the advisor, banker to the government It is the banker, advisor to the public
  7. 7.  Regulator of currency  Banker ,agent and adviser to government  Custodian of cash reserves of commercial banks  Custodian and management of foreign exchange reserves  Leader of the last resort  Clearing function  Controller of credit
  8. 8.  Bank rate  Open market operation  Variable reserve ratio  Qualitative /selective credit control  Margin requirements  Regulation of consumer credit  Rationing of credit  Direct action  Moral suasion  publicity
  9. 9.  Accepting or attracting deposits  a).saving deposits  b)demand deposits  c)fixed deposits  Advancing loans  a)cash credit  b)provision of overdraft facilities  c)discounting bills of exchange  Advancing funtion
  10. 10.  Creation of money for credit • Other function transfer of funds Agency function  General utility services Safty lockers Letter of credit Under writing loans Compiling statistics
  11. 11.   Any questions ?
  12. 12.  Thank you S.madan kumar  M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.
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