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  1. 1. 9 9.1 SPECIALIZED BANK SERVICES International Banking 9.2 Insurance and Brokerage 9.3 Cash Management 9.4 TrustsSlide 1 © South-Western Publishing
  2. 2. Lesson 9.1 INTERNATIONAL BANKING GOALS Identify three types of financial institutions engaged in international banking Describe international services offered by banksSlide 2 © South-Western Publishing
  3. 3. STRUCTURE OF INTERNATIONAL SERVICESSTRUCTURE OF INTERNATIONAL SERVICES Foreign banks U.S.-based international banking Other types of international operations Special considerations Financial risk Currency risk Country riskSlide 3 © South-Western Publishing
  4. 4. INTERNATIONAL SERVICES INTERNATIONAL SERVICES Trade financing Letters of credit Drafts and wires International collections Foreign currency exchange Trade consulting U.S. export-import (Ex-Im) bank Overseas private investment corporation (OPIC) Small business administration (SBA)Slide 4 © South-Western Publishing
  5. 5. Lesson 9.2 INSURANCE AND BROKERAGE GOALS Explain the effects of the Gramm-Leach- Bliley Act of 1999 List typical insurance and brokerage products available from financial institutionsSlide 5 © South-Western Publishing
  6. 6. A NEW ERAA NEW ERA The old world: Glass-Steagall Act The new world: Gramm-Leach-Bliley ACT (GLBA) Limits and regulationSlide 6 © South-Western Publishing
  7. 7. PERSONAL INSURANCE PRODUCTSPERSONAL INSURANCE PRODUCTS Auto insurance Credit insurance Disability insurance Life insurance Health insurance Homeowner’s insurance Mortgage disability insurance Title insuranceSlide 7 © South-Western Publishing
  8. 8. BUSINESS INSURANCEBUSINESS INSURANCE Commercial liability Short-term disability Long-term disability Health insurance Officers’ liability Property Workers’ compensationSlide 8 © South-Western Publishing
  9. 9. BROKERAGE SERVICESBROKERAGE SERVICES Brokerage refers to bringing together parties interested in making a transaction, such as buying and selling shares of stock. A broker charges a fee to execute the transaction. Banks now offer full investment services.Slide 9 © South-Western Publishing
  10. 10. Lesson 9.3 CASH MANAGEMENT GOALS Explain why banks are in a good position to offer cash management services List several cash management services banks perform for businessesSlide 10 © South-Western Publishing
  11. 11. SYSTEM IN PLACE FOR CASH MANAGEMENTSYSTEM IN PLACE FOR CASH MANAGEMENT Every business needs to disburse and collect cash to complete business transactions. Banks are in a good position to provide cash management services to businesses for a number of reasons. Experience Business knowledge Technology Industry expertiseSlide 11 © South-Western Publishing
  12. 12. CASH MANAGEMENTCASH MANAGEMENT Accounting services Bank collection services Information services Credit card services Capital servicesSlide 12 © South-Western Publishing
  13. 13. ACCOUNTING SERVICESACCOUNTING SERVICES Payroll Accounts payable Accounts receivableSlide 13 © South-Western Publishing
  14. 14. BANK COLLECTION SERVICESBANK COLLECTION SERVICES Deposit service Lockbox service Zero-balance accounts Automated Clearing House (ACH) NetworkSlide 14 © South-Western Publishing
  15. 15. INFORMATION SERVICES INFORMATION SERVICES Electronic Data Interchange (EDI) Computer-to-computer exchange of business information Banks can advise and provide servicesSlide 15 © South-Western Publishing
  16. 16. CREDIT CARD SERVICESCREDIT CARD SERVICES Credit card processing Stored-value card Credit analysisSlide 16 © South-Western Publishing
  17. 17. CAPITAL SERVICESCAPITAL SERVICES Capital investments Financing FactoringSlide 17 © South-Western Publishing
  18. 18. Lesson 9.4 TRUSTS GOALS Explain what trust services are Identify important types of trust services banks provideSlide 18 © South-Western Publishing
  19. 19. WHAT ARE TRUST SERVICES?WHAT ARE TRUST SERVICES? A trust is an arrangement by which one party holds property on behalf of another party for certain defined purposes. The donor, or settlor, is the person who creates a trust. The beneficiary is the person for whose benefit the property is held. Corpus, or res, refers to the property that is held.Slide 19 © South-Western Publishing
  20. 20. TRUST SERVICE PRODUCTSTRUST SERVICE PRODUCTS Retirement planning Estate planning Estate settlement Testamentary trust Charitable remainder trust Living trustSlide 20 © South-Western Publishing
  21. 21. RETIREMENT PLANNINGRETIREMENT PLANNING IRA 401(k) plan Variable annuitySlide 21 © South-Western Publishing
  22. 22. ESTATE PLANNINGESTATE PLANNING  Estate planning is the process by which an individual or family arranges the transfer of assets in anticipation of death.  An estate is the total property, real and personal, that an individual owns.  The cornerstone of any estate plan is a will, a document by which the individual gives instructions as to what is to happen upon his or her death in regard to property and remains.  Probate is a court proceeding that settles an estate’s final debts and formally passes legal title to property from the decedent to his or her heirs.Slide 22 © South-Western Publishing
  23. 23. ESTATE SETTLEMENTESTATE SETTLEMENT Identifying and valuing the estate assets Paying creditors, estate expenses, and taxes Preparing and filing the necessary tax documents with federal and/or state authorities Distributing assets to beneficiariesSlide 23 © South-Western Publishing
  24. 24. TESTAMENTARY TRUSTTESTAMENTARY TRUST Testamentary trusts are established by a will and take effect at the donor’s death. They receive the assets of the estate to hold and manage for the benefit of the heirs.Slide 24 © South-Western Publishing
  25. 25. CHARITABLE REMAINDER TRUSTCHARITABLE REMAINDER TRUST A charitable remainder trust (CRT) is an irrevocable trust designed to convert the highly appreciated assets of a trustor into a lifetime income stream without generating estate and capital gains taxes.Slide 25 © South-Western Publishing
  26. 26. LIVING TRUSTLIVING TRUST A living trust is a legal document that provides an expedient way to transfer property at a person’s death.Slide 26 © South-Western Publishing