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Commercialbank 180510162147
This document provides an overview of commercial banking. It introduces the group members presenting on this topic and defines commercial banking as products and services designed for businesses, with deposit taking and loan making as the main functions. It then lists some primary functions like accepting deposits and advancing loans, secondary functions such as overdraft facilities, and various services offered by commercial banks such as agency, general utility, and overseas trading services.
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Commercialbank 180510162147
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- 2. GROUP NO-08 We arediscussing about “Commercial Banking”
- 3. Our Group MembersAre… KAZI FAHIM SHAHRIYAR BIPRO DAS RABEYA TASNIM MD. MOMIN ALI LITON KUMAR PAUL SHEIKH TASNIM MUZAHID MD IBRAHIM SHEIKH IBRAHIM SHEIKH RIAZ AHMED IMRAN FAHIM RAMEEM HASAN RASEL FAKIR
- 4. Commercial Banking Commercial bankingrefers to products or services specifically designed for businesses. The main business of commercial bank is “deposit-taking” and “making-loans”
- 5. Function of commercialBanks ►Primary Functions of Commercial Banks A. Accepting Deposits B. Advancing Loan ►Secondary Functions of Commercial Banks A. Overdraft Facility B. Discounting Bill of Exchange
- 6. Service Rendered ByCommercial Banks Agency Services ○Collection of Cheques, Dividends, and Interests etc. ○Payment of Subscription, Rent, and Insurance Premium ○Conduct of Stock ExchangeTransactions ○Acting as Executor,Trustees, and Attorneys etc. ○Conducting Foreign ExchangeTransactions
- 7. General utility Services ○BankersDraft and Letter Credit ○Circular Notes ○Travellers Cheques ○Circular Cheques ○Safe Custody ofValuables ○Night Safes
- 8. Referee as tothe Respectability and Financial status of the Customer Bank Giro Credit Cards Debit Cards ATM Cards Budget Accounts
- 9. Overseas Trading Services EFT Electronic Funds Transfer Tradinggoods and services over the sea
- 10. General Structure andMethods of Commercial Banking Certain Sound Commercial Principles Safety Profitability Marketability or Liquidity Purpose of the loan Diversification National policies
- 11. Employment of Fundsby Commercial Banks • Cash in hand • Money at the call and short notice • Bills discount • Investment • Loan and advances
- 12. Mechanism of CreditCreation Liabilities $ Assets $ Deposits 100000 Cash in Hand 100000 Liabilities Assets Deposits (original) Deposits 10000 9000 Cash In Hand Loans to clients 10000 9000 19000 19000 Liabilities Assets Deposits (Original) Deposits (Deposited by Payees) Deposits (Credit Balance of Subsequent Borrowers) 10000 9000 8100 Cash In Hand Loans to clients 9000 8100 10000 17100 27100 27100
- 13. Limitation ofThe CreditCreation ∆ Amount of Cash ∆ Cash Reserve Ratio ∆ Leakages ∆ Business Condition ∆ Availability of Security ∆ Availability of Borrowers
- 14. Clearing House System BankB Bank A Clearing House
- 15. System Of Banking ChainBanking A small group of individuals control three or more banks Group Banking Incentivizing a whole group of people to have a relationship with the banking institution
- 16. Unit Banking Banking operationsare carried by a single branch in to a limited area Branch Banking Doing one's banking business at a location which separate from the bank's central business
- 17. Investment Banking andMixed Banking Investment banking is a special segment of banking operation that helps individuals or organizations raise capital and provide financial consultancy services to them Investment Banking
- 18. The banking systemthat combines deposit banking with investment banking is known as Mixed banking Mixed Banking
- 19. Universal Banking Universal bankingis a combination of Commercial banking, Investment banking, Development banking, Insurance and many other financial activities
- 20. Merchant Banking Merchant Bankingis a combination of Banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial and legal matters
- 21. Virtual Banking Availing thebanking services through an extensive use of information technology without any requirement for the physical walk-in premises is called as virtual banking
- 22. Green Banking Green Bankingis defined as promoting eco-friendly banking practices and reducing emitted carbon mark from banking activities
- 23. Congratulation… !! You All’ve KnownOur Information About Commercial Banking
- 24.