1. Introduction
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets.
A bank may be defined as an institution that accepts deposits, makes loans, pays checks and provides financial services. A bank is a financial intermediary for the safeguarding, transferring, exchanging, or lending of money. A primary role of banks is connecting those with funds, such as investors and depositors, to those seeking funds, such as individuals or businesses needing loans. A bank is a connection between customers that have capital deficits and customers with capital surpluses.
Banks distribute the medium of exchange. Banking is a business. Banks sell their services to earn money, and they must market and manage those services in a competitive field. Banks are financial intermediaries that safeguard, transfer, exchange, and lend money and like other businesses that must earn a profit to survive. Understanding this fundamental idea helps you to understand how banking systems work and helps you understand many modern trends in banking and finance.
2. Definition
The definition of a bank varies from country to country. See the relevant country pages for more information.
Under English common law, a banker is defined as a person who carries on the business of banking by conducting current accounts for their customers, paying cheques drawn on them and also collecting cheques for their customers.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments, including cheques, and this Act contains a statutory definition of the term banker includes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated.
The business of banking is in many common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. When looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purpose of regulating and supervising banks rather than regulating the actual business of banking. However, in many cases, the statutory definition closely mirrors the common law one. Examples of statutory definitions:
• "banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances
As a fundamental component of modern economies, banking provides financial services and intermediation between savers and borrowers. From the ancient world's moneylenders to the present-day sophisticated financial institutions, banking has evolved considerably. In this article, we will explore the basics of banking, including its functions, types, and regulations, and delve into the current trends and challenges facing the banking industry.
As a fundamental component of modern economies, banking provides financial services and intermediation between savers and borrowers. From the ancient world's moneylenders to the present-day sophisticated financial institutions, banking has evolved considerably. In this article, we will explore the basics of banking, including its functions, types, and regulations, and delve into the current trends and challenges facing the banking industry.
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and comp
The Ethiopian Ministry of Innovation and Technology and the Job Creation Commission have jointly drafted a proclamation that is expected to address the challenges faced by start-up companies. According to the draft, ‘It must be less than five years since it was established. It must operate with up to 51 percent of its own capital in order not to violate the Ethiopian financial and commercial law. If we add it to the current micro and small enterprises, there is the innovation aspect. It can come up with new services or existing services. It should be able to bring added value to the delivery system or break the existing system,’ he explained to Deutsche Welle. When this bill is approved, it will establish the National Start-up Council. The council consists of not less than six and not more than nine members and is chaired by the Minister of Innovation and Technology. The members are selected by the Minister and appointed by the Prime Minister. "This declaration has a tax issue in it. The other issue is the issue of registration, the issue of talent. It is not a task given to just one ministry to coordinate all these things. It is extensive. Various ministries must participate. The first way to coordinate all this should be in the form of a council. Dawit told Deutsche Welle about the importance of the council. "This council will include the leaders of various ministries," said Ato Dawit, who will carry out various tasks such as strategies, recruitments, "Who will encourage him? Who will forgive him?" He explained that a technical committee will be established under the council to monitor such issues. According to the draft decree, the council is tasked with "accelerating economic growth by creating an environment conducive to innovation and technology as well as new business creation". Abraham Andrias, who founded and is now in charge of the company called Le Pharam, has not left the financial issues that test start-up companies when they are registered by law and carry out their work. "Technology-related startups like this need a lot of investment to find a market and grow," Abraham told Farm Company. The company works in partnership with institutions such as the Ministry of Agriculture and the German International Cooperation Corporation (GIZ). "Even if our partners don't give us money directly, they are supporting our company in capacity building by providing training, facilitating field visits and experience exchanges, and hiring consulting firms. At our current level, many commercial banks in Ethiopia want to finance a company that is expanding in the market and the cost is disproportionate to the income. They don't have it. The so-called investors also want to stand on the sidelines and watch the company's growth," he said, explaining that financial issues are still a challenge. Minister of State for Innovation and Technology Ahmedin Mohamed (Dr.) during a visit to the farm company with his colleagues.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and comp
The Ethiopian Ministry of Innovation and Technology and the Job Creation Commission have jointly drafted a proclamation that is expected to address the challenges faced by start-up companies. According to the draft, ‘It must be less than five years since it was established. It must operate with up to 51 percent of its own capital in order not to violate the Ethiopian financial and commercial law. If we add it to the current micro and small enterprises, there is the innovation aspect. It can come up with new services or existing services. It should be able to bring added value to the delivery system or break the existing system,’ he explained to Deutsche Welle. When this bill is approved, it will establish the National Start-up Council. The council consists of not less than six and not more than nine members and is chaired by the Minister of Innovation and Technology. The members are selected by the Minister and appointed by the Prime Minister. "This declaration has a tax issue in it. The other issue is the issue of registration, the issue of talent. It is not a task given to just one ministry to coordinate all these things. It is extensive. Various ministries must participate. The first way to coordinate all this should be in the form of a council. Dawit told Deutsche Welle about the importance of the council. "This council will include the leaders of various ministries," said Ato Dawit, who will carry out various tasks such as strategies, recruitments, "Who will encourage him? Who will forgive him?" He explained that a technical committee will be established under the council to monitor such issues. According to the draft decree, the council is tasked with "accelerating economic growth by creating an environment conducive to innovation and technology as well as new business creation". Abraham Andrias, who founded and is now in charge of the company called Le Pharam, has not left the financial issues that test start-up companies when they are registered by law and carry out their work. "Technology-related startups like this need a lot of investment to find a market and grow," Abraham told Farm Company. The company works in partnership with institutions such as the Ministry of Agriculture and the German International Cooperation Corporation (GIZ). "Even if our partners don't give us money directly, they are supporting our company in capacity building by providing training, facilitating field visits and experience exchanges, and hiring consulting firms. At our current level, many commercial banks in Ethiopia want to finance a company that is expanding in the market and the cost is disproportionate to the income. They don't have it. The so-called investors also want to stand on the sidelines and watch the company's growth," he said, explaining that financial issues are still a challenge. Minister of State for Innovation and Technology Ahmedin Mohamed (Dr.) during a visit to the farm company with his colleagues.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
1. Use of IAS and IFRS in Banking Companies in Bangladesh P a g e | 1
1. Introduction
A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly by loaning or indirectly through capital
markets.
A bank may be defined as an institution that accepts deposits, makes loans, pays checks and
provides financial services. A bank is a financial intermediary for the safeguarding, transferring,
exchanging, or lending of money. A primary role of banks is connecting those with funds, such
as investors and depositors, to those seeking funds, such as individuals or businesses needing loans.
A bank is a connection between customers that have capital deficits and customers with capital
surpluses.
Banks distribute the medium of exchange. Banking is a business. Banks sell their services to earn
money, and they must market and manage those services in a competitive field. Banks are financial
intermediaries that safeguard, transfer, exchange, and lend money and like other businesses that
must earn a profit to survive. Understanding this fundamental idea helps you to understand how
banking systems work and helps you understand many modern trends in bankingand finance.
2. Definition
The definition of a bank varies from country to country. See the relevant country pages for more
information.
Under English common law, a banker is defined as a person who carries on the business of banking
by conducting current accounts for their customers, paying cheques drawn on them and also
collecting cheques for their customers.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation
to negotiable instruments, including cheques, and this Act contains a statutory definition of the
term banker includes a body of persons, whether incorporated or not, who carry on the business of
banking' (Section 2, Interpretation). Although this definition seems circular, it is actually
functional, because it ensures that the legal basis for bank transactions such as cheques does not
depend on how the bank is structured or regulated.
The business of banking is in many common law countries not defined by statute but by common
law, the definition above. In other English common law jurisdictions there are statutory definitions
of the business of banking or banking business. When looking at these definitions it isimportant to
keep in mind that they are defining the business of banking for the purposes of the legislation, and
not necessarily in general. In particular, most of the definitions are from legislation that has the
purpose of regulating and supervising banks rather than regulating the actual business of banking.
However, in many cases, the statutory definition closely mirrors the common law one. Examples
of statutory definitions:
• "banking business" means the business of receiving money on current or deposit account,
paying and collecting cheques drawn by or paid in by customers, the making of advances to
2. Use of IAS and IFRS in Banking Companies in Bangladesh P a g e | 2
customers, and includes such other business as the Authority may prescribe for the
purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation).
• "banking business" means the business of either or both of the following:
a. receiving from the general public money on current, deposit, savings or other similar
account repayable on demand or within less than [3 months] ... or with a period of
call or notice of less than that period;
b. Paying or collecting cheques drawn by or paid in by customers.
Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct
debit and internet banking, the cheque has lost its primacy in most banking systems as a payment
instrument. This has led legal theorists to suggest that the cheque based definition should be
broadened to include financial institutions that conduct current accounts for customers andenable
customers to pay and be paid by third parties, even if they do not pay and collect cheques
.
3. A Brief Overview of the History of Bank
The history of banking dates back thousands of years, evolving from simple systems of exchange
to the complex financial institutions we have today. Here is a brief overview of the history of
banking: The origin of bank or banking activities can be traced to the Roman empire during the
Babylonian period. It was being practiced on a very small scale as compared to modern day
banking and frame work was not systematic.
Modern banks deal with banking activities on a larger scale and abide by the rules made by the
government. The government plays a crucial role with its control over the banking system. This
calls for bank management, which further ensures quality service to customers and a win-win
situation between the customer, the banks and the government.
❖ Ancient Banking: Early forms of banking can be traced to ancient civilizations such as
Mesopotamia, Egypt, and Greece. In Mesopotamia, temples served as centers for storage
of grain and precious metals, which eventually led to them performing banking functions
like lending and record-keeping.
❖ Roman Banking: The Romans developed a more structured financial system with
moneylenders and private individuals acting as bankers. They established the concept of
financial instruments like promissory notes.
❖ Medieval Banking: During the middle Ages, banking activities were often carried out by
religious institutions, such as monasteries. The practice of lending money and charging
interest was sometimes considered usurious, leading to restrictions on banking activities.
❖ Renaissance Banking: The Renaissance saw the emergence of modern banking practices
in Italy. Prominent families like the Medici played a significant role by establishing
banking houses that provided loans, facilitated international trade, and acted as
intermediaries for papal finances.
3. Use of IAS and IFRS in Banking Companies in Bangladesh P a g e | 3
❖ Birth of Central Banking: The Bank of Sweden (Sveriges Riksbank), established in
1668, is often considered the world's first central bank. It was followed by the Bank of
England in 1694, which played a crucial role in financing the British government.
❖ 19th and 20th Centuries: The 19th century witnessed the expansion of banks globally,
along with the introduction of more sophisticated financial instruments. The Industrial
Revolution and increasing international trade contributed to the growth of banking
institutions. The 20th century saw the establishment of regulatory bodies and central banks
in various countries to ensure financial stability and manage monetary policy.
❖ Modern Banking: Modern banking evolved with advancements in technology,
particularly the computerization of banking operations. The introduction of ATMs, online
banking, and electronic payment systems transformed the way individuals interactwith
banks. The globalization of financial markets and the integration of economies ledto the
rise of multinational banks and complex financial instruments.
❖ Recent Developments: The 2008 global financial crisis prompted reforms in the banking
sector to address issues of risk management, transparency, and regulatory oversight.
The advent of fintech (financial technology) has brought innovation to the banking industry, with
online-only banks, peer-to-peer lending, and digital payment solutions challenging traditional
banking models. Throughout history, the banking industry has continually adapted to changing
economic, technological, and regulatory landscapes. The functions and role of banks have
expanded from simple storage and exchange of assets to encompass a wide range of financial
services that support economic growth, investment, and trade.
4. Rule and Regulation of Banking Companies
Rules and regulations in the banking sector are designed to ensure the stability, integrity,
transparency, and fair operation of financial institutions and markets. These regulations vary
from country to country, but they generally cover several key areas to safeguard the interests of
depositors, borrowers, investors, and the overall economy. Here are some common rules and
regulations in the banking sector:
❖ Prudential Regulations: Prudential regulations focus on maintaining the financial health
and stability of banks. They often include requirements for capital adequacy, risk
management, and liquidity management. These regulations ensure that banks have a
sufficient buffer to absorb losses and continue operations even during financial stress.
❖ Capital Adequacy Requirements: Banks are required to maintain a minimum level of
capital as a percentage of their risk-weighted assets. These requirements ensure that banks
have a solid financial foundation to cover potential losses and unexpected shocks.
❖ Risk Management Guidelines: Banks must implement effective risk management
practices to identify, assess, and manage various types of risks, including credit risk, market
risk, operational risk, and liquidity risk.
4. Use of IAS and IFRS in Banking Companies in Bangladesh P a g e | 4
❖ Anti-Money Laundering (AML) and Combating the Financing of Terrorism
(CFT): Banks are required to establish measures to prevent money laundering and the
financing of terrorism. They must conduct due diligence on customers, report
suspicious transactions, and maintain records to assist law enforcement agencies.
❖ Know Your Customer (KYC) Requirements: Banks must verify the identity of their
customers and understand their financial activities to prevent fraud, money laundering,
and other illicit activities.
❖ Consumer Protection: Regulations are in place to protect consumers' rights and
interests. These regulations cover areas such as disclosure of terms and conditions, fair
treatment of customers, and resolution of disputes.
❖ Reserve Requirements: Central banks may impose reserve requirements, mandating
thatbanks hold a certain percentage of their deposits as reserves with the central bank.
This helps ensure liquidity in the banking system and control money supply.
❖ Market Conduct Regulations: Banks are often subject to regulations that govern their
behavior in the financial markets. These regulations prevent market manipulation,
insider trading, and other unethical practices.
❖ Disclosure and Reporting Requirements: Banks must disclose their financial
information regularly and accurately. Reporting requirements include financial
statements, capital adequacy reports, and information related to risk exposures.
❖ Cross-Border Transactions and Capital Movements: Regulations regarding cross-
border transactions and capital movements are in place to ensure that banks comply
with foreign exchange controls, prevent capital flight, and maintain stability in the
domestic currency.
❖ Resolution and Recovery Planning: Banks are often required to develop plans for
resolving financial distress or failure in an orderly manner, minimizing disruption to
the financial system and protecting depositors.
❖ Regulatory Authorities: Banks are supervised and regulated by central banks, banking
commissions, or financial regulatory bodies specific to each country. These authorities
oversee compliance with regulations and ensure the soundness of the banking system.
Overall, banking regulations play a critical role in maintaining the stability and integrity of the
financial system, protecting consumers, and promoting confidence in banking institutions and
markets.