BANKING SYSTEM

TYPE OF BANK – FAMOUS BANKS

A bank is a financial institution licensed to receive deposits and make loans. There are several types of banks including retail, commercial, and investment banks. In most countries, banks are regulated by the national government or central bank. The 4 different types of banks are Central Banks, Commercial Bank, Cooperative Bank, and Regional Rural Banks. You can read about the Types of Banks in India – Categories and Functions of Banks in India in the given link.  Pillars of banking: This framework is the digital-first platform, supported by four pillars – omnichannel banking, smart banking, modular banking, and open banking. Each of these four pillars is fundamental to success in the banking industry of the future.

OTHER BANKING TOPICS

1. RBI
2. NBFC
3. NATIONALISATION OF BANKS
4.  BANKING TERMS – MARKET SECURITIES
5. CHEQUE- DRAFT- HUNDI
6.  FUND-ASSETS
7. BANKING SYSTEM RULES
8. CREDIT-DEBT- INSOLVENCY -POVERTY
9. INTEREST
10. INSOLVENCY
11. INSURANCE

Functions of Commercial Banks: – Primary functions include accepting deposits, granting loans, advances, cash, credit, overdraft, and discounting of bills. Seven ‘Ps’ are essential for better marketing of bank services, according to Dr. K. Rajesh Nayak, Director (Training), Central Bank of Oman’s College of Banking and Financial Studies, Oman. The seven ‘Ps’ are: product, price, promotion, place, people, processes, and physical evidence

• the Single Supervisory Mechanism (SSM)
• the Single Resolution Mechanism (SRM)
• the European Deposit Insurance Scheme (EDIS)

OTHER BANKING TOPICS 2

1. INTERNATIONAL CREDIT – IMF- WORLD BANK
2. CREDIT RATING AGENCY
3. EXCHANGE RATE – MONETARY POLICY
4. MONEY-NOTES
5. SECURITY MARKET
6. QUESTIONS

The 5 most important banking services are checking and savings accounts, loan and mortgage services, wealth management, providing Credit and Debit Cards, and Overdraft services.

The history of banking began with the first prototype banks that are, the merchants of the world, who gave grain loans to farmers and traders who carried goods between cities. This was around 2000 BCE  in Assyria, India, and Sumeria.  Later, in ancient Greece and during the Roman Empire, lenders based in temples gave loans, while accepting deposits and performing the change of money Archaeology from this period in ancient China and India also shows evidence of money lending.

Many scholars trace the historical roots of the modern banking system to medieval and Renaissance Italy,  particularly the affluent cities of Florence, Venice, and Genoa. The  Bardi and Peruzzi Families dominated banking in 14th-century Florence, establishing branches in many other parts of  Europe.  The most famous Italian bank was the Medici Bank established by Giovanni Medici in 1397.  The oldest bank still in existence is Banca Monte Dei Paschi di Siena,   headquartered in Siena, Italy which has been operating continuously since 1472. Until the end of 2002, the oldest bank still in operation was the Banco di Napoli headquartered in Naples Italy which had been operating since 1463.

The establishment of the Bank of England, the model on which most modern central banks have been based, was devised by Charles Montagu, 1st Earl of Halifax, in 1694, to the plan which had been proposed by William Paterson three years before, but had not been acted upon.