Commercial Banking Made by Vakhrusheva Elena, A 3 -1
The Contents O The general information O The history O The role of commercial banks O Functions O Primary functions O The agency functions O The utility functions O Tasks for Understanding
Commercial Bank O A financial institution that provides such services as: accepting deposits giving business loans and auto loans mortgage lending investment products
The History O A bank of St. George in Genoa, 1407. O An Italian bank Monte dei Paschi di Siena - since 1472
November 1, 1864 in St. Petersburg. In 1870 - the Volga-Kama and the Azov-Don Banks By 1918, the number of commercial banks increased to 31, and the number of branches increased to 493
The role of commercial banks O processing of payments O issuing bank drafts and bank cheques O accepting money on term deposit O lending money by overdraft, installment loan O providing documentary and standby letter of O O credit, guarantees safekeeping of documents & other items in safe deposit boxes sales, distribution or brokerage, with or without advice, of: insurance, unit trusts and similar financial products as a “financial supermarket” cash management and treasury merchant banking
Functions ry s a n im tio r p c n fu se th co e fu n nc da tio ry ns
Primary functions O accepting various types of deposits from public especially from its clients, including saving account deposits, recurring account deposits, and fixed deposits. O Provide loans and advances of various forms, including an overdraft facility, cash credit, bill discounting, etc. O Credit creation
agency functions utility functions Secundary functions
The agency functions O collecting and clear cheque, O O O dividends and interest warrant. making payments of rent, insurance premium, etc. dealing in foreign exchange transactions. purchasing and sell securities. acting as trusty, attorney, correspondent and executor. accepting tax proceeds and tax returns.
The utility functions O Providing safety locker facility to O O O customers. Providing money transfer facility. Issuing traveller's cheque. Acting as referees. Accepting various bills for payment Providing merchant banking facility. Providing various cards.
Tasks for Understanding 1. The first private commercial bank in Russia was opened in: O 1902 O 1864 O 1867 2. Generally, the functions of commercial banks are divided into two categories: primary functions and the … functions. (Secundary) 3. The secondary functions of commercial banks can be divided into … functions and utility functions. (Agency)
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