Bank course
Dr / Ahmed Abdellakher
What is Bank ?
• A bank is a financial institution
licensed to receive deposits
and make loans. Banks may
also provide financial services
such as wealth management,
currency exchange, and safe
deposit boxes. ... In most
countries, banks are regulated
by the national government or
central bank.
Type of Banks ?
Banks
Commercial bank Central bank Investment bank Private bank
البنوك التجارية البنك المركزى البنوك االستثمارية البنوك المتخصصة
Commercial Bank
• In the most basic terms, commercial banks
take deposits from individual and institutional
customers, which they then use to extend
credit to other customers. They make money
by earning more in interest from borrowers
than they pay in interest to depositors.
Banks make profit by collecting and charging:
Interest rate on their assets (securities and loans) that is higher than the expenses on their
liabilities (deposits and due to banks)
Commissions and fees for the performing services for their customers
Commercial Banks provide:
Loans to:
Businesses who have productive investment opportunity
Individuals to help them to purchasing new car or home and to finance school and
university educations
Services such as:
Saving & Deposits,
Trade finance,
Transfers and checks collection.
Transfers funds
Centrals banks function
• A central bank is an independent national
authority that conducts monetary
policy, regulates banks, and provides financial
services including economic research. Its goals
are to stabilize the nation's currency,
keep unemployment low, and
prevent inflation
Private Banking
• What Is Private Banking?
• Private banking consists of personalized financial
services and products offered to the high-net-
worth individual (HNWI) clients of a retail bank or
other financial institution. It includes a wide
range of wealth management services, and all
provided under one roof. Services include
investing and portfolio management, tax services,
insurance, and trust and estate planning.
What Is the Role of an Investment
Bank?
• Issuing stocks and bonds is one of the primary
ways for a company to raise capital. But
executing these transactions requires special
expertise, from pricing financial instruments in
a way that will maximize revenues to
navigating regulatory requirements. That’s
where an investment bank usually comes into
the picture.
• Prototype of Commercial Bank Structure
• Commercial Banks
• Main Functions
• Support Functions
• Main Functions
• Documentary Credit & Letter of Guarantee
• Credit
• Treasury
• Retail Banking
• Investment
• Support Functions
• Accounts
• Bills
• Customer Services
• Cheques & Transfers
• Cash Department
• Information
• Legal Affaires
• Human Resources
• Inspection
• Compliance
• Following up credit facilities
• Financial Department
Modern banking
Exercise:
• Complete the missing words:
• 1. The Central Bank has two main functions:
• A. On the ………………. level, when regulating inflation and price stability and
• B. On the ………………...level, when functioning as a lender of last resort.
• 2. The primary goal of central banks is to provide their currencies with price
…………….. by controlling inflation.
• 3. The Central Bank and is the sole provider and printer of………… and ………….. in
circulation
• 4. The commercial banks makes profit on their assets by charging ……………… &
………………
• Mention two functions of the Investment Banks:
• 1……………………………………………………………………………
• 2……………………………………………………………………………
Retail bank
Retail Banking Accounts
RETAIL BANKING
ACCOUNTS
Certificates of
CURRENT ACCOUNT Saving account Time deposit
deposit
OTHER ACCOUNT
Cards
Cards
Visa card Master card
Debit card Credit card Prepaid card
checks
شيك مسطر
شيك مظهر