Banking Domain Knowledge – Mainframe Developers

What is banking domain?

The domain which deals with Money, customer accounts, Loans, Credits etc.

Money is anything that is accepted as

  • (a) a medium of exchange
  • (b) a unit of monetary account
  • (c) a store of value can be used as money

Banking industry

What is Bank?

“Bank is a lawful organisation, which accepts deposits that can be withdrawn on demand. It also lends money to individuals and business houses that need it.

The other functions of Banks accept deposits from the general public as well as from the business community. Any one who saves money for future can deposit his savings in a bank. Businessmen have income from sales out of which they have to make payment for expenses. They can keep their earnings from sales safely deposited in banks to meet their expenses from time to time. Banks give two assurances to the depositors –

  • a. Safety of deposit, and
  • b. Withdrawal of deposit, whenever needed

Who will regulate Banking system in United states?

U.S. banking regulation addresses privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism, anti-usury lending, and the promotion of lending to lower-income populations. Some individual cities also enact their own financial regulation laws (for example, defining what constitutes usurious lending).

According to official Federal Reserve documentation, are to conduct the nation’s monetary policy, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to depository institutions, the U.S. government, and foreign official institutions.

Image result for federal bank usa image

The key role of Federal deposit insurance

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, up to $250,000 per depositor per bank.

The role of controller of currency

The Office of the Comptroller of the Currency is a U.S. federal agency established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States.

The key functionalities of commercial banks as follows:

For better or worse, we’ve lost the issuance of securities and active investment in securities as defining actions that a commercial bank cannot take. Instead, we can look at the actions all commercial banks share. Commercial banks:

  • Accept deposits
  • Lend money
  • Process payments
  • Issue bank drafts and checks
  • Offer safety deposit boxes for items and documents

There are more actions, of course, and finer categories within this broad view. Commercial banks may offer other services such as brokering insurance contracts, giving investment advice and so on. They also provide a wide variety of loans and offer other credit vehicles like cards and overdrafts. However, the common theme among these activities is that they are aimed at providing a financial service to an individual or business.

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Author: Srini

Experienced software developer. Skills in Development, Coding, Testing and Debugging. Good Data analytic skills (Data Warehousing and BI). Also skills in Mainframe.