Banking Domain Knowledge – Mainframe Developers

Banking Domain

Knowledge

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

Types of Banks

  • Retail Bank
  • Investment Bank
  • Commercial Bank
  • Private Bank
  • Digital Bank

Money is anything that is accepted as

  • a medium of exchange
  • a unit of monetary account
  • 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“Bank is a lawful organisation, which accepts deposits that can be withdrawn on demand.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

Retail Banking

The following are the list of products generally popular in any retail banking:

  1. Accounts
  2. Loans
  3. Cards
  4. Mortgages
  5. Insurance

Central Bank

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.

Commercial Banking

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.

Frequently Used Banking Terms

 ACD
Automatic Call Distributor
AER
Annual Equivalent Rate
AFBD
Association of Futures Brokers and Dealers
API
Application Programming Interface
ATM
Automated Teller Machine
BBA
British Bankers Association
BCBS
Basel Committee on Banking Supervision
BSB
Banking Standards Board
C&CCC
Cheque & Credit Clearing Company
CAS
Current Account Switching Service
CCA
Consumer Credit Act
CCBS
Campaign for Community Banking Services
CEO
Chief Executive Officer
CMA
Competition and Markets Authority
COO
Chief Operating Officer
DPA
Data Protection Act
ECB
European Central Bank
EU
European Union
FCA
Financial Conduct Authority
FDIC
Federal Deposit Insurance Corporation
FIMBRA
Financial Intermediaries, Managers and Brokers Regulatory Authority
FPC
Financial Policy Committee
FSA
Financial Services Authority
GDP
Gross Domestic Production
GDPR
General Data Protection Regulation
GSIB
Globally Systemically Important Bank
ICB
Independent Commission on Banking
IMRO
Investment Management Regulatory Organization
JV
Joint Venture
LAUTRO
Life Assurance and Unit Trust Regulatory Organization
LOLR
Lender of Last Resort
LSE
London Stock Exchange
MPC
Monetary Policy Committee
NIM
Net Interest Margin
NINJA
No Income No Job or Assets
OFT
Office of Fair Trading
PEP
Personal Equity Plan
PIN
Personal Identification Number
PPI
Payment Protection Insurance
PRA
Prudential Regulatory Authority
PSD
Payment Services Directive
RDR
Retail Distribution Review
RFTS
Ring-Fencing Transfer Scheme
RWA
Risk-Weighted Assets
SIB
Securities and Investment Board
SIFI
Systemically Important Financial Institutions
TARP
Troubled Asset Relief Program
TESSA
Tax Exempt Special Savings Account
TSA
The Securities Association

References

ACI – The Financial Markets Association www.aciforex.com
Bank of International Settlements www.bis.org
British Bankers Association www.bba.org.com
Bloomberg www.bloomberg.com
Dun and Bradstreet www.dnb.com
EBRD www.ebrd.com
Eurex www.eurexchange.com
Euromoney Publications www.euromoney.com
Euronext www.euronext.com
European Bank for Reconstruction and Development www.ebrd.com
European Central Bank www.ecb.int
Financial Times www.ft.com
Fitch www.fitchibca.com
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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.