Banking Domain Knowledge – Mainframe Developers

Here is domain knowledge in banking. It 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

What is Bank?

Bank is a lawful organization, which accepts deposits that can be withdrawn on demand.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. Anyone who saves money for the 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

The US banking system. Laws, Regulations and Risk management system.

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 the USA

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.

The 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 functionalities of commercial banks

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 Terminology

 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


ACI – The Financial Markets Association
Bank of International Settlements
British Bankers Association
Dun and Bradstreet
Euromoney Publications
European Bank for Reconstruction and Development
European Central Bank
Financial Times

Author: Srini

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