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Bank is a lawful organization, which accepts deposits that can be withdrawn on demand.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:
- Accounts
- Loans
- Cards
- Mortgages
- 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 AssociationReferences
| 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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