Money & Banking SESSION 1 BANKING By Dr. Soha El Magawry

Banking Banking Definition: Session 1 Money & Banking Banking Definition: 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. safe deposit boxes.

Banking Types of Banking: There are two types of banks: Session 1 Money & Banking Types of Banking: There are two types of banks: 1.commercial/retail banks . 2. investment banks. In most countries, banks are regulated by the national government or central bank.

Banking Central Bank Definition: Session 1 Money & Banking Central Bank Definition: A central bank, or monetary authority, is a monopolized and often nationalized institution given privileged control over the production and distribution of money and credit. In modern economies, the central bank is responsible for the formulation of monetary policy and the regulation of member banks. The central bank of the United States is the Federal Reserve System, or “the Fed,” which Congress established with the 1913 Federal Reserve Act.

Banking Session 1 Commercial Bank Definition: Money & Banking Commercial Bank Definition: A commercial bank is a financial institution that provides various financial service, such as: accepting deposits . issuing loans. Commercial bank customers can take advantage of a range of investment products that commercial banks offer like : savings accounts . certificates of deposit. The loans a commercial bank issues can vary from business loans and auto loans to mortgages.

Banking Investment Bank Definition: Session 1 Money & Banking Investment Bank Definition: Investment banking is a specific division of banking related to the creation of capital for other companies, governments and other entities. 

Banking Session 1 Investment Banks: Money & Banking Investment Banks:  Underwrite new debt and equity securities for all types of corporations, Aid in the sale of securities, Help to facilitate mergers and acquisitions, Reorganizations and broker trades for both institutions and private investors. Investment banks also provide guidance to issuers regarding the issue and placement of stock.

Banking Cooperative Bank: Session 1 Money & Banking Cooperative Bank: A bank that holds deposits, makes loans and provides other financial services to cooperatives and member-owned organizations. Also known as Banks for Cooperatives.

Banking Rural Bank Definition: Session 1 Money & Banking Rural Bank Definition: Rural bank is a financial institution that helps rationalize the developing regions or developing country to finance their needs specially the projects regarding agricultural progress.

Banking Development Bank: Session 1 Money & Banking Development Bank: Financial institutions dedicated to fund new and upcoming businesses and economic development projects by providing equity capital and/or loan capital.

Banking Session 1 Foreign Bank Definition: Money & Banking Foreign Bank Definition: A foreign bank or foreign banking firm is defined as any bank that is registered and/or organized under a non-United States foreign banking law. By definition, the branches, offices, and agencies of foreign banks are not considered “foreign banks”. Rather they are defined as: The branch of a foreign bank The office of a foreign bank The agency of a foreign bank

Banking Session 1 Money & Banking END of SESSION 1