Banks and their products VOŠ – 3. ročník – 2. semestr

© Lenka Lexová Definition a commercial or state institution that provides financial services, e. g.: issues money in form of coins, banknotes or debit cards receives deposits of money lends money processes transactions accepts deposits from customers and in turn makes loans based on those deposits

©Lenka Lexová BANKING SYSTEM most banks are profit-making, private enterprises some are owned by the government, or are non- profits banks activities can be divided into: retail banking - dealing directly with individuals and small businesses business banking - providing services to mid-market businesses corporate banking - directed at large businesses investment banking - relating to activities on the financial markets

TYPES OF BANKS: Central Bank Commercial Banks Savings Banks Investment Banks specialized banks ©Lenka Lexová

Central Bank controls the monetary policy of its country regulates and supervises the banking industry determines discount interest rates issues the currency and maintains its stability controls exchange rates acts as a lender of last resort during times of financial crisis manages the country's foreign exchange and gold reserves in CR it is the Czech National Bank

©Lenka Lexová Commercial banks a bank or a division of a bank that mostly deals with deposits and loans from firms or individuals accept savings deposits, time or term deposits from businesses and consumers and invest these funds provide loans to firms and consumers buy corporate bonds and government bonds handle customers accounts

©Lenka Lexová Savings banks accept savings deposits from customers and keep them make personal loans arrange mortgages provide easily accessible savings products focus on payments, credits and insurances for individuals or small and medium-sized enterprises

©Lenka Lexová Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the market provide strategic consultancy services for financial transactions compete with commercial banks

©Lenka Lexová Specialized banks private banks merchant banks building societies postal savings banks mortgage banks export and import banks guarantee banks

©Lenka Lexová BANKS FINANCIAL RESOURCES liabilities – deposits accepted by a bank assets – loans granted to customers margin – interest received on loans minus interests paid on deposits income from trading in securities and foreign currencies borrowed money from the Central Bank issuing new shares and bonds offer various bank products

©Lenka Lexová BANK PRODUCTS all bank services currently offered in various areas of bank activities can be performed in the domestic and foreign currencies can be performed within the country or abroad

Traditional bank products: taking deposits from their customers opening and maintenance of various types of accounts making personal and commercial loans to individuals and businesses exchanging foreign currencies cashing cheques offering investment banking services – trading bonds and shares making mortgages ©Lenka Lexová

consumer & commercial financial advisory services providing bank guarantees for its clients offering safe custody services doing money transactions such as wire transfers and cashiers checks issuing credit cards, ATM cards, and debit cards storing valuables in a safe deposit box arranging electronic money transfers pension & retirement planning etc. ©Lenka Lexová

TRANSACTION CHANNELS a branch, banking centre or financial centre where a bank offers face to face services to its customers ATM - a device that provides financial transactions in a public space without the need for a bank clerk mail - a system in which written documents are enclosed in envelopes and delivered to destinations around the world telephone banking allows the customers to perform transactions over the telephone online banking is used for performing transactions, payments etc. over the Internet