PURVA DICHOLKAR
New member
INTRODUCTION:
Bank:A Bank is financial institution that accepts deposits from the public and creates a demand deposit, while simultaneously making loans. Lending activities can be performed either directly or indirectly through capital markets.Due to the importance of banks in the financial stability of a country, most jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a system known as Fractional Reverse Banking, under which banks hold liquid assets equal to only a portion of their current liabilities.Banks borrow money by accepting funds deposited on current accounts, by accepting term Deposits , and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installments loans, and by investing in marketable debt securities and other forms of money lending. Payment of diffrent services, and a bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account.
Leading Banks:A leading bank is a bank that oversees the arrangement of loan syndication. The lead bank receives an additional fee for this service, which involves recruiting the syndicate members and negotiating the financing terms. In the Eurobond market, the lead bank acts in an agent capacity for an underwriting syndicate.For example:
Bank Of China Ltd - The largest bank in the world in terms of total assets under management (AUM) is the Industrial and Commercial Bank Of China Ltd
Insurance:
Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools client's risk to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party.
TYPES OF BANK:
Retail bank deals specifically with retail consumers. These banks offer services to the general public and are also called personal or general banking institutions. Retail banks provide services such as checking and savings accounts, loan and mortgage services, financing for automobiles, and short-term loans like overdraft protection. Most retail banks also offer credit card services to their customers, and may also supply their clients with foreign currency exchange.These banks also cater to high-net-worth individuals, giving them specialty services such as private banking and wealth management. Examples of retail banks include TD Bank and Citibank Commercia Corporate Bank provide specialty services to their business clients from small business owners to large, corporate entities. Along with day-to-day business banking, these banks also provide their clients with other things such as credit services, Cash management, commercial real estate services, employer services, and trade finance. JPMorgan Chase and Bank of America are two popular examples of commercial banks.The advisory division of an investment bank (IB) is paid a fee for their services, while the trading division experiences profit or loss based on its market performance. Professionals who work for investment banks may have careers as financial advisors, traders or salespeople. An investment banking career can be very lucrative, but it typically comes with long hours and significant stress.
Investment banks are most known for their work as financial intermediaries. That is, they help corporations issue new shares of stock in an Initial Public Offering (IPO) or follow-on offering. They also help corporations obtain debt financing by finding investors for corporate bonds. The investment bank's role begins with pre-underwriting counseling and continues after the distribution of securities in the form of advice. The investment bank will also examine the company’s financial statements for accuracy and publish a prospectus that explains the offering to investors before the securities are made available for purchase.
Investment banks’ clients include corporations, pension funds, other financial institutions, governments, and hedge funds. Size is an asset for investment banks. The more connections the bank has within the market, the more likely it is to profit by matching buyers and sellers, especially for unique transactions. The largest investment banks have clients around the globe.
mission by combining a thorough understanding of their clients' objectives, industry and global markets with strategic vision trained to spot and evaluate short- and long-term opportunities and challenges facing their client.
Bank:A Bank is financial institution that accepts deposits from the public and creates a demand deposit, while simultaneously making loans. Lending activities can be performed either directly or indirectly through capital markets.Due to the importance of banks in the financial stability of a country, most jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a system known as Fractional Reverse Banking, under which banks hold liquid assets equal to only a portion of their current liabilities.Banks borrow money by accepting funds deposited on current accounts, by accepting term Deposits , and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installments loans, and by investing in marketable debt securities and other forms of money lending. Payment of diffrent services, and a bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account.
Leading Banks:A leading bank is a bank that oversees the arrangement of loan syndication. The lead bank receives an additional fee for this service, which involves recruiting the syndicate members and negotiating the financing terms. In the Eurobond market, the lead bank acts in an agent capacity for an underwriting syndicate.For example:
Bank Of China Ltd - The largest bank in the world in terms of total assets under management (AUM) is the Industrial and Commercial Bank Of China Ltd
Insurance:
Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools client's risk to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party.
TYPES OF BANK:
Retail bank deals specifically with retail consumers. These banks offer services to the general public and are also called personal or general banking institutions. Retail banks provide services such as checking and savings accounts, loan and mortgage services, financing for automobiles, and short-term loans like overdraft protection. Most retail banks also offer credit card services to their customers, and may also supply their clients with foreign currency exchange.These banks also cater to high-net-worth individuals, giving them specialty services such as private banking and wealth management. Examples of retail banks include TD Bank and Citibank Commercia Corporate Bank provide specialty services to their business clients from small business owners to large, corporate entities. Along with day-to-day business banking, these banks also provide their clients with other things such as credit services, Cash management, commercial real estate services, employer services, and trade finance. JPMorgan Chase and Bank of America are two popular examples of commercial banks.The advisory division of an investment bank (IB) is paid a fee for their services, while the trading division experiences profit or loss based on its market performance. Professionals who work for investment banks may have careers as financial advisors, traders or salespeople. An investment banking career can be very lucrative, but it typically comes with long hours and significant stress.
Investment banks are most known for their work as financial intermediaries. That is, they help corporations issue new shares of stock in an Initial Public Offering (IPO) or follow-on offering. They also help corporations obtain debt financing by finding investors for corporate bonds. The investment bank's role begins with pre-underwriting counseling and continues after the distribution of securities in the form of advice. The investment bank will also examine the company’s financial statements for accuracy and publish a prospectus that explains the offering to investors before the securities are made available for purchase.
Investment banks’ clients include corporations, pension funds, other financial institutions, governments, and hedge funds. Size is an asset for investment banks. The more connections the bank has within the market, the more likely it is to profit by matching buyers and sellers, especially for unique transactions. The largest investment banks have clients around the globe.
mission by combining a thorough understanding of their clients' objectives, industry and global markets with strategic vision trained to spot and evaluate short- and long-term opportunities and challenges facing their client.