Foundation Course
FDN-BN101-DB
Foundation Course in Banking – I
1
Table of Contents
1
1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.6
Evolution of Banking ________________________________________ 6
What is banking? ______________________________________________________6 History of Banking _____________________________________________________7 Services Offered by Banks ______________________________________________10 Trends in Banking Services _____________________________________________12 Classification of Banking Systems________________________________________13 Central Banking System__________________________________________________13 Commercial Banking System ______________________________________________19 Classification of Commercial Banking Services ________________________________21 Structure of Financial System____________________________________________22
2
2.1 2.1.1 2.1.2 2.2 2.2.1 2.2.2 2.3 2.3.1 2.3.2 2.4 2.4.1
Introduction to Retail Banking
25
Types of Deposit Accounts ______________________________________________26 Savings Account_____________________________________________________
___27 Current Account ________________________________________________________27 Overview of Lending Process ____________________________________________27 Loan Origination_________________________________________________
_______27 Loan Servicing _________________________________________________________31 Credit Appraisal in the Retail Market ______________________________________31 Traditional Approaches __________________________________________________32 Modern Approaches__________________________________________________
___34 Retail Payment System _________________________________________________38 A Standardized Payments Model ___________________________________________39
2
2.4.2 2.4.3 2.4.4 2.4.5 2.5 2.5.1
Types of Inter-bank Transfers _____________________________________________40 Check Payment System
Foundation Course in Banking – I
1
Table of Contents
1
1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.6
Evolution of Banking ________________________________________ 6
What is banking? ______________________________________________________6 History of Banking _____________________________________________________7 Services Offered by Banks ______________________________________________10 Trends in Banking Services _____________________________________________12 Classification of Banking Systems________________________________________13 Central Banking System__________________________________________________13 Commercial Banking System ______________________________________________19 Classification of Commercial Banking Services ________________________________21 Structure of Financial System____________________________________________22
2
2.1 2.1.1 2.1.2 2.2 2.2.1 2.2.2 2.3 2.3.1 2.3.2 2.4 2.4.1
Introduction to Retail Banking
25
Types of Deposit Accounts ______________________________________________26 Savings Account_____________________________________________________
___27 Current Account ________________________________________________________27 Overview of Lending Process ____________________________________________27 Loan Origination_________________________________________________
_______27 Loan Servicing _________________________________________________________31 Credit Appraisal in the Retail Market ______________________________________31 Traditional Approaches __________________________________________________32 Modern Approaches__________________________________________________
___34 Retail Payment System _________________________________________________38 A Standardized Payments Model ___________________________________________39
2
2.4.2 2.4.3 2.4.4 2.4.5 2.5 2.5.1
Types of Inter-bank Transfers _____________________________________________40 Check Payment System