The institute of finance

THE INSTITUTE OF

FINANCE

The Faculty of Economics

Presentation prepared by

students of group I-82i (1st group, girls)

Student : ERGASHEVA MAFTUNA

INTRODUCTION

TO MONEY

AND BANKS

PLAN

01

02

03

04

05

Why we study Money and Banks

Money and business cycle

Money and interest rate

Financial markets

Banks and Non-bank financial institutions

5th plan

Banks and Non-bank financial institutions

Banks

Types of banks

Non-bank institutions

WHAT IS BANK?

A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.

Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are several different kinds of banks including retail banks, commercial or corporate banks, and investment banks. In most countries, banks are regulated by the national government or central bank.

BANK

CENTRAL

• the central bank is the head honcho. It manages the money supply in a single country or a series of nations. They supervise commercial banks, set interest rates and control the flow of currency.
• They also implement a government’s monetary policy goals, whether that involves combating deflation or keeping prices from fluctuating

RETAIL

• Retail banks offer members of the general public financial products and services such as bank accounts, loans, credit cards and insurance. In some cases, they can set up checking accounts and make loans for small-scale businesses as well.

COMMERCIAL

• commercial banks tend to concentrate on supporting businesses. Both large corporations and small businesses can turn to commercial banks if they need to open a checking or savings account, borrow money, get access to credit or transfer funds to companies in foreign markets.

INVESTMENT

• On one hand, they manage the trading of stocks, bonds and other securities between companies and investors. On the other hand, they might focus their energy on advising individuals and corporations who need financial guidance, reorganizing companies through mergers and acquisitions, managing investment portfolios or raising money for certain businesses and the federal government

4 types of banks

These non-bank financial institutions provide services that are not necessarily suited to banks, serve as competition to banks, and specialize in sectors or groups:

• insurance firms
• venture capitalists
• currency exchanges
• some microloan organizations
• pawn shops

A non-banking financial institution or non-bank financial company is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency. They help in the overall development of the economy by providing a fillip to transportation, employment generation, wealth creation, bank credit in rural areas and by supporting the financially weaker sections of the society.

non-banking financial institution

The end

Thanks