Fundamental

s of Banking
Banks, Products
Money vs. Currency
Regulators

History of Banking

The history of banking begins with the first prototype banks of merchants
of the ancient world, which made grain loans to farmers and traders who
carried goods between cities

Barter system was prevalent in majority of the world

Salt, Coal, etc. was used in many parts of the world as currency

In ancient Greece and during the Roman Empire, lenders based in temples
made loans and added two important innovations: they accepted deposits in
the form of Gold and changed money.

In Babylon at the time of Hammurabi, in the 18th century BC, there are
records of loans made by the priests of the temple.

The first bank to be established was established in Venice with guarantee

from the State in 1157

Banking History..

In Babylon at the time of Hammurabi, in the 18th century

BC, there are records of loans made by the priests of the
temple.

The first bank to be established was established in Venice

with guarantee from the State in 1157

Few Financial Terms

Money
Currency
Certificate of Deposits
Treasury bills
Bonds
Overdraft
Lien
Mortgage
Non Performing Assets
Sweep
Spread
Floating vs. Fixed

Indian Banking

Primary Functions of Banks

Demand Deposits

Lending

Safeguarding

Structure of a Bank

Banking Domains

Retail Banking: Division which handles banking requirements of domestic

individuals and small businesses proprietorships and partnerships.

NRI Banking: Specific to India handles banking requirements of NRIs.

This can be clubbed in the Retail Banking Division.

Rural/Agricultural Banking: Division seen mainly in Public Sector Banks

(PSBs) in India, as they must, by mandate, cater to the needs of this sector.

SME Banking: Small and Medium Enterprises division. Sometimes also

included under Corporate Banking depends on the bank.

Corporate/Wholesale Banking: Division which handles the banking needs

of corporates only.

Banking Domains

Pvt. Banking & WM: Managing the investment needs of

wealthy individuals, called High Networth Individuals (HNIs).

Investment Banking: A specialized division that caters to

the niche requirements of corporates. For example, Mergers
and Acquisitions advisory (M&A).

Financial Markets & Treasury: Trading division of the bank.

This could be proprietary (for their own books) or on the behalf
of clients.

Products of Retail Bank

Interbank
transactions
Clearing Houses
Settlement Agencies

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