29-05-2017, 09:49 PM
Give me an example of the content one should put for the banks for the icse std 10 project. Total of 10 banks need to be presented on 5 journal pages. I am confused.
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maths project on banking for class 10
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Give me an example of the content one should put for the banks for the icse std 10 project. Total of 10 banks need to be presented on 5 journal pages. I am confused.
31-05-2017, 10:17 AM
A bank is a financial institution that accepts deposits from the public and creates credit. Loan activities can be carried out directly or indirectly through the capital markets. Because of their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking whereby banks have liquid assets equal to only a portion of their current liabilities. In addition to other regulations aimed at ensuring liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.
Banking in its modern sense developed in the fourteenth century in the prosperous cities of Renaissance Italy, but in many ways it was a continuation of ideas and concepts of credit and loans that had their roots in the ancient world. In banking history, several banking dynasties-notably the Medicis, the Fuggers, the Welsers, the Berenberg, and the Rothschilds-have played a central role over many centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.
The banking began with the first prototype banks of merchants of the ancient world, who made loans of grain to farmers and merchants who transported goods between cities. This began around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman Empire, temple lenders made loans and added two major innovations: they accepted deposits and exchanged money. Archeology of this period in ancient China and India also shows evidence of money lending activity.
The origins of modern banking go back to medieval Italy and early Renaissance, to the rich cities in the center and north as Florence, Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe. One of the most famous Italian banks was the Medici Bank, created by Giovanni di Bicci de Medici in 1397. The first known state deposit bank, Bank of St. George, was founded in 1407 in Genoa, Italy.
Modern banking practices, including fractional reserve banking and ticketing, emerged in the seventeenth and eighteenth centuries. The traders began to store their gold with the goldsmiths of London, who had private vaults, and charged a fee for that service. In exchange for each deposit of precious metals, the goldsmiths issued receipts certifying the quantity and purity of the metal they had as deposit; These receipts could not be assigned, only the original depositor could collect the stored goods.
Little by little the goldsmiths began lending money on behalf of the depositor, which led to the development of modern banking practices; Promissory notes (which became notes) were issued for money deposited as a loan to goldsmiths. The goldsmith paid interest on these deposits. Since the promissory notes were paid in cash and the advances of the goldsmith's customers were repayable in the long term, this was an early form of fractional reserve banking. The promissory notes became an assignable instrument that could circulate as a safe and convenient form of money backed by the promise of the goldsmith to pay, allowing the goldsmiths to advance loans with little risk of default. Thus, London goldsmiths became the forerunners of banking by creating new money based on credit.
The Bank of England was the first to begin the permanent issuance of banknotes in 1695. The Royal Bank of Scotland established the first overdraft facility in 1728. In the early nineteenth century a London clearing house was established to allow multiple banks To settle transactions. The Rothschilds pioneered large-scale international finance, financing the purchase of the Suez Canal for the British government.
The economic functions of the banks include:
1. Issuance of money, in the form of bills and checking accounts subject to check or payment at the customer's request. These claims on banks can act as money, as they are negotiable or redeemable at sight, and therefore valued at par. They are effectively transferable by simple delivery, in the case of banknotes, or by a check that the beneficiary can deposit in cash or cash.
2. Compensation and Settlement of Payments - Banks act as collection and payment agents for clients, who participate in interbank clearing and settlement systems to collect, present, file and pay instruments of payment. This allows banks to save on held reserves for settlement of payments, as internal and external payments are offset against each other. It also makes it possible to offset payments flows between geographical areas, reducing the settlement cost between them.
3. Credit brokerage - banks lend and lend back-to-back on their own account as intermediaries.
4. Improving credit quality: banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but they are high-quality borrowers. The improvement comes from the diversification of the bank's assets and the capital that provides a buffer to absorb the losses without breach of its obligations. However, bills and deposits are generally not guaranteed; If the bank gets into trouble and promises assets as collateral, to get the financing it needs to continue to operate, this puts banknote depositors and depositors in an economically subordinate position.
5. Asset liability mismatch / Maturity Transformation - Banks borrow more demand and short-term debt, but provide more long-term loans. In other words, they borrow and lend a lot of time. With a higher credit quality than most borrowers, banks can do this by adding issues (eg accepting deposits and issuing bills) and bailouts (eg withdrawals and refunds of bills), holding cash reserves, investing in negotiable securities that Can be readily converted into cash if necessary, and collecting replacement funds as needed from various sources (eg wholesale spot markets and stock markets).
6. Creation / destruction of money - whenever a bank grants a loan in a fractional reserve banking system, a new sum of money is created and, conversely, when the loan capital is repaid, the money is destroyed.
1. Issuance of money, in the form of bills and checking accounts subject to check or payment at the customer's request. These claims on banks can act as money, as they are negotiable or redeemable at sight, and therefore valued at par. They are effectively transferable by simple delivery, in the case of banknotes, or by a check that the beneficiary can deposit in cash or cash.
2. Compensation and Settlement of Payments - Banks act as collection and payment agents for clients, who participate in interbank clearing and settlement systems to collect, present, file and pay instruments of payment. This allows banks to save on held reserves for settlement of payments, as internal and external payments are offset against each other. It also makes it possible to offset payments flows between geographical areas, reducing the settlement cost between them.
3. Credit brokerage - banks lend and lend back-to-back on their own account as intermediaries.
4. Improving credit quality: banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but they are high-quality borrowers. The improvement comes from the diversification of the bank's assets and the capital that provides a buffer to absorb the losses without breach of its obligations. However, bills and deposits are generally not guaranteed; If the bank gets into trouble and promises assets as collateral, to get the financing it needs to continue to operate, this puts banknote depositors and depositors in an economically subordinate position.
5. Asset liability mismatch / Maturity Transformation - Banks borrow more demand and short-term debt, but provide more long-term loans. In other words, they borrow and lend a lot of time. With a higher credit quality than most borrowers, banks can do this by adding issues (eg accepting deposits and issuing bills) and bailouts (eg withdrawals and refunds of bills), holding cash reserves, investing in negotiable securities that Can be readily converted into cash if necessary, and collecting replacement funds as needed from various sources (eg wholesale spot markets and stock markets).
6. Creation / destruction of money - whenever a bank grants a loan in a fractional reserve banking system, a new sum of money is created and, conversely, when the loan capital is repaid, the money is destroyed.
Types of banks
The activities of the banks can be divided into:
• retail banking, which deals directly with individuals and small businesses;
• commercial banking, provision of services to mid-market companies;
• corporate banking, aimed at large business entities;
• private banking, providing wealth management services to individuals and families with high net worth;
• investment banking, related to activities in the financial markets.
Most banks are lucrative, private companies. However, some are owned by the government, or are non-profit organizations.
The activities of the banks can be divided into:
• retail banking, which deals directly with individuals and small businesses;
• commercial banking, provision of services to mid-market companies;
• corporate banking, aimed at large business entities;
• private banking, providing wealth management services to individuals and families with high net worth;
• investment banking, related to activities in the financial markets.
Most banks are lucrative, private companies. However, some are owned by the government, or are non-profit organizations.
Globalization in the banking sector
In modern times there have been huge reductions in the barriers of global competition in the banking industry. Increases in telecommunications and other financial technologies, such as Bloomberg, have allowed banks to expand their reach across the globe as they no longer have to be close to customers to manage their finances and risks. The growth of cross-border activities has also increased the demand of banks that can provide various services across borders to different nationalities. However, despite these reductions in barriers and growth in cross-border activities, the banking industry is nowhere more globalized than some other industries. In the United States, for example, very few banks worry about the Riegle-Neal Act, which promotes more efficient interstate banking. In the vast majority of nations around the world, the market share of foreign-owned banks is currently less than one-tenth of the market shares of banks in a particular nation. One of the reasons why the banking sector has not been fully globalized is that it is more convenient for local banks to lend to small businesses and individuals. On the other hand, for large corporations, it is not as important in what nation the bank is, since the financial information of the corporation is available worldwide.
In modern times there have been huge reductions in the barriers of global competition in the banking industry. Increases in telecommunications and other financial technologies, such as Bloomberg, have allowed banks to expand their reach across the globe as they no longer have to be close to customers to manage their finances and risks. The growth of cross-border activities has also increased the demand of banks that can provide various services across borders to different nationalities. However, despite these reductions in barriers and growth in cross-border activities, the banking industry is nowhere more globalized than some other industries. In the United States, for example, very few banks worry about the Riegle-Neal Act, which promotes more efficient interstate banking. In the vast majority of nations around the world, the market share of foreign-owned banks is currently less than one-tenth of the market shares of banks in a particular nation. One of the reasons why the banking sector has not been fully globalized is that it is more convenient for local banks to lend to small businesses and individuals. On the other hand, for large corporations, it is not as important in what nation the bank is, since the financial information of the corporation is available worldwide.
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