Basic Banking Knowledge.docVIP

Basic Banking Knowledge A-IT SOFTWARE SERVICES (SHANGHAI) PTE LTD  I. Introduction Purpose This is a short-term course that introduces the businesses and processes of bank. It aims to equip participants with the basic knowledge they need to learn about the banking area. Objectives At the end of the course, the participant should be able to: Know the sources of bank funds Know the uses of bank funds Know the process of deposits Know the process of loans Outline Introduction Overview Definition of Bank Types of Bank Functions of Bank Bank Businesses Sources of Funds Uses of Funds Financial Services Interest for Profit Deposits Account Ownership Personal Accounts Commercial Accounts Opening Accounts Processing Accounts Loans Types of Loans Process of Loans General Ledger  II. Overview Definition of Bank An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositors checks; and issues drafts and cashiers checks. Types of Bank There are four major types of bank: Commercial Banks Saving Banks Saving Associations Credit Unions Commercial Banks Accept deposits payable on demand (checking accounts) and make business loans. Have the authority to be full-service provider of deposit, payment, and credit services to all types of customers. Saving Banks Specialize in saving accounts and real estate loans. Allowed to offer additional products now. Saving Associations Accept various types of deposits and use them primarily as a source of funds for real estate loans. Allowed to offer commercial and installment loans. Credit Unions No-Profit, member-owned financial institutions Accept deposits, extend loans, and provide other financial services. Functions of B