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Funded and Non-Funded Business of Bank
Concept The funded business of a bank refers to any transaction or business where the actual fund of the bank is used. IN other words, it facility provided by a bank where the real money is used.These are credit facilities provided by banks making the disbursement of real cash to the concerned beneficiary.It includes bank…
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Internal Control System in Banking Transactions
Internal Control System in Banking Transaction Meaning and Need An organization is established with definite aims and objectives. These objectives are achieved by performing different managerial, financial, operational and decisional activities. Different employees are involved in different levels of these activities. The work done by these employees has to be checked by another independent employee…
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Interbranch and Interbank Transaction
Interbranch Transaction A bank has a number of branches operating in different locations of a country. Sometimes two or more branches are involved in a transaction. These transactions performed with the involvement of two or more branches is called an inter-branch transaction. Such transactions involve either customer-related works or merely official transactions. A customer,/ can…
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BASEL III : An Overview
Basel Committee on Banking Supervision (BCBS) introduced BASEL III in December 2010. This came out as an improved version of BASEL II. It especially focused on more sound financial stability and risk management in the banking sector after the financial crisis of 2007/08. BASEL III is also known as “A Global Regulatory Framework for More…
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BASEL II : A Glimpse of It
Basel II is an international business standard that requires financial institutions to maintain enough cash reserves to cover risks incurred by operations. The Basel accords are a series of recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The name for the accords is derived from Basel, Switzerland, where the…
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Fund Management : Concept, Types, Importance and Methods
Concept of Fund Management The fund is a pool of money set aside for a specific purpose. In banks and financial institutions, It is required to perform different activities in an organization. In a simple sense, a fund is the cash held, used, and set aside for different pre-determined or contingency situations. Fund management is…
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Fund Management : Concept, Types, Importance and Methods
Concept of Fund Management The fund is a pool of money set aside for a specific purpose. In banks and financial institutions, It is required to perform different activities in an organization. In a simple sense, a fund is the cash held, used, and set aside for different pre-determined or contingency situations. Fund management is…
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Role Of Banking Sector In Economic Development
Banking sector is a key component of the economic system of a country. They do not just collect and mobilize scattered and small savings of a country. They have a huge role to play in credit creation and capital formation. The lending business of banking sector always has positive and multiplier effects on national GDP…
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Different Modes of Payment
An individual or institution has to pay a certain amount to another person or institution at different times. Such payment is made by using different means or methods or instruments. These means, methods and instruments used by a customer to make payment to another party through a banking system are called modes of payment. Such…
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Credit Investment and Its Principles
What is Credit Investment? A bank acts as a bridge between those having surplus and those in shortage of funds or cash. It collects deposits from individuals and institutions through different deposit schemes. The cash collected through such schemes is given as a loan or credit to others after maintaining compulsory and needed reserves. Such…