Banking

Central BankA central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country or of a group of member states. It is a bank that can lend money to other banks in times of need. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis.

Functions of a central bankimplementing monetary policycontrolling the nation's entire money supplythe Government's banker and the bankers' bank ("lender of last resort")managing the country's foreign exchange and gold reserves and the Government's stock registerregulating and supervising the banking industrysetting the official interest rate used to manage both inflation and the country's exchange rate and ensuring that this rate takes effect via a variety of policy mechanisms

Naming of central banksMany countries use the "Bank of Country" form (e.g., Bank of England, Bank of Canada, Bank of Russia). Some are styled "national" banks, such as the National Bank of Ukraine; Central banks may incorporate the word "Central" (e.g. European Central Bank, Central Bank of Ireland). The word "Reserve" is also often included, such as the Reserve Bank of Australia, Reserve Bank of India, Reserve Bank of New Zealand, the South African Reserve Bank, and U.S Federal Reserve System.

Commercial BankA commercial bank is a type of financial intermediary and a type of bank. Commercial banking is also known as business banking. It is a bank that provides checking accounts, savings accounts, and money market accounts and that accepts time deposits

Commercial bank is the term used for a normal bank to distinguish it from an investment bank.It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds.

The role of commercial banksprocessing of payments by TT, EFTPOS, internet bankingissuing bank drafts and bank chequesaccepting money on term depositlending money by overdraft, installment loan, or other meansproviding documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposuressafekeeping of documents and other items in safe deposit boxescurrency exchange, sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a financial supermarket

Investment BankAn Investment Bank is a financial institution that deals with raising capital, trading in securities and managing corporate mergers and acquisitions. Investment banks profit from companies and governments by raising money through issuing and selling securities in the capital markets (both equity, bond) and insuring bonds (selling credit default swaps), as well as providing advice on transactions such as mergers and acquisitions.

A majority of investment banks offer strategic advisory services for mergers, acquisitions, divestiture or other financial services for clients, such as the trading of derivatives, fixed income, foreign exchange, commodity, and equity securities.

Merchant bankIn banking, a merchant bank is a financial institution primarily engaged in offering financial services and advice to corporations and wealthy individuals on how to use their money. The term can also be used to describe the private equity activities of banking.

Universal BankA universal bank participates in many kinds of banking activities and is both a Commercial bank and an Investment bank. Historically there was a distinction drawn between pure investment banks and commercial banks. In the US, the regulatory barrier to the combination of investment banks and commercial banks has largely been removed, and a number of universal banks have emerged in both jurisdictions.

Building societyA building society is a financial institution, owned by its members, that offers banking and other financial services, especially mortgage lending.

Supranational bank

Finance house

Transaction account- Current accountA transactional account (NA: checking account or chequing account, UK : current account or cheque account) is a deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. Because money is available on demand these accounts are also referred to as demand accounts or demand deposit accounts.

Featurescash money (coins and banknotes)cheque and money order giro (funds transfer, direct deposit)direct debit (pre-authorized debit)standing order (automatic funds transfer)ATM card or debit card SWIFT: International account to account transfer.

Deposit accountA deposit account is a current account at a banking institution that allows money to be deposited and withdrawn by the account holder, with the transactions and resulting balance being recorded on the bank's books. Some banks charge a fee for this service, while others may pay the customer interest on the funds deposited.

Saving accountSavings accounts are accounts maintained by retail financial institutions that pay interest but can not be used directly as money (by, for example, writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return.

Personal accountA personal account is an account for use by an individual for their own needs. It is a relative term to differentiate the said accounts from those accounts for corporate or business use. The term "personal account" may be used genericly for financial accounts at banks and for service accounts such as accounts with the phone company, or even for e-mail accounts.

Standing orderA standing order is an instruction a bank account holder gives to their bank to pay a set amount at regular intervals to another account. The instruction is sometimes known as a banker's order.They are typically used to pay rent, mortgage or other fixed regular payments. Because the amounts paid are fixed, a standing order is not usually suitable for paying variable bills such as credit card, or gas and electricity bills.

Standing orders are available in the banking systems of several countries, including Germany, the United Kingdom, Barbados, the Republic of Ireland, Netherlands, Russia and presumably many others. In the United States, and other countries where cheques are more popular than bank transfers, a similar service is available, in which the bank automatically mails a cheque to the specified payee.

LiabilityLiability is an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.All type of borrowing from persons or banks for improving of a business or person income which is payable during short or long time.

Assets = Liabilities + Owner's EquityThe accounting equation is the mathematical structure of the balance sheet.

Liquidity Accounting liquidity (liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities.