1. Accounting for financial institution
Section 1
Assistant lecture
Alya elfedawy

2. Fill in gap :
Institution that deals in ……… and its substitutes and provides other financial services.
(money)
Banks accept ………. and make ………… to customers,
(deposits , loans ) .
Banks can achieve profit if …….. Is more than ………..
( interest earned , interest paid )

3. Banks derive a ……. from the difference in the ………
Banks derive a …….. from the difference in the ………. paid to lenders (depositors) and charged to borrowers, respectively.
(profit , interest )
bank can make a ……… if it had interest earned lower than interest paid .
( loss )
the roles of commercial banks services offered are:
Exchange of currency and commercial notes and loans
Financial advices and cash management
Risk management role
Savings and investment advisor

4. ويمكن توضيح مدخلات البنك (In puts) وايضا مخرجاته (Out puts) كما يلى:
Loans
Deposits
Banks
Make
Accept - +
charged
Paid
Interest
Earned
Interest
Paid
Profit = IE - IP
Definitions & types Dr Makram Bassily

5. Classifications'banks
The three major classes of banks are:
1 - commercial banks,
2 - investment banks,
3 - central banks
Central bank act as:
The only fiscal agent of the government
Has the right to issuing notes to be used as legal tender
Supervising the operations of the commercial banking system and implementing monetary policy
All of the above

6. E.X :
Suppose that the branch of national bank in mansoura had adeposit of value 10000$ with interest %10 .
Require :
Determine the kind of manager if you know that he had keep with liquidity percentage %30 .
How money it takes on the depositer ?

7. 1. Commercial banks: Interest paid interest earned
Depositers Borrowers

8. Balance sheet Loans Liabilities Assets Deposits Cash Non deposits
Reserve
Investment
Owners’ Equity
Net liabilities
Net assets

9. Assets = Liabilities + Owners’ Equity

10. Demand deposits
NOW accounts
Saving deposits
Time deposits
customer deposits
ايداع تحت الطلب
Checking accounts
traditional saving accounts
اوراق الادخار
certificate of deposits
شهادات الاستثمار
Non- interest
Individuals and not-for profit
lowest interest rate
stipulated interest rate

11. Example
Suppose that the branch of national bank in mansoura had a deposit of value 100,000$ with interest %10 and had a loans of value 50,000 with interest %8 .
Require
1. Determine the type of manager if you know that the investment percentage 40% .
2. Determine , what’s paid and what’s earned ?