1. BANKING

2. BANK SERVICES 1. deposit taking 2. money transfer 3. advances (money which a bank lends) 4. other services

3. 1. DEPOSIT TAKING 1. CURRENT ACCOUNT 2. DEPOSIT ACCOUT 3. FOREIGN CURRENCY ACCOUNT 4. GIRO ACCOUNT

4. Movements in the accounts  put money into the account  withdraw money from the account  be in credit (in the black)  be in debit (in the red, overdrawn)  direct debit (paying bills on POS)  direct credit (paying in salaries)

6. Bank statement a) date b) details c) debits = money out d) credits = money in e) balance = money in the account

7. 2. MONEY TRANSFER a)encashment (at the counter) b) ATM/cash machine/cash dispenser c)bank credit cards d) standing order

8. 3. ADVANCES a) credit cards b) overdrafts c) mortgages d) business loans e) personal loans

9. 4. OTHER SERVICES a) insurance b) night safe c) safe deposit (box/vaults) d) unit trust e) investment management f) executor and trustee (wills, property) g) taxation advice

10. TYPES OF BANKS 1.BANK OF ENGLAND/HNB (CENTRAL BANK) 2.COMMERCIAL/CLEARING BANKS 3. MERCHANT BANKS

11. 1. BANK OF ENGLAND 1. Implements monetary policy – limits the fluctuations of the interest rate – prints or destroys money – buys and sells government bonds to and from commercial banks 2. Supervises exchange rates 3. Supervises commercial banking 4. acts as a lender of last resort (bankers’bank) 5. Manages the accounts of government departments 6. Manages the Public Sector borrowing and the national debt

12. 2. COMMERCIAL/RETAIL BANKS Make profit from SPREAD (MARGIN) a) receive and hold deposits b) pay money according to customers’ instructions c) lend money d) exchange foreign currencies e) offer advice

13. 3. MERCHANT/INVESTMENT BANKS Make profit from fees and commissions a) raise funds for industry b) finance international trade c) issue and underwrite securities d) deal with takeovers and mergers e) issue government bonds f) offer stockbroking and portfolio services

14. 4. BUILDING SOCIETIES (SAVINGS AND LOAN ASSOCIATIONS - S&L) Lend money to buy property against the security of the property which is being bought