Article 3 Internal control refers to dynamic processes and mechanisms designed to achieve objectives through formulation and implementation of systematic rules, processes and methods. The said processes and mechanisms involve the board of directors, board of supervisors, senior management and staff at all levels. Article 4 Objectives of internal control of commercial banks: Article 5 Basic principles of internal control of commercial banks:
Share Retail banking refers to the division of a bank that deals directly with retail customers. Also known as consumer banking or personal banking, retail banking is the visible face of banking to the general public, with bank branches located in abundance in most major cities.
Banks that focus purely on retail clientele are relatively few, and most retail banking is conducted by separate divisions of banks, large and small. Customer deposits garnered by retail banking represent an extremely important source of funding for most banks.
Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers. The term was originally used in the U. While the Act was repealed in the s, corporate banking and investment banking services have been offered for many years under the same umbrella by most banks in the U.
Corporate banking is a key profit center for most banks; however, as the biggest originator of customer loans, it is also the source of regular write-downs for loans that have soured.
Products and Services — Retail Banking Retail banking encompasses a wide variety of products and services, including: Checking and savings accounts — customers are generally charged a monthly fee for checking accounts; savings accounts offer slightly higher interest rates than checking accounts but generally cannot have checks written on them.
Certificates of Deposit and Guaranteed Investment Certificates in Canada — these are the most popular investment products with conservative investors, and an important funding source for banks since the funds in these products are available Evaluation and structure of commercial banks them for defined periods of time.
Automobile financing — banks offer loans for new and used vehicles, as well as refinancing for existing car loans. Credit cards — the high interest rates charged on most credit cards makes this a lucrative source of interest income and fees for banks.
Lines of credit and personal credit products — Home equity lines of credit HELOC have diminished significantly in their importance as a profit center for banks after the housing collapse in the U.
Foreign currency and remittance services — the increase in cross-border banking transactions by retail clientsand the higher spreads on currencies paid by them, makes these services a profitable offering for retail banking.
Retail banking clients may also be offered the following services, generally through another division or affiliate of the bank: While a client of modest means would generally be served by a teller or customer service representative, a high net worth individual who has an extensive relationship with the bank would typically have his or her banking requirements handled by an account manager or private banker.
Although brick-and-mortar branches are still necessary to convey the sense of solidity and stability that is crucial to banking, the reality is that retail banking is perhaps one area of banking that has been most impacted by technology, thanks to the proliferation of ATMs and the popularity of online and telephone banking.
Products and Services — Corporate Banking The corporate banking segment of banks typically serves a diverse range of clients, ranging from small to mid-sized local businesses with a few millions in revenues to large conglomerates with billions in sales and offices across the country.
Commercial banks offer the following products and services to corporations and other financial institutions: Loans and other credit products — this is typically the biggest area of business within corporate banking, and as noted earlier, one of the biggest sources of profit and risk for a bank.
Treasury and cash management services — used by companies for managing their working capital and currency conversion requirements. Equipment lending — commercial banks structure customized loans and leases for a range of equipment used by companies in diverse sectors such as manufacturing, transportation and information technology.
Commercial real estate — services offered by banks in this area include real asset analysis, portfolio evaluation, debt and equity structuring.
Trade finance — involves letters of credit, bill collection, and factoring. Employer services — services such as payroll and group retirement plans are typically offered by specialized affiliates of a bank.
Through their investment banking armscommercial banks also offer related services to their corporate clients, such as asset management and securities underwriters.
Importance to the Economy Retail and commercial banks are of critical importance to the domestic and global economies. Retail banking brings in the customer deposits that largely enable banks to make loans to their retail and business customers. Commercial banks, for their part, make the loans that enable businesses to grow and hire people, contributing to expansion of the economy.
For proof of the importance of banks to the economy, one needs to look no further than the global credit crisis of The crisis had its roots in the U. As iconic American investment banks and institutions either declared bankruptcy Lehman Brothers or were on the verge of it Bear Stearns, AIG, Fannie Mae, Freddie Macbanks grew increasingly reluctant to lend money, either to their counterparts or to companies.
Biggest Retail and Commercial Banks The amount of domestic deposits held by a bank is a widely-used measure to gauge the size of its retail banking operation.evaluation of the financial and social performance of community development banks using an internal CAMELS analysis.
The organization’s website outlines criteria for institutions in. After the nationalisation of commercial banks, banking operations attained a remarkable achievement in respect of branch expansion, rural expansion, rural banking, priority lending, mobilisation of deposits and also to remove regional imbalances in the economy.
In addition, ICBC was awarded the "Best National Commercial Bank ()” by the same magazine. Every year since , The Chinese Banker magazine would publicize its research and evaluation results about the competitiveness of Chinese commercial banks in the Report on Chinese Commercial Banks’ Competitiveness Evaluation.
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A commercial bank is an institution that provides services such as accepting deposits, providing business loans, and offering basic investment products. The main function of a commercial bank is to accept deposit from the public for the purpose of lending money to the borrowers.
I would structure my talk today into three broad segments where I would be discussing the importance of human resource management for banks, some of the key challenges facing HR managers in Public Sector Banks, including probable solutions, and why now is the right time to focus on HR issues.