1. Origins and function of banking

2016 ◽  
pp. 1-25
Author(s):  
John Goddard ◽  
John O. S. Wilson
Keyword(s):  
Hedge Funds ◽  
Financial Services ◽  
Balance Sheet ◽  
Investment Banks ◽  
Shadow Banking ◽  
Banking Services ◽  
Income Statement ◽  
Banking Institutions ◽  
History Of ◽  
And Function

A bank is an institution that accepts deposits from savers, extends loans to borrowers, and provides a range of other financial services to its customers. Banks are a central part of the modern financial system. ‘Origins and function of banking’ begins with a short history of banking before outlining the structure of a bank’s balance sheet and income statement. It goes on to describe the different types of bank and banking services provided by retail, corporate, and investment banks. It also explains the shadow banking institutions—such as hedge funds—which are not subject to the same supervisory and regulatory arrangements, and the payments system that has been transformed by the growth of computing technology.

scholarly journals Postal Bank in Ukraine: The Need and Risks of Creation

2021 ◽  
Vol 6 (521) ◽  
pp. 228-234
Author(s):  
D. M. Hladkykh ◽  
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
The State ◽  
Resource Base ◽  
Banking Services ◽  
Post Offices ◽  
Banking Market ◽  
Target Segment ◽  
Banking Institutions ◽  
Financial Monitoring

The article is aimed at substantiating the feasibility of creating a specialized postal bank in Ukraine, to define the list of related risks and possible directions for their reduction. The following key risks that hinder the establishment of a postal bank in Ukraine are identified: risk of lack of full control over the directions of investment of accumulated deposits of the population on the part of the NBU; liquidity risk; risk of non-compliance by the postal operator with economic standards that are mandatory for banking institutions; risk of capital deficit; risk of inability to support the postal operator with refinancing; risk of mass withdrawal of deposits by customers; risk of insufficient competence of «Ukrposhta» employees to comply with the requirements of financial monitoring; risks associated with the collection of large amounts of cash; risk of further growth of the share of the State-owned institutions in the banking market; risk of shortage of funds to close the agreement on the purchase of «Ukrposhta» by an already operating bank. Possible directions of minimization of these risks are proposed, in particular: implementation of key elements of successful experience in the banking services market of JSPPB «Aval»; defining as the target segment of clients of the new postal bank of the pensioners, who are currently customers of post offices, and as the basis of its resource base – the future pension and current accounts of individuals; use by «Ukrposhta» of the so-called «agency» model of financial services provision; association of «Ukrposhta» and «Oschadbank» into the State-owned Postal Bank; development of a list of key performance indicators for employees and branches of the new postal bank; development of a list of measures directed towards significantly improving the level of qualification of personnel of «Ukrposhta» branches; installation of POS-terminals and payment terminals in all post offices located in rural areas; establishment of individual economic standards for the new postal bank for the period of its full adaptation to activities in the banking market.

scholarly journals A One Year Forecasting Project For Publicly Traded Companies

2011 ◽  
Vol 4 (9) ◽  
pp. 73
Author(s):  
Fred Petro
Keyword(s):  
Cash Flow ◽  
Team Member ◽  
Balance Sheet ◽  
Annual Reports ◽  
Publicly Traded ◽  
Accounts Receivable ◽  
Publicly Traded Companies ◽  
Income Statement ◽  
History Of ◽  
One Year

This project is intended to teach students to apply the material covered in their first graduate accounting course. This is accomplished by applying the material to an actual company selected by each team. The project is described as follows: The project includes a computerized spreadsheet preparation of a master budget forecast for an actual publicly traded company for one year into the future. . The dates depend upon when the annual reports are prepared for your company. The forecast begins the day following the last available published annual report. The forecast does not comprise any actual numbers regardless of when the actual annual or quarterly statements are prepared for the company selected. The actual balance sheet, income statement and statement of cash flow from the preceding year are included with the forecasted balance sheet, income statement and statement of cash flow. The company must have a physical inventory, and accounts receivable from sales. The company may not be one in which any team member(s) are employed. The forecast will include the following items:1. Introduction, including the history of the company and a description of the company plan and policies as given in the project2. Sales budget (twelve months).3. Schedule of purchases (twelve months).4. Schedule of collection of credit sales (accounts receivable) and cash sales (twelve months).5. Cash budget (twelve months).6. An Income statement (for the current year and the projected year).7. A Balance sheet (for the current year and the projected year).8. A Statement of cash flow (for the current year and the projected year).9. Cost-profit-volume analysis (twelve months).10. Conclusion and recommendations

scholarly journals Integrated Reporting – a concept whose time has come

2011 ◽  
Vol 85 (11) ◽  
pp. 535-536 ◽  
Author(s):  
Mervyn E. King
Keyword(s):  
Great Depression ◽  
Balance Sheet ◽  
Financial Statements ◽  
The United States ◽  
Income Taxation ◽  
Integrated Reporting ◽  
The Great Depression ◽  
Income Statement ◽  
History Of ◽  
Global Events

85E JAARGANG NOVEMBER 535 Thema The history of accountancy establishes that changes to reporting standards and practices occurred as a result of global events or crises. It was said that one of the causes of the Great Depression of the 1930s was the value of assets on the basis of mark to market. This type of valuation was consequently abandoned in some jurisdictions, but was retained in others. The great depression also resulted in the implementation of generally accepted standards of accounting in the United States. It also led to stock issues as a leading method of financing expansion. As stockholders, rather than bankers, became the primary audience of financial statements, the income statement began to take centre stage over the balance sheet. Other factors, such as income taxation and cost accounting, shifted the focus to revenue and profit.

scholarly journals USO DE LOS SERVICIOS FINANCIEROS. ESTUDIO EMPÍRICO EN ESTUDIANTES UNIVERSITARIOS

2017 ◽  
Vol 2 (1) ◽  
pp. 581
Author(s):  
Milka Elena Escalera-Chávez ◽  
Esmeralda Tejada-Peña ◽  
Arturo García-Santillán
Keyword(s):  
Economic Development ◽  
Empirical Study ◽  
Financial Services ◽  
Financial Inclusion ◽  
Public And Private ◽  
Banking Services ◽  
Frequency Of Use ◽  
Banking Institutions ◽  
Upper Level ◽  
Estudiantes Universitarios

Abstract.USE OF FINANCIAL SERVICES EMPIRICAL. STUDY IN UNIVERSITY STUDENTS.The financially included population has access to banking services, hence this insertion favors the economic development of the population, however there are many people who do not use formal financial services, including students. For this reason, the objective of this work was to identify the frequency with which the upper level students of Tuxtepec Oaxaca access the financial services offered by the Banking Institutions. The sample is made up of 800 upper level students who belong to 8 public and private universities in Tuxtepec Oaxaca. The frequency of use of financial services was checked by means of the test. The results show that students use the financial services offered by Banking Institutions. However, it is important to reiterate that some students do not resort to the financial system, this proportion of the population being an area of opportunity for the process of financial inclusion in Mexico.Key Words: Use, Financial Services, University Students.Resumen.La población incluida financieramente accede a los servicios bancarios, de ahí que ésta  inserción favorece el desarrollo económico de la población, sin embargo existen muchas personas que no  utilizan  los servicios financieros formales, incluyendo a los estudiantes. Por este motivo, el objetivo de este trabajo fue identificar la frecuencia con la que los estudiantes de nivel superior de Tuxtepec Oaxaca acceden a los servicios financieros que ofrece las Instituciones Bancarias. La muestra está conformada por 800 alumnos del nivel superior que pertenecen a 8 universidades públicas y privadas de Tuxtepec Oaxaca. Se  comprobó por medio de la prueba t la frecuencia del uso de los servicios financieros. Los resultados muestran que los estudiantes usan los servicios financieros que ofrecen las Instituciones Bancaria. Sin embargo, es importante reiterar que algunos estudiantes no recurren al sistema financiero, siendo esta proporción de la población un área de oportunidad para el proceso de inclusión financiera en México.Palabras Claves: Uso, Servicios Financieros, Estudiantes Universitarios.

scholarly journals ANALISIS KINERJA KEUANGAN PERBANKAN DENGAN MENGGUNAKAN METODE CAMEL (STUDI KASUS PADA PT. BPR BUDURAN DELTA PURNAMA)

2016 ◽  
Vol 1 (2) ◽  
pp. 175
Author(s):  
Wisnu P. Setiyono ◽  
Miftakhul Nur Aini
Keyword(s):  
Financial Services ◽  
Quantitative Research ◽  
Balance Sheet ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Primary Data ◽  
Operating Income ◽  
Credit Score ◽  
Capital Ratios ◽  
Banking Institutions

Based on the provisions of The Central Bank, All Indonesian banking institutions are obliged to report their performance to the financial services authority (FSA) and always adhere to the provisions of the law prevailing in the region of Indonesia. Therefore,  all banking institutions will be assessed its performance by using CAMEL methods, including  capital, assets, management, earnings and liquidity.By using a descriptive quantitative research method, this research employes 5 (five) aspects of banking assessment, for instance; capital ratios, we use CAR (Capital Adequacy Ratio); earning ratios and assets quality, we employes KAP (earning assets) and PPAP (Allowance for Earning Assets); Special for management aspects we apply a  survey to the general management and risk management officer; from the aspect of profitability, we utilise ROA (Return On Assets ratios) and ROA (Operating Expenses to Operating Income ratios); finally, the aspect of liquidity ratios, we use Cash Ratios and LDR (Loan to Deposit Ratios).The result of 3 (three) years (2011 to 2013) assessments, we found that The BPR Buduran Delta Purnama has good banking performance (credit score more than 81 which the minimum score for good or bad banking performance). It is based on some benchmarks to determine the reliability of the bank after the assessment of each variable. We used a primary data obtained through questionnaires and secondary data in the form of financial statements balance sheet and income statement of PT. BPR Buduran Delta Purnama between 2011 to 2013.

scholarly journals Credit and Financial and Payment Infrastructure of Volgograd Region: Trends and Prospects of Development

2020 ◽  
pp. 223-233
Author(s):  
Olga Korobeynikova ◽  
Lyudmila Stefanovich ◽  
Tatiana Dugina ◽  
Aleksandr Malofeev
Keyword(s):  
Russian Federation ◽  
Financial Services ◽  
Federal District ◽  
Remote Access ◽  
Banking Services ◽  
Volgograd Region ◽  
Social And Economic Development ◽  
Banking Institutions ◽  
The Russian Federation ◽  
Legal Entities

The aim of the work is to assess the state of the main parameters of credit and financial and payment services of the economy of Volgograd region (institutional provision with banking services, indicators of attraction and investment of funds, retail payment infrastructure) and to establish trends in their dynamics in comparison with the data on Russia and the Southern Federal district. The authors establish that the territorial provision with banking services is characterized by unevenness; the reduction of banking institutions has affected Volgograd region to a greater extent; but the disproportions are partially compensated by the transformation of organizing banking activities, technology and communications according to the digital type. The assessment of indicators of credit and savings services in Volgograd region shows that the greatest credit activity is observed in the sphere of individual lending; loans to legal entities and individual entrepreneurs are declining; deposits, funds in the accounts of legal entities and individuals are growing at a higher rate than in the country as a whole. The assessment of the primary retail infrastructure of the payment market shows that in Volgograd region, in comparison with the Russian Federation, there is an exceeding growth of ATMs and electronic terminals; it is natural to reduce the number of contact imprinters with the simultaneous growth of electronic terminals, which characterizes the strengthening of innovative banking services. Territorial disproportions in the provision of the Russian Federation with credit and financial and payment infrastructure with negative dynamics of Volgograd region are found and that is one of the reasons of lagging of social and economic development of the region. The conditions of credit and financial and payment infrastructure of Volgograd region, the issues concerning mechanisms of leveling the infrastructural availability of financial services in the region due to the diffusion of technological innovations as conductors and channels of remote access to modern financial services can become the directions of further research.

The underbanked phenomena

2019 ◽  
Vol 11 (3) ◽  
pp. 385-404 ◽  
Author(s):  
Xiaoyan Xu
Keyword(s):  
Financial Services ◽  
Shadow Banking ◽  
Short Term ◽  
Policy Makers ◽  
Content Type ◽  
Financial Decisions ◽  
The Great Recession ◽  
Banking Regulations ◽  
Alternative Financial Services ◽  
Banking Institutions

Purpose The purpose of this paper is to study the “underbanked” – those who already possess bank accounts but are patrons of alternative financial services (AFS) providers at the same time. Design/methodology/approach Linking the FDIC unbanked/underbanked surveys of nationally represented households with FDIC bank information and local MSA demographics, demographic and economic profiles of the underbanked households are examined, together with the determinants of their choice of nonbank financial services. Findings The author finds that bank fees are associated with the likelihood for households to obtain AFS, especially nonbank credit. Households’ attitudes and experience with banks are important in the choice of getting AFS. Furthermore, most underbanked households used AFS temporarily, partly reflecting rather informed and calculated financial decisions. Research limitations/implications The results from this paper provide implications for different types of AFS users. For example, the use of transactional AFS responds to the availability of online or mobile banking; meanwhile, it is also sensitive to branch closure. Users of nonbank credits are likely to be price savvy, and these products serve as valuable alternatives for short-term financing, especially during unfavorable economic situation. Social implications Better understanding of the underbanked could help banks tailor to existing clients’ needs, for instance, providing innovative short-term credit products for those with little or impaired credit history. The study also helps policy makers re-evaluate banking regulations since the Great Recession. As regulations squeezed bank profits in certain areas and forced banks to consolidate, come alongside higher bank fees, potential branch closure and loss of service, which ultimately forced banked individuals to the less regulated alternative providers. Originality/value The analysis utilizes a comprehensive set of variables, from household social-economic characteristics to local banking industry characteristics, together with households’ subjective opinions of their banking institutions. The focus on the underbanked brings attention to this underserved population and discusses areas where banks can improve. The study contributes to the understanding of AFS users, draws implications for regulation toward banking and shadow banking.

scholarly journals The rise of online banks in Italy “WIDIBA Bank” Case Study

2020 ◽  
Vol 4 (2) ◽  
pp. 80-97 ◽  
Author(s):  
Alessio Faccia ◽  
Narcisa Roxana Moşteanu ◽  
Luigi Pio Leonardo Cavaliere ◽  
Gabriele Santis
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Time Lag ◽  
Balance Sheet ◽  
Cash Flows ◽  
Online Banking ◽  
Banking Services ◽  
Financial Investment ◽  
Retained Earnings ◽  
Interest Margin

The digitalization of technologies for the functioning of the country’s economy, in particular banking institutions, has made a significant impetus to accelerate their development. It is stated that the use of advanced information technologies in the banking sector of the economy (which was gradually formalized into the concept of “online banking”) has greatly facilitated the implementation of financial transactions, in particular, minimized the physical circulation of money. The purpose of the article is to study the features and principles of online banking on the example of the Italian bank WIDIBA. Methodical support of the paper includes a method of analysis of specific situations. The key components of the case method of the study are research on the basis of literature review; formalization of key theses (issues) in the context of the unresolved part of the study; accumulation and analysis of collected information; identification of key features of the issue. This research was carried out in the light of two aspects: the strategic principles of the spread of online banking in Italy; digital technologies in the context of the strategic perspective of the Italian bank WIDIBA. The paper considers the historical aspects of the introduction and use of online banking services. It is noted that in Italy today there are 207 publicly registered commercial establishments, of which 81 are located abroad, and 6 operate mostly in the format of providing online banking services. The object of this research is the activity of the Italian bank WIDIBA, which is justified by its valuable practical experience in formalizing a plan of adequate timely strategy for entering the market of online banking services on the basis of a carefully developed development strategy. The theoretical researches were carried out in the work, in particular, in the following directions: definition of strategic actions of bank establishment according to a time lag of functioning; analysis of the budget of the banking institution (net profitability, interest margin, operating and administrative expenses, etc.); analysis of the income statement of the bank (the ratio of net profit and loss, interest margin and brokerage margin); work with financial report or balance sheet data on the structure of assets, liabilities, and investments, retained earnings; study of trend dynamics of cash flows (operational, financial, investment and free cash flows). Excellent strategies are analyzed, which demonstrate how the banking sector is extremely dynamic and, that technological investments still allow easier access to new operators in case of the implementation of innovation strategies. Keywords: Online banks; online banking; electronic banking; fintech; financial services; WIDIBA; banking sector; banks’ strategies.

Forecasting For Publicly Traded Companies

2011 ◽  
Vol 7 (2) ◽  
Author(s):  
Fred Petro
Keyword(s):  
Cash Flow ◽  
Team Member ◽  
Balance Sheet ◽  
Annual Reports ◽  
Publicly Traded ◽  
Accounts Receivable ◽  
Publicly Traded Companies ◽  
Income Statement ◽  
History Of ◽  
One Year

This project is intended to teach students to apply the material covered in their first graduate accounting course. This is accomplished by applying the material to an actual company selected by each team. The project is described as follows: The project includes a computerized spreadsheet preparation of a master budget forecast for an actual publicly traded company for one year into the future. The dates depend upon when the annual reports are prepared for your company. The forecast begins the day following the last available published annual report. The forecast does not comprise any actual numbers regardless of when the actual annual or quarterly statements are prepared for the company selected. The actual balance sheet, income statement and statement of cash flow from the preceding year are included with the forecasted balance sheet, income statement and statement of cash flow. The company must have a physical inventory, and accounts receivable from sales. The company may not be one in which any team member(s) are employed. The forecast will include the following items: Introduction, including the history of the company and a description of the company plan and policies as given in the project, Sales budget (twelve months), Schedule of purchases (twelve months), Schedule of collection of credit sales (accounts receivable) and cash sales (twelve months), Cash budget (twelve months), An Income statement (for the current year and the projected year), A Balance sheet (for the current year and the projected year), A Statement of cash flow (for the current year and the projected year), Cost-profit-volume analysis (twelve months), and Conclusion and recommendations.

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