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Bank Management Financial Service1

This chapter provides an overview of the banking industry and financial services sector. It discusses the different types of banks, the financial service competitors of banks, and the traditional and recent services offered by banks. It also covers the roles of commercial banks and their closest competitors, as well as trends affecting banks and other financial service firms today such as increased competition, technological change, and globalization.

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Apurv Gangar
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61 views8 pages

Bank Management Financial Service1

This chapter provides an overview of the banking industry and financial services sector. It discusses the different types of banks, the financial service competitors of banks, and the traditional and recent services offered by banks. It also covers the roles of commercial banks and their closest competitors, as well as trends affecting banks and other financial service firms today such as increased competition, technological change, and globalization.

Uploaded by

Apurv Gangar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CHAPTER ONE

An Overview of Banks and


the Financial Services Sector
In this chapter you will learn about the many roles
banks and their financial service competitors play
in the economy today. You will examine how and
why the banking industry and the financial
services marketplace as a whole is rapidly
changing, becoming new and different as we move
forward into the future.
1-3

The Different Kinds of Banks Today

Commercial Banks Retail Banks


Savings Banks Bankers’ Banks
Cooperative Banks Minority Banks
Mortgage Banks National Banks
Community Banks State Banks
Money Center Banks Insured Banks
Investment Banks Member Banks
Merchant Banks Affiliated Banks
International Banks Fringe Banks
Wholesale Banks Universal Banks
McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Bank Management and Financial Services, 6/e
1-4

The Financial Service Competitors of Banks

Savings and Loans Associations


Savings Banks
Credit Unions
Money Market Funds
Mutual Funds (Investment Companies)
Hedge Funds
Security Brokers and Dealers
Finance Companies
Financial Holding Companies or Conglomerates
Life and Property-Casualty Insurance Companies
McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Bank Management and Financial Services, 6/e
1-5

Traditional Services Offered By Banks

Exchange of Currency
Commercial Notes and Loans
Offering Savings Deposits
Safekeeping of Valuables
Supporting Government Activities with Credit
Checking Accounts
Trust Services

McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Bank Management and Financial Services, 6/e
1-6

Recent Services of Banks

Consumer Loans
Financial Advice
Cash Management
Equipment Leasing
Venture Capital Loans
Selling Insurance Products
Security Underwriting and Brokerage Services
Mutual Funds and Annuities
Merchant Banking Services

McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Bank Management and Financial Services, 6/e
1-7

The Roles of Commercial Banks and


Their Closest Competitors
Intermediation Role
Payment Role
Guarantor Role
Risk Management Role
Savings/Investment Advisor Role
Safekeeping/Certification of Value Role
Agency Role
Policy Role
McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Bank Management and Financial Services, 6/e
1-8

Trends Affecting Banks and Other


Financial Service Firms Today
Service Proliferation
Rising Competition
Government Deregulation
Increased Interest Rate Sensitivity
Technological Change
Consolidation and Geographic Expansion
E-Banking and E-Commerce
Convergence
Globalization
Increased Risk of Poor Performance and Failure
McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Bank Management and Financial Services, 6/e

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