1 / 8

CLASSIFICATION OF BANKS

CLASSIFICATION OF BANKS. & CREDIT CREATION IN BANKS. CREDIT CREATION . DEPOSITS PRIMARY DEPOSITS DERIVATIVE DEPOSITS. MULTIPLE CREATION OF CREDIT. LOANS & ADVANCES MONEY AT CALL & SHORT NOTICE DISCOUNTING OF BILLS INVESTMENTS. ILLUSTRATION: MAXIMUM EXPANSION OF LOANS & DEPOSITS.

amber-rollins
Télécharger la présentation

CLASSIFICATION OF BANKS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CLASSIFICATION OF BANKS & CREDIT CREATION IN BANKS

  2. CREDIT CREATION • DEPOSITS • PRIMARY DEPOSITS • DERIVATIVE DEPOSITS

  3. MULTIPLE CREATION OF CREDIT • LOANS & ADVANCES • MONEY AT CALL & SHORT NOTICE • DISCOUNTING OF BILLS • INVESTMENTS

  4. ILLUSTRATION:MAXIMUM EXPANSION OF LOANS & DEPOSITS

  5. DEPOSIT MULTIPLIER & CREDIT CREATION FORMULA • K= 1/r K= Deposit multiplier r= ratio of cash reserve to deposit

  6. LIMITATIONS OF CREDIT CREATION • ADEQUATE CASH RESERVE • AVAILABILITY OF SECURITIES • QUANTITY OF MONEY IN CIRCULATION • ATTITUDE OF PEOPLE • POLICY OF THE CENTRAL BANK • NATURE OF BUSINESS CONDITIONS • LEAKAGES • BEHAVIOUR OF OTHER BANKS • USE OF CHEQUE

  7. CLASSIFICATION OF BANKS • COMMERCIAL BANKS • INVESTMENT BANKS OR INDUSTRIAL BANKS • EXCHANGE BANKS • CO-OPERATIVE BANKS • LAND DEVELOPMENT BANKS • SAVINGS BANKS • CENTRAL BANKS

  8. BANKING SYSTEM • BRANCH BANKING • UNIT BANKING • CORRESPONDENT BANKING • GROUP BANKING • CHAIN BANKING • DEPOSIT BANKING • INDUSTRIAL BANKS • MIXED BANKING • INVESTMENT BANKING • NARROW BANKING • UNIVERSAL BANKING • LOCAL AREA BANK

More Related