Elements of Banking
1st Edition
Made Simple
Description
Elements of Banking: Made Simple discusses the fundamental concepts of banking. The book covers the various banking services, such as saving, lending, and investment. In the first two chapters, the text reviews the history of banking and money system. The succeeding four chapters deal with customers. These chapters cover types of customers and the accounts available to them. Next, the legal bases of banking are discussed, while the British banking systems are primarily concerned in Chapters 8 to 11. The next four chapters cover the banking services, which include lending, savings, and investment. Chapters 16 to 18 discuss banking and international trade. The next chapter deals with promoting banking services, and the last chapter tackles the Institute of Bankers. The book will be of great interest to the undergraduate students of accountancy, business administration, and management.
Table of Contents
Foreword
Acknowledgments
1 The Origin and Development of Banking
1.1 The Origin of Banking
1.2 Safe Deposits and Royal Power
1.3 Goldsmiths and the Banking System
1.4 The Bank of England
1.5 Country Banking In the Eighteenth Century
1.6 The Move to Joint Stock Banking
1.7 The Bank of England Since 1815
1.8 The Development of Merchant Banking
1.9 Rapid Revision: The History of Banking
1.10 Exercise: The Origin and Development of Banking
2 The Development of the Money System
2.1 What is Money?
2.2 Giving Validity to Coins and Banknotes
2.3 The Functions of Money
2.4 The Qualities of Money
2.5 The Wider Meaning of Money Today: The Money Stock
2.6 How the Banks Create Money: The Creation of Credit
2.7 The Effect of Credit-Creation by the Banks
2.8 Keeping in Step When Creating Credit
2.9 The Credit-Creation Multiplier
2.10 Conclusions about the Money System
2.11 Rapid Revision: The Money System
2.12 Exercises: The Money System
3 The Types of Accounts Available to Customers
3.1 Meeting the Needs of Customers
3.2 Current Account on Sight Deposits
3.3 Deposit Account or Time Deposits
3.4 Investment Accounts
3.5 Savings Accounts
3.6 Budget Accounts
3.7 Revolving Credit Accounts
3.8 Loan Accounts
3.9 Bank Reconciliation Statements
3.10 Rapid Revision: Types of Account
3.11 Exercises: Customers’ Accounts
4 Types of Customers
4.1 The Range of Banking Customers
4.2 The Legal Relationships between Bankers and Their Customers
4.3 Personal Customers
4.4 Sole Traders
4.5 Partnerships
4.6 The Accounts of Limited Companies
4.7 Clubs and Other Non-Profit-Making Societies
4.8 Other Specialized Account Holders
4.9 Conclusions about the Accounts of Customers
4.10 Rapid Revision: Accounts for Different Types of Customers
4.11 Exercises: Types of Customers
5 Customer Services 1: Money Transfer and Finance
5.1 The Changing Pattern of Banking Services
5.2 Money Transfer
5.3 Credit Card Services
5.4 Overdrafts and Loans
5.5 Sophisticated Financial Services
5.6 Rapid Revision: Personal and Business Customer Services
5.7 Exercises: Money Transfer and Financial Services
6 Customer Services 2: Other Services
6.1 Insurance Services
6.2 Investment and Pension Services
6.3 Foreign Exchange and Overseas Trade Services
6.4 Risk Management Services
6.5 Advisory Services
6.6 Rapid Revision: Other Customer Services
6.7 Exercises: Other Customer Services
7 The Legal Bases of Banking
7.1 The Banker-Customer Relationship
7.2 Terms Implied in the Banker-Customer Relationship
7.3 Deposits and the Debtor-Creditor Relationship
7.4 The Banker’s Charges
7.5 The Banker’s Duty of Secrecy
7.6 Wrongful Dishonor of Cheques
7.7 Rapid Revision: The Legal Bases of Banking
7.8 Exercises: The Legal Bases of Banking
8 The British Banking System 1: The Bank of England
8.1 The General Framework of Banking
8.2 The Organization and Functions of the Bank of England
8.3 Advising the Government on Financial Matters
8.4 Supervision of the Banking System
8.5 The Note Issue
8.6 The Bank of England as the Government Bank
8.7 The Bank as Manager of the Gilt-Edged Market
8.8 Discount Houses and the Lender of Last Resort
8.9 The Bank and the Foreign Exchange Market
8.10 The Bank of England as a Central Bank
8.11 Rapid Revision: The Bank of England
8.12 Exercises: The Bank of England
9 The British Banking System 2: The Main Institutions
9.1 Introduction
9.2 The Merchant Banks
9.3 The Discount Houses
9.4 The Clearing Banks
9.5 The Bankers’ Clearing House
9.6 Authorized Deposit-Takers
9.7 The Foreign Banks
9.8 The European Investment Bank
9.9 The World Bank
9.10 National Girobank
9.11 Finance Houses
9.12 The National Savings Bank
9.13 The Department for National Savings
9.14 The Building Societies
9.15 Rapid Revision: The Main Institutions of Banking
9.16 Exercises: The Main Institutions of Banking
10 The London Money Market
10.1 Introduction
10.2 The Two Money Markets
10.3 The Discount or Primary Market
10.4 The Secondary Money Markets
10.5 The Local Authority Market
10.6 The London Interbank Market
10.7 The Finance House Market
10.8 The Building Societies Market
10.9 The Intercompany Market
10.10 The Certificate of Deposit Market
10.11 The Eurocurrency Market
10.12 The Sterling Commercial Paper Market
10.13 Rapid Revision: The London Money Market
10.14 Exercises: The London Money Market
11 The Consumer Credit Act 1974 and Other Legislation
11.1 Nature of the Consumer Credit Act 1974
11.2 Regulated Agreements
11.3 The Form and Content of Regulated Agreements
11.4 Canvassing off Trade Premises
11.5 Annual Percentage Rate (APR)
11.6 The Banking Acts 1979 and 1987
11.7 The Financial Services Act 1986
11.8 Rapid Revision: The Consumer Credit Act 1974 and Other Legislation
11.9 Exercises: The Consumer Credit Act 1974 and Other Legislation
12 Bank Lending
12.1 The Aim of Bank Lending
12.2 The Eligibility of Borrowers
12.3 Credit Scoring
12.4 Procedures with Security for Loans
12.5 Other Advances
12.6 Rapid Revision: Bank Lending
12.7 Exercises: Bank Lending
13 Savings and Investment
13.1 What are Savings?
13.2 The Avenues of Savings
13.3 The Clearing Banks and Investment
13.4 Authorized Deposit-Takers
13.5 Finance Houses
13.6 Investment Trusts
13.7 Investment in Building Societies
13.8 National Savings
13.9 Local Authorities
13.10 Life Assurance
13.11 Annuities
13.12 Rapid Revision: Savings and Investment
13.13 Exercises: Savings and Investment
14 Assessing the Accounts of Business Customers
14.1 The Importance of Accounts
14.2 Double-Entry Book-Keeping
14.3 Evaluating a Customer’s Accounts
14.4 Appraising the Trading Account
14.5 Appraising the Profit and Loss Account
14.6 Appraising the Balance Sheet of a Business
14.7 The Balance Sheet of a Failed Business
14.8 Rapid Revision: Assessing the Accounts of Business Customers
14.9 Exercises: Evaluating a Customer’s Business
15 The Accounts of an Imaginary Clearing Bank
15.1 The Accounts of a Public Limited Company
15.2 The Profit and Loss Account of a Bank
15.3 The Balance Sheet of a Bank
15.4 Liquidity versus Profitability
15.5 Other Points about the Bank’s Published Accounts
15.6 Rapid Revision: The Accounts of Banks
15.7 Exercises: The Final Accounts of a Bank
16 Foreign Dealings 1: Foreign Exchange and Travel Facilities
16.1 The Need for Foreign Dealings
16.2 Foreign Currencies
16.3 Foreign Currency Accounts
16.4 Travel Services
16.5 Business Travelers
16.6 The Foreign Exchange Clerk
16.7 Rapid Revision: Foreign Exchange and Travel Facilities
16.8 Exercises: Foreign Exchange and Travel Facilities
17 Foreign Dealings 2: Payments in International Trade
17.1 The Nature of International Trade
17.2 Methods of Payment in International Trade
17.3 Incoterms: The Terms Used in Overseas Trade
17.4 Documentation of Overseas Trade
17.5 Cash with Order Transactions
17.6 Letter of Credit Transactions
17.7 Documents against Payment (D/P) Transactions
17.8 Documents against Acceptance (D/A) Transactions
17.9 Open Account Transactions
17.10 Goods on Consignment
17.11 Rapid Revision: Payments in International Trade
17.12 Exercises: Payments in International Trade
18 Other Schemes to Help Exporters
18.1 Introduction
18.2 Small Exporter Schemes
18.3 Full Post-Shipment Non-Recourse Finance
18.4 Lines of Credit
18.5 Buyer Credit Finance
18.6 Overseas Disbursement Services
18.7 Forfeiting
18.8 Countertrade Facilities
18.9 Guarantees, Tender Bonds and Performance Bonds
18.10 Economic Reports and Information
18.11 Rapid Revision: Other Schemes to Help Exporters
18.12 Exercises: Other Schemes to Help Exporters
19 Marketing Customer Services
19.1 Attitudes to Marketing
19.2 A Definition of Marketing
19.3 The Marketing of Services
19.4 Marketing Methods
19.5 Conclusions about the Marketing Function
19.6 Rapid Revision: Marketing Customer Services
19.7 Exercises: Marketing Customer Services
20 The Institute of Bankers
20.1 Professional Qualifications and Banking
20.2 The Chartered Institute of Bankers
20.3 Membership of the Institute
20.4 The Institute’s Educational Policy
Rapid Revision
1 The History of Banking 1: The Origin and Development of Banking to 1760
2 The History of Banking 2: The Country Banks 1760-1914
3 The History of Banking 3: The Bank of England Since 1844
4 The Development of the Money System
5 The Supply of Money
6 Banking and the Creation of Credit
7 The Types of Accounts Available to Customers
8 More Detailed Points about the Operation of Customers Accounts
9 Some Special Types of Customers 1
10 Some Special Types of Customers 2
11 Personal Customer Services
12 The Legal Bases of Banking 1: The Banker-Customer Relationship
13 The Legal Bases of Banking 2: More about the Contract between Banker and Customer
14 The Structure of Banking 1: The Bank of England
15 The Structure of Banking 2: The Chief Financial Institutions
16 The Structure of Banking 3: The London Money Market
17 Assessing the Accounts of an Ordinary Business Customer 1: The Trading Account
18 Assessing the Accounts of an Ordinary Business Customer 2: The Profit and Loss Account
19 Assessing the Accounts of an Ordinary Business Customer 3: The Balance Sheet
20 The Accounts of a Commercial Bank
21 Bank Lending
22 Savings and Investment
23 Services to Business Customers
24 Foreign Dealings 1: Principles of Foreign Exchange
25 Foreign Dealings 2: Negotiable Instruments
26 Payments in International Trade 1: Cash with Order and Open Account Terms
27 Payments in International Trade 2: Letters of Credit
28 Payments in International Trade 3: Documentary Collections
29 Other Schemes to Help Exporters
30 Consumer Credit and Banking
31 Marketing Customer Services
Glossary
Index
Details
- No. of pages:
- 448
- Language:
- English
- Copyright:
- © Butterworth-Heinemann 1987
- Published:
- 7th March 1988
- Imprint:
- Butterworth-Heinemann
- eBook ISBN:
- 9781483105833
About the Authors
Julia Hoyle
Geoffrey Whitehead
Geoff Whitehead is one of the original Made Simple authors and has sold over 2 million Made Simple books. Before writing full-time he was Head of Professional Studies at Thurrock College, and he now runs a small business consultancy for one of the main publishers of account books. With day-to-day advice at a grass roots level he is still ‘keeping it simple’ for 350,000 book-keepers using the system each year.
Affiliations and Expertise
BSc(Econ)