13. The uk banking system

In the UK, the commercial banking system comprises registered banks, the National Girobank operating through post offices (Giro is a system of electronic credit transfer used in Europe and Japan, involving banks, post offices, and public utilities), and about a dozen trustee saving bank.

In Britain used to be a strict separation between commercial banks and banks that do stockbroking or bond dealing. Thus in Britain, merchant banks specialize in raising funds for industry on the various financial markets, financing international trade, issuing and so on.

In Britain there are also building societies. As their name suggests, building societies grew up to finance house purchases, they were owned by their members who deposited money in them. But this restricted their ability to raise capital from elsewhere, and many found that ordinary banks were eroding their traditional mortagage business.

14. Bank services.

The major functions of both types of banking are:

• Deposit.

A Deposit Account is an account at a bank where money can be put in or taken out by whoever owns the account. Each time money is moved, it is recorded in the bank's books. Some banks charge a fee for this, others may pay the customers interest.

• Payments

A payment is the transfer of an item of value from one party (such as bank) to another in exchange for the provision of goods, services or both, or to fulfill a legal obligation.

• Credit

Credit is the provision of resources by one to another party where that second party does not reimburse the first party immediately, thereby generating a debt, and instead arranges either to repay or return those resources at a later date.

15. The Federal Reserve System (also known as the Federal Reserve, and informally of the Fed.) is the central banking system of the United States. It was created in 1913 by the enactment of the Federal Reserve Act, largely as a response to a series of financial panics or bank runs, particularly a severe panic on 1907. Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved. Events such as the Great Depression were some of the major factors leading to changes in the system. Its duties today, according to official Federal Reserve documentation, fall in four general areas.