36. Commercial bank services: financial transactions at branches.

A branch is a retail location where commercial bank offers a wide array of face-to-face and automated services to its customers. Branches provides the same services as a bank, such as accepting deposits or making loans. This is accompanied by conduct such transactions as account opening, cash withdrawal, money transfer, account opening, loan repayment and others.

The main distinguish is that branches of the bank are accountable to head-office. Branches are not independed in decision-making, funds are transferred from one branch to another.

Types of branches

Traditional. These are typically stand alone branches of a financial institution that often are contained in its own building. These branches typically offer full service banking including safe deposit boxes. They may include access to a drive-through teller windows.

In-store branches. These are typically branches located in a retail space such as shopping malls or discount store. They may be full service branches or limited service branches. They generally do not include a drive-through teller windows or safe deposit boxes. These branches may have limited staff and typically include technology as automated teller machines and video banking systems.

Foreign Bank Branch. A type of foreign bank that is obligated to follow the regulations of both the home and host countries.

The Riegle-Neal Interstate Banking & Branching Efficiency Act of 1994 authorized well-capitalized banks to acquire branch offices, or open new ones, anywhere in the United States outside their home states after June 1, 1997. Most states passed laws enabling interstate branching prior to that date. 

According to global using internet technologies in the near future branches could blossom as transactions move to digital channels.

37.Commercial bank services: transfers of funds.

One of the most versatile forms of payment by bank transfer is considered. In this form of settlement bank undertakes on behalf of the payer of the funds held in his account, transferred to the agreed time a sum of money to the account specified by the payer party (beneficiary) in the same or another bank.

The participants of the bank transfer are:

• transferor - issuer of the first payment order in a credit transfer;

• Beneficiary - a person specified in the payment order to receive funds as a result of the credit transfer;

• the beneficiary bank - a bank that receives a payment order;

• intermediary bank - any receiving bank that is not a bank and the beneficiary's bank.

Form of payment for foreign economic transactions

1)the contract, which specifies the conditions and method of payment, as well as banks, through which will be calculated;

2) shipping exporter of goods in accordance with the terms of the contract;

3) providing an importer to his bank orders (applications) on translation;

4) check the correctness of filling the importer bank transfer instruction;

5) implementation of Bank-Bank Currency importer exporter;

6) verification of the authenticity of the exporter's bank payment order, crediting of export proceeds to the beneficiary's account and the transfer notification exporter;

Bank transfers carried out at the expense of customer funds shall be made on the basis of the bank received from the client payment instructions.

Execution of the Bank payment instructions of the client - the transferor is meant issuing a payment order to the bank - told him while providing funds necessary to execute the payment order.

Credit transfer - transfer initiated by the payer.

Money Order - a payment instruction, according to which the bank on behalf of the payer shall transfer funds to the beneficiary bank to the beneficiary specified in the payment order.

Payment orders are used in international and domestic wire transfers of funds.