- •Государственное образовательное учреждение высшего профессионального образования
- •«Хабаровская государственная академия экономики и права»
- •European Central Bank (1999) The Effects of Technology on the EU Banking Systems, Report, http://www.ecb.int./pub/pdf/other/techbnken.pdf.
- •The Economist (2003) “Banking in China: strings attached”, 6 March
- •European Central Bank (2002) Mergers and Acquisitions Involving the EU Banking Industry, Press release, December, http://www.ecb.int/press/pr/date/2000/html.
- •CHAPTER 1
- •The Role of Banks and Their Main Functions
- •1.1 Introduction
- •1.2 The nature of financial intermediation
- •Figure 1.1 The intermediation function
- •Lenders' requirements:
- •Borrowers' requirements:
- •Figure 1.3 Direct and indirect finance
- •Financial
- •Indirect financing
- •Financial
- •Intermediaries
- •Figure 1.4 Modern financial intermediation
- •Financial
- •Indirect financing
- •Financial
- •Intermediaries
- •1.3 The role of banks
- •a) Size transformation
- •b) Maturity transformation
- •c) Risk transformation
- •REVISION QUESTIONS
- •CHAPTER 2
- •Banking Services
- •2. Find out if there are credit card holders in your group and what for they use their cards.
- •3. What credit card systems do you know?
- •5. Discuss recent changes and trends in the banking system of your country.
- •2.1. Introduction
- •2.2 What do banks do?
- •2.3 Banks and other financial institutions
- •Figure 2.1 Classification of financial intermediaries in the UK
- •2.4 Banking services
- •2.4.1 Payment services
- •2.4.2 Deposit and lending services
- •2.4.4 E-banking
- •Box 2.2. New online banking and financial services delivery channels for large companies
- •Table 2.6 Bankinlsg services offered via branches and remote channels
- •Table 2.7 Foreign exchange online trading sites
- •Box 2.3. Is internet banking profitable?
- •2.5 Current issues in banking
- •2.5.1 Structural and conduct deregulation
- •2.5.2 Supervisory re-regulation
- •2.5.3 Competition
- •2.5.4 Financial innovation and the adoption of new technologies
- •2.6 Responses to the forces of change
- •2.6.1 Mergers and Acquisitions
- •2.6.2 Conglomeration
- •2.6.3 Globalisation
- •2.6.4 Other responses to the forces of change
- •Box 2.4 Focus on globalisation
- •CHAPTER 3
- •Types of Banking
- •3.1. Introduction
- •3.2 Traditional versus modern banking
- •Table 3.1 Traditional versus modern banking
- •3.2.1 Universal banking and the bancassurance trend
- •Figure 3.1 Bancassurance models
- •3.3 Retail or personal banking
- •3.3.2 Savings banks
- •3.3.3 Co-operative banks
- •3.3.4. Building societies
- •3.3.5 Credit unions
- •3.3.6 Finance houses
- •3.4. Private banking
- •Table 3.2 Best global private banks
- •3.5 Corporate banking
- •3.5.1 Banking services used by small firms
- •3.5.1.1 Payment services
- •3.5.1.2 Debt finance for small firms
- •3.5.1.3 Equity finance for small firms
- •3.5.1.4 Special financing
- •3.5.2 Banking services for mid-market and large (multinational) corporate clients
- •3.5.2.1 Cash management and transaction services
- •3.5.2.2 Credit and other debt financing
- •Short-term financing
- •Commercial paper
- •Euronotes
- •Repurchase agreements (repos)
- •Long-term financing
- •Syndicated lending
- •Eurobonds
- •3.5.2.3 Commitments and guarantees
- •3.5.2.4 Foreign exchange and interest rate services offered to large firms
- •3.5.2.5 Securities underwriting and fund management services
- •3.6 Investment banking
- •3.7 Universal versus specialist banking
- •CHAPTER 4
- •International Banking
- •GETTING STARTED
- •4.1 Introduction
- •4.2 What is international banking?
- •4.5 Types of bank entry into foreign markets
- •4.5.1 Correspondent banking
- •4.5.3 Branch office
- •Box 4.2 Canadian Imperial Bank of Commerce (CIBC) correspondent banking services
- •Source: Adapted from http://www.cibc.com/ca/correspondent-banking.
- •4.5.4 Agency
- •4.5.5 Subsidiary
- •4.6 International banking services
- •4.6.1.1 Money transmission and cash management
- •4.6.1.2 Credit facilities - loans, overdrafts, standby lines of credit and other facilities
- •4.6.1.3 Syndicated loans
- •4.6.1.4 Debt finance via bond issuance
- •Figure 4.2 Bond features
- •Bond characteristics
- •4.6.1.5 Other debt finance including asset-backed financing
- •4.6.1.6 Domestic and international equity
- •4.6.1.7 Securities underwriting, fund management services, risk management and information management services
- •4.6.1.8 Foreign exchange transactions and trade finance
- •Letters of credit
- •Forfaiting
- •Countertrade
- •4.7 Increasing role of foreign banks in domestic banking systems
25
Table 2.6 Bankinlsg services offered via branches and remote channels
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Channels |
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Branch |
ATMs |
Telephone |
PC banking |
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person- |
tone or |
on-line |
Internet |
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to- |
voice- |
PC |
banking |
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Services |
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person |
activat |
banking |
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ed |
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Cash withdrawals |
YES |
YES |
NO |
NO |
NO |
NO |
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Loading of prepaid cards |
NO |
YES |
YES |
YES |
YES |
YES |
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Loading of e-money |
NO |
NO |
NO1 |
NO1 |
YES |
YES |
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General information on |
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bank products |
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and market developments |
YES |
YES |
YES |
YES |
YES |
YES |
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Account balance |
YES |
YES |
YES |
YES |
YES |
YES |
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information |
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Money transfer |
YES |
YES |
YES |
YES |
YES |
YES |
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Direct debits and standing |
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YES |
YES |
YES |
YES |
YES |
YES |
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orders |
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Credit and debit card |
YES |
YES |
YES |
NO |
YES |
YES |
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requests |
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New cheque books orders |
YES |
YES |
YES |
YES |
YES |
YES |
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Investment advice |
YES |
NO |
YES |
NO |
YES2 |
YES2 |
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Securities transactions |
YES |
NO |
YES |
NO |
YES |
YES |
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Loans (standardised) |
YES |
NO |
YES |
NO |
YES |
NO3 |
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Deposits business |
YES |
YES |
YES |
NO |
YES |
YES |
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Non-standardised banking |
YES |
NO |
NO |
NO |
NO |
NO3 |
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transactions |
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Insurance products |
YES |
NO |
YES |
NO |
YES |
YES |
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1 Not usually.
2 For standard products.
3 Not yet.
Source: Adapted from European Central Bank (1999)
26
Table 2.7 Foreign exchange online trading sites
Company |
Ownership |
Products |
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FX Connect |
State Street |
FX Connect provides real- |
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time, fully interactive foreign |
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exchange trade execution |
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with multiple counterparties, |
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24 hours a day. |
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Cognotec |
Independent |
Foreign exchange; Auto Deal |
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Life; Auto Deal Direct. |
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Currenex |
Independent (25 participating banks) |
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Low-cost technology |
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provider of foreign exchange |
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and money market trading |
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solutions for global financial |
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institutions, funds, |
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corporations and other |
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market participants. Through |
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private branded systems as |
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well as a global electronic |
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communications network of |
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FX price makers, prime |
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brokers and intermediaries, |
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Currenex supports real-time, |
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auditable, online trading |
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around the clock in all |
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currencies. |
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FXall |
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FXall is an electronic trading |
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platform offering customers |
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Dealer consortium (Bank of America, |
foreign currency trade |
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HSBC, JP Morgan, Goldman |
execution, access to research, |
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Sachs) |
and straight through |
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processing. With an |
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increasing number of leading |
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27
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global banks providing |
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liquidity, FXall is designed |
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to aid corporate treasurers, |
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money managers, hedge |
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funds, central banks and |
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other institutional clients |
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GAIN Capital |
Independent |
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Provider of foreign exchange |
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services, including direct- |
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access trading and asset |
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management. Services clients |
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from more than 80 countries |
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around the globe, including |
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fund managers and individual |
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traders |
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Volbroker |
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Currency options; inter- |
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dealer. |
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Bank Consortium - Citibank, Deutsche |
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Bank, Goldman Sachs, JP |
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Morgan, Royal Bank of |
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Scotland and UBS |
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Company |
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Ownership |
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Products |
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GlobalLink.com |
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State Street |
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Fixed income and interest |
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rate derivatives, strategic |
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analysis and trading. |
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Blackbird.com |
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Independent and |
strategic |
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Over the Counter (OTC) |
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alliance with |
Chicago |
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derivatives (inter-dealer). |
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Mercantile Exchange |
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Connects 80 financial |
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institutions worldwide, |
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trades 2 million |
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instruments in six |
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currencies. |
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Tradebonds.com |
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Independent |
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Online bond trading. |
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Provides execution and |
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support covering |
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28
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corporate, municipal, US |
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Treasury, agency, |
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mortgage-backed |
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securities and money |
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market instruments. |
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CPmarket.com |
Independent |
Electronic platform for |
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institutional investors to |
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execute transactions |
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directly with issuers of |
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commercial paper, |
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certificates of deposit, |
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time deposits and money |
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market fund providers |
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SwapsWire.com |
Dealer consortium (23 |
Online dealer facilities for |
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institutions) |
Interest Rate Swaps |
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(IRS), Forward Rate |
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Agreements (FRAs), |
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Overnight Index Swaps |
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(OIS), Interest Rate Caps |
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and Floors, Interest Rate |
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Swaptions, and Credit |
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Default Swaps (CDS) in |
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nine currencies |
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TradeWeb.com |
Independent |
Fixed income products |
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including US treasuries, |
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commercial paper, |
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European government |
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bonds, mortgage-backed |
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securities (MBS), |
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Pfandbriefe/ covered |
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bonds, Euro supra- |
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nationals/ agencies, |
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agency discount notes and |
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Euro commercial paper. |
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