CHAPTER ONE

An Overview of Banks and the Financial-

Services Sector
Different Roles of Banks
The Different Kinds of Financial Service Firms Calling
Themselves Banks
Limited Purpose Banks
Bankers Banks
Minority Banks

Services offered National Banks

State Banks
Insured Banks
Member Banks
Affiliated Banks
Virtual Banks
Fringe Banks
Universal Banks
What is a bank?
Function it serves
Roles it play
Banks and their principal competitors
Legal basis
Definition by Law
The Different Kinds of Financial Service Firms Calling
Themselves Banks
Commercial Banks
Savings Banks
Cooperative Banks
Mortgage Banks
Community Banks Services
Money Center Banks offered
Investment Banks
Merchant Banks
International Banks
Wholesale Banks
Retail Banks
The Financial Service Competitors of Banks
Savings Associations
Savings Banks
Credit Unions
Money Market Funds
Mutual Funds (Investment Companies)
Hedge Funds
Security Brokers and Dealers
Investment Banks
Finance Companies
Financial Holding Companies
Life and Property-Casualty Insurance Companies
The Roles of Commercial Banks and Their
Closest Competitors

Intermediation Role

Payment Role

Guarantor Role

Risk Management Role

The Roles of Commercial Banks and Their
Closest Competitors

The Investment Banking Role

Savings/Investment Advisor Role

Safekeeping/Certification of Value Role

Agency Role

Policy Role
Traditional Services Offered By Banks
Carrying Out Currency Exchange
Discounting Commercial Notes and Making
Business Loans
Offering Savings Deposits
Safekeeping of Valuables
Supporting Government Activities with Credit
Offering Checking Accounts
Offering Trust Services
More Recent Services Offered by Banks
Granting Consumer Loans
Providing Financial Advice
Managing Cash
Offering Equipment Leasing
Making Venture Capital Loans
Selling Insurance Policies
Selling Retirement Plans
Offering Security Brokerage and
Investment Banking Services

Underwriting Securities

Offering Mutual Funds and Annuities

Offering Merchant Banking Services

Offering Risk Management and Hedging Services

Trends Affecting Banks and Other Financial
Service Firms Today

Service Proliferation

Rising Competition

Government Deregulation

Increased Interest Rate Sensitivity

Trends Affecting Banks and Other Financial
Service Firms Today

Technological Change and Automation

Consolidation and Geographic Expansion

E-Banking and E-Commerce

Convergence

Globalization
 Tutorial Week 1
Read about the organisation that is assigned to you (Grameen
Bank, Investment Banks, Offshore Banks, Central Banks, The
Federal Reserves, The World Bank, International Monetary Fund
etc)
Find out the date/ place of establishment.
Find out who is the Founder and what inspires the Founder to
create such Bank/ Organisation.
What is the mechanism used by this Bank (How it works).
Each Group shall come up with Pros and Cons of having such
bank.
Explain how Malaysian can benefit from this kind of Bank.
Each group select 1 presenter to present for 7 minutes and Q &
A for 3 minutes.