c. Banks: The individuals and firms approach banks to exchange the currency and the banks deal other banks which has foreign exchange departments on behalf of its customers. Banks apply and get the approval to act as an authorised dealer for foreign exchange. The two important tiers of foreign exchange are that one transaction between customers and banks and the other one is the transactions between banks. The inter bank transactions helps to meet the demands of foreign exchange customers and also reap the gains of foreign exchange rates. Generally inter banks does not take any help of the intermediaries but the banks deal through the foreign exchange brokers.
CHAPTER I INTRODUCTION 1.1. Background of Study Based on Law No. 10 of 1998 bank as an intermediary’s institution has an important role between parties who have the funds with the parties who need the funds. Bank compiles the fund from the surplus unit and distributes the fund to the deficit unit in order to improve the standard living of people. In running the business, the bank divided into Conventional Bank and Islamic Bank that run their business in the Syariah principle.
1.1 INTRODUCTION OF BANKING INDUSTRY Bank could be described as a commercial association that is involved in the company of keeping money for savings and checking reports or for transactions or for delivering advances and trust etc. A set of services aimed for confidential clients and described by a higher quality than the services presented to retail customers. Based on the believed of tailor-made services, it aims to proposal counsel on investment, inheritance strategies and furnish alert prop for finished deals and the resolution of asset-related problems. The vital purpose of a bank is to furnish services connected to the storing of deposits and the Spreading of credit. Basic purpose could contain Trust collection, Publisher of investment notes,
Consumer Banking is the division of services by Affin Bank to consumers, rather than to organizations, corporations or other banks. Services offered incorporate deposit, loan, card, hire purchase, bancassurance, unit trust, remittance and asnb business. This division duty is deaing with consumers. Affin Bank consumer banking products are supported by a set of network of branches from all states. It is upon consumer decision to choose to banking through a branch, via affinonline using Internet banking, over the phone or using an ATM, consumer will find Affin Bank services are convenient and easy accessible for consumer when and where they require it.
Investment banking: The main role of the investment bank is to help companies and governments raise capital on capital markets, either through the issue of securities (otherwise known as shares) or debt. Their main business involves the issuance of new debt as well as providing business consulting services on mergers and acquisitions and other types restructuring of enterprises (Casu, Girardone, and Molyneux,
Everything from depositing money to taking out loans and exchanging currencies must be done through financial institutions. Here is an overview of some of the major categories of financial institutions and their roles in the financial system. TYPES OF FINANICAL INSITUTUIONS Commercial bank A commercial bank accepts deposits
The transactions are among various central banks of the nations , usually carried out in gold or in US dollar. The international money market has grown phenomenally over last few years and is expected to grow even more. The international money market mainly handles the currency trading between the countries. The trading of one country's currency for another one is also named as the foreign exchange currency trading or forex trading. It is the largest financial market in the world and the participants in this large market are large banks, central banks, governments, multinational corporations.
There are two main channels for close cooperation between main banks and enterprises in sharing information: First, to exchange information widely through personnel exchanges. As the main bank-led business-related financing is usually the largest lender and bank shareholder, the exchange of information between people is a good way. Second, the main bank monopoly management of corporate settlement accounts, direct access to corporate information. Business settlement account records all the business transactions, which is very important information to determine the business performance and financial
Members of this foreign market exchange refers to those domestic financial institutions (including banks, non bank financial institutions and foreign institutions) which may conduct foreign exchange business (spot, swap and forward foreign exchange transactions) approved by the State Administration of Foreign Exchange. Daily earnings in foreign exchange of enterprises from exporting has to be settled to designated foreign exchange banks. At the same time, it established an interbank foreign exchange trading market to implement a banks’ sale of foreign exchange system. Due to existing restrictions on foreign exchange demands by foreign owned enterprises and individuals, convertibility under RMB’s current account is still