Introduction to Banks and Banking

INTRODUCTION TO BANKS & BANKING PRESENTED BY TRAN HOANG HIEP THỊ TRƯỜNG TÀI CHÍNH VÀ CÁC ĐỊNH CHẾ TÀI CHÍNH FINANCIAL MARKET & FINANCIAL INSTITUTIONS FINANCIAL MARKET BANKS BANKS INSURANCE INSURANCE COMPANIES COMPANIES FINANCE FINANCE COMPANIES COMPANIES LEASING LEASING COMPANIES COMPANIES SECURITIES SECURITIES COMPANIES COMPANIES STOCK STOCK EXCHANGE EXCHANGE FACTORING FACTORING COMPANIES COMPANIES GOVERNMENT GOVERNMENT AGENCIES AGENCIES NON-GOVT NON-GOVTORGANIZATIONS ORGANIZATIONS((NGO) NGO) NHẬP MÔN NGÂN HÀNG & NGHIỆP VỤ NGÂN HÀNG PRESENTED BY TRAN HOANG HIEP NỘI DUNG CHÍNH The role of banks How does a bank makes profits? Bank–Customer relationships Types of customer Operations of a bank Types of bank The banking system of Vietnam VAI TRÒ CỦA NGÂN HÀNG THE ROLE OF BANKS Nguồn gốc ngân hàng Origin of banks The word BANK is derived from the Italian BANCA, means BENCH Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each working from his own bench or table Tại ngân hàng tồn tại? Why banks exist? Banks provide services related to money: Keeping money safe Lending money Transferring money Các dòch vụ ngân hàng Banking services Deposits Loans Payments Các dòch vụ tài Financial services Foreign Exchange (F/X) Money Market (M/M) Cash Management Investment Leasing Syndicated lending Factoring Flotation Etc… Quan hệ Con nợ - Chủ nợ (Debtor- Creditor) Customer is a debtor to the bank when: - he borrows money from the bank - he withdraws money in excess of the balance in his account (overdraft) - He is using a credit card issued by the bank Quan hệ Con nợ - Chủ nợ (Debtor- Creditor) Customer is a creditor of the bank when: - he deposits his money into the bank - the bank is having obligation to execute a payment in favour of the customer Quan hệ Đại lý / Ủy thác (Agency relationship) - When the bank s collecting money (payment) on behalf of a customer (cheques, collections, bills of exchange…) - When the bank is providing payment services on behalf of / under instructions of a customer (payroll services, standing orders…) Quan hệ Gửi & Giữ tài sản (Bailor - Bailee) - When a customer (the bailor) deposits valuable documents or things with the bank (the bailee) for safe keeping (Dịch vụ cho th két sắt – Custody) Quan hệ Cầm cố chấp (Mortgager - Mortgagee) - When a customer authorizes the bank to keep/manage their properties as collateral (security) for a loan granted by the bank CÁC LOẠI KHÁCH HÀNG TYPES OF CUSTOMER BANK’S BANK’S CUSTOMERS CUSTOMERS PERSONAL PERSONAL CUSTOMERS CUSTOMERS CORPORATE CORPORATE CUSTOMERS CUSTOMERS FINANCIAL FINANCIAL CUSTOMERS CUSTOMERS KHÁCH KHÁCHHÀNG HÀNGCÁ CÁ NHÂN NHÂN KHÁCH KHÁCHHÀNG HÀNG DOANH DOANHNGHIỆP NGHIỆP KHÁCH KHÁCHHÀNG HÀNG TÀI TÀICHÍNH CHÍNH ••individuals individuals(local (local and andforeign) foreign) ••enterprises, enterprises, busiensses busiensses ••financial financial institutions institutions ••families families(trading, (trading, manufacturing) manufacturing) ••organizations, organizations, agencies, agencies, associations, associations, schools… schools… ••investors, investors, brokers… brokers… CÁC LOẠI HÌNH NGHIỆP VỤ NGÂN HÀNG BANK’S OPERATIONS BANK’S BANK’S OPERATION OPERATION For ForPERSONAL PERSONAL CUSTOMERS CUSTOMERS For ForCORPORATE CORPORATE CUSTOMERS CUSTOMERS For ForFINANCIAL FINANCIAL CUSTOMERS CUSTOMERS PERSONAL PERSONAL BANKING BANKING COMMERCIAL COMMERCIAL BANKING BANKING F.I F.I.OPERATIONS OPERATIONS ••Deposits Deposits ••Correspondent Correspondent ••Personal Personaldeposits deposits ••Commercial Commercialloans loans ••Consumer Consumerloans loans ••Trade Tradefinance finance banking banking ••Treasury Treasuryoperations operations ••Personal Personalpayments payments (remittances, (remittances,transfers, transfers, cheques, cheques,bankdrafts…) bankdrafts…) ••Project Projectfinance finance ••Syndication Syndication ••Payments Payments(L/C, (L/C, Collections, Collections,T/T…) T/T…) ••Flotation Flotation ••Cards Cards ••Custody Custody ••Consultancy Consultancy ••Investment Investment CÁC MƠ HÌNH NGÂN HÀNG TYPES OF BANK Building societites societites Building Creditcooperatives cooperatives Credit Post banks banks Post Savingsbanks banks Savings Farmers banks banks Farmers Developmentbanks banks Development Investment banks banks Investment Merchant banks banks Merchant Commercialbanks banks Commercial Central Central Bank Bank HỆ THỐNG NGÂN HÀNG TẠI VIỆT NAM THE BANKING SYSTEM IN VIETNAM Brief in the Banking System of Vietnam Before 1988: mono-bank system, 1-tier system After 1988: Changed to 2-tier system (consisting of Central Bank and specialized commercial banks THE STATE BANK OF VIETNAM (The Central Bank) NON-BANK FINANCIAL INSTITUTIONS COMMERCIAL BANKS Stateowned Jointstock Jointventure Credit cooperative People’s credit funds Foreign - Insurance co - Finance co - Fund Mgt co - Securities co - Leasing co - Post offices ... banks Post Savingsbanks banks Savings Farmers banks banks Farmers Developmentbanks banks Development Investment banks banks Investment Merchant banks banks Merchant Commercialbanks banks Commercial... CUSTOMERS For ForCORPORATE CORPORATE CUSTOMERS CUSTOMERS For ForFINANCIAL FINANCIAL CUSTOMERS CUSTOMERS PERSONAL PERSONAL BANKING BANKING COMMERCIAL COMMERCIAL BANKING BANKING F.I F.I.OPERATIONS OPERATIONS... - Chủ nợ (Debtor- Creditor) Customer is a creditor of the bank when: - he deposits his money into the bank - the bank is having obligation to execute a payment in favour of the customer Quan hệ