1. 1-Accepting Deposits
1.1. Current Deposit
1.1.1. Minimum Amount Not Required
1.1.1.1. Interest No or very low
1.1.1.1.1. Withdrawal of funds Anytime
1.2. Fixed Deposit
1.2.1. Minimum Amount To be determined by the bank
1.2.1.1. Interest Higher Rate
1.2.1.1.1. Withdrawal of funds On maturity date only as agreed with the bank
1.3. Saving Deposit
1.3.1. Minimum Amount For example, 100 OMR
1.3.1.1. Interest Very less
1.3.1.1.1. Withdrawal of funds Once or twice a week
2. 2-Giving loans
2.1. Line of Credit (LOC)
2.1.1. Example and Short Description using a credit card which can be given to the borrower provided that the loans did not exceed the limit
2.1.1.1. Interest Rate and Mode of Payment 1-Compounded interest & fees can be high 2-Normally payable in a monthly basis
2.1.1.1.1. Purpose 1-Best used for the temporary shortfalls of income 2-Remodeling of houses 3-Shopping and travels
2.2. Short-Term Loan (STL)
2.2.1. Example and Short Description 1-To build-up inventory, raise cash for accounts payable or complete small projects that yield quick returns. 2-Payday loans, merchants' cash advances
2.2.1.1. Interest Rate and Mode of Payment 1-Higher interest rate 2-Normally payable in a monthly basis 3-Payable on monthly basis within 6 months to one year
2.2.1.1.1. Purpose Useful for seasonal businesses, including retailers, and are issued by banks and credit unions
2.3. Long Term Loan (LTL)
2.3.1. Example and Short Description 1-Housing Loan 2-Business Loans 3-normally backed up by collateral
2.3.1.1. Interest Rate and Mode of Payment 1-Higher interest rate 2-Normally payable in a monthly basis 3-Payable on monthly basis within 6 months to one year
2.3.1.1.1. Purpose Used for business expansion Acquisition, refinancing, or working capital
3. 3-Overdraft
3.1. Authorized Overdrafts
3.1.1. 1-Are arranged in advance 2-The borrower agreed a borrowing limit with the bank 3-The borrower can spend up to that limit through all the normal payment methods
3.2. Unauthorized Overdrafts (UO
3.2.1. 1-UO is ‘Unplanned’ or ‘Unarranged’ overdrafts 2-Client spends more than what he has in his bank account without agreeing it in advance 3-UO can also happen if bank has agreed an overdraft for client, but he went over the limit they have set
4. 4-Discounting of Bills of Exchange
4.1. Drawer
4.1.1. is the party that issues a bill of exchange – the creditor
4.2. Beneficiary or payee
4.2.1. is the party to which the bill of exchange is payable
4.3. Drawee
4.3.1. is the party to which the order to pay is sent - 'the debtor‘. Becomes the acceptor when he/she/it has written the acceptance on the bill of exchange.
5. 5-Investment of Funds
5.1. Banks invest their surplus funds to government securities like Treasury bills (T- Government Bonds.
5.1.1. EX. stocks, bonds, options, futures, currencies, treasuries and money market securities