1. Bank trading services
1.1. Types of financial assets
1.1.1. Capital market securities
1.1.1.1. Treasury bonds
1.1.1.2. Corporate bonds
1.1.1.3. Shares
1.1.2. Money market securities
1.1.2.1. Treasury Bills
1.1.2.2. Certificates of deposit
1.1.2.3. Acceptance of a bill of exchange
2. Off-balance sheet items
2.1. Loan commitments: lend in the future
2.1.1. Income for banks
2.1.1.1. Commitment fee
2.1.1.2. Usage fee
2.1.1.3. Servicing fees
2.1.1.4. Compensating fee
2.2. Financial guarantees
2.2.1. instruments used to enhance the credit standing
2.2.1.1. Letter of credit
2.2.1.2. Bank guarantee
2.2.1.2.1. Credit guarantee
2.2.1.2.2. Payment guarantee
2.2.1.2.3. Contracter/ tenderer/ bider guarantee
2.2.1.3. Loan sales
3. Bank services
3.1. Characteristics of bank services
3.1.1. A source of income for the bank and with increasing proportion over total bank income
3.1.2. Very diversified, some are tailor-made
3.1.3. Services are provided upon process, people, and technology
3.2. Some basic bank services
3.2.1. Payment
3.2.1.1. BASIC DOMESTIC PAYMENT SERVICES
3.2.1.1.1. Money transfer via accounts
3.2.1.1.2. Cash deposits and withdrawals
3.2.1.1.3. Domestic cards
3.2.1.1.4. Payment order, collection authorization
3.2.1.2. INTERNATIONAL PAYMENT SERVICES
3.2.1.2.1. collection
3.2.1.2.2. L/C
3.2.1.2.3. Remittances
3.2.2. E-banking
4. Bank liabilities
4.1. Deposit from customers
4.1.1. The largest proportion of bank liabilities is in the form of deposits that are typically made by individuals and firms.
4.1.2. Two main types of deposits
4.1.2.1. Time deposit
4.1.2.2. Right deposit
4.2. Deposits and borrowing from commercial banks and other FIs
4.2.1. Other main items on the liability side of a bank
4.2.1.1. Money deposited by other banks
4.2.1.2. Money borrows from other banks and the Central Bank
4.2.1.3. Interbank offer rates
4.2.1.4. Discount rates/Fed Fund Rates
4.3. Valuable papers/ Certificate of deposits
4.3.1. are certificates given to depositors in return for a (wholesale) deposit.
4.3.2. CDs are short-term securities and are re-saleable in the market
4.3.3. Foreign banks: The item may contain promissory notes
5. Bank lending
5.1. Lending process
5.1.1. 1. Loan Origination
5.1.2. 2. Credit Analysis
5.1.3. 3. Decisioning and approvals
5.1.4. 4. Loan disbursement
5.1.5. 5. Loan monitoring
5.1.6. 6. Debt collection and loan closing
5.2. Retail lending
5.2.1. Calculating interest : ak= v + Ik
5.3. Corporate lending
5.3.1. Lending to small firms
5.3.1.1. Traditional loan
5.3.1.2. Overdraft
5.3.1.3. Asset based finance
5.3.1.4. Factoring and invoice discounting
5.3.2. Lending to mid-market and large firms
5.3.2.1. Short-term loans
5.3.2.2. Traditional loans
5.3.2.3. Overdrafts
5.3.2.4. Standby lines of credit
5.3.2.5. Asset-based finance
5.3.2.6. Factoring and invoice discounting
5.3.2.7. Long term loans
5.3.2.8. Syndicated lending