A Coggle Diagram about BANK ( ( (LIABILITIES, BANK ACTIVITIES:
Assets = Liabilities + Capital and ASSETS : Once raised, the funds are used for issuing loans or purchasing investments.
Home mortgages are a major part of their portfolio, and since deregulation banks have introduced wider choice (e.g. fixed rate mortgages, home equity loans).
Loans to business include overdrafts, bill lines, leasing, trade finance or term loans. )), APRA: contribute to stability of Aus' financial system during GFC.
-Supervisory action plans
-Risk assessment and Response Tools
Industry-wide risk analysis, BANK REGULATION, is an ADI approved by APRA to use the term ‘bank’ in its trading name, RETAIL BANKING: small transactions, household sector, suburban branches
WHOLESALE BANKING: large transactions, corporate sector, city location
Laws and regulations to determine which one is retail or wholesale., Banks provide goods and services which the economy needs to function efficiently: PERFORMING.. denomination transformation, maturity transformation, liquidity creation, AUSTRALIA'S BANKING HISTORY shows the differences that have happened in banks' activities over time., HEART OF BANKING: accept deposits and make loans. Also today banks run the payments system and trade securities. , , Off balance sheet activities (OBS)-
usually means an asset or debt or financing activity not on the company's balance sheet, also known as ‘contingent’ or implicit liabilities.
Banks can create contingent claims on themselves as well as others.
• FEE-BASED SERVICES: corporate advice, underwriting, securitization.
• FINANCIAL SERVICES: funds management, stockbroking, travel.
• MARKET TRADING: taking a position in the bank’s own right and market-making on behalf of customers. and ROLE IN THE PAYMENT SYSTEM:
-Credit and debit cards
-Cheque deposits and clearing), BANK RISK (CREDIT RISK and INTEREST RATE RISK), NON-BANK (BUILDING SOCIETIES:
focus on making mortgage loans.
ASSETS: residential mortgages.
CAPITAL: traditional building societies are owned by their members. Profits are accumulated, rather than paid out in dividends, and represent a large portion of the capital of the society.
INTEREST INCOME: The main source of income for building societies and CREDIT UNIONS
specialise in short-term consumer loans
ASSETS: loans to members.
LIABILITIES: member savings accounts.
CAPITAL: credit unions do not hold shareholders’ equity and, therefore, capital consists mainly of retained earnings. ) and ADI-Authorised Deposit Taking Institutions