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Banking and finance - Coggle Diagram
Banking and finance
1. Banking systems and types of banks
General Definition
Accepting and borrowing money from clients
Lending out money
to individuals or companies
Goal: earn a profit
Types of Bank
Retail Banks
Individual customers
Mass market products
Services
Current and savings accounts
Mortgages
Loans
Cards
Commercial Banks
Business clients
Services
Foreign currency
Lines of credit
International trade guarantees
Investment Banks
No deposits accepted
Underwriting stocks and bonds
Private Banks
High net worth individuals
Management: banking and financial affairs
Offshore Banks
Tax havens locations
Financial and legal advantages
Postal Savings Banks
National postal system partnership
Scope: complete banking services
2. Central banks
Core Objectives & Tasks
Overseeing
monetary policy
Price stability maintenance
Crisis management
Interest rates
management
Serving as a banker for other banks
Key Requirement
Independence from political regimes
European Central Bank (ECB)
Foundation
1998
Frankfurt
Eurozone countries
3. Finance and Stock-exchange
Stock & Commodities Exchanges
Stock Exchange
Regulated market for securities
Shares
Bonds
Commodities Exchange
Futures market and derivatives trading
Futures contracts (fixed price and date)
Goal: price prediction and risk hedging