BankingTypes of Banks
Banks are foundamental in modern commerce for all the services that they offer. The consumers deposit in the banks all the money that they not use immediately. They are divided in Private Banks, that have the unlimited liability and the capital is provided by the partners; and in Joint Stock Banks that have the either limited or unlimited liability and is formed by a large numeber of members,calld Shareholders. Banks are classified in Bank of issue, that manages the public debts, receives and gives the national currency; Commercial Bank, that manages money, provides facilities for the public and provides capital for the agricultural, industrial or commercial purposes; Merchant Bank, that accepts credit for the international trade; Saving Bank, that encurages people to save money.
The bank of England
The bank of England was found in 1694 to act as the government's banker and debtmanager.
Since then its role has develope and envolved. The revolution of 1688 gave England a political stability, but the public finanaces and the system of money and credit were weak. The Royal Charter was sealed on 27 July 1694, and the bank started its role which it continues today.
Banking transactions and services
Banks provide a lot of services like borrowing transactions, lending transactions and transactions on behalf of third parties. In borrowing transactions the banks borrows or recives money from the customers and the bank pays the interest on money borrowed. Lending transactions are important functions like: loans where the customer ask to the bank the amoun of money he needs. Then a period of time, he pays the loan and the interest on it; discouting bill of exchange, where the customer pays a bill of exchange before the date; overdrafts are means of credit that the bank gives to the approved customers; mortgages, where the customer promises over his property if he doesn't pay the loan.
Banking services for business
Banking services for business are:
foreign trade where the banks play many services for overseas trade like: obtein minformation concerning merchants; accepptance and payment of bill of exchange; purchaise of bill of exchange and issuing letters of credit;
factoring is used if you want to avoid all the problems relating to the collection of credit. The factor can be a private factoring company, a group of insurance or a bank. Factoring is also used in foreign trade.
Leasing: a company called lessor rent to a company called lessee equipment, machinery pr goods for a monthly fee. At the end of the contract, the lessee can buy the good or return it to the owner.