Money and Banking

History of old-fashi atomic human action 53d banking. The first banks were probably the religious temples of the ancient world, they were established in the third millennium B.C. Deposits(indeliai) consisted of grain and later other goods including cattle(galvijai), agricultural implements(irankiai), and eventually precious metals(brangieji metalai) such as gold, in the form of easy-to-carry compressed plates(ploksteles). In Babylon at the succession of Hammurabi, in the 18th century BC, there are records of loans make by the priests of the temple. In 4th century BC Greeks attach much functions of banking: they take deposits, make loans, change money from one currency to another and test coins for weight and purity. Today banks gives a lot functions: Business loan, Term loan, Home loan, Personal loan, nest egg account, Credit card, internet banking and a lot of others. Banks provide around all payment services, and a bank account is considered requirement by most businesses, individuals and governments. Economic functions The economic functions of banks include: 1. Issue(gin?ai) of money, catamenia accounts(einamoji saskaita), payments at the customers order. 2.

Netting(tinklas) and settlement(suregulievimas) of payments banks act as both cabal and paying agents for customers, who participating in interbank clearing(kliringas) and settlement systems. 3. Credit intermediation(tarpininkavimas) banks take over and lend back-to-back on their own account as middle men. 4. Credit quality improvement(pagerinimas) banks lend money to modal(a) commercial and personal borrowers (ordinary credit quality), but are risque quality borrowers. ??? 5. Maturity transformation banks borrow more on demand debt and short term debt, but provide more long term loans. ??? Risk and capital Banks face a number of risks in order to conduct(tvarkyti) their business. Some of the main risks faced by banks include: Credit risk: risk of loss money from a... If you want to get a full essay, order it on our website: Ordercustompaper.com

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