Bank

Amity International Business School

Amity International Business School 2012-2015

National Bank Vs International Bank

BY : BBA-IB “AIBS”Sunil Kr. Ahirwar Faculty

Ms. Monika Sharma


NATIONAL BANK

International banks can be characterized by the type of services they provide that distinguish them from domestic banks A financial institution that provides banking and financial services to Commercial institutes, organizations, bodies, companies and entities.

INTERNATIONAL BANK

A bank is defined as one which transacts the business of banking which means accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawals by cheque ,draft, order, or otherwise.”- The Banking Companies Act, 1949


• Central Bank: A central bank, reserve bank, or monetary authority is a public institution that manages the nation's currency, money supply, and interest rates.

• Commercial Bank: Commercial Banks are banking institutions that accept deposits and grant short-term loans and Advances to their customers. In addition to giving short-term loans, commercial banks also give Medium-term and long-term loan to business enterprises.

TYPES OF BANK


FUNCTION OF BANK


– Bank of America – JP Morgan Chase & Co, – HSBC Bank, – Citigroup, and – Royal Bank of Scotland

(96 percent of all exposures and had the largest share of derivative exposures of the commercial banking sector)

• Some commercial banks, also have investment banking divisions, while others, such as Ally, operate strictly on the commercial side of the business.

THE LARGEST GLOBAL BANKS


• State Bank of India• ICICI Bank Limited• Punjab National Bank• Canara Bank• Bank of Baroda• Union Bank of India• Central Bank of India• HDFC Bank Limited• UCO Bank• Oriental Bank of Commerce

THE LARGEST INDIAN BANKS


FACILITIES PROVIDE INTERNATIONAL BANK

• Processing of payments by way of telegraphic transfer, internet banking.• Lending money by overdraft, installment loan.• Providing documentary and standby LC, Guarantees, Performance

Bonds, Security underwriting and other forms of off balance sheet exposure

• Provide consultancy and advice on hedging strategies, interest rate and currency swap financing and international cash management services

• To provide safety locker facility to customers.• To provide money transfer facility.• To issue traveller's cheque.• To accept various bills for payment e.g. phone bills, gas bills, water bills,

etc.• To provide merchant banking facility.• To provide various cards such as credit cards, debit cards, Smart cards,

etc.


• View account balance• Print account statement• View transaction history• Open or create Fixed Deposits• Transfer fund between account within the bank• Track/Schedule fund transfer• Request for demand draft • Request for cheque book• Stop cheque payment

FACILITIES PROVIDE NATIONAL BANK


ADVANTAGES OF NATIONAL BANK

• In traditional Banking transaction you do not any type of security. The only matters that you have to keep your bank paper of Pass Book safe

• If you are having any problem related to the bank you can immediately go to the bank & solve your doubts

• You can get any information related to bank immediately• You don’t worry about your bank paper till you yourself give it to

anybody else


• If the paper of bank are lost, you also may lose the right of your bank properties

• In Traditional Banking sometimes your work may remain uncompleted which is wastage of time

• In Traditional Banking if employees are busy with their bank, it any possible that they may not give you proper answer

• Your bank paper are not secured through Traditional Banking

DISADVANTAGES OF NATIONAL BANK


• You can bank in different currencies and even multi-currencies – which is of advantage to expats with financial commitments in more than one nation or currency for example.

• If the nation in which you live has a less than favourable economic climate, by keeping your wealth in an offshore bank account you can avoid the risks in your new nation such as high inflation, currency devaluation or even a coup or war.

• For those expats living in a nation where you only pay tax on the money you remit into that country, there is an obvious tax benefit to keeping your money in an offshore bank account.

• Any interest earned is usually paid free from the deduction of taxation. For those who don’t pay tax on foreign sourced income this means they can enjoy greater returns immediately, without having to apply for a rebate.

ADVANTAGES OF INTERNATIONAL BANK


• Offshore banking has been associated with the underground economy and organized crime, through money laundering. Following September 11, 2001, offshore banks and tax havens, along with clearing houses, have been accused of helping various organized crime gangs, terrorist groups, and other state or non-state actors.

• The existence of offshore banking encourages tax evasion, by providing tax evaders with an attractive place to deposit their hidden income.

• Offshore jurisdictions are often remote, so physical access and access to information can be difficult. Yet in a world with global telecommunications this is rarely a problem. Accounts can be set up online, by phone or by mail.

DISADVANTAGES OF INTERNATIONAL BANK

Bank

Economy & Finance

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