Money Banking & Finance

• Course Code: FIN - 202

• Course Level: BBA
• Course Convener: Jasim Ali
• Consultation Hours: By Appointment

Reference Material:
Money Banking and finance by H
Mobeen Alam & M Mubasher
(P 141-143, P 159 – 162)
BANK
“An organization with principle
operation to accumulate the
temporarily idle money from general
public for advancing it to others for
spending or investment”.

(Professor Kent)
“The banker’s Business is to accept debt
from individuals to offer his own in
exchange To create money”.
( Professor Crowther )

“ A banker is dealer in capital or more

properly dealer in money. He is an
intermediate party between borrower and
lender by borrowing from one party and
lending it to others.

( Gilbert )
Evolution of Banks
• As old as human society
• Some time it is at temples
• Some time at Goldsmith’s shop
• Modern Banking
Safdar H. Khan P 1,2
Stages of Evolution
• Receiving Deposits (Goldsmith 16th Century)

• Origin of Bank note as Deposit Receipts

(Goldsmith 17th Century)
• Creation of Credit Money by Issuing notes
against loans. (Goldsmith 17th Century)

S. H. Khan P. 2
Stages of Evolution
• Origin of Cheques (17th Century)

• Issue of Cheque Books (18th Century)

• Expansion of Functions ( Modern banking)

(19th & 20th Century)
Electronic Banking
• Computer Networking Based Banking
• ATM ( Automated Teller Machine)
• EFTS (Electronic Funds Transfer System)
Also Known as E-Money or Digi – Money

S. H. Khan P 2,3
 Types of Banks
• Central Bank ( State Bank of Pakistan)

• Commercial Banks

• Industrial Banks

• Agricultural Banks

• Exchange Banks
 Types of Banks
• Investment Banks
IPO’s Underwriting, Brokerage, Buying &Selling for
Profit
• Saving Banks
• Mortgage banks
• Cooperative Banks
• Scheduled & Non – Scheduled Banks

S. H. Khan P 11 - 15
 Scope of Banking
• Banking Operation
• Increase the Mobility of Capital
• Encourage savings
• Transfer of Money
• Creation of Credit Investment
 Scope of Banking
• Facilitate the Import / Export Process

• As an Agent of its Client

• Safe Custody

• Utilization of Funds

• Capital Formation

S. H. Khan, P 9 - 11