International Banking

Operations

RICARDO PALMA
UNIVERSITY
International Banking
Operations

SESSION PRESENTATION OF TODAY

Financial System:
Financial Institutions and
Financial Markets
Week 1
 International Banking Operations
Session Objectives
1. Definition of a Financial System
2. Definition of a Financial Institution
3. Definition of Financial or Capital Market
4. Definition of the Financial Intermediation of funds.
5. Financial Intermediations exists in the world: Direct and
Indirect. Hugh explanation of each one giving several
examples for its understanding.
6. At the end of this sesión all of you will be ready to analyze
the finantial institutions and prepare a group task about all
the institutions that make up the Financial System in Perú.
 ¿What is a Financial System?

 The Financial System is the set of financial

institutions (private and government
entities), and capital markets that make it
possible for the people who has savings
not invested (idle money) or any other
economic agents, to end up or transfer their
money to the hands of credit applicants.
(the people who needs the money)
 ¿What is a Financial Institution ?

Is an institution, duly authorized by the Superintendency

of Banking Insurance and AFP, just named as SBS, for
getting funds from people, natural and legal persons, and
lend the money to people who needs that funds.
 Banks. 16
 Municipals Boxes for Saving and Credit funds 12
 Rurals Boxes for Savings and Credit funds 6
 EDPYMES 9
 And others 10
I WILL EXPLAIN EACH ONE LATER
 ¿What is a Financial or Capital
Market?
 The Financial or Capital Market is the
place that make it possible for the people
who has money for investment to get any
type of securities like stocks, bonds, short
term papers, warrants, etc ., with another
type of risk but with very high profitability
 ¿What is the meaning of the
Financial Intermediation ?
 This concept refers to the legal tools that let the
Financial Institutions and Financial markets be the
channel to intermediate funds between people.
From a people sector who has funds

( surplus resources )
to other people sector who needs this funds

( déficit resources )
These may be between natural or legal persons
 Types of Financial
Intermediation
 Indirect : If it is done through the Financial institutions. In
this case the financial institutions should do a very
exhaustive evaluation of the risk analyzing all the
necesesary documents and finantial statements of the
persons who are going to receive the loans. Qualification
and experience of the bankers are very important.

 Direct : If it is done through the Capital Market. In this

case both, who has the money and who needs the mony,
assume the risk in a personal way.
THE TRANSPARENCY OF THE INFORMATION IS
VERY
IMPORTANT AT THE CAPITAL MARKET
Capital Market or Stock Market
 The Financial or Capital Market, is the place where
are all the operations or funds you buy or sell are
represented in securities, such as stocks, bonds, or
short term papers, warrants, etc. All these securities
are issued by the companies, goverments, etc. This
securities are always issued and trade throug this
Capital Market and only in the Stock Market.
 Financial Institution
Balance Sheet
 Active/Assets
 Cash
 Short Term Credits or loans to
the customers (deficit)
 Long Term Credits or loans to the
customers
 Less provisions por bad debts
 Fixed Asset (tangible and
intangible)
 Pasive/Liabilities
 Short Term Deposits (received
from surplus)
 Long Term Deposits
 Loans received (from other IFI)
 Bonds issued by the IFI
 Equity
 Initial Social Capital
 Net Profit not capitalized
 Less provisions for bad debts

 TOTAL = 100
 TOTAL = 100
Auto-Evaluation Questions
 ¿What is a Financial Institution?
 ¿What do you understand by Financial
Intermediation?
 ¿What de you mean by Direct and Indirect
Financial Intermediation?
 ¿What people usually trade at the Capital
Market?
 ¿What do you understand by Asset and
Liabilities?
 ¿What do you understand by Profit and Cost?
Explain the difference?
 Now you are going to analyze the Financial
Institutions at the Peruvian Financial System
 Analyze the financial institutions which belong to the Peruvian Financial System: Banks,
Municipal Companies for Savings and Loans, Rural Companies por Savings and Loans and
EDPYMES, giving a brief definition of each one.
 After, review the total Assets, Liabilities and Equity of each one.
 Prepare a list of each group, beginning with Banks, after Finance Companies, after
Municipal Boxes, Rural Boxes and EDPYMES at the end, with the biggest one at the top
and the smallest at the end, for each one, tottalizing assets and liabilities plus equity.
 After, prepare a summary of the five types of financial institutions already analyzed.
 Remenber that : Tottal Assets equals Tottal Liabilities plus Equities.
 Finish with your conclusions and recomendations of each work-group, giving their opinión
about Financial System in Perú. I
 Is very important to talk and explain about total volumen, international banks, concentration
of assets and liabilities, the most important banks and cajas and edpymes and whatever you
consider important for this homework in group.
 Criteria por Work-Group
grading

 Word document 20 %
 PPt containing a summary of the
investigation or research 20 %
 Oral and individual presentation 30 %
 Answer of individual questions 30 %
 To make your research go the following
address in internet

 sbs.gob.pe
 Estadisticas,
 Sistema financiero,
 Información por tipo de institución Financiera.
 Banca Multiple, Estados Financieros por empresa bancaria, Balance
General y Estado de Ganancias y Pèrdidas, diciembre 2021, click.
 Repiten lo mismo con las :
 CMAC
 CRAC
 Edpymes
 Professor´s E-mail

Juan Francisco Guzmán Wilcox

juanfrancisco.guzman@urp.edu.pe
jfguzmanwilcox @yahoo.com