Banking Concepts and Practices

Have you ever wondered what it means to be human? Or what it means to dehumanize one another? As humans, we have the ability to think and use our brains. We are subject to an evolving education and to require an education. When someone is deprived of these human qualities, they are dehumanized. Everyone strives to live in an environment that enables them to learn, discuss, and act similarly.

b. List three differences you found between the accounts and features this bank or credit union offers and the bank from question 1 above. (1-3 sentences. 1.0 points)

The United States Congress chartered the Second National Bank in 1816 in order to control unregulated currency at the state-level banks. After several states questioned the constitutionality of the bank, Maryland imposed a tax on all banks that were not chartered by the state. By 1818, Maryland approved legislation of taxing the Second National Bank of the United States that was chartered by Congress, which is part of the Federal Government.

Financial markets are crucial to promoting greater economic efficiency by channeling funds from people who do not have a productive use for them to those who do. Well functioning financial markets are a key factor in producing high economic growth, and poorly performing financial markets, vice versa. Financial markets and intermediaries have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds.

Freire Speaks of education in schools as mindless and is only depositing phrases into student minds as if they were merely banks. This, he says, makes the people lack creativity even if the information in them is formally catalogued and available to be used at any time. The teacher, in his sense, needs to justify his or her existence by oppressing the students for their ignorance for what is knowledgable and what is not. The banking concept adheres to the wants of the teachers and make it so his or her pupils will not truly see the world and will not transform it. It makes the people easy to dominate and be fitted to a society that is controlling them. To break free from the oppression that the banking concept has force unto the people, the

There will always be someone who takes control of things. Those who are innately dominant will often possess a strong influence over others; some people in society have a tendency to lead while others follow. However, when the effect of power is negative, it becomes able to destroy the very thing it has control of. In Pedagogy of the Oppressed, the author, Paulo Freire, highlights such negativities in the classroom setting in an education system he calls the “banking concept”. This idea prevents active thinking and instead, the students absorb empty facts, keeping them stored in their memory. Although he discusses the alternative, more positive “problem-posing” concept, the banking principle seems to be more prominent in Chinua Achebe’s Things

Education has been around for many centuries, and the style it has been taught in has changed faintly. The main purpose for education is to pass on knowledge and to learn about the unknown. When one think about learning they usually think about someone of authority, a teacher, or a mentor providing them with knowledge. Paulo Freire, a Brazilian educator, and philosopher, had a problem of this traditional technique of teaching and had a solution to fix it.

Bank regulations are based on a general core of principles. Banks have two important economic functions. First, they operate a payments system, in which a modern

Explain why commercial banks are regulated and describe the major pieces of legislation enacted to prevent bank failures.

A bank is an institution that facilitates financial transactions between the parties. Amongst its standard operations are accepting deposits from the customers, lending money as loan (cite). The major source of income for banks is interest income which is earned on loans given to the customers, business firms and corporations. This very nature of it makes banking institutions so crucial for economic development of any country. Strong banking operations and fundamentals paves the way for higher customer and investor confidence in the company.

Banking is an old aged idea. It was around in the ancient Mesopotamia era. Martin A. Armstrong states, Mesopotamia illustrated all the modern practices such as, deposits, interests, loans, and letters of credit.” Armstrong also mentions how the ancient Egyptians showed signs of the banking. To quote Armstrong, “Egyptian sources also show that a vibrant banking industry emerged whereby the state provided warehouses in which farmers deposited their grain. In turn, the farmer would receive a “deposit receipt” reflecting how much wealth was held by the bank in question. Such written receipts eventually became used as a general method of making payment of debts to third parties during the Ptolemy era including trade, taxes and donations to the gods.” These banking ideas can be linked to money and how money has changed the power of people and countries. It can be proven throughout the history of that money, power, and banks are directly related. The banks and money relate to power because the more economic strength a country has the more they can do military wise. It can also be proved over time that money and power create issues that can be counterproductive to society.

Investment banking is a crucial part of our global business environment. Investments, banking, and other capital markets now have a valuable role in business and everyone’s daily lives. There are several strategies and methods that can be identified for effective and productive investment banking processes. Choosing an investment bank or firm can depend on the investor themselves. Some processes and guidelines can vary from firm to firm, this would all depend on the investor and the financial experts and their preferences. Portfolio

Use the strategic grid that we discussed in class to analyze the World Bank Case study. Place several of the IT functions, systems and infrastructure in one of the quadrants and explain why you placed it there. (15 points)

Over recent decades, there has been a decline in the traditional model of banking with a shift in banking structure. Interest income has fallen as a percentage of operating revenue while the percent¬age of non-interest income has risen dramatically. In 1980, the non-interest income of banks accounted for 20 per cent of the operating revenue of the US banking industry; by 2004, this had increased to 42 per cent (Stiroh, 2006). Similarly, over the last two decades in Australia, fees from deposits, loans and payment services totalled $11.6 billion, an increase of 8 per cent on the previous year (Reserve Bank of Australia Bulletin, 2009). However, this figure is somewhat understated as it does not include all items of non-interest income such as fees from fund management, underwriting and insurance activities. In Australia, the increase in fee income reported came from not only an increase in fees but also from growth in the size of non-interest income assets. In other words, increases in fee income, through a gradual introduction of fee items to traditional interest bearing accounts, have been somewhat overshadowed by the growth in the volume of non-interest earning transactions. For instance, the average growth of bank service fees was 7.9 per cent between 2001 and 2009, while banks’ residential assets grew at almost double this rate (14.5 per cent) (Australian Bankers’ Association, 2010).

The Central Bank is the utmost authority that is employed by the government to formulate monetary policy to guide the economy of a country. Monetary policy is defined as the regulation of the money supply and interest rates by a central bank. Monetary policy also refers to how the central bank use the interest rates and the money supply to guide economic growth and control inflation and stabilizing currency. Central bank is one kind of bank that operates in the financial system. Bank is a financial institution that provides service that is related to money. It works as a financial intermediary. The banking system of a country is highly regulated by the government. The government changes its level of control over the banks over the time to meet the need of the ever changing world. Bank operates in the service industry in which relationship with customers is very important. Bank is considered as an iron cell of a body. A financial system cannot work without the existence of the bank. The main earning of a bank is interest. Bank gives lower interest on deposit and take high interest rate on loan. This is how bank make money. Bank is mainly of three kinds.1) retail banks 2) investment bank 3) central bank. Central bank is highest financial institution of a country. It controls money market, currency system of the country. Central bank also regulates the