Foundation Course

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Foundation Course in Banking – I


Table of Contents
1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.6

Evolution of Banking ________________________________________ 6
What is banking? ______________________________________________________6 History of Banking _____________________________________________________7 Services Offered by Banks ______________________________________________10 Trends in Banking Services _____________________________________________12 Classification of Banking Systems________________________________________13 Central Banking System__________________________________________________13 Commercial Banking System ______________________________________________19 Classification of Commercial Banking
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The chapter will provide the rationale for banking and its supervision. A brief mention has been made of the high level segmentation of banking, which will be explored further in the next chapters. The chapter ends with the description of typical financial statements in a bank. The description of the terms in a financial statement have been kept to a level suitable for an introductory course.

1 Evolution of Banking
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