Internship Report on One Bank

The Merriam Webster dictionary defines the noun “bank” as “an establishment for the custody, loan, exchange, or issue of money, for the extension of credit, and for facilitating the transmission of funds.” In essence it is an institution that serves as a medium of flow of funds between users and savers. A bank is a financial institution that links the flow of funds from savers to users and back. For the purpose of this audit report we will broadly classify banks into two major categories: commercial banks and investment banks.

With the help of conclusions described in the last chapter, recommendations are developed and designed to present personal and independent point of view for the betterment and development of the organization. Recommendations are integral part of report and become imperative for internship report. Findings and Recommendations for MCB are as follows which will help the reader to understand all the aspects of the bank.

The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.

Lending institutions have been around since the late 1700’s. Banks are establishments that are authorized by the government to accept deposits, pay interest on deposits, clear checks, make loans, act as an intermediary in financial transactions and provide other financial services to customers.

Internship Report submitted to SIU in partial completion of the requirement of MBA Banking Management at Symbiosis School of Banking & Finance

Banks play a huge role in the United States financial system today, but not many people know how banks became a thing in our country. The bank of the United States (First Bank in the U.S.) was established in 1791 in Philadelphia. It was created as a repository for federal funds, Alexander Hamilton proposed the idea of a national bank while Thomas Jefferson was against it, and in 1811 the bank lost its charter. There different thought on the first central bank in the U.S., and although it lost its charter man historians view it as a success.

Banks have been around since hard money came to be. This was in the Ancient Empires of Greece, Egypt and Rome. However, banks at that time weren’t as the ones we know today because first, banks were only used by wealthy people. Then the term banks comes from those wealthy people storing their coins in their temples where they trusted the noble priests that lived there.

It is important to realize how the security aspects in a banking system can influence such

Banks would also help investors buy into companies, including letting people buy ownership in the banks. The whole idea was to allow money to flow through the economy based on economic principles of supply and demand. If there is a demand for cars, for example, let’s help auto companies create a proper supply and help car buyers purchase the cars. The Banks would always take a percent of the transaction as their fee, and this is how the banks made their money. In the US, the role of the government was simply to make sure nobody was cheating, so that prices and transactions would be based on supply-and-demand, not tricks.

The banking industry has transformed in numerous ways through the ages. Financial institutions now offer a broader assortment of products and services than ever before. The banking industry’s principal purpose remains the same. Financial institutions put the public 's excess monies (deposits and investments) to work by loaning them to individuals to purchase dwellings and automobiles, to open and grow businesses, college funds for families with children, and for countless other reasons. Banks are essential to the wellbeing of our country 's economy. For millions of people residing in the United States, financial institutions are the primary election for saving, borrowing, and investing funds.

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 Choices - A bank is a financial institution that will allow you to conduct several financial transactions. A bank offers a savings account where you can accumulate your money. A checking account that enables you to pay for goods and services using checks, a money

Investment Banks enable individuals, institutions such companies, governments to raise capital by offering underwriting services or working as an agents of the client in offering securities or in both roles. Investments banks play a very important role in stimulating investments in the United States both from individuals and corporate.

To begin, banks are a place to deposit money. Most people think of banks like a safe storage locker. If a person deposits their paycheck into a bank they have the guarantee of their money being there next time they check their account, that is if they choose to not spend it. Without banks, consumers would be forced to hide their money in their homes and under mattresses. That is just impractical and poses many major risks. Banks are a much safer alternative. Banks also offer interest rates. Interest rates help consumers not lose money while it sits in the bank. Interest rates fight inflation. According to Tejvan Pettinger, “for current accounts, interest rates could be very low, but for a savings account, the interest rate could be significant” (Pettinger). Generally, this is because savings accounts hold more money than a checking account.

When making a financial analysis on a bank, the type of business it conducts need to be considered. Specialization can lead a bank to operate in different practices and have a varied structure of their balance sheet. If the structure and composition of the bank is not to be considered, financial statement analysis will provide misleading information. This report will investigate the implications of bank specialization on its financial statement analysis.