Finance (Basic)
Ludek Benada
Department of Finance
Office 533
75970@mail.muni.cz

Bank
Bank is…
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A few history…

How the bank works
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Balance sheet
Bank Assets = Bank Liabilities + Bank Capital


Sources of Funds (Liabilities)
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Uses of Funds (Assets)
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Off-balance-sheet



Banks increase the amount of money in the economy
qTwo ways:
qCB..
qCB..

How creates the Commercial Bank money?
Fractional Reserves Banking
Multiplying money
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Bank run, Bank panic
qBR..
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qBP..

Types of Banks
qCB
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qCB
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qSB

Central Bank
A Central Bank…


Functions of CBs
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Commercial Banks
How CBs make money?


Functions of Commercial Banks
qPrimary Functions
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qSecondary Functions

The Primary Functions of CB
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The Secondary Functions of CB
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Types of CBs
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Universal versus Separated Banking
qUniversal Banking
qSeparated Banking (Glass Stiagall Act – 1933)

Other Categories of Banks
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Bank Channels
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Clearing and Clearing Bank
qClearing is..
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qClearing Bank is..

Bank Risks
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BASEL II
qBASEL II is…
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qThe aim is..
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Three Pillars of BASEL II
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Thank you for your attention