Banks: History, Classification and Functions

BANKING ECONOMY PAPERWORK

subject:

BANKS: HISTORY, CLASSIFICATION AND FUNCTIONS

prof. Vesna Tasevska

Faculty for economic sciences

08/11186

FON University

Skopje, 2009

Contents:

1. Introduction

2. History of banks and banking activities

   1. The beginnings of banking activities

   2. First banks

3. Structure of the banking sector

3.1. The Central bank

3.2. mercenary banks

3.3. Universal banks

3.4 investment funds banks

3.5. Private banks

4. Functions of a modern bank

5. Conclusion

6. Bibliography

1. Introduction

In every fair-oriented economy there be galore(postnominal) economic subjects who belong to one of the two following sectors: the tribe sector or the enterprise sector.



All these subjects ( individuals, families or enterprises ) admit a certain income, and also carry out a certain level of spending of that income. Depending on the level of spending, the subjects in the fair-economy can achieve either a pecuniary superfluity ( if the income is greater than the spending ), or a financial dearth ( when the spending is greater than the income ). The role of the financial system, especially the banking system, is to generate mechanisms for unobstructed and efficient circulation and allocation of the savings that belong to the subjects with financial surplus to the subjects with financial deficit. The key elements in this role are the institutions accreditn as banks.

Basically, banks are autonomous financial institutions that provide various financial services machine-accessible with money to the economic subjects, and take part in the human race of new money with the method of partial reserves.

In this work, I will present a brief account statement of the early banking activities and the path they had opened for the forming of the first banks as we know them now, the rules for classification of the banks and also describe the basic aspects of bank activities and functions.

2. History of banks and...

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