SCHOOL OF FOREIGN LANGUAGES FOR ECONOMICS

Designed by Bui My Ngoc

FOR INTERNAL USE

09.2016
 UNIT 12

BÙI MỸ NGỌC
TRƯỞNG BỘ MÔN
MOBILE: 0903846785
 WHAT IS BANKING?
Banking can be defined as the business activity of accepting and
safeguarding money owned by other individuals and entities, and then
lending out this money in order to earn a profit.
FUNCTIONS OF BANKS
 FUNCTION
OF BANKS

PRIMARY SECONDARY
FUNCTIONS FUNCTIONS

1. ACCEPTING 2. GRANTING 1. PUBLIC ULTILITY SERVICE

DEPOSITS LOANS 2. AGENCY SERVICES
 PRIMARY
FUNTIONS

ACCEPTING LOANS GRANTING LOANS

 Saving deposits  Overdraft
 Fixed deposits  Credits
 Current deposits  Loans
 Recurring deposits  Discounting bills
 SECONDARY
FUNTIONS

AGENCY FUNCTIONS UTILITY FUNCTIONS

 Transfer of funds (TTR)
 Periodic payments
 Cheque collection
 Portfolio management
 Lockers
 Drafts /LC
 Underwriters of shares
 Dealing in Foreign Exchange
 Social Welfare Programs
 Other functions
 MODERN
FUNCTIONS

EFT (Electric ATM (Automated Credit cards

Funds Transfer) Teller Machines) Debit cards

Collection of Internet Banking

Information
 CENTRAL BANK
 COMMERCIAL BANKS
 INVESTMENT BANKS
 MORTGAGE BANKS
 MERCHANT BANKS
 SAVINGS BANKS
 COOPERATIVE BANKS
 COMMUNITY BANKS
 ISLAMIC BANKS
 PRIVATE BANKS
 FOREIGN BANKS
 JOINT-VENTURE BANKS
 STATE BANKS
DO CENTRAL BANKS HAVE THE SAME FUNCTIONS AS OTHER BANKS?
 WHAT DOES IT DO?
THE CENTRAL BANK

BANK BANK
 ROLES OF CENTRAL BANK

 manages a state's currency, money supply, and interest

and exchange rates.

 regulates and supervises the commercial banking

system.
 possesses a monopoly on increasing the monetary
base in the country
 prints the national currency and sets monetary policies

 acts as a "lender of last resort" to the banking sector

during times of financial crisis

 serves as advisor to the government

 COMMERCIAL BANK
A commercial bank is a financial institution that provides deposit, current (checking)
and saving accounts to individuals, organizations and businesses. It also lends money.
 INVESTMENT BANK
It consults on mergers and acquisitions, among other things and works in the
investment markets and do not take customer deposits
 STATE OWNED BANKS IN VIETNAM

Global Petro Bank

Vietnam Bank for Agriculture and Rural Development

STOCK AND COMMERCIAL BANKS IN VIETNAM
JOINT VENTURE BANKS
 BANKING TERMS

 DEBIT / CREDIT CARDS

 CHEQUE BOOKS
 LOANS
 MORTGAGES
 HEDGE FUNDS
 DEPOSITS
 BONDS
 STOCKS / SHARES
 CONLOMERATES
 RETURNS
 MERGER
 TAKEOVER BID
 BANKING TERMS

mortgages cheque book credit cards

debit cards ATM loans

 BANKING TERMS

hedge funds
(quỹ đầu cơ) Conglomerates
(tập đoàn đa ngành)

takeover bid
(thâu tóm)

Investment returns Merger

(lợi tức đầu tư) (hợp nhất)
GLASS STEALGALL ACT IN 1934
 commercial banks
hedge funds

Investment banks

private banks
 Islamic banks

hủy bỏ

non-bank financial
stockbrokers intermediaries
deposits
loan
capital
stocks or shares
bonds
merger
takeover bid
stockbroking
portfolio
returns
bankrupt
deregulation
conglomerate
interest
 Offer loans
Pay a deposit
Provide capital
/ loans

Charge interest Make loans Raise capital

Do business Offer advice / services Receive deposits
Give advice Pass laws
Share profits
Issue bonds/ shares Pay interest Make laws
Issue stocks Provide services Make profits
 best
kept secret
He worked as a commercial bank manager.

local marketplace
local entrepreneurs
going to see
helping start up
businesses grow
 BANKING TERMS

 SUBPRIME CRISIS
 CREDIT CRUNCH
 MBS (MORTGAGE BACKED SECURITIES - TÀI
SẢN ĐẢM BẢO THẾ CHẤP)
 CDO (COLLATERALIZED DEBT OBLIGATIONS –
NGHĨA VỤ NỢ THẾ CHẤP)
ECONOMIC
CYCLES
SUBPRIME BORROWERS – SUBPRIME DEFAULTERS
WAY LEADING TO SUBPRIME CRISIS
Sitting in front of a computer looking at spreadsheets,
doing a lot of dull analysis.

Nghĩa vụ nợ thế chấp (CDO)

Mortgage-Backed Securities

tiền vay thế chấp gốc bị

phân hạng dưới chuẩn

thắt chặt tín dụng

3
1
5
2
4
6

B
C
E
D
A
Social collateral – a group of people help each other to repay the
loan.
Making loan to a group of people who can help each other (rather
than to individuals)
Because the bank makes small loans to a large number of
people, which greatly diversifies the risk.
Because it has been show that poor people do repay their loans,
so microfinance can be a part of normal bank’s business.
Asia, Latin America and Africa
Th.S BÙI MỸ NGỌC
Tel: 0903846785