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Finance and Banking refer to the dynamic, fast-moving world of finance, bonds, credit and securities. Finance is a vital element of modern economy, as it gives the needed liquidity in the form of assets or money needed for businesses and individuals to invest for their financial future. The following are some essential topics related to the subject of finance and banking:

The definition of banking refers to the processes involved in creating, providing loans, investing in, as well as controlling the money supply and managing financial institutions. Banks are the main enterprises of financial market that lend funds and perform other monetary activities. They borrow from private sources and use the funds for different purposes. They create liabilities and earn interest on them. Banks control the flow of funds and influence the economy through money and credit.

The main difference between a bank and a broker is that the latter works independently while the former is connected to banks and lending institution. A bank may lend funds for a business to start or expand. This is called commercial banking. There are many types of banks like Savings & Loan Association, Federal Reserve, Community Bank, Pawnshop, Money National, Fleet Farm Bank, and Commercial Bank that are major players in financing and lending activities.

The main functions of a bank are to provide loans and invest in financial markets. They undertake various activities such as creating loans, collecting loan payments, giving financial advice, selling financial products, distributing various products, collecting interest and dividends, etc. Banks control the flow of funds and influence the economy through loans, investments, and credit. Commercial banks generally concentrate in one area such as loans, savings, investment, or corporate and residential mortgage and home mortgage. A few wholesale banks operate as dealers in foreign currency, insurance, commodity markets, and offshore banking.

Financial services include activities like market investment, banking, insurance, investment banking, and securities. All these play a major role in shaping the economy. A few people are consultants in banking and finance. The banking and finance industry is a key contributor to the overall economic health and growth of the nation.

One main difference between non-banking and banking activities is that banking provides money for non-banking purposes. The main services provided by banks include saving and loan management, investment banking, corporate lending, retail banking, and money market investment. Some banks also provide other services such as leasing, equities, structured settlements, and insurance brokerage. Commercial banks do not engage in activities such as buying, selling, and distribution.

There are various types of banks including savings and loans, commercial banks, trust banks, order banks, and public banks. Within the banking system there are several kinds of banks including thrift associations, community, savings, land-based, and public banks. Most countries have a wide array of different-type banks. These banks are classified into two main groups: commercial banks and savings and loans banks. In general, the two banks perform slightly different roles, with the savings and loans bank offering a more conservative type of lending while commercial banks offer a more flexible lending option.

A four year bachelor’s degree in business administration or finance is the minimum education level required to enter most banks. A more advanced degree, typically a master’s degree or doctorate, is required to become a full-fledged banker or financial manager. A large number of jobs in banking and financial services require at least a bachelor’s degree in business administration.

An average four-year bachelor’s degree takes about two years to complete. Students who wish to become loan officers must enroll in a graduate program that offers finance training or a business administration program. Loan officers have the responsibility of working with lenders to obtain new business loans for borrowers. Business administration programs usually take longer to complete than programs that only offer finance training.

Graduates of graduate programs in finance also have an opportunity to specialize in either banking or investment banks. Specialization in one of these areas allows the student to gain experience and knowledge of specific investment banking and/or monetary processes while gaining a strong foundation in the business world. Graduates may choose to work in government agencies or start their own private investment banks. A small number of investment banks focus exclusively on providing investment banking and financial advisory services.

As one of the world’s largest banking and financial institution conglomerates, CIB banks employ over 18,000 people with a wide range of financial services experience. Most CIBs are international banks with branches in Canada, Australia, Ireland, and Japan. CIBs are expected to keep up with the latest financial institution technology and industry trends.