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Mahesh Kumar Sarva, Lovely Professional University Unit 8: Banking Systems

Unit 8: Banking Systems Notes

CONTENTS
Objectives
Introduction

8.1 Corporate Banking
8.2 Retail Banking
8.2.1 Retail Banking – Retail Lending Schemes (Asset Focused Segment)

8.2.2 Retail Banking – Liability Focused Segment (Deposit Accounts)
8.3 Merchant Banking
8.3.1 Significance of Merchant Banking
8.3.2 Functions of Merchant Banking
8.4 Treasury Management

8.4.1 Objectives of Treasury Management
8.4.2 Functions of Treasury Management
8.5 Summary

8.6 Keywords
8.7 Review Questions
8.8 Further Readings

Objectives

After studying this unit, you will be able to:

Define Corporate Banking
Classify Corporate Bank Customers
Elaborate on Retail Banking

Discuss significance and functions of Merchant Banking
Describe Treasury Management
Introduction

Previous unit gave you an insight on loans and advances provided by banks whereas in this unit
you will study about different banking systems such as corporate banking, retail banking,
merchant banking and treasury management. Banking system can be defined as the structural
network of institutions that render financial services within a nation. The members of the
banking system and the functions they typically execute comprises of commercial banks that
take deposits and make loans, investment banks which specialize in capital market issues and
trading, and national central banks that issue currency and set monetary policy. Banking System
is a chief mechanism through which the money supply of the country is ensured and controlled.
The banking system enables us to understand Commercial Banks, Secondary Banks, Central

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