Commercial Banking Chapter 1

A financial institution providing services like accepting deposits, granting loans & facilitating payments using checks.

A checking account where money can be deposited and withdrawn by issuing checks, enabling transactions.

Funds kept in an account earning interest, usually for short-term saving goals.

An account where a fixed sum of money is deposited for a specific period, earning a higher interest rate.

A loan granted to businesses and individuals for various purposes like expansion, investments, or personal expenses.

An extension of credit or funds provided to a business or individual, often for short-term needs.

Bonds issued by governments to finance public projects and expenditures.

Short-term debt securities issued by governments to raise funds for short-term projects.

The process of channeling funds from savers to borrowers, facilitating economic growth.

The process of clearing and settling payments efficiently, reducing the need for physical exchange of cash.

Acting as an intermediary to collect payments on behalf of clients, such as collecting payments for bills or subscriptions.

Acting as an intermediary to pay funds on behalf of clients, such as paying salaries or supplier invoices.

A network of financial institutions that facilitate the exchange and settlement of payments between banks.

The legal definition of a bank, established and regulated by the government.

The definition of a bank according to the Financial Services Act 2013, focusing on banking business.

Activities characteristic of a banking business, including accepting deposits, making loans, processing checks & other approved operations.

A bank that operates based on Islamic principles, ensuring its operations adhere to Shariah Law.

Law governing Islamic financial institutions and their operations, ensuring compliance with Shariah.

The basis of Islamic banking, emphasizing profit sharing or profits earned from trading transactions.

The legal relationship between Islamic banks and their clients, based on specific principles like buyer-seller, lessor-lessee, partners, or principal-agent.

Deposits, savings, current and time deposits, and negotiable certificate of deposits, representing funds gathered by banks.

Borrowings from other financial institutions, interbank borrowing, capital and reserves, debentures, and notes, representing additional funds raised by banks.

The use of bank funds for different purposes like loan activities, repayments to institutions, and other operations.

A comprehensive legal framework aimed at preventing money laundering and terrorism financing, promoting collaborative efforts between agencies.

The act of engaging in transactions involving proceeds from illegal activities, with the purpose of concealing the origin of the funds.

The initial step in money laundering, physically moving cash from illegal activities.

Methods used in the placement stage of money laundering, involving techniques to disguise the source of funds.