Money banking and financial market are important considerations in the present day commercial world. The phenomenon of money banking is an important part of the commercial sector of any country. There are primarily three types of banking – personal, corporate and welfare banking.
Personal Banking is practiced by individual consumers, and is an important part of money banking and financial market. In order to receive personal banking services from banks the applicant needs to be either a salaried professional or a self employed individual. The personal loans are used for purchasing consumer goods. The banks normally provide as much as 5 times of the gross monthly income or even 90% of the particular good being bought against the loan.
The best companies offering corporate banking services provide their clients with blue chip companies. The services provided by these companies are fully customized and look to cater to the demands of individual clients. The services normally provided include:
- Working Capital Finance
- Foreign Exchange and Cash Management
- Trade and Transactional Services
The factors that are looked after normally by the corporate banking services providers include the following:
- Risk Profile of the Client
- Specific Needs
It has been seen that the members of the welfare funds have contributed immensely to their success. Therefore it is the utmost prerogative of the welfare funds to look after the interests of their members. The benefits afforded to the members are mostly in the form of financial rewards.
The services provided by these welfare banking fraternities are used for the following purposes:
- Serious Injuries
- Health Checkups
- Other Uses
These welfare banking communities also provide sports related benefits and educational grants for the underprivileged members of society.
The financial markets in the world could be divided into the bond markets and the stock markets. The bond markets could be called the debt markets. They are comparatively bigger than the equity stock market. The primary transactions in this market are of the debt securities. They have lower levels of risk as well as income potential compared to the equity stock market.
Following are the types of bond markets:
- Government Bond Market
- Municipal Bond Market
- Asset-Backed Bond Market
- Financing Bond Market
- Corporate Bond Market
Following are the types of stock or equity markets:
- Primary Market
- Secondary Market