» Banking and Finance

The origin of banking can be traced back to about 12,000 years ago to the Assyrian Empire, whose business and investments were managed by the clan of Engadi, a family that was highly connected to the rulers of the empire. During the Babylonian Empire from 1728 – 1686 BC, the laws of financial transactions and standardized procedures were carved on six feet high tablets of stone. These inscriptions set out the details of the operations of loans, interest, and guarantees.

The ancient Greeks and the Romans also established their own banking systems, using credit notes and a universal currency. Very soon, the need for cross-border banking was felt and a resolute the system was established to enable foreigners to trade with Romans confidently. Even the Greeks had introduced a credit-based banking system for trading with the Egyptians, but the Roman system was more organized having proper regulatory systems and practices. With the fall of the Roman Empire, these systems collapsed, and it was not until the 16th century that the systems were revived with the opening of the London Royal Exchange in 1565. In the US, commercial banking was introduced in the late 1700s and early 1800s. The British system laid the foundation of modern bank in most other countries of the world.

Basic Functions
Banks collect funds from the general public and keep them safely. The depositor can withdraw either a part or the whole amount of money whenever he needs to do it, subject to certain rules and regulations of the bank. Moreover, the depositor can also issue a check to another person, and the bank will transfer the amount of the check into the account of the recipient. This can also be done through automatic transfer through the banking system and through online banking. There are various types of deposits that can be made, and the bank pays interest on the deposits. If a person or an organization is in need of funds, the bank extends loans and charges interest from the borrower. The profit of the bank emanates from the difference in the interest rate that they charge the borrower and the interest that they pay to the depositors.

Types Of Banks
The banking activities of commercial banks concentrate on creating revenue from various sources such as foreign exchange, granting of loans, payment of interest, operating savings and current accounts, providing safe deposit boxes, and trust services.

The apex bank of any country controls the activities of the other banks, and it fixes the rates of interest that the other banks can charge. It also regulates the amount of loan that the banks can give and the amount of wealth that they can hold. It ensures transparency and safeguards the interests of the citizens.

Investment banking is done by commercial banks for the benefit of its clients. The bank makes prudent investments of the resources of their clients in order to generate more profit for them as compared to the interest that the bank would be paying merely for keeping the money in the bank. Even companies are advised regarding profitable business transactions.

For the economy of any country to have a sustained growth, the banking system has to be dynamic, vibrant, and effective.

Popularity: 16%

With self storing becoming more popular now that ever, it comes as no surprise that the banking industry has started looking closely at it as a new business opportunity. This refers to the loan schemes now available both to clients looking to purchase or lease warehousing, as well as providing capital for entrepreneurs looking to set up store facilities.

For Warehousing Companies
An individual looking to set up a warehousing facility needs a significantly large amount of capital to start off. Banking industry has the investors and the capital that the entrepreneur needs and therefore both benefit from the venture. It has only been recently that banks have started to look towards self storing as an investment opportunity and this has provided the entire banking industry with much needed impetus. By receiving the sanction of the banking industry, entrepreneurs in the field of self storing can now go on to envision and create better facilities that generate more business and pay off the investments made into the warehousing infrastructure. Thus this benefits all the parties involved.

Clients
Many individuals looking to rent storeroom units do not have the banking investment required to pay for the lease as well as the indemnity premiums that are usually quite large. They therefore need outside financing which is where banking comes into the picture. Not only do these institutions offer short term loan to investment the rentals, but they also offer attractive rates of interest as well. Especially in the time just after the recession, banks are now making it a point to generously reward investments that their clients make. Anything that gets the money rolling is well encouraged.

Along with the rent a client pays for leasing a unit at a warehouse, he also needs to spend a significant amount on getting an insurance policy into place. Without indemnity, the warehousing company will not allow him to start using the space. This is therefore something he needs to work out right at the beginning. Insurance policies require for recurrent payments to be made, for which he needs to have funds. And add this to the fact that he also needs to make arrangements for the rent which can be paid monthly, six monthly or yearly. Depending on the kind of payment plan he chooses, a client would need to spend a tidy sum of money on the rental for which he might not have all the arrangements in place.

This is expressly where banking comes into play by making good quality warehousing affordable and within easy reach. Now while only a few banks have started offering financing opportunities for clients and entrepreneurs looking at self storing, research shows that more of them are looking towards it with significant interest. It will not be long before all banking institutions start offering low cost funding for the same. This will encourage not only the establishment of new warehousing companies, but also an increase in clients of these warehouses which benefits everyone.

With the support from recognized banking institutions, self storing has now become the norm throughout the United States and Canada. And the banking industry needs to be commended for the support that it offers to one of the most flourishing enterprises the continent has seen.

Popularity: 9%

The best way to deal with Internet banking fraud is to be proactive or practical. The worse thing to come about to the victims of such frauds is their banks and credit unions refusing to make available information to them. Things can really be very difficult especially for those who are not computer savvy. Still, following these simple proactive steps can help you deal with banking frauds effectively.

Change The Password And Personally Visit Your Bank
The moment you log into your online bank account and see that a fraud has occurred, the first thing that you should do is change your password. Give a phone call to your bank and inform them about the Internet banking fraud. It is even better if you personally visit the bank or credit union.

Explain The Fraud
While you are talking to the bank representative, you will have to explain the fraud. However, just verbal explanation is not going to do any good. You had better ask for the dispute form and fill out the same. For every fraudulent transaction that has taken place on your Internet banking account, you should submit a separate dispute form. Do not forget to keep a copy of these forms with you.

Make A Request To Deactivate Your Account
Withdraw all of your money from your account and place a request to the bank to freeze your banking account. Now, you can either take your business to a different bank or open a brand new account in the same bank to safe and sound deposit your money.

Ask The Bank To Send An Email To You
For better or enhanced protection, you are strongly recommended to ask the bank representative to send you an email, explaining all the actions they have taken against the banking fraud that occurred in your account. The electronic mail must consist of a tracking number so that you can follow up the course of action through phone, electronic mail, or Internet.

Get Email Access To The eBanking Manager
The information technology department in the United States of America is commonly referred to as eBanking Department. Make sure or ensure that the bank representative gives a phone call to this department and tell them about the Internet banking fraud you have faced. For better protection, you should also ask the representative to send an email to that IT department with all the details about the fraud and send a copy to your email address as well. This way, you get access to both the phone number as well as the email address of the Internet banking manager.

Do not just sit back after submitting your dispute forms. If you would like your money to return fast, you must keep a track of the progress. Since you have the phone number and email address of the Internet banking manager, you can call them directly. They will give you the true picture of progress on your case. Your bank representative will only give you assurance, not accurate or correct information about the entire or whole developments. In consequence, just by being a little proactive, you can effectively deal with online banking fraud and get back your money quickly and speedily.

Popularity: 12%

Maridith does not know how to manage her money. Plain and simple. For some reason, Maridith just never learned anything about banking and finance throughout her twenty-six years of life. Perhaps this problem stemmed from when she was a little girl. Her parents always provided her with everything she needed and wanted. They never taught her the value of a dollar. To them, banking and finance was not a problem. They understood it and took for granted that in due time Maridith would too.

Perhaps a red flag should have been raised to her parents when she never managed to save up her allowance for that pink boom box she wanted when she was eight. Even though her allowance was triple that of a typical eight-year old, she somehow found something else to spend her money on every week. No matter, her parents bought it for her anyway after she pleaded with them enough. Obviously, Maridith was sheltered from the banking and finance knowledge she should have been learning as a young child.

Maridith’s ignorance towards banking and finance continued into her teens. She never had to work for her money because her parents bought her everything she wanted. Her first car was completely paid off, she never had to worry about the sky high cell phone bill she created every month, and she regularly received money to go shopping. As soon as money went into Maridith’s pocket, it went right into the closest Aeropostale, American Eagle, or movie theatre. To Maridith, even the words banking and finance were a foreign language.

Most children are lucky enough to learn banking and finance skills when they are young. If this is the case, they grow up appreciating money and being able to make good decisions about what to do with it. If these children who do not learn banking and finance skills are lucky enough, they get their way paid through college, find a decent job, and eventually figure out how to manage their money. For poor Maridith, this was not the case.

Maridith’s parents might have spoiled her, but they were not ok with her dating before she was eighteen. So, when Maridith found out she was pregnant and had to tell her parents, things went downhill pretty quickly for her. No longer, she was told, were her parents going to support her financially. She was on her own(well she had a loser boyfriend), pregnant, with absolutely no knowledge of banking and finance.

So, Maridith knew she had to do something since she had almost no money to her name. She got a job waitressing, but found that she was living paycheck to paycheck and was unable to save. For Maridith, banking and finance skills did not just appear when she needed them to. Instead, her lack of knowledge with banking and finance had her in a slump. She found herself being swallowed alive by bills and she was slowly working her way into debt.

Unfortunately, Maridith never managed to work her way out of her poor money management. Because of this, her life is affected in multiple negative ways. She is constantly stressed about money and does not feel like she can provide like she should for her daughter. Perhaps, if Maridith would have learned about banking and finance as a young child she would not have found herself in this predicament.

Popularity: 9%

There are a number of reasons why people like to use banks. Because of this, there are a variety of different ones all over America and they offer a number of different services. Most banks serve the same basic functions, but many people are particular about which bank they decide to go to. This is pretty understandable considering the main function of banks is to protect one’s money. When you work hard for your money and need it to live, it is very important for it to be kept safe. Many people find it difficult to entrust someone else with all of their money, but most people realize that it is much safer for money to be kept in a bank than under a pillow or somewhere in a house.

Besides the fact that it is safer to keep money in the bank, there are a number of other reasons why people want and need to use banks. First of all, you have to have a bank account if you want a debit or credit card. In today’s world, it is very necessary to have a debit and credit card for a number of reasons. If you ever want to buy something expensive that you do not have all the money for at the moment, you can usually pay for it in installments but you have to prove you have money with a bank account and credit history. Also, if you ever want to buy anything online it is very necessary to have a debit and/or credit card because that is how you make all purchases online.

Another good reason to put your money in banks and have a debit or credit card is because you can always carry it with you and have access to all of your money in case you might need it in an emergency or another situation. Obviously, you are not going to carry all the money you own in your pocket. If you get robbed or lose it you are totally out of luck. However, thanks to banks, this is not the case if you have a debit or credit card. If either of these cards gets stolen or lost all you have to do is contact the bank and let them know what happened. All banks will immediately deactivate your account so nobody else can access your money. Think about how terrible it would be if all your money was stolen or lost one day. You would be in huge amounts of trouble. Keeping your money in banks will prevent this from ever happening. Plus, if someone does happen to access your bank account and use all your money, banks will compensate you for your losses as long as your report the incident immediately.

Another great reason people put their money into banks is because they can actually make money with interest over time. The more money they have in the bank and the longer it is in there, the more money they will make off of banks in interest. It is usually not going to be a huge amount of money, but it pays to keep your money in a safe place!

There are many different reasons why people use banks. But, the most important one is because banks keep money safe and protected. The last thing you want to be faced with is all of your money getting lost or stolen.

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Popularity: 10%