ENGLISH FOR BUSINESS AND BANKING

MEMBERS OF GROUP 6:

- THERESIA MELITA DUA JONA

- VIRGO KRISTA SIRIK
- WINDY YOHANA LASSA
- YERMIAS ODI HORE
- YOHANA SERVA HONEY INDEPENDENCE MANEK
- YULIANA ELISABETH BEREK
- YUMINA LELANG

ENGLISH STUDY PROGRAM

TEACHERS TRAINNING AND EDUCATION FACULTY
NUSA CENDANA UNIVERSITY
KUPANG
2021
 1. Main categories of financial institutions.

There are four main categories of financial Institusions: Central Bank, Retail Bank,
Comersial Banks, and Investment Bank.

- Central banks: are those oversee and manage all the banks in their respective country,
also set the monetary policy for the country and are usually referred to as the bank of
and insert the country name here. For example the Bank of England, the Bank of
Canada, etc. in United State Central Banks is called Federal Reserve.
- Retail Banks: provides product and services to individual consumers. The products
and services are offered at retail banks include payment and deposit products like
checking and savings accounts through the related products like consumer loans,
personal lines of credit, mortgage loans for home buyers and personal credit cards.
- Commercial Banks: work to serve their financial business.
- Investment Bank: operate in the capital markets to help clients raise the capital
through underwriting and issuance of securities. It is quite different with retail bank
and commercial banks. To start, they’re not deposit taking but rather they operate in
the capital markets. Their clients tend to be large corporations and institutional
investors.
2. Financial institutions are Organized
1. Universal Banks: A universal bank typically contains every type contains of
banking service that could be offered to any potential client from a regular consume
though to an institutional investor as you can see a universal full service bank that
retail banking commercial banking and investment banking services all though the
same institution. Good examples of universal bank include city group based in the
U.S HSBC group based in the UK and universal bank based in Europe, the largest
universal bank in the would is I.C.B.C bank of china with over 4 trillion US dollars
in assets.

2. Large Bank or Big Bank. Similar to Universal Bank. A large bank or big bank is
similar to universal bank but typically doesn't offer instrument banking services.
Instead where those banking services are offered, it's usually through a separately
incorporated entity. Large bank focus on the retail banking and commercial
banking services and tend to have an international reach with their roots and main
operations remaining their home market. For example, wells fargo and bank of
 America in the US, Lioyds bank in the UK and Banco Santander in the Europe. The
largest of these banks tend to have over a trillion U.S Dollars of assets on their
balance sheet.
3. Investment Bank: Investment banks fit under universal banks and they also can fit
under other categories, such as large banks as well. However they are unique
enough that they do deserve special mention in a category in their own. An
investment bank is one that focused on access to capital markets and helping their
client grow and raise capital for growth and investments in different ways.
Investment banks tend to be international in nature and are usually based in a major
financial center. such as London, New York, or Zurich. Example of investment
banks include : golden Sachs in New York, Barclays in London, and credit Suisse
in Zurich.
4. Community Banks tend to focus more on individual consumers and owner
operated small companies. Community bank are most common in U.S.

5. Online or Digital Bank. Similar to Retail Bank that offer similar products and
services as a conventional retail bank but through online platforms instead of
physical branch locations. This is typically for business checking and saving
accounts which is many internet bank entrants into the space using app-based
platforms to offer their products and services. The example of online bank are
include Digibank, Hello Bank in Europe, and Ally Bank in the United States.
Mashreq Neo is one of the most diversified digital banks that offers credit
cards, debit cards, current account, personal loans, remittances, global stock
trading gold and the Neo chat bot which is integrated with Facebook and
Messenger.
6. Credit Unions. It is similar to Community Banks, however where a community
bank is open to anyone being a customer. But Credit Unions serve a specific
demographic and are member owned clients are members who hold shares of
the credit union. The guidelines on who can be a member might be: the
member needs to live in a specific geographic area, the member must be part
of a specific segment of society such as teachers or military.
7. Building Societies are financial institutions that operate much like credit
unions but are found in the United Kingdom and Australia. They are owned by
members and primarily known as offering home mortgages although the do
 also offer other retail banking products and services. Currently the largest
building society is nationwide building society based in the UK
8. Savings and Loans Associations. Referred to as mutual savings banks are very
similar building societies except these associations are primarily found in United
States. They are typically mutually held where customers are members with voting
rights. The different to the other types of financial institutions is that it is possible
for savings and loans associations to be a joint stock company, this type of company
means that there is a membership component where the shareholders split profits
and liabilities and also they can be publicly traded where the shares can be bought
and sold on an exchange with no traditional membership rights by law thrifts which
are savings and loan associations can have no more than 20 % of their landing in
commercial loans as they are meant to be in the retail space and primarily to provide
mortages to homeowners.