Introduction to Business Banking

and Finance

BSHM 1B – GROUP 4

Athoz Apepe
Earl Durango
Ivan Lazarito
Jenny Maslog
Jaymar Tejam
Philip Montes
Chesmar Jovero
Mark Lunhayan
Donna Vie Cabusao
Gretylle Kaye Bajade
Jose Marfred Damian
Phemius Joseph Prado
Krezzia Camelle Ortiz
 Introduction to Business Banking and Finance

Presenter: Gretylle Kaye Bajade

Krezzia Camelle Ortiz

What is Business Banking?

Business banking refers to a company's financial dealings with a financial
institution that specializes in providing business loans, credit, savings accounts,
and checking accounts to businesses rather than individuals.

The word bank is derived from the Italian word Banco or from a French
word Banque, which means a bench or money exchange table. Q. The word 'bank'
is derived from the French word 'banque', which means a bench or a money
exchange table.

What is Finance?
Finance is defined as the management of money and includes activities such
as investing, borrowing, lending, budgeting, saving, and forecasting.

3 Categories of Finance

1. Public Finance
 Is the branch of economics that studies the taxing and spending
activities of government.
2. Corporate Finance
 Financial management, also called corporate finance, focuses on
decisions about acquiring assets, raising capital, and running the firm
to maximize its value.
3. Personal Finance
 Personal finance is a term that covers managing your money as well
as saving and investing. It encompasses budgeting, banking,
 insurance, mortgages, investments, and retirement, tax, and estate
planning.

4 Types of Business Banking

Within the banking industry, there are different types of institutions that
serve distinct customers and offer varying services. They may also differ in the
way they generate revenue and make profits. The industry includes;

1. Retail Bank
 Retail banking, also called personal banking or consumer banking,
is financial services geared toward individual customers rather than large
corporations. Retail banks offer products like savings accounts and debit
cards to the general public, and working in retail banking requires high
levels of customer service.

2. Private Bank
 Private banking consists of personalized financial services and products
offered to the high-net-worth individual (HNWI) clients of a retail bank
or other financial institution. Private banking clients often have access to
benefits that aren't available to regular bank customers.

3. Commercial Bank
 Is a financial institution which accepts deposits from the public and
gives loans for the purposes of consumption and investment to make
profit.

4. Investment Bank
 Investment banking is a unique branch of banking that assists people or
organizations in raising capital and offers them financial consulting
services. They serve as a middleman between security issuers and
investors and aid startup companies in going public.
 Origin of Business Banking and Finance

Presenter: Philip Montes

Donna Vie Cabusao

Banking’s Early Beginnings

It all began in ancient civilizations like Mesopotamia and Egypt, where merchants and
temples played a crucial role in managing loans, transactions, and deposits. These
early systems laid the groundwork for the development of modern banking and
finance practices that we rely on today. Origins of banking can be traced back to
ancient Mesopotamia, around 2000 BCE, where the first known form of lending took
place. Temples, often considered the earliest banks, served as repositories for valuable
items and grain, and priests would lend these resources to local farmers and
merchants.

As civilizations progressed, banking systems emerged in ancient Greece and Rome,

where money lenders and financial institutions played a crucial role in facilitating
trade and commerce. Over time, these practices evolved and spread to different parts
of the world, contributing to the development of modern banking and finance
systems.

The concept of banking further evolved with the establishment of moneylenders and
private depositories. Around 600 BCE, the Greek city-state of Athens introduced the
first standardized coinage system, which facilitated trade and contributed to the
growth of banking activities. The Romans, too, played a significant role in the
development of banking. They established a network of banks throughout their empire
and introduced financial innovations such as bills of exchange, which allowed for the
transfer of funds between different locations.

The birth of modern banking is often attributed to the founding of the Bank of
Amsterdam in 1609. It functioned as a central bank, stabilizing the value of the local
currency and serving as a model for other central banks, such as the Bank of England
(1694) and the Sveriges Riksbank (1668). These practices have evolved and
transformed over centuries, influenced by various civilizations and cultures.
From ancient Mesopotamia and Egypt to Greece and Rome, these early systems laid
the foundation for the modern banking and finance systems we have today.
 A Timeline of the History of in Business Banking and Finance

Presenter: Ivan Lazarito

Jaymar Tejam

The origin of finance can be traced to the start of civilization. The earliest
historical evidence of finance is dated to around 3000 BC. Banking originated in
the Babylonian empire, where temples and palaces were used as safe places for the
storage of valuables. Initially, the only valuable that could be deposited was grain,
but cattle and precious materials were eventually included. During the same period,
the Sumerian city of Uruk in Mesopotamia supported trade by lending as well as
the use of interest. In Sumerian, "interest" was mas, which translates to "calf". In
Greece and Egypt, the words used for interest, tokos and ms respectively, meant
"to give birth". In these cultures, interest indicated a valuable increase, and seemed
to consider it from the lender's point of view. The Code of Hammurabi (1792–1750
BC) included laws governing banking operations. The Babylonians were
accustomed to charging interest at the rate of 20 percent per annum.
Jews were not allowed to take interest from other Jews, but they were allowed to
take interest from Gentiles, who had at that time no law forbidding them from
practicing usury. As Gentiles took interest from Jews, the Torah considered it
equitable that Jews should take interest from Gentiles. In Hebrew, interest is
neshek.
By 1200 BC, cowrie shells were used as a form of money in China. By 640 BC,
the Lydians had started to use coin money. Lydia was the first place where
permanent retail shops opened. (Herodotus mentions the use of crude coins in
Lydia in an earlier date, around 687 BC.)
The use of coins as a means of representing money began in the years between 600
and 570 BCE. Cities under the Greek empire, such as Aegina (595 BCE), Athens
(575 BCE), and Corinth (570 BCE), started to mint their own coins. In the Roman
Republic, interest was outlawed altogether by the Lex Genucia reforms. Under
Julius Caesar, a ceiling on interest rates of 12% was set, and later under Justinian it
was lowered even further to between 4% and 8%.
It is said Belgium is the place where the first exchange happened back in
approximately 1531.[54] Since, popular exchanges such as the London Stock
Exchange (founded in 1773) and the New York Stock Exchange (founded in 1793)
were created.
 A Timeline of the History of Evolution in Business Banking and Finance

Presenter: Jenny Maslog

Jose Marfred Damian

Business Banking

The Early Years:

The first banks were established in ancient times, when people began to store their
money in safe places.

Middle Ages:
During the Middle Ages, banking activities expanded with the rise of trade and
commerce.

Emergence of Modern Banking (15th - 18th Century):

The Renaissance period witnessed the emergence of modern banking practices.

Industrial Revolution and Banking Expansion (18th - 19th Century):

The Industrial Revolution brought significant advancements in technology,
transportation, and manufacturing.

Branch Banking and Spread of Networks (19th - 20th Century):

In the 19th century, banks began establishing branch networks, allowing them to
serve customers across different geographical locations.

Electronic Banking and Computerization (Late 20th Century):

The late 20th century saw the advent of electronic banking and computerization.
 Finance

It encompasses a wide range of activities that drive economic growth, create jobs, and
provide products that fulfill society’s needs and desires.

The Traditional Phase (1920 - 1940)

Initially finance was a part of economic activities and business owners were more
concerned with the operational activities.
Characteristics of this phase were:
 Arranging, formation, issuance of funds
 Business expansion, merger, reorganization, and liquidation during the life
cycle of the firm
 The instruments of financing, the institutions and procedures used in capital
markets, and the legal aspects of financial events.

Transitional Phase (1940 – 1950)

Here though the nature of financial management was similar to traditional phase but
greater emphasis was placed on day-to-day activities.
 Nature of financial management was like same as Traditional phase.
 But more emphasis was put on financial problems faced by managers in
day-to-day operations hence leading to increased focus on working capital
management.

The Modern Phase (After 1950) Started since mid-1950’s.

Rapid growth of business and competition increases the importance of finance not only
for episodic events but also for day-to-day activities.

Major characteristics of modern phase are:

 The scope of financial management got broadened.
 A well-managed Finance department came into existence.
 Role of Financial manager got defined, which include acquisition of funds
required in the business at the least possible cost, investing the funds obtained in
an optimum manner so as to maximize returns and taking decisions relating to
distribution of profits i.e. deciding the dividend policy and retention of profits
How Marketing and Finance gives Birth

Presenter: Earl Durango

Chesmar Jovero
Phemius Joseph Prado

I. Ancient Beginnings (Pre-2000 BCE): Barter systems dominated early

trade. First recorded use of standardized currency in Mesopotamia (3000
BCE).
II. Rise of Coinage (600 BCE - 300 CE): Coins introduced in Lydia, Asia
Minor (600 BCE). Greek and Roman civilizations adopted coinage for
trade.
III. Medieval Banking (1200 - 1500 CE): Italian Renaissance saw the
emergence of early banking practices. Medici Bank pioneers double-
entry bookkeeping (1494).
IV. Bank of Amsterdam (1609): Established as a city bank and currency
exchange. The first known institution to allow account holders to write
checks.
V. Bank of England (1694): Formed to raise funds for the English
government. Introduction of government-backed banknotes.
VI. Industrial Revolution (18th - 19th centuries): Banks crucial in financing
industrial growth. Development of joint-stock companies and stock
exchanges.
VII. Central Banking (19th century): Formation of central banks worldwide,
including the Federal Reserve in the U.S. (1913). Standardization of
monetary policies.
VIII. Post-World War II Global Financial Order (1944): Bretton Woods
Agreement establishes a new international monetary system. Creation of
the International Monetary Fund (IMF) and the World Bank.
IX. Technological Revolution (Late 20th century): Advent of electronic
banking and computerized financial systems. Rise of financial derivatives
and complex instruments.
X. Digital Era (21st century): Introduction of cryptocurrencies with the
launch of Bitcoin (2009). Expansion of online banking, mobile payments,
and fintech innovations.
 Importance and Roles in the Business

Presenter: Athoz Apepe

Mark Lunhayan

A business manager is responsible for overseeing the day-to-day operations of a company

and ensuring its success. Some of the key roles and responsibilities of a business manager
include:

10 Roles in the Business

1. Strategic Planning
2. Financial Management
3. Human Resources Management
4. Operations Management
5. Marketing and Sales
6. Risk Management
7. Customer Relationship Management
8. Communication and Leadership
9. Business Development
10. Performance Monitoring and Reporting

In today’s fast-paced world, the importance of business in society cannot be overstated.

Businesses play a vital role in shaping society and the lives of individuals. It
encompasses a wide range of activities that drive economic growth, create jobs, and
provide products that fulfill society’s needs and desires.

10 Importance of Business in Society

1. Business: A Catalyst for Economic Growth
2. Job Creation and Employment Opportunities
3. Innovation and Technological Advancement
4. Meeting Society’s Needs: Goods and Services
5. Community Development and Social Impact
6. Entrepreneurship and Empowerment
7. Global Connectivity and Interdependence
8. Business Ethics and Social Responsibility
9. Challenges and Opportunities in Business
10. The Future of Business: Sustainability and Adaption