Chi An Introduction to Banking IFRS 9 Soil Elgil Types of Banks: 1) Savings banks Sg] Jou 2) Commercial banks ae gil 3) Specialized banks Qaaxio Ji 4) Central bank (Clearing house) S5S pol chil elgiall 5 obLucel Elgil Types of bank accounts Bank Accounts are classified into four different types. They are: 1) Current (Checking)(Demand) Account (Syl) Old GLa 2) Savings Account dol Clu 3) Recurring Deposit Account dodo slp 4) Fixed Deposit Account cul ale olpw Types of Bank deposit customers: sMoall obLu> Elgil 1. Individuals aly 54) Glas 2. Joint Families (usdile) Spine Glue 3. Partnership Firms poleuil lS Glue 4. Limited Liability Companies and corporations Ulgol lS ps GLa 5. Clubs and Associations Sola Gla> 6. Public and mutual institutions dolall lsu Glue 7. Trusts glosiwYl golioAccounting for Bank's Activitie: As financial intermediary, bank receives deposits as source of money and creates different types of deposits with different terms and different rates of interests to attract more customers and more deposits. bog situs gilogll yo Aalixe Lélgil glee UlyolU) Bilogll cid gals « Whe Lays @ -Bilsgll Go Ajally coal! go wjall Vic Aalixe 6518 CVizoy Aalizo Money received from customers resulting in the following: — «Meal 0 Ugo! pllin! sic (Sources) a- cash inflow increasing cash as an asset, b- a liability to customers, c an obligation to incur an interest for the benefit of the depositors. cncsgall gla) oad Jara lV Investing received money by banks takes different forms of investments: la ,oiiuw pi (Uses ) ‘The major forms of investments include: a- loans and advances provided to customers and other banks, 2325 paiy b- investments in treasury bills, ails> 0951 59 yoda ivestment in governmental and corporate bonds, and lata 68 layotiuw investments in equity financial instruments. pew 98 Oylotin! Investing money in these forms resulting: Gc ay Joti wl Lia a- switching from an asset (cash) to another asset (loans and advances, treasury bills, etc. b- earning a return that depends on the type of investment and the terms of financial instrument.Balance Sheet Accounts Asset Accounts: 1) Cash on Hand: (a) Local Currency - in Egyptian currency. (b) Foreign Currency -in foreign currency. 2) Checks and Other Cash Items (COCI): This account may consist of the following: + Checks drawn on the bank = Checks drawn on other banks + Egyptian Postal Money Orders 3) Due from Central Bank of Egypt (CBE): SS yo) did) SU WW olelul This refers to the balance of the deposit account maintained with the CBE. (a) Local Currency - This refers to the amount due from CBE denominated in Egyptian currency to meet reserve requirements and to serve as clearing account for interbank claims. (b) Foreign Currency - This refers to the amount due from CBE denominated in foreign currency. 4) Due from Other Banks: 1351 dou sd J olela! 5) Financial Assets (Investment) measured at Fair Value through Profit or Loss (P&L) 6) Financial Assets (Investment) measured at Fair value through other comprehen: income (OCI) 7) Financial Assets (Investment) measured at amortized costLiability Account: 1) Due to Customers Ld] 99 Mosel! olelul (a) Demand (Current) (Checking) Deposit (b) Savings Deposit (©) Time deposit (d) Certificate of Deposit (e) Long Term Negotiable Certificates of Deposit 2) Due to Central Bank chil 99 55S po)! cid! olelyl 3) Due to Other Banks Ail 58 S31 Jou olelul 4) Bills Payable S51 Ug)>