Seminary paper

TOPIC: Banks products

Mentor

Student

Ljiljana Crnogorac

Jelena Dobrivojevic
67/10
In Belgrade may 2013
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Content
Introduction...............................................................................................................................................3
1. Retail banking..............................................................................................................................3
2. Company......................................................................................................................................4
3. Local gouverments.......................................................................................................................5
Conclusion...............................................................................................................................................5
Literature.................................................................................................................................................5

Introduction
Financial markets are places where meets parties with excess money and those who money needed.
First group invest their extra money in banks or other institutions and gains interest . That is rent.
Other parts paid interest an principal debts every monts for borrowed monney.
Financial markets are parts of financial system . This involves a many off financial institution and
instruments.
Ones of most important are commercial banks. In our country are banks with foreign capital and
domestic capital.
More populars are banks with domestic capital.
Every banks have similar products. Common to all banks is division of operation of banks to sectors :
1. Retail banking
2. Company
3. Local gouverments
1. Retail banking
Retail Banking is for ci zens, consumers. Service include savings and current
account, mortgages, personal loans, debit cards, and credit cards.
Current account intended for all ci zens, regardless of whether they have a regular income (salary or
pension) or not. It is used with check book, client also can arrange standing in order, or direct bebt
or credit card.
Loans are way to found money for short me. If somebody needs loans for banks, loans shoud be in
currency which gets your salary. When we take a loan we must take care of the interest and
installments that will not exceed 30% are moth income.
Loans for ci zens can be:
1.
2.
3.
4.

Cash loans
Consumer loans
Renancing loans
Mortgage loans

Cash
Cash loans are good way to nancing some shor me liquity, but interest rate are too high, in EUR it
15-25%, in RSD is 20 -35%. Some banks require a deposit. There is o en a age limita on (client must
be 20 years old or be 68 years old inmoment of last installment).
Consumer loans
Consumer loans be intented for purchasing furniture, computer equipment, white goods,
constrac on materials, tehnical equipments, cars or payment services (tourism, educa on, dental,
medical).
Renancing loans
With renancing loans people can renance their obliga on on credit cards, current account and
loans with other banks. Also there is age limita on. It is be er to get loans in banks where employer
paid you salary.
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Mortage loans
When somebody wants to buy a house or do adapta on an reconstac on of residenatl property and
do not have enough money, he take mortage. Period of repayment is to 30 years most. It is posible to
have grace period, when you paid interest rate, but not principal debt. Also there is loans for
renacing a mortgage taken in other banks.
Banks can provide service saving deposite.
Saving deposite can be:
1. Foreign currency savings in ourcontry most popular are Savings in EUR, CHD, USD,but it is
posible to savings in other currency.
2. Saving for children's educa on is good way to invest in future of children, to get educa on.
Services of ren ng of safe-boxes is way to safe precious and valuable things. The procedure of ren ng
of safe-boxes is very simple all somebody should does is turn to the bank with the request to rent a
safe-box and state the desired size of the safe-box and the ren ng period and all the documenta on
they need is iden ty card
Payment card is a card that can be used by a cardholder and accepted by a merchant to make a
payment for a purchase or in payment of some other obliga on..There is two type of card Credit card
Debit card.
2. Company (small, medium and corporate)
Each ac ve company at some point have a shortage or surplus of money laundering. If company do
not have enough money, banks give her a loans.
Loans depends of income, number of employees, value of assets, nancial posi on of company. If
company had loss last tree years, then never gets credit. There are short-terms and long-terms
credits.
Company can gets credit from banks short-terms and long-terms credits. They can be:
1. Cash loans
2. Loans for investments
3. Subvension credit from gouverments
Cash loans are way to overcome the current lack of liquidity, to buy a materials , to pay du es,
obliga ons. Most o en they are short- me.
Loans for investments are long- me arrangement. If company wants to expend capaci es, or
purchase motor vehicle or do renova on of business place, or renancing own investments.
Subvension of state depends on industries in which the company operates and whether the
government wants to encourage the industry and region.
Company also can gets from banks or Le er of Credit (L/C), are the safest way of payment, which
protects maximally the importer/buyer as well as the exporter/seller.
1. open creden als on the base of given covering or with postponed giving of covering
2. payment under condi on
3. security ( banks guarantee to the exporter/seller that having fullled L/C condi ons he will
gain money in value of documents a er the delivered goods or performed service).
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4. credi ng (bank is credi ng importer/buyer up to the contracted date for payment).

Bank deals which refer to the recep on of documents entrusted for payment, intermedia on
regarding collec ng of money, as well as sending documents for payment.
Those are usually commercial, but also nancial documents.
Also bank can provide guarantees
Guarantee is an instrument of security of payment or performing of the contractual obliga ons, by
which the bank guarantees that the applicant of the guarantee will fulll all the obliga ons
men oned in the guarantee toward the user of guarantee in the contracted term.
1. Payable guarantees
guarantees for payment
guarantees for security of credits
2. Commitment guarantees
guarantee for return of advance payment
guarantee for good performance
guarantee for auc on
3. Local gouverments
They are always debtors. They take a credits for:
1. Short-term loans for nancing liquidity of current budget decits
2. Investment loans for nancing public sector projects
Also there are deposit opera ons : on site deposits, overnight deposits, term-deposits with the length
of term up to one year.
4 Conclusion
Banks are a good fellow but a bad master and should be wise in dealing with them. Through its
products, we become dependent on them. Over me, in some way begin to own us and our freedom
is increasingly limited.
If you want to interact with them should be aware that they are with their knowledge and experience
ialways a few steps ahead of us, and that we rarely and dicult to outsmart them. We need to be
careful at every step, otherwise it will not beat us.
literature
h p://en.wikipedia.org/wiki/Retail_banking
h p://en.wikipedia.org/wiki/Transac onal_account
h p://bs.scribd.com/doc/66541624/Sistem-Za-Podrsku-Razvoja-Malih-i-Srednjih-Biznisa
h p://www.ubs-asb.com/Default.aspx?tabid=9641
h p://www.nbs.rs/internet/cirilica/index.html
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h p://www.bancaintesa.rs/code/navigate.aspx?Id=770
h ps://rol.raieisenbank.rs/