Agenda:

1. The Banking Environment

• Are all banks created equal?
• Team Exercise: What are your requirements from a bank if you are an Individual? Company? Broker/Dealer? Other Financial Institution?
• The main duties of a bank
• Types of bank account
• Types of account holder
• Class exercise: Examples of when and who might use these different accounts
• Role of the Central Bank

2. Important concepts

• Cash versus accrual
• Float
• Value dating
• Finality
• Time value of money
• Interest/discount
• Cost of capital
• Economic value added

Banker’s Jeopardy: Give the name for the following banking definitions

3. Collection and Payment Instruments

• Paper based
  - Cash
  - Giros
  - Bank drafts
  - Bills of exchange
  - Promissory notes
  - Checks
• Team exercise: Name those parts!
• Check float
• Class exercise: Which countries use them and why?
  - Issues with paper

• Electronic
  - Urgent wires
  - Standard EFT
  - EDI
  - Issues with electronic transfers

• Plastic and other
   - Credit cards
   - Charge cards
   - Debit cards
   - Smart cards
   - Procurement cards

• Team exercise: Map the values by payment type

4. Bank Charges and Statements

• Why is the bank in business?
• Sources of revenue
• Account analyses
• Types of charges

5. Settlement and Clearing

• Net settlement versus RTGS
• International clearing and settlement systems
• Correspondent banks
• Nostros and vostros

Quiz

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