Theory of Banking

What is a Financial System ? A financial system can be defined at the global, regional or firm-specific level and is a set of implemented procedures that track financial activities. On a regional scale, the financial system is the system that enables lenders and borrowers to exchange funds. A financial system is the system that covers financial transactions and the exchange of money between investors, lender and borrowers. A financial system can be defined at the global, regional or firm specific level. Financial systems are made of intricate and complex models that portray financial services, institutions and markets that link depositors with investors. Financial systems are not only evident in bank financial institutions. Some institutions have market brokering, investment and risk pooling services. However, these institutions are non-bank financial institutions that are not regulated by a bank regulation firm or agency. The components of a financial system Financial ...

Personal Banking products Saving General savings o    Regular savings o    Capital savings o    HNB Adhishtana - a unique savings account that will allow senders of remittances from Middle East and Gulf Region and receivers in Sri Lanka §   Higher interest rates based on the account balances §   Free Internet banking for the first year §   Free mobile banking for one year §   Free HNB Visa International Debit Card §   Immediate loan facilities of up to 90% of your account balance o    Money market savings accounts    - A Money Market Savings Account can come in handy for an individual, a corporation or an institution, if you make minimum initial deposit of Rs.500,000/-. based on the inter-bank call money market rate o    Capital transaction rupee   account (CTRM) - All existing Non- Resident Rupee Accounts (NRRAs), Non- Resident Blocked Accounts (NRBAs) and Mig...

The banking sector in Sri Lanka, which comprises Licensed Commercial Banks (LCBs) and Licensed Specialized banks (LSBs), dominates the financial system and accounts for the highest share of the total assets in the financial system. Banks play a critical role within the Sri Lankan financial system, as they are engaged in provision of liquidity to the entire economy, while transforming the risk characteristics of assets. Banks also engaged in providing payment services, thereby facilitating all entities to carry out their financial transactions. The banking sector in Sri Lanka is monitored by the Bank Supervision Department of the Central Bank of Sri Lanka under the Banking Act, Monetary Law Act and the Exchange Control Act. Three types of financial institutions are permitted under Banking Act and the Finance Companies Act to operate in Sri Lanka by the Central Bank of Sri Lanka. They are, ·          Licensed Commercial Banks ·  ...

Sri Lanka is a country with a long history and a similarly long and rich economic history. Coins used through different time periods of a country play an important role when studying the history of that country . Sri Lanka’s currency-use can be divided into following periods. Anuradhapura Era Polonnaruwa to Kotte Era Kandy Era Colonial Era Post-Independence Period since Establishment of the Central Bank of Ceylon Anuradhapura Era  The first established kingdom in ancient Sri Lanka. Founded by King Pandukabhaya in 377 BC. Coins used in Anuradhapura Era                  Kahapana                  Swastika coins                  Maneless Lion coins                   Lakshmi Plaques                ...