world of banks

2009-02-02T13:37:00.000-08:00

New research has revealed that one-third of UK savings accounts offer an interest rate of 0.5% or below.

The return is equivalent to 12p a month or £1.41 over a year, on an average savings balance of £2,813. Base rate decreases represent a double edged sword for consumers.

While mortgage borrowers on tracker rates have benefited from recent aggressive cuts in the base rate, savers have been penalised.

No improvement is expected in the early part of this year because the Bank of England is likely to cut the base rate again, in efforts to support the UK’s failing economy.

Attractive savings rates are still available, with 3.6% offered on Alliance & Leicester’s eSaver account and 3.55% available at online bank, ICICI Hisave.

Meanwhile, the recession would appear to have frightened Britons into saving more.

Latest figures from the British Bankers’ Association show a £4 billion rise in savings deposits, in December.

However, inflation currently stands at 3.1% meaning that rates on many savings accounts are insufficient to maintain the value of the cash they contain.

Despite the rush to save, Britons seem to be well aware of this because the Association of British Insurers’ recent Savings and Protection survey found that 73% of respondents agreed the benefits of saving have diminished over the past 12 months.

2009-01-29T14:40:00.000-08:00

Japan's central bank keeps key interest rate unchanged at 0.1 percent

Japan's central bank has kept its key interest rate on hold as widely expected but sharply downgraded its economic outlook amid an ever-deepening recession.

In a unanimous vote Thursday, the Bank of Japan's policy board chose to keep the overnight call rate target at 0.1 percent.

The central bank now predicts that the world's second largest economy will shrink a median 1.8 percent this fiscal year through March and will contract 2 percent next fiscal year.

But with rates already super low, the Bank of Japan has little room to maneuver on the interest rate front, despite renewed concerns this week about the health of the global banking sector

2009-01-25T04:55:00.000-08:00

The World Bank welcomes the agreement reached between Latvia and the International Monetary Fund on a policy package to address economic and financial vulnerabilities in the wake of the global economic crisis.

As part of this €7.5 billion package (US$10.5 billion) supported by the European Union (EU), International Monetary Fund (IMF), and a number of multilateral and bilateral donors, the World Bank is ready to contribute up to €400 million (about $550 million equivalent), subject to agreement on a strong program of reforms in the financial sector and social sectors.

2009-01-17T09:34:00.000-08:00

Citigroup Bailout Critical for Economy to Recover

Many people are wondering why Citigroup should get a bailout, and the Big 3 automakers were told to go packing. After all, both companies made bad strategic decisions - Citigroup in using too much leverage in buying mortgage-backed securities, and the Big 3 in not retooling for more fuel-efficient vehicles. Both have thousands of employees that will be laid off if the companies go bankrupt. Are banks somehow more important to the economy than auto manufacturers?

Perhaps not morally, but financially they are. To get this economy back on its feet, it needs capital more than cars. Banks provide that. However, with last week's 800 point drop in the Dow, banks assets are too low to give them money to lend. That's why the Citigroup bailout included options to buy common stock, which shows government support of common stockholders. This caused the Dow to regain last week's loss in two days. This rally for financial stocks means more capital for banks, and more capital for them to lend.

The U.S. Treasury gave Citigroup a $20 billion cash infusion in return for $27 billion of preferred shares yielding 8% annual return, and warrants to buy no more than 5% of Citi's common shares at $10 per share. More importantly, the Treasury will guarantee $306 billion worth of toxic mortgage-backed securities, helping Citi to get these off of its balance sheet. In return, the bank will absorb the first $29 billion in these losses before the government guarantee kicks in. Citi also received $25 billion last month under TARP.

The next banking crisis on the way

2009-01-14T11:19:00.001-08:00

Is this the quarter when banks finally admit all of their problems?

On Jan. 15, Citigroup announced it would take an $18.1 billion write-down on its portfolio of subprime mortgages and other risky debt, and the bank cut its dividend 41%.

With other banks following suit -- Merrill Lynch reported $16 billion in write-downs and other charges two days later, and Wells Fargo delivered similarly huge losses -- will they throw everything, including the kitchen sink, into their losses? That kind of quarter always marks the bottom in a crisis like this.

Nah. The banks and other financials have more losses from the subprime-mortgage mess on their books that they haven't yet confessed. Worse, the mortgage debacle has spread to other types of debt, with banks and other financial companies reporting mounting losses in their credit card and auto loan portfolios. And worst of all, the next big leg of the crisis -- the one I think will mark the true bottom -- has just started.

As the economy slows, the default rate is rising for corporate debt, especially for the high-risk, high-yield corporate debt called "junk" by many of us. That's opening a Pandora's box of potential write-downs that could dwarf the losses in the mortgage market.

Bank of America

2008-12-20T04:15:00.000-08:00

Before 1993, the Bank of America that exists today was known as NationsBank. In 1998, NationsBank merged with San Francisco-based BankAmerica and assumed the Bank of America name. Bank of America is the largest commercial bank in the United States. Bank of America (July 19, 2006) reported second quarter 2006 net income of $5.48 billion, surpassing that of Citigroup for the first time.

In 2005, Bank of America acquired a 9% stake in China Construction Bank for $3 billion. Bank of America currently has offices in Hong Kong, Shanghai, and Guangzhou and is looking to greatly expand its Chinese business as a result of this deal. Bank of America has also invested in opening new branches in India, particularly Mumbai. Bank of America operated under the name BankBoston in many other Latin American countries, including Brazil. In 2006, Bank of America sold all BankBoston's operations to Brazilian bank Banco Itau, in exchange for Itau shares. The BankBoston name and trademarks were not part of the transaction and, as part of the sale agreement, cannot be used by Bank of America. That, in practical terms, deemed the definite extinction of the BankBoston brand.

Bank of America's Global Corporate and Investment Banking spans the Globe with divisions in United States, Europe and Asia. The U.S. headquarters are located in New York, European headquarters are based in London and Asia's headquarters are split between Singapore & Hong Kong.

Bank of America Announces Third Quarter Earnings and Capital Raising Initiatives

Earns $1.18 Billion, or $0.15 Per Share

CHARLOTTE, N.C., Oct. 6 /PRNewswire-FirstCall/ -- Bank of America Corporation today reported third quarter 2008 net income of $1.18 billion, or $0.15 per share, down from $3.70 billion, or $0.82 per share, a year earlier.

The company also announced two initiatives to raise capital, targeting an 8 percent Tier 1 capital ratio. The company intends to sell common stock with a target of raising $10 billion. In addition, the Board of Directors has declared a quarterly dividend on common stock of $0.32 to be paid on December 26, 2008 to shareholders of record on December 5, 2008. Assuming the current number of issued and outstanding shares, the reduction from $0.64 paid in recent quarters would add more than $1.4 billion to capital each quarter.

"These are the most difficult times for financial institutions that I have experienced in my 39 years in banking," said Kenneth D. Lewis, chairman and chief executive officer. "We believe it is prudent to raise capital to very substantial levels in this uncertain environment. Both economic and financial market conditions have changed significantly in the last two months. We were willing to operate at capital levels over the short-term that were good, but not at our targeted levels, given projections two months ago. We now believe it is important to be at or near our 8 percent Tier 1 capital ratio target given the recessionary conditions and outlook for still weaker economic performance which we expect to drive higher credit losses and depress earnings. We believe that achieving higher capital levels today will position our company to provide credit to those consumers and businesses that are attracted to our strength and stability.

"We know many investors in our stock are quite disappointed with a dividend reduction," Lewis continued. "It is not a decision we made lightly. However, we cannot pay out what we have not earned. Our goal is to resume dividend increases from the new level as soon as our earnings performance warrants.

"All that said, our company continues to be profitable, and we have been able in the last year to make a number of moves that should significantly enhance our earnings when economic and financial market conditions improve. Our diversity and scale give us strength to deal with the current issues that few competitors can match. I have never been more optimistic about the long-term prospects of Bank of America."

Lower earnings in the third quarter compared with a year earlier were driven by a significant increase in provision expense, as credit costs continued to rise, partially offset by advances in various income categories largely as a result of the acquisition of Countrywide Financial Corporation on July 1, 2008 and LaSalle Bank. Countrywide results were not included in prior period results.

Bank of America is clearly benefiting from consumer and business flight to safety, as shown by year-over-year increases in loans and especially deposits. While consumer credit costs continued to increase in line with economic conditions, the company continued to increase the number of customer accounts and make progress in such categories as investment banking.

Third Quarter Selected Business Developments

-- Retail deposits increased $56 billion to $586 billion from June 30 to September 30, 2008, including the addition of $35 billion from Countrywide, extending Bank of America's lead as the largest retail depository institution in the United States. Excluding the impact of Countrywide, Bank of America gained $21 billion in retail deposits during the quarter as consumers moved money to safety. That gain was almost three times the industry average. Service charges increased $84 million from the second quarter, but debit card revenue declined slightly as consumers pulled back on spending.

-- Reflecting deteriorating economic conditions, the consumer credit card business experienced a decrease in purchase volumes, slowing repayments and increased delinquencies during the quarter. Credit card held net charge offs increased to $1.24 billion, representing a net charge off rate of 6.14 percent. Credit card managed net credit losses rose to $3.00 billion, representing a loss rate of 6.40 percent.

-- Investment banking income was up 22 percent from the previous year to $474 million. Revenue in Capital Markets and Advisory Services was adversely impacted by $952 million in CDO-related charges, $327 million in leveraged loan and commercial mortgage related writedowns and $190 million in losses on a commitment to buy back auction-rate securities from clients.

-- Equity investment income results were negatively impacted by writedowns totaling $320 million on the preferred stock of Fannie Mae and Freddie Mac.

-- Global Wealth and Investment Management revenue was affected by $630 million in support for cash funds and $123 million in losses on a commitment to buy back auction-rate securities from clients.

2008-11-10T12:48:00.000-08:00

The financial crisis spreading like wildfire across the former Soviet bloc threatens to set off a second and more dangerous banking crisis in Western Europe, tipping the whole Continent into a fully-fledged economic slump.

Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992.

“This is the biggest currency crisis the world has ever seen,” said Neil Mellor, a strategist at Bank of New York Mellon.

Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The risk is a surge in capital flight from Austria – the country, as it happens, that set off the global banking collapse of May 1931 when Credit-Anstalt went down – and from a string of Club Med countries that rely on foreign funding to cover huge current account deficits.

The latest data from the Bank for International Settlements shows that Western European banks hold almost all the exposure to the emerging market bubble, now busting with spectacular effect.

They account for three-quarters of the total $4.7 trillion £2.96 trillion) in cross-border bank loans to Eastern Europe, Latin America and emerging Asia extended during the global credit boom – a sum that vastly exceeds the scale of both the US sub-prime and Alt-A debacles.

Europe has already had its first foretaste of what this may mean. Iceland’s demise has left them nursing likely losses of $74bn (£47bn). The Germans have lost $22bn.

Stephen Jen, currency chief at Morgan Stanley, says the emerging market crash is a vastly underestimated risk. It threatens to become “the second epicentre of the global financial crisis”, this time unfolding in Europe rather than America.

Austria’s bank exposure to emerging markets is equal to 85pc of GDP – with a heavy concentration in Hungary, Ukraine, and Serbia – all now queuing up (with Belarus) for rescue packages from the International Monetary Fund.

Exposure is 50pc of GDP for Switzerland, 25pc for Sweden, 24pc for the UK, and 23pc for Spain. The US figure is just 4pc. America is the staid old lady in this drama.

Amazingly, Spanish banks alone have lent $316bn to Latin America, almost twice the lending by all US banks combined ($172bn) to what was once the US backyard. Hence the growing doubts about the health of Spain’s financial system – already under stress from its own property crash – as Argentina spirals towards another default, and Brazil’s currency, bonds and stocks all go into freefall.

Broadly speaking, the US and Japan sat out the emerging market credit boom. The lending spree has been a European play – often using dollar balance sheets, adding another ugly twist as global “deleveraging” causes the dollar to rocket. Nowhere has this been more extreme than in the ex-Soviet bloc.

The region has borrowed $1.6 trillion in dollars, euros, and Swiss francs. A few dare-devil homeowners in Hungary and Latvia took out mortgages in Japanese yen. They have just suffered a 40pc rise in their debt since July. Nobody warned them what happens when the Japanese carry trade goes into brutal reverse, as it does when the cycle turns.

The IMF’s experts drafted a report two years ago – Asia 1996 and Eastern Europe 2006 – Déjà vu all over again? – warning that the region exhibited the most dangerous excesses in the world.

Inexplicably, the text was never published, though underground copies circulated. Little was done to cool credit growth, or to halt the fatal reliance on foreign capital. Last week, the silent authors had their moment of vindication as Eastern Europe went haywire.

Hungary stunned the markets by raising rates 3pc to 11.5pc in a last-ditch attempt to defend the forint’s currency peg in the ERM.

It is just blood in the water for hedge funds sharks, eyeing a long line of currency kills. “The economy is not strong enough to take it, so you know it is unsustainable,” said Simon Derrick, currency strategist at the Bank of New York Mellon.

Romania raised its overnight lending to 900pc to stem capital flight, recalling the near-crazed gestures by Scandinavia’s central banks in the final days of the 1992 ERM crisis – political moves that turned the Nordic banking crisis into a disaster.

Russia too is in the eye of the storm, despite its energy wealth – or because of it. The cost of insuring Russian sovereign debt through credit default swaps (CDS) surged to 1,200 basis points last week, higher than Iceland’s debt before Götterdammerung struck Reykjavik.

The markets no longer believe that the spending structure of the Russian state is viable as oil threatens to plunge below $60 a barrel. The foreign debt of the oligarchs ($530bn) has surpassed the country’s foreign reserves. Some $47bn has to be repaid over the next two months.

Traders are paying close attention as contagion moves from the periphery of the eurozone into the core. They are tracking the yield spreads between Italian and German 10-year bonds, the stress barometer of monetary union.

The spreads reached a post-EMU high of 93 last week. Nobody knows where the snapping point is, but anything above 100 would be viewed as a red alarm. The market took careful note on Friday that Portugal’s biggest banks, Millenium, BPI, and Banco Espirito Santo are preparing to take up the state’s emergency credit guarantees.

Hans Redeker, currency chief at BNP Paribas, says there is an imminent danger that East Europe’s currency pegs will be smashed unless the EU authorities wake up to the full gravity of the threat, and that in turn will trigger a dangerous crisis for EMU itself.

“The system is paralysed, and it is starting to look like Black Wednesday in 1992. I’m afraid this is going to have a very deflationary effect on the economy of Western Europe. It is almost guaranteed that euroland money supply is about to implode,” he said.

A grain of comfort for British readers: UK banks have almost no exposure to the ex-Communist bloc, except in Poland – one of the less vulnerable states.

The threat to Britain lies in emerging Asia, where banks have lent $329bn, almost as much as the Americans and Japanese combined. Whether you realise it or not, your pension fund is sunk in Vietnamese bonds and loans to Indian steel magnates.

Lehman Brothers history

2008-10-16T11:05:00.000-07:00

1840–1859

The history of Lehman Brothers parallels the growth of the United States and its energetic drive toward prosperity and international prominence. What would evolve into a global financial entity began as a general store in the American South. Henry Lehman, an immigrant from Germany, opened his small shop in the city of Montgomery, Alabama in 1844. Six years later, he was joined by brothers Emanuel and Mayer, and they named the business Lehman Brothers.

1850

Henry, Emanuel and Mayer Lehman founded the Firm in Montgomery, Alabama.

1930–1939

The 1930s witnessed the explosive growth of radio and experimentation with a developing technology called television. Lehman Brothers underwrote the initial public offering for DuMont, the first television manufacturer, and helped fund the Radio Corporation of America, known as RCA.

Beginning in the 1930s, the increasing demand for oil set off waves of wildcat drilling in search of the resource. Companies like Halliburton and Kerr-McGee relied on Lehman Brothers for capital to fund their activities.

1940–1949

The end of World War II ignited an unprecedented era of prosperity, fueling the growth of consumer industries such as home appliances and auto manufacturing. Lehman Brothers became an important financial advisor and underwriter for many growing companies and established a number of long-term relationships that are still active today.

1949

The Firm establishes its 10 Uncommon Values® Portfolio.

1950–1959

Economic expansion accelerated in the 1950s with the dawn of the Electronics Age, and Lehman Brothers arranged start-up financing for companies such as Litton Industries. The Firm also lent its expertise and advisory skills to Burlington Mills, Schenley Industries and American Export Lines.

This period was also the beginning of the computer era, and Lehman Brothers provided IPO underwriting for industry pioneer Digital Equipment. The Firm later arranged the acquisition of Digital by Compaq.

The travel industry benefited from the sustained economic growth of the period, and Lehman Brothers sponsored the IPO of Hertz Rent-a-Car. The focus on transportation and travel continued into the 1960s, with Lehman Brothers advising Ford Motor Company, TWA, American Airlines and Continental Airlines.

At this time, consumer-driven companies such as General Foods, Campbell Soup and Philip Morris turned to Lehman Brothers to help finance the growth necessary to satisfy burgeoning demand for their products.

1960–1979

By the 1960s and 1970s, many of Lehman Brothers' clients were expanding overseas. To meet their financial needs, the Firm opened an office in Paris in 1960, followed by a location in London in 1972 and Tokyo in 1973. This growing international presence was enhanced by the merger with Kuhn, Loeb.

With continued advances in electronics and information technology in the 1970s, Lehman Brothers worked with leading players such as IBM, Digital Equipment Corporation and Loral.

1975

The Firm acquires Abraham & Co.

1990–1999

American Express divested Shearson in 1993, and the independent Firm once again became known solely as Lehman Brothers.

1994

The Firm becomes independent through a public stock offering and Lehman Brothers Holding Inc. common stock commences trading on the New York & Pacific stock exchanges.

Lehman Brothers opens an office in Tel Aviv, Israel, building upon its long-term presence in that country.

1995

The Firm earns recognition as "Global Bond House of the Year" by International Finance Review.

1998

Lehman Brothers joins the S&P 500 Index and establishes its 10 Uncommon EuroValues portfolio.

1999

Lehman Brothers establishes its first venture capital fund and celebrates the 50th year of its 10 Uncommon Values® portfolio.

Lehman Brothers establishes an alliance with Bank of Tokyo-Mitsubishi for Japanese M&A.

The Firm passes the $1 billion mark in annual net income for the first time.

2000+

Lehman Brothers celebrates its 150th year anniversary.

The Firm joins the S&P 100 Index and its stock price hits $100 for the first time.

Lehman Brothers becomes the first firm to underwrite corporate debt on the Internet.

The Firm launches LehmanLive®, a Web site that offers clients around the globe access to a vast array of services and proprietary information 24 hours a day.

2001

The Firm resumes fixed income trading two days after Sept. 11 and equity trading when U.S. markets open.

Lehman Brothers brings the first IPO, Given Imaging, to market after Sept. 11.

The Firm buys 745 Seventh Ave. for its new global headquarters in Midtown Manhattan and purchases additional space in New York City and New Jersey.

Lehman Brothers becomes a member of the Amsterdam Stock Exchange.

2002

Lehman Brothers moves into its new global headquarters in Midtown Manhattan.

The Firm establishes the Wealth and Asset Management Division*.

Lehman Brothers executes the largest financial services IPO in history for CIT Group, and the largest European leveraged buyout in history for KKR and Wendel Investissement.

The Firm lead-manages the largest-ever U.S. dollar denominated debt issue for GECC.

Lehman Brothers acquires Lincoln Capital Management's fixed income business*.

* In 2005, the Wealth and Asset Management Division was renamed the Investment Management Division and Lincoln Capital Fixed Income Management Company, LLC was renamed Lehman Brothers Asset Management LLC.

2003

Lehman Brothers acquires Neuberger Berman, positioning the Firm as an industry leader in the wealth and asset management business.

The Firm moves to its new European headquarters at 25 Bank Street in Canary Wharf.

Lehman Brothers acquires The Crossroads Group*, expanding the Firm's private equity fund investment management business.

Moody's Investors Service raises the Firm's long-term credit rating to A1 and the LBI broker-dealer credit rating to Aa3, representing the third ratings upgrade in the last four years.

* In 2005, Lehman Crossroads Investment Advisers, LP (d/b/a The Crossroads Group) was renamed Lehman Brothers Private Fund Advisers, LP.

2004

Lehman Brothers moves to its new Asia headquarters in Tokyo's Roppongi Hills.

The Firm advises on two of the top five announced Mergers & Acquisitions transactions worldwide: Cingular Wireless' acquisition of AT&T Wireless Services; and Sprint's acquisition of Nextel Communications.

Lehman Brothers executes the largest capital markets transaction in the history of the U.S. utility industry for Pacific Gas & Electric and the largest IPO globally in 2004 for Belgacom SA.

The Firm posts record financial results, including best-ever net revenue, net income, and earnings per share. The Firm increases its dividend by 33%.

Assets under management at the Firm's Investment Management Division rise to a record $137 billion.

2005

Lehman Brothers achieves record revenues, net income and earnings per share based on record results in each business segment and region.

Standard & Poor's upgrades Lehman Brothers' long-term senior debt rating to A+ from A, citing diversified earnings base and strong risk management.

The Firm's assets under management grow to a record $175 billion.

Named "Best Investment Bank" by Euromoney in its 2005 Awards for Excellence.

Lehman Brothers opens an office in Mumbai, India.

2006

Lehman Brothers achieves record net revenues, net income and earnings per share for the third consecutive year based on record results across all business segments and regions.

Ranks #1 in the Barron's 500 annual survey of corporate performance for the largest companies in the U.S. and Canada.

#1 dealer on the London Stock Exchange by trading volume.

Advises clients on the three largest global M&A deals announced in 2006: AT&T's acquisition of BellSouth; Gaz de France's merger with Suez* (pending); Endesa's defense mandate resulting from E.ON's takeover offer** (withdrawn).

The Lehman Brothers Centre for Women in Business officially launches at the London Business School.

All transactions appear as a matter of record only.
Source: Thomson Financial, 1 Jan 2006 - 31 Dec 2006
* Advisor to the Republic of France, Gaz de France's majority shareholder
** Also acted as advisor to Endesa on a consortium's (Enel and Acciona) subsequent takeover offer in 2007

2007

Lehman Brothers ranks #1 "Most Admired Securities Firm" by Fortune.

Achieves record net revenues, net income and earnings per common share (diluted) for the fourth consecutive year based on record results in all three business segments.

Acts as financial advisor on largest-ever M&A transaction in financial institutions sector: $98 billion acquisition of ABN AMRO by a consortium of the Royal Bank of Scotland, Santander and Fortis.*

#1 dealer on the London Stock Exchange by annual trading volume for the third year in a row.

Creates the Lehman Brothers Center for Global Finance and Economic Development at Spelman College, the #1 ranked institution among historically black colleges and universities by U.S. News & World Report.

Establishes the Council on Climate Change to bring together leaders from industry, policy and academia to facilitate constructive dialogue regarding climate change policy formulation and its impact on business.

2008

One of the biggest investment Banks is on the edge of bankrot.American goverment and all the biggest banks in the world are waiting the result.

Banco Central Do Brazil

2008-10-10T13:00:00.000-07:00

The Banco Central do Brasil (BCB), created by Law no. 4,595 of December 31^st, 1964, is an autonomous federal institution and part of the National Financial System (SFN).

Before the creation of the Central Bank, the Brazilian monetary authorities were the Currency and Credit Superintendence (SUMOC), the Bank of Brazil (BB) and the National Treasury.

The SUMOC, created in 1945 with the objective of exercising the monetary control and preparing the basis for a central bank, had the responsibility of setting forth the: reserve requirements ratio for commercial banks, discount rates (linked to development funds) and financial assistance for liquidity (meaning the discount as a classic instrument of monetary policy), as well as the interest rate on bank demand deposits. At the same time, it supervised the operation of commercial banks; managed the exchange policy and represented the Country at international organizations.

Banco do Brasil carried out the functions of the government bank: controlling foreign trade operations; executing foreign exchange operations on behalf of public sector enterprises and the National Treasury; executed the rules set forth by the SUMOC and the Bank for Agricultural, Industrial and Commercial Credit, as well as receiving reserve requirements and voluntary deposits of commercial banks.

The National Treasury was the currency issuing authority, but the issuing process was a complex one involving several governmental entities.

Although some improvement has been reached, the institutional process was not complete. The Central Bank became the currency issuing bank, but acted according to the needs of the Bank of Brazil. It was also the bank of banks, but was not the sole holder of the financial institutions' deposits because the institutions placed their voluntary reserves in the Bank of Brazil. Besides, the Central Bank was the government's financial agent, in charge of managing the federal public debt, but was not the cashier to the National Treasury, since this was a function of the Banco do Brasil.

In 1985, the decision was made towards a financial reorganization of the government, with a breaking down of the accounts and functions of the Central Bank, the Bank of Brazil and the National Treasury. In the 1986 fiscal budget, not only all the revenues and expenditures of the National Treasury were included, but also all the accounts of fiscal nature that were under the Monetary Budget. In 1986, the "movement provisional account" was extinguished and, from then on, the disbursement of funds from the Central Bank to the Bank of Brazil were clearly identified in the budgets of each institution, eliminating the automatic transfers that hampered the management by the Central Bank.

In a process that continued through 1988, the functions of monetary authority were progressively transferred from the Bank of Brazil to the Central Bank, while the atypical activities carried out by the latter, such as those related to economic incentives and the administration of the federal public debt, were transferred to the National Treasury.

The 1988 Constitution sets down Central Bank's matters, such as the exclusive attribution of the Union to issue money, the need to submit persons appointed by the President of the Republic to be president and director of the Central Bank to prior approval by the Senate, and the prohibition to direct or indirect granting of loans to the National Treasury. The 1988 Constitution also establishes the drawing up of a Complementary Law of the National Financial System, to substitute Law no. 4,595, dealing with varied and important aspects of the structure and activities of the Banco Central do Brasil.

Banco Central de Cuba

2008-09-20T05:45:00.000-07:00

Central Bank of Cuba

Brief History
Established (as Banco National de Cuba ) 1950, reorganised in 1961, 1966, 1975, 1984. Re-established in 1997 as Central Bank of Cuba, a state bank with monetary and foreign exchange authority.

In 1948, Banco Nacional de Cuba is created as a Central Bank of the State, assuming the functions of an issuer entity of the nation until the constitution of Banco Central de Cuba.

Since it was created in 1997, Banco Central de Cuba exert the function of issuer entity on the national currency in the country; and this very year, the issuance of the first series of bank notes in Cuban pesos on behalf of BCC started.

Further on, the rest of the denomination follow, until all the monetary signs with notes issued by Banco Central de Cuba was completed. By this way, most of the bank notes circulating nowadays have been issued by Banco Central de Cuba.

The coins, both from Cuban peso and convertible peso, have been regularly issued according to the needs of circulation within the country.

The first issues by Banco Central de Cuba started as from its constitution in the year 1997, with bank note with face value of 5 and 10 pesos.

Make click on notes that you wants to be enlarged

They were followed by the issue of bank notes with face value of 20 and 50 pesos in 1988.

In the year 2000, on the occasion of the 50th Anniversary of the Central Banking in Cuba, the 100 peso bank note was issued, dedicated to commemorate this occasion.

The printing of this denomination has regularly continued in the following years.

In the year 2001, the preceding issues were accompanied by the one peso bank note.

In the year 2003, Banco Central de Cuba issued two commemorative bank notes:

The first one with face value of 1 peso in the occasion of he 150th Anniversary of the birth of Jose Marti, our national hero, and the second one, with a face value of 20 pesos in remembrance of the 50th Anniversary of the Assault to Moncada Garrison.

With the 3 peso bank note issued in the year 2004, Banco Central de Cuba completed all our set of bank notes issued in its name.

In the year 2002, printing of high denominations using with the Intaglio system was introduced with the denomination of 50 pesos, which confers a higher quality, security and aesthetic, as well as the relief sensation perceptible by the sense of touch.

At present, bank notes of 20, 50 and 100 are printed by means of this technique.

2008-08-17T10:31:00.000-07:00

Europe is slow to follow

The rest of the world recovers apace from 2001’s travails, but Europe’s

bank of sweden

2008-08-11T09:35:00.000-07:00

History

Sveriges Riksbank, or the Riksbank as it is usually called, is the world’s oldest central bank. It was founded in 1668 and was then known as the Bank of the Estates of the Realm, in other words, parliament’s bank. Initially, the Riksbank was more like an ordinary commercial bank than a central bank. It lent money to the general public and did not have a monopoly on issuing banknotes until 1904. Prior to this the banks issued their own banknotes.

The Riksbank began its activities in 1668. Its precursor was the so-called Palmstruch bank, or Stockholm Banco, which was founded in 1656. Although Johan Palmstruch’s bank was private, its governors were chosen by the King and the bank’s activities were regulated in a document whereby the King gave Palmstruch permission to run a bank.

Introduction to the People's Bank of China

2008-06-15T06:26:00.000-07:00

Introduction to the People's Bank of China

The People's Bank of China (PBC) was established on December 1, 1948 based on the consolidation of the Huabei Bank, the Beihai Bank and the Xibei Farmer Bank. In September 1983, the State Council decided to have the PBC function as a central bank. The Law of the People's Republic of China on the People's Bank of China adopted on March 18, 1995 by the 3rd Plenum of the 8th National People's Congress has since legally confirmed the PBC's central bank status.
With the improvement of the socialist market economic system, the PBC, as a central bank, will play an even more important role in China's macroeconomic management. The amended Law of the People's Republic of China on the People's Bank of China, adopted by the 6th meeting of the Standing Committee of the 10th National People's Congress on December 27, 2003, provides that the PBC performs the following major functions:
(1) Drafting and enforcing relevant laws, rules and regulations that are related to fulfilling its functions;
(2) Formulating and implementing monetary policy in accordance with law;
(3) Issuing the Renminbi and administering its circulation;
(4) Regulating financial markets, including the inter-bank lending market, the inter-bank bond market, foreign exchange market and gold market;
(5) Preventing and mitigating systemic financial risks to safeguard financial stability;
(6) Maintaining the Renminbi exchange rate at adaptive and equilibrium level; Holding and managing the state foreign exchange and gold reserves;
(7) Managing the State treasury as fiscal agent;
(8) Making payment and settlement rules in collaboration with relevant departments and ensuring normal operation of the payment and settlement systems;
(9) Providing guidance to anti-money laundering work in the financial sector and monitoring money-laundering related suspicious fund movement;
(10) Developing statistics system for the financial industry and responsible for the consolidation of financial statistics as well as the conduct of economic analysis and forecast
(11) Administering credit reporting industry in China and promoting the building up of credit information system;
(12) Participating in international financial activities at the capacity of the central bank;
(13) Engaging in financial business operations in line with relevant rules;
(14) Performing other functions prescribed by the State Council.

Bank of India

2008-05-11T05:19:00.000-07:00

The Reserve Bank of India was set up on the basis of the recommendations of the Royal Commission on Indian Currency and Finance also known as the Hilton-Young Commission.

The Reserve Bank of India was set up as a Share Holders' Bank. The Share Issue of the Bank offered in March, 1935 was the largest share issue in India at the time. The matter was further compounded by the conditions and restrictions imposed under the Act. These conditions related to qualifications of the shareholders, the geographical distribution and allotment of shares (to avoid concentration of shares and to ensure that those holding the shares were fit and proper. To simplify matters, Share Certificate Forms of the different registers were printed in different colours. Despite the intricate and gigantic nature of the task, it was carried out with great 'accuracy and dispatch'.

A message sent by the Viceroy to the Governor, Osborne Smith when the Reserve Bank of India commenced its operations on 1st April, 1935

Message

OSBORNE SMITH GOVERNOR RESERVE BANK CALCUTTA. FOLLOWING HAS BEEN RECEIVED FROM SECRETARY FOR YOU. BEGINS, AS RESERVE BANK COMMENCES OPERATIONS TODAY I TAKE OPPORTUNITY TO CONVEY YOU AND YOUR COLLEAGUES ON THE BOARD MY MOST GOOD WISHES AND TO EXPRESS MY CONFIDENCE THAT THIS GREAT UNDERTAKING WILL CONTRIBUTE LARGELY TO THE ECONOMIC WELL BEING OF INDIA AND OF ITS PEOPLE. PRIVATE SECRETARY VICEROY

2008-05-06T16:36:00.000-07:00

History and production of money

Different cultures throughout the world have used different means of payment. In the South Seas, seashells were used as money, while Central Americans paid for goods with cocoa beans. Welcome to the diverse world of payment media!

The functions of money - what makes it valuable?

Why do we actually need money?
What characteristics does it have to have in order to fulfil its functions? On this stage, you will learn about the basics of monetary theory and policy.

At an interactive terminal, you can see for yourself how difficult life would be without money - in a goods market in the imaginary country of Nonpekunia.

2008-04-15T14:47:00.000-07:00

The World's Top 50 Banks

Current Rank	Previous Rank	BANK	Assets US$m	+ or - (local curr)	Capital US$m	Balance Sheet
1	(1)	Deutsche Bank AG, Frankfurt am Main, Germany
			*841,801	-	1,576.63	31.12.99
2	(2)	BNP Paribas SA, Paris, France
			*700,236	-	1,803.15	31.12.99
3	(4)	The Bank of Tokyo-Mitsubishi Ltd, Tokyo, Japan
			*700,065	-3.25%	7,663.14	31.03.00
4	(3)	UBS AG, Z�rich, Switzerland
			686,634	+5.59%	2,691.95	31.12.99
5	(5)	Bank of America NA, Charlotte, USA
			*571,732	-	2,833.00	31.12.99
6	(10)	The Sumitomo Bank Ltd, Tokyo, Japan
			*524,229	-2.19%	7,340.20	31.03.00
7	(6)	Bayerische Hypo-und Vereinsbank AG, Munich, Germany
			504,415	-	1,267.92	31.12.99
8	(11)	The Norinchukin Bank, Tokyo, Japan
			485,112	+1.32%	10,968.64	31.03.00
9	(7)	The Dai-Ichi Kangyo Bank Limited, Tokyo, Japan
			480,710	-6.15%	8,373.07	31.03.00

Current Rank	Previous Rank	BANK	Assets US$m	+ or - (local curr)	Capital US$m	Balance Sheet
10	(12)	The Sakura Bank Ltd, Tokyo, Japan
			*472,828	-1.06%	10,166.29	31.03.00
11	(8)	ABN AMRO Holding NV, Amsterdam, Netherlands
			*458,940	-	1,661.82	31.12.99
12	(18)	The Fuji Bank Ltd, Tokyo, Japan
			458,338	+2.39%	10,135.46	31.03.00
13	(9)	Cr�dit Agricole, Paris, France
			*440,525	+12.50%	3,896.43	31.12.99
14	(20)	Industrial & Commercial Bank of China, Beijing, China
			427,546	+9.30%	20,220.67	31.12.99
15	(13)	Soci�t� G�n�rale, Paris La D�fense, France
			*407,478	+6.00%	3,793.73	31.12.99
16	(14)	Dresdner Bank AG, Frankfurt am Main, Germany
			*397,761	-	1,357.12	31.12.99
17	(15)	Barclays Bank PLC, London, UK
			*397,668	+16.17%	2,409.35	31.12.99
18	(16)	The Sanwa Bank, Limited, Tokyo, Japan
			396,308	-9.71%	13,113.46	31.03.99

Current Rank	Previous Rank	BANK	Assets US$m	+ or - (local curr)	Capital US$m	Balance Sheet
19	(17)	Westdeutsche Landesbank Girozentrale, D�sseldorf, Germany
			*394,662	-	1,186.53	31.12.99
20	(19)	Commerzbank AG, Frankfurt am Main, Germany
			*372,898	-	1,338.08	31.12.99
21	(21)	The Industrial Bank of Japan Ltd, Tokyo, Japan
			370,990	-9.60%	6,567.59	31.03.00
22	(22)	ING Bank NV, Amsterdam, Netherlands
			*350,424	-	-	31.12.99
23	(-)	Fortis Bank NV/SA, Brussels, Belgium
			*341,251	-	2,932.14	31.12.99
24	(23)	The Chase Manhattan Bank, New York City, USA
			*332,198	+11.96%	1,211.00	31.12.99
25	(24)	Citibank NA, New York City, USA
			*327,899	+8.97%	751.00	31.12.99
26	(27)	Bank of China, Beijing, China
			316,214	+5.76%	12,621.54	31.12.99
27	(25)	Banca Intesa SpA, Milan, Italy
			*304,664	-	2,798.39	31.12.99

Current Rank	Previous Rank	BANK	Assets US$m	+ or - (local curr)	Capital US$m	Balance Sheet
28	(26)	National Westminster Bank Plc, London, UK
			*299,313	-0.14%	-	31.12.99
29	(35)	The Tokai Bank Limited, Nagoya, Japan
			*297,858	+0.61%	7,050.53	31.03.00
30	(28)	Credit Suisse First Boston, Z�rich, Switzerland
			*293,922	-10.86%	2,373.50	31.12.98
31	(29)	Abbey National plc, London, UK
			*291,288	+11.05%	752.62	31.12.99
32	(31)	Lloyds TSB Bank plc, London, UK
			*283,789	+4.82%	2,238.52	31.12.99
33	(30)	Bayerische Landesbank Girozentrale, Munich, Germany
			*281,877	-	3,346.76	31.12.99
34	(32)	Rabobank Nederland, Utrecht, Netherlands
			*281,866	-	-	31.12.99
35	(-)	The Agricultural Bank of China, Beijing, China
			*274,876	+12.53%	15,944.32	31.12.99
36	(39)	The Asahi Bank Ltd, Tokyo, Japan
			273,999	-0.43%	3,914.06	31.03.00

Current Rank	Previous Rank	BANK	Assets US$m	+ or - (local curr)	Capital US$m	Balance Sheet
37	(-)	China Construction Bank, Beijing, China
			265,845	+14.42%	10,280.69	31.12.99
38	(43)	Halifax plc, Halifax, UK
			261,205	+29.65%	723.61	31.12.99
39	(33)	Landesbank Baden-W�rttemberg, Stuttgart, Germany
			*257,632	-	2,207.14	31.12.99
40	(34)	Banco Santander Central Hispano, Madrid, Spain
			*257,041	-	1,838.21	31.12.99
41	(37)	DG BANK Deutsche Genossenschaftsbank AG, Frankfurt am Main, Germany
			*243,778	-	1,472.39	31.12.99
42	(38)	Banco Bilbao Vizcaya Argentaria, Madrid, Spain
			*238,726	-	-	31.12.99
43	(41)	First Union National Bank, Charlotte, USA
			*229,272	+3.05%	616.00	31.12.99
44	(42)	The Hongkong and Shanghai Banking Corporation Limited, Hong Kong, Hong Kong
			*210,702	+10.58%	2,091.46	31.12.99
45	(55)	The Zenshinren Bank, Tokyo, Japan
			209,996	+12.21%	2,437.46	31.03.00

Current Rank	Previous Rank	BANK	Assets US$m	+ or - (local curr)	Capital US$m	Balance Sheet
46	(44)	International Bank for Reconstruction and Development, Washington, USA
			204,971	+26.57%	11,288.00	30.06.98
47	(46)	Kreditanstalt f�r Wiederaufbau (KFW), Frankfurt am Main, Germany
			197,096	-	512.47	31.12.99
48	(47)	Bankgesellschaft Berlin AG, Berlin, Germany
			*194,233	-	558.79	31.12.99
49	(48)	Royal Bank of Canada, Montr�al, Canada
			*184,003	-1.37%	3,449.59	31.10.99
50	(49)	Caisse des D�p�ts et Consignations, Paris, France
			*177,511	-	-	31.12.99

HSBC

2008-04-06T07:49:00.000-07:00

ABOUT HSBC

2007

2007 was a year of challenges for HSBC.

The weakness in the American property market affected its US subsidiary, HSBC Finance Corporation, and in February the bank issued a trading statement to warn investors about the impact of bad debts. Many other banks follow suit and by the end of the year HSBC is winning plaudits for its early announcement and prudent handling of the situation. In a strategic review of its consumer and mortgage lending businesses, the bank announces the closure of Decision One, its sub-prime mortgage loans wholesale channel.

Elsewhere, HSBC continues to expand its business in key markets and through key products. In April, the bank officially incorporates in China and the chairman announces the intention to 'significantly invest in and develop our business in the country.' By the end of the year HSBC is operating from 53 outlets in the country – up from 39 – and is the first foreign bank to receive permission to open a branch in rural China. September sees the official launch of HSBC Premier – the world's first truly global banking service – which is soon dubbed 'The world's local bank account.'

HSBC continues its long-standing engagement with the environmental agenda when it launches the HSBC Climate Partnership in May. This five-year, US$100m project aims to tackle the causes and impact of climate change. The bank also appoints Nicholas Stern to the post of special advisor on Economic Development and Climate Change. The bank's principles are put into practice to good effect in its new HQ in Mexico which wins Gold awards for its environmental design, construction and operation. This is just one of many awards that HSBC receives throughout the year - others include Asia's top retail bank and the Best International Islamic Bank.

Both looking back, and looking forward, HSBC announces during the year that it has commissioned a new history of the bank to be published in 2015 to coincide with the bank's 150th birthday.

Beacuse of willing only to entroduce with HSBC I will make the history shorter.

1900-1945

In the early years of the twentieth century, HSBC widened the scope of its activities in the East. It became increasingly involved in the issuing of loans to national governments, especially in China, to finance modernisation and internal infrastructure projects such as railway building. The First World War brought disruption and dislocation to many businesses but the 1920s saw a return to prosperity in the East as new industries were developed and trade in commodities such as rubber and tin soared. The bank’s new head office in Hong Kong (1935) and the new buildings at major branches such as Bangkok (1921), Manila (1922) and Shanghai (1923) reflected this confidence. In contrast the political outlook in China grew increasingly uncertain. Throughout the 1930s, in keeping with its long-standing connections with government finance in China, the bank took a leading part in efforts to stabilise the Chinese national currency.

In the Second World War, the majority of the bank’s staff in the East became prisoners of war as the Japanese advanced through Asia. The chief manager, Sir Vandeleur Grayburn and his designated successor died while prisoners in Hong Kong. The bank survived under the guidance of its London Advisory Committee who were empowered to act as a Board of Directors in 1943, and under the leadership of Arthur Morse who became Chairman and Chief Manager of the bank at the same time. With most of the branch network shut down the bank adjusted to wartime conditions whilst always making plans to return to its home.

2008-04-04T04:44:00.000-07:00

About the Bank of England

The Bank of England is the central bank of the United Kingdom. Sometimes known as the 'Old Lady' of Threadneedle Street, the Bank was founded in 1694, nationalised on 1 March 1946, and gained independence in 1997. Standing at the centre of the UK's financial system, the Bank is committed to promoting and maintaining monetary and financial stability as its contribution to a healthy economy.

The Bank's roles and functions have evolved and changed over its three-hundred year history. Since its foundation, it has been the Government's banker and, since the late 18th century, it has been banker to the banking system more generally - the bankers' bank. As well as providing banking services to its customers, the Bank of England manages the UK's foreign exchange and gold reserves.

The Bank has two core purposes - monetary stability and financial stability. The Bank is perhaps most visible to the general public through its banknotes and, more recently, its interest rate decisions. The Bank has had a monopoly on the issue of banknotes in England and Wales since the early 20th century. But it is only since 1997 that the Bank has had statutory responsibility for setting the UK's official interest rate.

Interest rates decisions are taken by the Bank's Monetary Policy Committee. The MPC has to judge what interest rate is necessary to meet a target for overall inflation in the economy. The inflation target is set each year by the Chancellor of the Exchequer. The Bank implements its interest rate decisions through its financial market operations - it sets the interest rate at which the Bank lends to banks and other financial institutions. The Bank has close links with financial markets and institutions. This contact informs a great deal of its work, including its financial stability role and the collation and publication of monetary and banking statistics.

The Bank of England is committed to increasing awareness and understanding of its activities and responsibilities, across both general and specialist audiences alike. It produces a large number of regular and ad hoc publications on key aspects of its work and offers a range of educational materials. The Bank offers technical assistance and advice to other central banks through its Centre for Central Banking Studies, and has a museum at its premises in Threadneedle Street in the City of London, open to members of the public free of charge.

2008-03-30T16:08:00.000-07:00

The European Central Bank

The ECB

The ECB is the central bank for Europe's single currency, the euro. The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area. The euro area comprises the 15 European Union countries that have introduced the euro since 1999.

Banknotes

The euro banknote series comprises seven different values (denominations): €5, €10, €20, €50, €100, €200 and €500. They are legal tender throughout the euro area.

Size: 120 x 62 mm
Colour: Grey
Architectural period:

Classical

Size: 127 x 67 mm
Colour: Red
Architectural period:

Romanesque

Size: 133 x 72 mm
Colour: Blue
Architectural period:

Gothic

Size: 140 x 77 mm
Colour: Orange
Architectural period:

Renaissance

Size: 147 x 82 mm
Colour: Green
Architectural period:

Baroque and rococo

Size: 153 x 82 mm
Colour: Yellow-brown
Architectural period:

The age of iron and glass

Size: 160 x 82 mm
Colour: Purple
Architectural period:

Modern 20th century architecture

On the front, the banknotes show windows and gateways. They symbolise the European spirit of openness and cooperation. The 12 stars of the European Union (EU) represent the dynamism and harmony of contemporary Europe.
The bridges on the back symbolise communication between the people of Europe and between Europe and the rest of the world.

The other design elements are:

the name of the currency - euro - in both the Latin (EURO) and the Greek (EYPΩ) alphabets;
the initials of the European Central Bank in five linguistic variants - BCE, ECB, EZB, EKT and EKP - covering the then 11 EU official languages;
the EU flag.

Bank

2008-03-30T09:54:00.000-07:00

A banker or bank is a financial institution that acts as a payment agent for customers, and borrows and lends money. In some countries such as Germany and Japan banks are the primary owners of industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies.

The first modern bank was founded in Italy at Genoa in 1406, its name was Banko di San Giorgio (Bank of St. George).

Banks act as payment agents by conducting checking or current accounts for customers, paying drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as cheques,telegraphic transfer, EFTPOS, and ATM.

Banks borrow money by accepting funds deposited on current account, accepting term deposits and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making installment loans, and by investing in marketable debt securities and other forms of lending.

Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account.

Banks borrow most funds borrowed from households and non-financial businesses, and lend most funds lent to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to.

Definition

The definition of a bank varies from country to country.

Under English law, a bank is defined as a person who carries on the business of banking, which is specified as:

conducting current accounts for his customers
paying cheques drawn on a him, and
collecting cheques for his customers.

In most English common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negosiable instruments, including cheques, and this Act contains a statutory definition of the term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques do not depend on how the bank is organised or regulated.

The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. When looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purposes of entry regulating and supervising banks rather than regulating the actual business of banking. However, in many cases the statutory definition closely mirrors the common law one. Examples of statutory definitions:

"banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation).

"banking business" means the business of either or both of the following:

receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period;
paying or collecting cheques drawn by or paid in by customers

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has lead legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques.

Wider commercial role

However the commercial role of banks is wider than banking, and includes:

issue of banknotes (promissory notes issued by a banker and payable to bearer on demand)
processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means
issuing bank drafts and bank cheques
accepting money on term deposit
lending money by way of overdraft, installment loan or otherwise
providing documentary and standby letters of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures
safekeeping of documents and other items in safe deposit boxes
currency exchange
sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a 'financial supermarket'.