Concept of Banks and Banking Systems

 
Financial institution
A financial institution is an institution that provides financial services for its clients or members. Financial institutions provide service as intermediaries of financial markets. They are responsible for transferring funds from investors to companies in need of those funds. Financial institutions facilitate the flow of money through the economy. To do so, savings are brought to provide funds for loans.

What is Liquidity management?

Liquidity:
Liquidity means the availability of fund in the amount and at the time needed at a reasonable cost.
In other words, the ability of the bank to maintain the necessary cash amount for fulfilling the promise and the ability to satisfy the clients’ withdrawal request whenever they demand.

How to manage core risk in Bank?


Core Risks in Banks

Main risks involve in Banks:

Credit Risk:  The danger of default by a borrower to whom a bank has extended it credit.
Liquidity Risk: The danger of having insufficient cash to meet bank’s obligations when due.
Market Risks: The danger of changing market values of bank’s assets, liabilities, and equity that may bring about loss.

What is AAOIFI?

AAOIFI:
AAOIFI- stands for Accounting and Auditing Organisation for Islamic Financial Institutions is an independent international industry producing standards applicable for Islamic financial institutions. This is a Bahrain-based organization.
So far following standards have been developed by AAOIFI.
Standards producing by AAOIFI:

What is Islami Bank mCash?

What is Islami Bank mCash?
Islami Bank mCash is the Mobile Financial Services of Islami Bank Bangladesh Limited where customers of all mobile companies can take 24 hour mobile banking services from anywhere of the country.

Advantages of Islami Bank mCash: