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Bank credit and global financial banks

 Bank credit has become of high importance in the new world of economics and the world of money and has won global support and facilitation in the transfer and economy operations and the flow and capture of money. Global financial banks have taken importance in their dealings and experience in bank credit.

Bank credit

Its purpose is to: consumer credit, which is the first type known, investment (production), and commercial.

Credit: to be divided accordingly

The acquisition of some consumer durables, such as cars and electrical equipment, is considered: a consumer credit.

The credit used to purchase fixed assets such as land, installations and technical equipment is: Investment (production) credit.

Credit used in the areas of marketing and banking for shopping, merchandising and production disposal is: Trade credit.

For a term of credit: short-term credit. Among its most important characteristics: It includes trade credit for the purpose of financing

Credit is divided accordingly

Ongoing industrial and commercial operations, of a duration not exceeding one year, are used to supplement the unfixed working capital

For productive projects.

Perhaps the most important forms of bank credit:

Deferred Sale Financing Credit, State National Fund Guarantee, Commercial Paper Discount.

The term of medium term credit ranges from one to five years.

An example of medium-term credit: credit used to finance productive enterprise needs and commodity reserves


The term of long-term credit ranges more than five years. An example of long-term credit: credit used for financing

Fixed capitals.

Persons of private law are defined as: natural individuals, legal persons including partners, institutions and private bodies.

Public law persons are defined as: the state, public bodies and institutions.

For the borrower to a personal credit. Among its most important characteristics: the borrower gets it without presenting any guarantees

Divide the credit accordingly

Kind, depends on confidence in dealing and continuity.

One of the characteristics of a credit with a guarantee in kind: a person or a borrower receives it in return for providing fixed in-kind funds.

The difference between personal and real credit is that the creditor (lender): is equal with other creditors, in the collection of his debt from funds

The debtor, if the latter refuses to pay on the specified date.

The Amsterdam Stock Exchange was the first and oldest stock exchange that appeared in the world in 1602.

In 1908 the first official price bulletin appeared on the London Stock Exchange, which was the world's financial capital.

The stock market (stock exchange) consists of: the primary market, the secondary market (the trading market).

From the primary market, it has a specific geographical location, in which securities are traded and transferred

The secondary market is characterized as: more extensive

Its ownership among individuals, companies and institutions.

There are three obstacles that make the task of identifying the money market more accurate: the list of possible definitions for such a market, the importance of circuit mechanisms

Cash for studying such a market, the fluctuations that could be reflected in it.

We mention one of the most important characteristics of the money market: It is a group of monetary institutions that deal with short-term financial assets, which have no sales

A specific geographer.

Where the money market is divided into: a primary market (the market in which short-term financial assets are issued), and a secondary market.

Of the short-term financial assets that are traded in the secondary monetary market: they are commercial paper, treasury bills,

Bills of exchange.

For commercial banks, insurance companies, the Postal Savings Fund and the Central Bank.

The primary money market is an active field

The long-term financial assets that are traded in the financial market are stocks, bonds.

Bonds are: A fixed income financial asset whose holder receives coupons (interest).

The operations executed on the stock exchange are: spot cash operations, forward operations, which are the most important from the point of view


The factors that determine the components of the investment are: liquidity, return, risk of changing interest rates or risk of default.

One of the characteristics of the primary market, which is part of the financial market, the securities market: it concerns the issuance of medium financial assets

For new investments financed from savings. It is considered the mediator between

And long-term, and subscription for the first time. And it is considered a source

Surplus institutions and those with deficits.

Among the characteristics of the secondary market that is part of the financial market: It is concerned with trading long-term financial assets, which is a market

For trading, it is more important than the initial ones by attracting new investors and investing new money.

The pricing takes place in the hall by the following means: shouting, a written interview, an official department or an official employee.

financial banks

Capital movement: Financial operations that take place through loans and financial assets in the public and private sectors. And financial operations
Short and long term, whether local or international.
Specialists have classified the capital markets that carry out operations in the economy into: intermediary markets between banks and credit, markets.
The direct component of lenders and borrowers direct contact, the liquidity markets related to credit institutions under supervision
Central banks.
We mention among the requirements of the stock market: the independence of the central bank and the availability of specialized banks, the availability of a central supervisory body
On the business of the market, the provision of litigation institutions in order to control and liquidate the rights and obligations of individuals and institutions, the formation of an administration
For information and spreading financial and economic awareness, offices specialized in managing financial portfolios provide openness to markets
International financial, the existence of insurance companies against risks, such as the risks of failure of brokers, building digital indicators of the state of the market and providing
Political and economic stability, spreading investment awareness, providing an advanced information environment and qualifying cadres.
Saving and investment: the two poles of development.
Among the benefits of the stock market: It helps to promote economic growth and create job opportunities by providing financing
For projects, they work to reduce the process of monopoly, manipulation and fraud, and help to advance the process of economic development.
In the seventies, the financial market only contributed about 10% of the total fixed capital formation.
Dow Jones Industrial Companies Index: This index is attributed to Charles de, who in the year 1884 AD, includes 30 industrial companies.
A pioneer, called the composite index.
The investment tools in the market are arranged according to investment priorities: secured bonds, then unsecured bonds, and then
Preferred shares, then common stock.
Standard and Poor's Index: It is a composite index of 500.
Financial Times Index: Comprises shares of 30 leading companies.
Nikkei Index (German Stock Exchange Index): It is considered the second most important index in the world after the Dow Jones, and it represents data of 255 companies.
Cac40 index: represents 40 companies and institutions with the largest capital in the French Stock Exchange.
In 1989 the French buy and sell options index was added.
Money supply consists of: paper, legal and written money, ancillary and quasi-money money, receivable assets
Easily and easily convertible into cash.
The task of displaying paper money falls on the shoulders of: The Central Bank with the support of the monetary authorities.
The task of displaying written or written money: lies on the commercial banks.
Among the characteristics of clerical money: it allows payments to be made with a mark or simple writing, in which the check can be used, it can be recognized
It is obtained from the bank's records.
The first commercial bank appeared in Venice, Genoa and Florence in 1157 AD.
Where the work of the banks in their early inception was limited to: trading of precious metals, exchange of currencies issued by various countries, transportation
Funds from one country to another and collecting revenues according to the wishes and interests of clients.
The church is forbidden by the banks in the beginning of its inception.
Dealing with interest was very limited
The primary function of commercial banks is: to mediate between surplus and deficit economic units,
Mediation between lenders and borrowers.
Characteristics of the banking system:
Today he plays the role of a financial intermediary, working on creating money in exchange for credit, acting on trading securities or financial assets through insurance
Financial compensation and deductions.
Among the most important savings that banks achieve for the national economy: providing financial information to savers and analyzing them, reducing costs
Dealing in direct financial assets and private investments, providing and extending credit to those interested in it and providing liquidity.
The investor in his dealings with banks is governed by factors represented: safety, cost reduction, ease of dealing,
Direct investments mean: the bank’s participation in establishing a project, regardless of the shares owned, the bonds it issues
The state and puts it up for subscription in order to finance some projects, the securities issued by the outside administration authorities for financing
Certain projects, treasury bills issued by the state to meet the seasonal deficit in the state’s general budget.
Liquidity at the level of the banking system includes: deposits and short-term reserves, time deposits and fund bills,
Current accounts, housing savings, public treasury bills and provident fund deposits.
On the international level, it includes foreign loans, import facilities, and payment agreements.
The expenses for the commercial bank are management and operating expenses, deposit interest, potential loss due to depreciation of some
Owned assets.
Commercial bank resources are: paid-in capital, reserves and provisions.