Savings Institutions

I INTRODUCTION Savings Institutions, banks or organizations originally established to encourage personal savings through the deposit by individuals of money that accrued earnings in the form of interest. Major savings institutions are building societies, savings and loan associations (SLAs), and savings banks. II BUILDING SOCIETIES Unique to the United Kingdom, building societies were originally established […]

Banking

I INTRODUCTION Banking, transactions carried on by any individual or firm engaged in providing financial services to consumers, businesses, or government enterprises. In the broadest sense, banking consists of safeguarding and transfer of funds, leading or facilitating loans, guaranteeing creditworthiness, and exchange of money. These services are provided by such institutions as commercial banks, savings […]

Accounting and Bookkeeping

I INTRODUCTION Accounting and Bookkeeping, the process of identifying, measuring, recording, and communicating economic information about an organization or other entity, in order to permit informed judgements by users of the information. Bookkeeping encompasses the record-keeping aspect of accounting and therefore provides much of the data to which accounting principles are applied in the preparation […]

Capital

I INTRODUCTION Capital, the collective term for a body of goods and monies from which future income can be derived. Generally, consumer goods and monies spent for present needs and personal enjoyment are not included in the definition or economic theory of capital. Thus, a business regards its land, buildings, equipment, inventory, and raw materials, […]

Interest

Interest, payment made for the use of another person’s money; in economics, it is regarded more specifically as a payment made for capital. Economists also consider interest as the reward for thrift; that is, payment offered to people to encourage them to save and to make their savings available to others. Interest paid only on […]

Loan

Loan, in finance, the lending of a sum of money. In common usage, the lending of any piece of property. A loan may be secured by a charge on the borrower’s property (as a house purchase mortgage is) or be unsecured. There will also be a number of conditions attached to the loan: for example […]

International Bank for Reconstruction and Development

I INTRODUCTION International Bank for Reconstruction and Development, also known as the World Bank, specialized United Nations agency established at the Bretton Woods Conference in 1944. A related institution, the International Monetary Fund (IMF), was created at the same time. The chief objectives of the bank, as stated in the articles of agreement, are “to […]

Reconstruction Finance Corporation

Reconstruction Finance Corporation (RFC), the independent agency of the United States government, created during the economic depression by the congressional enactment in 1932, and abolished by Congress in June 1957. The stated purpose of the RFC was “to provide emergency financing facilities for financial institutions; to aid in financing agriculture, commerce, and industry; to purchase […]

Stock Exchange

Stock Exchange, also known as bourse, organization that facilitates the trade in company shares or other types of securities, such as bonds, unit trusts, and derivative products. Today, they fulfil several objectives: allowing a company to raise capital by floating its stock (often known as an “initial public offering”, or IPO); giving investors a way […]

Charities and Fund-Raising

I INTRODUCTION Charities and Fund-Raising, organizations established for exclusively charitable purposes and governed by charity law; fund-raising is a major means by which charities finance themselves. Charities are subject to the jurisdiction of the High Court in England and Wales. A recognized charity usually benefits from both tax advantages and the goodwill of the public. […]