CH 2 This chapter includes: The Function of banks and services. Banks targets. Organizational forms for banks. Administrative and organizational structure for the bank. Accounting system in banks. Accounting system in banks Properties. Sources of funding for the bank. Banks several functions, including: Opening of current accounts and accepting deposits. Giving all kinds of the credit facilities (loans). The collection of commercial paper and deducted and save these papers. Buying and selling securities for the bank's portfolio for the benefit of its customers. Providing credit facilities indirect as opening a letter of credit and provide letters of bank guarantee and the financing of foreign trade operations. Dealing in foreign currencies, buying and selling, buying and selling traveler's checks and internal and external transfers. To carry out the first issue of the shares and bonds of joint stock companies. The secure funds for its customers to save documents and jewelry. Profitability goal Safety goal liquidity Notes there is a conflict between achieving the stated objectives, which is a problem of bank management, for example, can the bank to achieve a high degree of liquidity, its retention of large by cash in its treaseries, which means a lower goal of profitability, and at the same time, the bank could direct funds towards the high investment risk for the purpose of increasing profitability, but so be had offered money to a high risk, which may result in many capital losses, which leads to the second goal the destruction of a safety investigation to the depositors' money, and to achieve a balance and there was no conflict between these goals, we find that the first objective serves the shareholders, while the second goal and third it serves depositors, which need the legislative intervention to resolve this matter through what is issued by the monetary authority of the regulations and instructions in this regard. Banks take the following organizational forms: Branch Banks Single Unit Banks E-banking Automated Teller Machines Home Banks Point of Sale Terminals The objective of the organization in any institute is to rearrange the available resources to raise the productive efficiency of the institution, and to achieve this goal is to choose an appropriate administrative and organizational structure, which can perform tasks and instructions by the presence of several departments and so that each of them be a description of their work and their responsibilities and powers, and for it is to look at the quality of services and activities undertaken by the Bank allocates each specialist department The banks accounting system are Featuring then other accounting systems the existence of its own system, which incorporates certain elements similar to the elements and the contents of any accounting system but in the practical application differs greatly in terms based on a set of rules and characteristics of him dating back to the business's privacy and the tasks and functions that performed by commercial banks as follows: - Centralized accounting in the overall management of the bank Independent accounting for each branch where the results of its work during the period of time show Accounting system components in banks: The account system in accordance with the accounting rules . Such as accounting theory and accounting method and the group of documentary and financial statements , statistical statements , equipment , systems regulatory , procedural instructions and staff. Accounting system in banks characteristics: Each section of the bank's departments organize its operations and determine his documents and disclosures , records unilaterally assistance and audited. Are recognized limitations in the journal entries to help with each section of the first vouchers then organizes daily supplements sent to the accounting department on the same day to conduct conformity. If it appears there is a difference between the amounts recorded are searched for reasons and treatment in coordination with the Department of Accounting Branch. Each departments have to its calculations the ledgers for all operations. The accounting department at each branch to prepare a daily review of major accounts and the balance sent to the General Department of Accounting head office of the bank. Be the main center of the accounts (Central Accounting) the general management of the bank is a place where flowing daily business that comes from the bottom branches, so as to prepare the trial balance and constraint in the overall public accounts and extract business results. Banks differ in terms of their dependence on sources of funding, for example, commercial banks are distinct from other banks in reliance on sources of funding derived from demand deposits and time deposits and savings deposits, and the nature of financing in commercial banks are often short or medium term, given the nature of the basic resources that depend on short-term deposits The real estate agricultural and industrial banks depend primarily on the capital as the most important source of funding because they deal in long-term loans and paid for housing construction and financing of factories. It can be divided into the bank resources Internal sources of funding, such as: The head of the depositor money from shareholders and share premium and reserves legal and optional reserves and retained earnings These resources are all known as the equity (shareholders) or the so-called bank's capital base, according to the names of the Basel Committee on Banking. External sources of funding, such as: Demand deposits (checking accounts) and time deposits and deposits notify And savings deposits. What is the importance of capital and its role in the bank ?? Can be summarized function of capital as follows: Regulatory function: to take advantage of it at the beginning of the work of the bank as an expense of incorporation and the appointment of staff and the purchase of a private in the first phase of the activities of the bank assets. Operational function: to take advantage of it to facilitate the operation of the Bank's business administratively, financially and operationally. Function to protect depositors 'money: where that capital provides protection for depositors' money against the risks faced by the Bank's business (credit - the market - operating), and that an increase of this size leads to support the capital base, which boosts confidence in the bank's performance and attracting depositors. Investment function: Where can the bank part of the capital investment in financing activities next customer deposits. Google Translate for Business:Translator ToolkitWebsite TranslatorGlobal Market Finder.