lect 4

• The main features of retail and wholesale banking are outlined
• Transactions in retail banking are typically high in volume but low in value
• What is the primary focus of retail banking?

  Financial services to consumers
• The title of the graph is "The global wealth pyramid 2021

  
• What types of financial institutions offer personal banking services?

  Commercial banks, savings banks, etc.
• What does the image title indicate the graph measures?

  Global economic trends

  
• The image measures global trends in median wealth, wealth per adult, and GDP per adult from 2000 to 2021.

  
• The debt component shows a negative change in net worth in some years.

  True

  
• The total ICT spending by banks decreased from 2015 to 2016.

  False

  
• What does the image depict?

  Annual real change in net worth

  
• The category of ICT spending that increased the most from 2015 to 2022 is digital banking

  
• What does the customer buy from the bank in the first step of the transaction?

  Shares

  
• What percentage of adults worldwide have wealth exceeding USD 1 million?

  1.2%

  
• Commercial banks are the primary providers of retail banking products and services.


  True
• The customer buys shares from the bank until full ownership

  
• Savings banks in the US are also known as thrifts
• Savings banks prioritize maximizing shareholder profits over social and economic development.

  False
• Name three examples of large commercial banks.

  Citibank, HSBC, Barclays
• Building societies are prevalent in the UK, Australia, and South Africa
• What type of ownership structure do savings banks and cooperative banks share?

  Mutual ownership
• Credit unions are exempt from corporate income tax due to their non-profit status.


  True
• The rise in interest rates has boosted net interest income
• What type of consumer loan business are finance houses often involved in?

  Unsecured loans
• Bank lending remains the largest source of debt funding in Europe and Asia.


  True
• Investment banking primarily performs a brokerage function by bringing buyers and sellers of securities
• What is the purpose of green lending?

  Fund projects with environmental goals
• Green loan proceeds should be tracked to maintain transparency and promote the integrity
• Investment banks primarily perform a brokerage function by bringing buyers and sellers of securities
• Investment banks typically deal with retail customers apart from upmarket private banking services

  False
• Match the investment bank with its country of origin:

  Goldman Sachs ↔️ United States

  Barclays ↔️ United Kingdom

  UBS ↔️ Switzerland

  BNP Paribas ↔️ France
• After the 2007-2008 financial crisis, many investment banks converted to bank holding companies


  True
• Goldman Sachs accumulated $3 billion in losses in its consumer banking franchise since 2020
• Which investment bank declared bankruptcy on September 15, 2008?

  Lehman Brothers
• Wealth management is primarily targeted at individuals with over $1 million in investable assets

  False
• Islamic Shariah law prohibits the payment of ribā
• What is a more exclusive subset of wealth management called?

  Private banking
• Gharar refers to unknowingly exposing oneself to risk
• Musharakah is widely regarded as the purest form of Islamic financing

  True
• What does Islam prohibit in the context of financial transactions?

  Gambling