58-629: The Chartered Bank of India, Australia and China (informally The Chartered Bank ) was a bank incorporated in London in 1853 by Scotsman James Wilson , under a Royal Charter from Queen Victoria . Though lacking a truly strong domestic network in Britain, it was influential in the development of British colonial trade throughout the East of Suez . In 1969 Chartered Bank merged with Standard Bank, which did business throughout Africa. The merged enterprise
116-412: A bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account. Banks issue new money when they make loans. In contemporary banking systems, regulators set a minimum level of reserve funds that banks must hold against the deposit liabilities created by
174-485: A group of Europeans founded Allahabad Bank in Allahabad. By the end of the 19th century it had branches at Jhansi , Kanpur , Lucknow , Bareilly , Nainital , Calcutta , and Delhi . In the early 20th century, with the start of Swadeshi movement , Allahabad Bank witnessed a spurt in deposits. In 1920, P & O Banking Corporation acquired Allahabad Bank with a bid price of ₹ 436 (US$ 5.20) per share. In 1923
232-425: A large number of small to medium-sized institutions in its banking system. As of November 2009, China's top four banks have in excess of 67,000 branches ( ICBC :18000+, BOC :12000+, CCB :13000+, ABC :24000+) with an additional 140 smaller banks with an undetermined number of branches. Japan had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy each had more than 30,000 branches – more than double
290-416: A safe and convenient form of money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default . Thus the goldsmiths of London became the forerunners of banking by creating new money based on credit. The Bank of England originated the permanent issue of banknotes in 1695. The Royal Bank of Scotland established the first overdraft facility in 1728. By
348-694: A separate entity. The bank was greatly affected by the Second World War . Their UK office had an established sports ground in East Molesey in Surrey, which included an active rugby club. The site had once been a large country estate and the house known as the ‘Wilderness’. It was demolished when the park was developed into a high-class residential estate in 1876. The new ‘Wilderness’ was a red brick house, built in 1881 in Jacobean style. In 1929
406-399: A variety of different ways including interest, transaction fees and financial advice. Traditionally, the most significant method is via charging interest on the capital it lends out to customers. The bank profits from the difference between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference
464-620: A wholly owned merchant banking subsidiary. Its older logo, a monogram consisting of "A" and "B", was replaced by the current 'Triveni Sangam' logo circa 1997. The government's ownership of Allahabad Bank shrank in October 2002 after the bank engaged in an initial public offering (IPO) of ₹ 100 million (US$ 1.2 million) of shares, each with a face value ₹ 10. The IPO reduced the Government's shareholding to 71.16%. Then in April 2005
522-446: Is a bank regulation , which sets a framework within which a bank or depository institution must manage its balance sheet . The categorisation of assets and capital is highly standardised so that it can be risk weighted . After the financial crisis of 2007–2008 , regulators force banks to issue Contingent convertible bonds (CoCos). These are hybrid capital securities that absorb losses in accordance with their contractual terms when
580-400: Is a Bills of Exchange Act that codifies the law in relation to negotiable instruments , including cheques, and this Act contains a statutory definition of the term banker : banker includes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that
638-403: Is a list of the largest deals in history in terms of value with participation from at least one bank: Currently, commercial banks are regulated in most jurisdictions by government entities and require a special bank license to operate. Usually, the definition of the business of banking for the purposes of regulation is extended to include acceptance of deposits, even if they are not repayable to
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#1732765967458696-431: Is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers and the stage of the economic cycle . Fees and financial advice constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance. In
754-626: The Basel Accords . Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance Italy but, in many ways, functioned as a continuation of ideas and concepts of credit and lending that had their roots in the ancient world . In the history of banking , a number of banking dynasties – notably, the Medicis , the Pazzi , the Fuggers ,
812-742: The Federal Deposit Insurance Corporation (FDIC) as a regulator. However, for soundness examinations (i.e., whether a bank is operating in a sound manner), the Federal Reserve is the primary federal regulator for Fed-member state banks; the Office of the Comptroller of the Currency (OCC) is the primary federal regulator for national banks. State non-member banks are examined by the state agencies as well as
870-651: The Great Depression , the U.S. Savings and Loan crisis in the 1980s and early 1990s, the Japanese banking crisis during the 1990s, and the sub-prime mortgage crisis in the 2000s. The 2023 global banking crisis is the latest of these crises: In March 2023, liquidity shortages and bank insolvencies led to three bank failures in the United States , and within two weeks, several of the world's largest banks failed or were shut down by regulators Assets of
928-528: The Medici Bank , in 1397. The Republic of Genoa founded the earliest-known state deposit bank, and Banco di San Giorgio (Bank of St. George), in 1407 at Genoa , Italy. Fractional reserve banking and the issue of banknotes emerged in the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths of London , who possessed private vaults , and who charged a fee for that service. In exchange for each deposit of precious metal,
986-521: The National Stock Exchange of India . As of 31 March 2013 , the bank had 22,557 employees, out of which 3,293 were women (15%). Out of the total employees, 51% were officers, 30% were clerks and the remaining 19% were subordinate staff. The bank recruited 1,950 employees (1,421 Officers, 390 Clerks and 139 subordinate staff) during the same financial year. The company incurred ₹ 20 billion on employee benefit expenses during
1044-569: The Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths. The definition of a bank varies from country to country. See the relevant country pages for more information. Under English common law , a banker is defined as a person who carries on the business of banking by conducting current accounts for their customers, paying cheques drawn on them and also collecting cheques for their customers. In most common law jurisdictions there
1102-594: The Welsers , the Berenbergs , and the Rothschilds – have played a central role over many centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena (founded in 1472), while the oldest existing merchant bank is Berenberg Bank (founded in 1590). Banking as an archaic activity (or quasi-banking ) is thought to have begun as early as the end of the 4th millennium BCE, to
1160-454: The economy of a country, most jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a system known as fractional-reserve banking , under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity , banks are generally subject to minimum capital requirements based on an international set of capital standards,
1218-622: The revolutionary government in Burma nationalized the Chartered Bank's operations there, which became People's Bank No. 2. On 19 July 1969, the Indian government nationalised Allahabad Bank, along with 13 other banks. In October 1989, Allahabad Bank acquired United Industrial Bank , a Calcutta-based bank that had been established in 1940 and that brought with it 145 branches. Two years later, Allahabad Bank established AllBank Finance Ltd,
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#17327659674581276-481: The 15,000 branches in the United Kingdom. Between 1985 and 2018 banks engaged in around 28,798 mergers or acquisitions, either as the acquirer or the target company. The overall known value of these deals cumulates to around 5,169 bil. USD. In terms of value, there have been two major waves (1999 and 2007) which both peaked at around 460 bil. USD followed by a steep decline (−82% from 2007 until 2018). Here
1334-404: The 19th century, we find in ordinary cases of deposits, of money with banking corporations, or bankers, the transaction amounts to a mere loan, or mutuum , and the bank is to restore, not the same money, but an equivalent sum, whenever it is demanded and money, when paid into a bank, ceases altogether to be the money of the principal (see Parker v. Marchant, 1 Phillips 360); it is then the money of
1392-419: The 3rd millennia BCE. The present era of banking can be traced to medieval and early Renaissance Italy, to the rich cities in the centre and north like Florence , Lucca , Siena , Venice and Genoa . The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing branches in many other parts of Europe. Giovanni di Bicci de' Medici set up one of the most famous Italian banks,
1450-529: The FDIC. National banks have one primary regulator – the OCC. Each regulatory agency has its own set of rules and regulations to which banks and thrifts must adhere. The Federal Financial Institutions Examination Council (FFIEC) was established in 1979 as a formal inter-agency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions. Although
1508-578: The FFIEC has resulted in a greater degree of regulatory consistency between the agencies, the rules and regulations are constantly changing. Allahabad Bank Allahabad Bank was an Indian nationalised bank with its headquarters in Kolkata , India. Founded in Allahabad in 1865 and nationalized by the government of India in 1969, the bank provided banking and financial services for 155 years until it
1566-592: The South African bank Standard Bank , forming Standard Chartered Bank . The same year, the Government of India nationalised Allahabad Bank. Bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans . Lending activities can be directly performed by the bank or indirectly through capital markets . Whereas banks play an important role in financial stability and
1624-586: The UK, for example, the Financial Services Authority licenses banks, and some commercial banks (such as the Bank of Scotland ) issue their own banknotes in addition to those issued by the Bank of England , the UK government's central bank. Banking law is based on a contractual analysis of the relationship between the bank (defined above) and the customer – defined as any entity for which
1682-623: The bank acquired Eastern Bank , giving Chartered a network of branches in Aden , Bahrain , Lebanon , Qatar and the UAE . Chartered also bought the Ionian Bank 's Cyprus Branches. In 1964, the government of Indonesia nationalised Chartered Bank's branch as a part of Konfrontasi . The branch was later merged into Bank Umum Negara, a state-owned bank. Bank Umum Negara then evolved into present-day Bank Mandiri . In 1969, Chartered Bank merged with
1740-639: The bank agrees to conduct an account. The law implies rights and obligations into this relationship as follows: These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in force within a particular jurisdiction may also modify the above terms or create new rights, obligations, or limitations relevant to the bank-customer relationship. Some types of financial institutions, such as building societies and credit unions , may be partly or wholly exempt from bank license requirements, and therefore regulated under separate rules. The requirements for
1798-534: The bank conducted a second public offering of ₹ 100 million shares, each with a face value ₹ 10 and selling at a premium of ₹ 72. This offering reduced the Government's ownership to 55.23%. In June 2006, the bank opened its first office outside India when it opened a representative office in Shenzhen , Mainland China . In February 2007, Allahabad Bank opened its first overseas branch, in Hong Kong . In March,
Chartered Bank of India, Australia and China - Misplaced Pages Continue
1856-534: The bank moved its head office and the registered office to Calcutta for reasons of both operational convenience and business opportunities. Then in 1927 Chartered Bank of India, Australia and China (Chartered Bank) acquired P&O Bank. However, Chartered Bank continued to operate Allahabad Bank as a separate entity. Allahabad Bank opened a branch in Rangoon ( Yangon ). At some point, Chartered Bank amalgamated Allahabad Bank's branch in Rangoon with its own. In 1963
1914-411: The bank will not repay it), and interest rate risk (the possibility that the bank will become unprofitable, if rising interest rates force it to pay relatively more on its deposits than it receives on its loans). Banking crises have developed many times throughout history when one or more risks have emerged for the banking sector as a whole. Prominent examples include the bank run that occurred during
1972-506: The bank's business crossed the ₹ 10 million mark. On 30 August 2019, Finance Minister Nirmala Sitharaman announced that Allahabad Bank would merge with Indian Bank . The merger would create the seventh largest public sector bank in the country with assets of ₹ 8.08 trillion (US$ 97 billion). The Union Cabinet approved the merger on 4 March 2020. Indian Bank assumed control of Allahabad Bank on 1 April 2020. Allahabad Bank's equity shares were listed on Bombay Stock Exchange and
2030-450: The bank's business dealt specifically with large volume discounting and re-discounting of opium and cotton bills. Although there was a gradual rise in opium cultivation in China , the imports of opium still increased from 50,087 picul in 1863 to 82,61 picul by 1888. Transactions in the opium trade generated substantial profits for Chartered Bank. Later, the Chartered Bank also became one of
2088-667: The bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer , EFTPOS , and automated teller machines (ATMs). Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits , and by issuing debt securities such as banknotes and bonds . Banks lend money by making advances to customers on current accounts, by making installment loans , and by investing in marketable debt securities and other forms of money lending. Banks provide different payment services, and
2146-456: The banker, who is bound to return an equivalent, by paying a similar sum to that deposited with him, when he is asked for it. The goldsmith paid interest on deposits. Since the promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were repayable over a longer time-period, this was an early form of fractional reserve banking . The promissory notes developed into an assignable instrument which could circulate as
2204-717: The beginning of the 19th century Lubbock's Bank had established a bankers' clearing house in London to allow multiple banks to clear transactions. The Rothschilds pioneered international finance on a large scale, financing the purchase of shares in the Suez canal for the British government in 1875. The word bank was taken into Middle English from Middle French banque , from Old Italian banco , meaning "table", from Old High German banc, bank "bench, counter". Benches were used as makeshift desks or exchange counters during
2262-515: The business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purpose of regulating and supervising banks rather than regulating the actual business of banking. However, in many cases, the statutory definition closely mirrors the common law one. Examples of statutory definitions: Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking ,
2320-533: The capital of the issuing bank falls below a certain level. Then debt is reduced and bank capitalisation gets a boost. Owing to their capacity to absorb losses, CoCos have the potential to satisfy regulatory capital requirement. The economic functions of banks include: Banks are susceptible to many forms of risk which have triggered occasional systemic crises. These include liquidity risk (where many depositors may request withdrawals in excess of available funds), credit risk (the chance that those who owe money to
2378-483: The cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques . Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers in
Chartered Bank of India, Australia and China - Misplaced Pages Continue
2436-423: The cross-selling of complementary products. Banks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Bank capital consists principally of equity , retained earnings and subordinated debt . Some of the main risks faced by banks include: The capital requirement
2494-408: The customer's order – although money lending, by itself, is generally not included in the definition. Unlike most other regulated industries, the regulator is typically also a participant in the market, being either publicly or privately governed central bank . Central banks also typically have a monopoly on the business of issuing banknotes . However, in some countries, this is not the case. In
2552-901: The early 1900s, the bank opened offices in New York and Hamburg . When it established its New York branch in 1912, Chartered Bank became the first foreign bank to be issued a licence to operate in New York. In 1923 the Great Kanto earthquake destroyed Chartered Bank's office in Yokohama , Japan , and killed a number of its staff. In 1927 the bank acquired P&O Bank , which had offices in Colombo, Shanghai, Hong Kong, Singapore, and Guangzhou (Canton). P&O Bank also owned Allahabad Bank . The operations of P&O Bank were merged with Chartered Bank. But Allahabad Bank continued to be run as
2610-589: The funding of these loans, in order to ensure that the banks can meet demands for payment of such deposits. These reserves can be acquired through the acceptance of new deposits, sale of other assets, or borrowing from other banks including the central bank. Activities undertaken by banks include personal banking , corporate banking , investment banking , private banking , transaction banking , insurance , consumer finance , trade finance and other related. Banks offer many different channels to access their banking and other services: A bank can generate revenue in
2668-407: The goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee ; these receipts could not be assigned, only the original depositor could collect the stored goods. Gradually the goldsmiths began to lend money out on behalf of the depositor , and promissory notes , which evolved into banknotes, were issued for money deposited as a loan to the goldsmith. Thus, by
2726-548: The house, together with the land on the other side of the river Mole, was laid out as a sports ground, firstly for the Distillers Company , and then for the construction group Trollope & Colls . Later the estate became the sports ground of the Standard Chartered Bank. A disastrous fire gutted the house in 1983. The ground was sold for housing development and their sports club closed. In 1957,
2784-442: The issue of a bank license vary between jurisdictions but typically include: Banks' activities can be divided into: Most banks are profit-making, private enterprises. However, some are owned by the government, or are non-profit organisations . The United States banking industry is one of the most heavily regulated and guarded in the world, with multiple specialised and focused regulators. All banks with FDIC-insured deposits have
2842-409: The largest 1,000 banks in the world grew by 6.8% in the 2008–2009 financial year to a record US$ 96.4 trillion while profits declined by 85% to US$ 115 billion. Growth in assets in adverse market conditions was largely a result of recapitalisation. EU banks held the largest share of the total, 56% in 2008–2009, down from 61% in the previous year. Asian banks' share increased from 12% to 14% during
2900-450: The legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated. The business of banking is in many common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business . When looking at these definitions it is important to keep in mind that they are defining
2958-592: The opening of the Suez Canal in 1869; and completion of Indo-European telegraph line from London to Calcutta , and its extension to China in 1871; placed most British banks (including Chartered Bank) to expand and develop its business. The bank's expansion continued to the 1900s, leading it to open branches across Asia. The bank's traditional business was in cotton from Bombay , indigo and tea from Calcutta , rice from Burma , sugar from Java , tobacco from Sumatra , hemp from Manila and silk from Yokohama . In
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#17327659674583016-455: The past 20 years, American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. This helps in making a profit and facilitates economic development as a whole. Recently, as banks have been faced with pressure from fintechs, new and additional business models have been suggested such as freemium, monetisation of data, white-labeling of banking and payment applications, or
3074-704: The principal foreign banknote-issuing institutions in Shanghai. In 1859, the bank opened a branch in Hong Kong and an agency in Singapore . In 1861, the Singapore agency was upgraded to a branch. In 1862, the bank was authorised to issue bank notes in Hong Kong ; a privilege it continues to exercise (as Standard Chartered ) to this day. Over the following decades, it printed bank notes in China and Malaya . With
3132-527: The same financial year. During the FY 2013–14, the business per employee was ₹ 13.50 million and it earned a net profit of ₹ 0.477 million per employee. The bank was operating in the following states/UTs. On 13 July 2019, Allahabad Bank disclosed that it detected a fraud, worth ₹ 17.7482 billion (US$ 213 million) by Bhushan Power & Steel (BPSL). The bank also detected another fraud of ₹ 6.8827 billion (US$ 82 million) by SEL Manufacturing Ltd.,
3190-462: The year, while the share of US banks increased from 11% to 13%. Fee revenue generated by global investment in banking totalled US$ 66.3 billion in 2009, up 12% on the previous year. The United States has the most banks in the world in terms of institutions (5,330 as of 2015) and possibly branches (81,607 as of 2015). This is an indicator of the geography and regulatory structure of the US, resulting in
3248-517: Was incorporated in London under the name Standard Chartered . The Chartered Bank of India, Australia and China—a bank incorporated in London , was founded in 1853 in London by James Wilson ; following the grant of a Royal Charter from Queen Victoria . In 1858, it opened its first branches in Calcutta , Bombay and Shanghai . The bank's operations were expanded to Hong Kong and Singapore in 1859, followed by Karachi in 1863. Chartered Bank
3306-649: Was keen to capitalise on the huge expansion of trade between India and China and other British possessions in Asia; and the handsome profits that could be made from financing the movement of goods from Europe to Far East . It competed with the other great British banks of that time— Oriental Bank Corporation , the Hongkong & Shanghai Bank and Mercantile Bank of India, London and China . The Shanghai branch of Chartered Bank began operation in August 1858. Initially,
3364-579: Was merged with Indian Bank in 2020. It was the oldest still running joint stock bank in India until its merger. As of 31 March 2018 , Allahabad Bank had over 3245 branches across India. The bank did a total business of ₹ 3.8 trillion during the FY 2017–18. The bank's market capitalisation in June 2018 was US$ 573 million and ranked #1,882 on the Forbes Global 2000 list. On 24 April 1865,
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