Assignment Example | Topics and Well Written Essays - 750 words - 118

Assignment ExampleThe banking system has played an primal role in space mortgages due to their role that has grown in turn in home mortgages to securities. The chain involved in securitization starts with origination of mortgages and sold to one or more than financial entities come forward front they end up to mortgage loans that are sold to investors. The foster of credentials obtain is related to value of mortgage loans that are used to back up security paid with interest. The backed up security is paid in interest and those that own homes pay the mortgage loans. The process and stages that shadow banking is involved leads to genesis of finance. This makes the process essential in generation of finances.There are differences and similarities that occur in the banks. In similarity, twain the banks are seen to perform credit intermediation. However, there are varied differences that occur in the banks. In traffic pattern al banks, there is occurrence under the same roof whi le in shadow banking, giving out of credits occurs through a chain of entities. This makes operation in shadow banking to be more complex than in conventional banks.Another difference that can be noted between the both banks is on the regulations that are involved in acquiring credit. Conventional banks are strictly regulated having entrance to central bank funding and deposit insurance schemes. In shadow banks, there is little or no regulation since they are not able to access funding from central banks. Shadow banking is similarly based on wholesale funding. The difference that the banks have on the source of funding too is brought out in conventional banking.Universal banking refers to the condition in which are allowed to give a variety of function to their customers. The banks are not just restricted to provision of services related to loans and savings but also involved in in other services such as investments.In baking course there is banking which considers different aspects.