TyroCity: Banking Notes

Monetary Policy

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

Definition: Monetary policy is how central banks manage the money supply to guide healthy economic growth. The money supply is credit, cash, checks, and money market mutual funds. The most important of these is credit, which includes loans, bonds, mortgages, and other agreements to repay. Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.

In Nepal, monetary policy of the Central Bank of Nepal is aimed at managing the quantity of money in order to meet the requirements of different sectors of the economy and to increase the pace of economic growth.

The NRB implements the monetary policy through open market operations, bank rate policy, reserve system, credit control policy, and moral persuasion and through many other instruments. Using any of these instruments will lead to changes in the interest rate, or the money supply in the economy. Monetary policy can be expansionary and contractionary in nature. Increasing money supply and reducing interest rates indicate an expansionary policy. The reverse of this is a contractionary monetary policy.

For instance, liquidity is important for an economy to spur growth. To maintain liquidity, the NRB is dependent on the monetary policy. By purchasing bonds through open market operations, the RBI introduces money in the system and reduces the interest rate.

Central banks have three main tools of monetary policy: open market operations, the discount rate, and a bank’s reserve requirement. However, most banks have many more at their disposal. Here’s what they are, and how they all work together to sustain healthy economic growth.

1. Open Market Operations

Open market operations are when central banks buy or sell securities from the country’s banks. When the central bank buys securities, adds cash to the banks’ reserves. This gives them more money to lend more. When the central bank sells the securities, it simply places them on the banks’ balance sheets and reduces its cash holdings. The bank now has less to lend. A central bank buys securities when it wants expansionary monetary policy, and sells them when it executes contractionary monetary policy.

2. Reserve Requirement
The reserve requirement refers to the deposit a bank must keep on hand overnight, either in its vaults or at the central bank. A low reserve requirement allows the banks to lend more of their deposits. That is expansionary because it creates more credit. A high reserve requirement is contractionary since it gives banks less money to lend. It’s especially hard on small banks since they don’t have as much to lend in the first place. Central banks rarely change the reserve requirement because it’s expensive and disruptive for member banks to change their procedures.

3.
Instead, central banks are more likely to adjust their targeted lending rate because it achieves the same result. The Fed funds rate is perhaps the most well-known of these tools. Here’s how it works. If a bank can’t meet the reserve requirement, it borrows from another bank that has excess cash. The interest rate it pays is the Fed funds rate. The amount it borrows is called the Fed funds. The Federal Open Market Committee (FOMC) sets a target for the Fed funds rate at its meetings.
Central banks have several tools to make sure the Fed funds rate meets that target. The Federal Reserve, the Bank of England, and the European Central Bank pay interest on the required reserves and any excess reserves. Bank won’t lend Fed funds for less than the rate they’re receiving from the Fed for these reserves. Banks also use open market operations.

4. Discount Rate
The discount rate is the third tool. It’s the rate that central banks charge its members to borrow at its discount window. Since the rate is higher, banks only use this if they can’t borrow funds from other banks.

How It Works
Central bank tools work by increasing or decreasing total liquidity. This includes both the total amount of capital available to invest or lend, as well as money to spend. In other words, it’s more than the money supply, which consists of M1, (currency and check deposits) and M2 (money market funds, CDs and savings accounts plus M1). Therefore, when people say that central bank tools affect only the money supply, they are understating the impact.

Compiled and collected by
Basudev Sharma Poudel(PHD)

Objectives or Goals of Monetary Policy

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

The following are the principal objectives of monetary policy:

Full Employment: Full employment has been ranked among the foremost objectives of monetary policy. It is an important goal not only because unemployment leads to wastage of potential output, but also because of the loss of social standing and self-respect.
Price Stability: One of the policy objectives of monetary policy is to stabilize the price level. Both economists and laymen favor this policy because fluctuations in prices bring uncertainty and instability to the economy.
Economic Growth: One of the most important objectives of monetary policy in recent years has been the rapid economic growth of an economy. Economic growth is defined as “the process whereby the real per capita income of a country increases over a long period of time.”
Balance of Payments: Another objective of monetary policy since the 1950s has been to maintain equilibrium in the balance of payments.

Instruments of Monetary Policy: The instruments of monetary policy are of two types: first, quantitative, general or indirect; and second, qualitative, selective or direct. They affect the level of aggregate demand through the supply of money, cost of money and availability of credit. Of the two types of instruments, the first category includes bank rate variations, open market operations and changing reserve requirements. They are meant to regulate the overall level of credit in the economy through commercial banks. The selective credit controls aim at controlling specific types of credit. They include changing margin requirements and regulation of consumer credit. We discuss them as under:

Bank Rate Policy
The bank rate is the minimum lending rate of the central bank at which it rediscounts first-class bills of exchange and government securities held by the commercial banks. When the central bank finds that inflationary pressures have started emerging within the economy, it raises the bank rate. Borrowing from the central bank becomes costly and commercial banks borrow less from it.

The commercial banks, in turn, raise their lending rates to the business community and borrowers borrow less from the commercial banks. There is a contraction of credit and prices are checked from rising further. On the contrary, when prices are depressed, the central bank lowers the bank rate.

It is cheap to borrow from the central bank on the part of commercial banks. The latter also lower their lending rates. Businessmen are encouraged to borrow more. Investment is encouraged. Output, employment, income and demand start rising and the downward movement of prices is checked.

Open Market Operations:

Open market operations refer to sale and purchase of securities in the money market by the central bank. When prices are rising and there is need to control them, the central bank sells securities. The reserves of commercial banks are reduced and they are not in a position to lend more to the business community.

Further investment is discouraged and the rise in prices is checked. Contrariwise, when recessionary forces start in the economy, the central bank buys securities. The reserves of commercial banks are raised. They lend more. Investment, output, employment, income and demand rise and fall in price is checked.

Changes in Reserve Ratios
This weapon was suggested by Keynes in his Treatise on Money and the USA was the first to adopt it as a monetary device. Every bank is required by law to keep a certain percentage of its total deposits in the form of a reserve fund in its vaults and also a certain percentage with the central bank.

When prices are rising, the central bank raises the reserve ratio. Banks are required to keep more with the central bank. Their reserves are reduced and they lend less. The volume of investment, output and employment are adversely affected. In the opposite case, when the reserve ratio is lowered, the reserves of commercial banks are raised. They lend more and the economic activity is favorably affected.

Selective Credit Controls

Selective credit controls are used to influence specific types of credit for particular purposes. They usually take the form of changing margin requirements to control speculative activities within the economy. When there is brisk speculative activity in the economy or in particular sectors in certain commodities and prices start rising, the central bank raises the margin requirement on them.

The result is that the borrowers are given less money in loans against specified securities. For instance, raising the margin requirement to 60% means that the pledge of securities of the value of Rs 10,000 will be given 40% of their value, i.e. Rs 4,000 as loan. In case of recession in a particular sector, the central bank encourages borrowing by lowering margin requirements.

Compiled and collected by
Basudev Sharma Poudel(PHD)

NRB: Computer

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction

Hardware and Software

Windows

Windows

Database Management System

Database

Computer Networking

Information System

Information System

Core Banking System

Core Banking System

Information Security

Basic Computer Terminologies

IT and ICT in Banking

IT and ICT in Banking

Factor affecting money supply

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

The supply of money in a modern economy and financial system is determined by three key factors:

“Open market operations” – this is effectively the same as Quantitative Easing. The Central Bank buys government bonds, effectively creating money
The “reserve requirement” imposed on banks – this is the % of deposits made by customers at the bank that the bank must keep hold of rather than lending it out
The policy interest rate set by the central bank – the rate of interest will influence how many households and businesses are willing and able to borrow. Most money in a modern economy is created by commercial bank lending so the rate of interest ultimately does have a bearing on the supply of money

Key factors affecting the demand for money:

The rate of interest on loans
The number / value of monetary transactions that we expect to carry out
The extent to which we also want to hold other financial assets, such as bonds, property, saving (this is also influenced by the rate of interest) – this is known as the speculative motive for holding money
Changes in GDP
The extent to which it is possible to use debit cards / credit cards i.e. the pace of financial innovation
The extent to which we might have to pay out large unexpected payments, for example, for i.e. the precautionary motive
The rate of anticipated inflation
Inter-bank lending
Money at call
Refinanceable export credits
Commercial bills
Central Government debt: internal considerations
Local authority short-term borrowing

Compiled and collected by
Krishna Prasad Aryal
Assistant Branch Manager
Rastriya Banijya Bank
Branch Office Parasi

Fiscal Policy

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

Fiscal policy plays an increasingly important role in many developing countries. Decisions on fiscal policy, especially if properly synchronized with monetary policy, can help smoothen business cycles, ensure adequate public investment and redistribute incomes. The four main components of fiscal policy are:

expenditure, budget reform
revenue (particularly tax revenue) mobilization,
deficit containment/ financing and
determining fiscal transfers from higher to lower levels of government.

Fiscal policy works through both aggregate demand and aggregate supply channels. Changes in total taxes and public expenditure affect the level of aggregate demand in the economy, whereas, the structure of taxation and public expenditure affect, among others, the incentives to save and invest (at home and abroad), take risks, and export and import goods and services.

Government’s revenue (taxation) and spending policy designed to

counter economic cycles in order to achieve lower unemployment,
achieve low or no inflation, and
achieve sustained but controllable economic growth.

In a recession, governments stimulate the economy with deficit spending (expenditure exceeds revenue). During the period of expansion, they restrain a fast-growing economy with higher taxes and aim for a surplus (revenue exceeds expenditure). Fiscal policies are based on the concepts of the UK economist John Maynard Keynes (1883-1946) and work independently of monetary policy which tries to achieve the same objectives by controlling the money supply.

Objectives of fiscal policy

Full employment
Price stability
Accelerating the rate of economic development
Optimum allocation of resources
Equitable distribution of income and wealth
Economic stability
Capital formation and growth
Encouraging Investment

Contractionary fiscal policy is when the government either cuts spending or increases revenue through higher taxes. The purpose is to slow growth to a healthy economic level. Although you may think that there’s no such thing as an economy that’s growing too fast, an overheated economy has a lot of negative repercussions. First, it usually creates an asset bubble, similar to what happened to housing industry in 2006. Second, it lowers unemployment to below the natural rate of unemployment. This makes it difficult for employers to find enough workers to meet market demand.

Third, it can create inflation. That’s when prices, and often wages, rise higher and higher. This can destroy savings and your standard of living. Fourth, an economy that’s growing too fast will inevitably burn out, leading to a recession. For more, see Business Cycle.

Contractionary fiscal policy is so named because it actually contracts the economy by reducing the amount of money available for businesses and consumers to spend.

The purpose of contractionary fiscal policy is to cool off growth and prevent inflation. That’s only needed during the peak phase of the business cycle. That’s the only time the government should increase spending beyond the level of revenue it receives. It’s also the only time it should cut taxes below the level needed to support spending.

Expansionary fiscal policy is when the government uses its budgeting tools to provided consumers and businesses with more money. These tools include increased spending, including transfer payments, or tax cuts. It usually uses a combination of all three. In the United States, Congress must generally approve these measures.

Expansionary fiscal policy is so named because it expands the amount of money available for consumers and businesses to spend.

It puts more money into consumers’ hands to give them more purchasing power. It uses subsidies, transfers payments including welfare programs, and income tax cuts. It reduces unemployment by contracting public works or hiring new government workers. All these measures increase demand. That boosts business profit. They use it for new investment and hiring to meet the increased demand.

Fiscal policy is used by elected officials to change the business cycle. Although it can be more powerful than monetary policy, it is rarely used as effectively. That’s because elected officials have different opinions on the best ways to use fiscal policy.

Expansion: When the economy is in the expansion phase, politicians are happy because their constituents are happy. They will pursue other goals, such as foreign policy, defense, or immigration.

Peak: During the irrational exuberance phase, politicians will also ignore fiscal policy. However, this is they should pursue a contractionary fiscal policy to avoid the peak. That means raising taxes and cutting spending. However, since the budget cycle is usually 18 months in the making, by the time the economy reaches the peak, it’s probably too late. In addition, politicians don’t get re-elected by doing either of those things.

Contraction: This is when expansionary fiscal policy is desperately needed. That means cutting taxes and increasing spending to create jobs, demand, and confidence. Find out what are the best unemployment solutions.

Compiled and collected by
Basudev Sharma Poudel(PHD)

Windows

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction
Windows is a personal computer operating system from Microsoft, with some common business applications such as Microsoft Word and Excel has become a de facto “Standard” for individuals in most corporations and home.

Components of Windows

Desktop
Desktop Icons
Start Menu Program
Taskbar
Control Panel
User Management
Device Manager
Programs, etc.

Interface

Some Keyword
Windows Key + R = Run

Windows Key + E = Explorer

Alt + F4 = Close

Run: winword (To open MS Word)

Run: excel (To open MS Excel)

Run: powerpnt (To open MS Power Point)

Run: control (To open Control Panel)

Run: fonts (To open fonts)

Run: dxdiag (To view System Information)

Run: C: (To open C:>)

Run: temp or %temp% ( To view temp. file)

MS-DOS
Run: cmd (To go on Command Mode)

C:> dir (To display the files and folders)

C:> dir/ah (To Display the hidden files and folders)

C:> Date (To View Current Date)

C:> Time (To View Current Time)

C:> MD DN (DN=Directory (Folder) Name, To Create Folder)

C:> CD DN (To Enter inside folder)

C:> CD.. (To exit from folder)

C:> RD DN (To Delete folder)

C:> Copy Con FN (FN=File Name, To Create File) : add some content and save it by pressing ctrl+z and do Enter

C:> Type FN (To open the file)

C:> Edit FN (To edit file)

C:> Del FN (To Delete file)

C:> CLS (To Clear Screen)

C:> ipconfig (To view IP address)

C:> ipconfig/all (To view details of IP address)

C:>D:(To change the drive or path from C:> to D:>)

C:> Exit (To Close Command Mode)

Difference Between GUI and CUI

Some Questions

What do you mean by Windows? What are the components of Windows?
Differentiate between CUI and GUI.

IT Policy and Development

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

IT Policy Development in Nepal

Introduce Computer in 2028 BS
Establishment of High Level Commission for Information Technology (HLCIT) in 2051 BS and terminated by Prime minister Baburam Bhattarai
Establishment of National Information Technology Center (NITC) in 2059
IT Policy 2057
IT Policy 2067
IT Policy 2072

Introduction of HLCIT

High Level Commission for Information Technology (HLCIT) is an apex body formed under the chairmanship of Rt. Hon. Prime Minister of Nepal with a view to providing crucial strategic direction and helping formulate appropriate policy responses for the development of ICT sector in the country as well as harnessing these technologies to meet key developmental challenges including governance reform and catalyzing economic growth for poverty reduction. The government of Nepal strongly believes that its efforts in macro economic and governance reform arena stand to benefit immensely from proper harnessing of recent advances in the technological domain notably, Information and Communication Technologies (ICTs). The fact remains however that the technologies on their own devoid of enabling institutional, policy, and regulatory environment will fall short of producing intended developmental outcomes. This clearly defines the context within which National IT Policy and Strategy of the Government of Nepal was announced in the year 2000. These policy provisions lay down a comprehensive framework for the development of IT sector in the country. Among others, the policy envisages the creation of a number of high level institutional entities to provide a direction and leadership for the development of ICT sector in the country.

Functions and Duties of National Information Technology Center

To implement information communication technology related plans and policies.
To assist Nepal Government in all forms of computer related tasks.
To design and launch websites for all Government organizations, and assist in timely manner in maintaining and operating of the same
To administer the development of required coding and standards to engender uniformity in information technology, abide by the same and put it into operation.
To assist in research and development of information communication technology in the country.

Telecom History

A line between Kathmandu and the Indian border was opened in 1914
Major growth in telecom sector in Nepal has occurred after 1995 with World Bank Assistance.
An important milestone was reached in 1999 when tele-density reached one line per 100 inhabitants
Nepal’s pioneer telecommunication’s operator Nepal Telecom has made significant progress in the growth and development of the national public switched telecommunications network (PSTN) during Nepal’s Fifth Phase Telecom Project (1992 97).
Until few years back monopoly of state owned Nepal Telecom (NTC) in all types of telecom service
NTC also started providing GSM mobile service from May 1999
United Telecom Ltd. (UTL) is providing Wireless Local Loop based telecom service inside Kathmandu Valley and other few cities
Spice Nepal (P) Ltd. is providing cellular mobile telephone connections based on GSM from Mid September 2005 inside Kathmandu Valley and other major cities

History of Internet

The Internet was first introduced into Nepal in 1993 in a venture of the erstwhile Royal Nepal Academy of Science and Technology (RONAST) and Mercantile Office Systems (MOS).
Now almost all big cities have Internet facilities with local ISP

IT Policies

IT Policy of Nepal (2057/2067)
IT Policy of Nepal (2015)
NRB Guidelines
NRB IT Policies
Electronic Transaction Act

Basic Terms

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Basic Computer Terms and Definitions

Computer

A computer is a device that executes a program or programs.

CPU

The central processing unit or CPU, also known as the microprocessor or processor is the brain of the computer.

Operating System – Windows

The operating system (OS) is the software that communicates with the computer hardware. No software can be run on the computer without the operating system

Software – A program application

Software is a program application; which provides the computer with step-by-step instructions to perform a specific task. A computer cannot function without software.

Monitor

The computer monitor is computer screen or display unit. Types of monitors are CRTs (large & heavy) and flat screens (compact & light).

Desktop

Is the display on the monitor/screen.

Icon

An icon is a small, clickable picture that opens programs on a computer.

Mouse

Is a hand held device that helps you control the pointer on the desktop/screen.

Keyboard

Is the device used in typing in the words, numbers and to perform tasks. You can also use shortcuts using the keyboard to perform tasks quicker.

CD (Compact Disc) & USB Flash Drive

used for storage of computer files or for media

File

A file is a block of information includes word documents, pictures, music, etc. Each file is differentiated with the help of a unique file name.

Folder

The folder is a system that helps in organizing the files, programs and projects on the computer. It is similar to organizing files on a shelf in your cabinet.

Hard Drive

The hard drive is the device where the information is stored.

Hardware

Is the physical pieces of a computer; monitor, keyboard, mouse, printer, computer unit, scanner, etc.

Browser

The web browser is software that you use to access the internet/World Wide Web Microsoft’s Internet Explorer and Mozilla’s Firefox are 2 examples of the browsers.

Internet

The Internet is a worldwide network that helps connect millions of users around the world to share and exchange data, information, opinions, etc.

World Wide Web (WWW) also known as just the web

Is a service that is provided on the Internet for the users.

Peripherals

Peripherals are the input/output devices that are connected to the computer. The keyboard, mouse and printer are computer peripherals.

Networks

A network is a physical or logical construction that connects different computers together and helps them communicate.

Virus

A computer virus is a program that is designed to harm the computer. They are basically the same thing as human viruses.

Download or Downloading

A download is a file, program or document that is transferred from one computer to another.

Spam Mail & Scams

Spam mail is pretty much business or people sending advertisements of their get rich quick schemes or their products to try. They are designed to trick you into giving away your money or your personal details.

Surfing the internet

Jumping from page to page on the Web. Just as in “TV channel surfing,” where one clicks the remote to go from channel to channel.

Modem

A modem is something that is connected to a computer to connect it to the internet or other networks. This is typically in the form of a small box that you get from your provider.

Reboot

To restart your computer. To do a soft reboot to your computer. Go to Start Menu, and select either Shut Down or Restart. Or if that doesn’t work – press the Ctrl, Alt and Del buttons at the same time. A task window will appear, click Shut Down. The last resort, turn it off; hold in the power button until it shuts off, this is called a hard shut down.

Crash

A serious computer failure; the computer itself stops working or that a program aborts unexpectedly. A crash signifies either a hardware malfunction or a very serious software bug. If your computer crashes, it is usually not your fault.

Computer Basics Terminology

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

COMPUTER BASICS – TERMINOLOGY

Application– A computer program that does specific tasks such as word processing or spreadsheets.

Bit – Represents a binary digit which is the amount of information obtained by asking a ‘yes’ or ‘no’ question. This is also the smallest unit of information stored on a computer as a 0 or 1.

Blinking Cursor – This is a vertical blinking bar that locates the position on the screen where text can be inserted or deleted. This appears most frequently in text or dialog boxes.

Byte – Data is stored on a computer in Bytes. A byte is one character, which may be a number or letter. A byte is composed of 8 consecutive bits.
1,000 bytes = 1 kilobyte (K or KB)
1,000 KB = 1 megabyte (MB)
1,000 MB = 1 gigabyte (GB)
1,000 GB = 1 Terabyte (TB)

Cache - This is a type of memory and is similar to RAM. Cache is used by the computer to move data between the RAM and CPU.

CD-ROM – A removable disk that stores data. A CD-ROM can only be read. You cannot record (save) data onto one. You may however record (save) onto a CD-Rewritable disk. This is most often called a CD. A CD looks like a music CD, but contains data instead of music.

Computer – A collection of electronic parts that allow software programs to run that perform certain tasks. A computer can accept input, change data, store data and display data.

CPU – The CPU (central processing unit), is the brain of the computer. New Windows-based programs use a Pentium processor primarily.

Cursor – A synonym for the pointer, which is controlled by the mouse. The cursor may take different shapes.

DVD (Digital Versatile Disc) – Technology that store more information than a CD-ROM and can be written upon. The disk resembles a CD-ROM but has approximately seven times the storage capacity.

File – A collection of data with a name.

Flash Drive – This is a small portable hard drive that plugs into a USB port and allows you to transport files between different computers. Also called a thumb drive.

Graphical User Interface (GUI) - A program that helps you more easily work with you operating system and application programs by providing pictures and visual clues to help you work. Windows is the GUI on PCs.

Hand Pointer – The cursor changes into a pointing hand when it passes over a hypertext link. This allows connecting directly to the link.

Hard Drive – The place where programs and files are stored in a computer. Also called the Hard Disc. On PCs this is often the c:// drive.

Hard Disc Space – The amount of permanent storage of data measured in bytes. This storage exists whether the computer is on or off.

Hardware – The physical components of the computer. They usually include the; monitor, printer, mouse, keyboard and modem.

Hourglass – This is the symbol that indicates the computer is working to retrieve or send data or locate a webpage.

Hypertext Link – These links are clicked on as text, images or files that open another web page.

Text Hyperlinks are often a different color than the words around them.

I Beam – As the cursor moves over text, the pointer will change into an ‘I.’ This facilitates word processing and copying text. See Blinking Cursor.

I or │

Keyboard – Similar in part to a typewriter keyboard, this is used to key (type) in commands, text and data.

Memory (RAM) – The amount of temporary storage that you can use at one time. Memory stores ends when the computer is shut down. This is the reason that you save work before turning off the computer. Data is saved from RAM to the computer or onto a storage unit, such as a CD.

Modem – This is a way to transfer data through a telephone or cable line generally by the Internet. It may be internal or external. Some modems are used to fax or act as answering machines.

Monitor – Similar to a television screen, the monitor allows you to see the data on your computer.

Motherboard – The circuit board that functioning parts of the computer connect to is the motherboard. The CPU, RAM and cache all plug into the motherboard.

Mouse – A hand-operated device to control the cursor on the screen. The mouse for PCs has two buttons. The button is usually clicked once to select an item on the screen. Double-clicking the left button opens windows or programs.

Multitasking – This describes the ability to do more than one thing at a time. For computer use this means that you may have more than one program open at time in the memory, but only one program can actually be fully active. Inactive programs can be processing data or doing other tasks in the background.

Network – A group of two or more computers linked together.

NIC (Network Interface Card) – A card is put in the computer allowing connection to a network.

Operating System – Directs the computer how to operate. It acts as a mediator between the hardware and the application programs that are used for work. This allows access to computer files, loads application programs into memory and closes programs.

Peripheral – This describes anything that can be attached to the computer input ports, such as; the keyboard, printer, mouse, external modem, scanner or external hard drive.

Pointer – The cursor is a symbol that moves across the screen to identify location. The cursor appears as a pointer when it is moving across a page and not on text.

Port – Connection on the computer that allows input devices like monitors, disk drives, the mouse, or keyboards. Common ports are serial for connecting a modem or a mouse, USB for connecting a scanner, digital camera, Ethernet ports for connecting to a network, and audio in/out ports for connecting to headphones or a microphone.

RAM – See Memory

Resolution – The degree of sharpness, or clarity or what is seen on a computer screen. The resolution is measured by the number of dots (pixels) of color that are displayed across and down the screen. As resolution increases, the size of the characters and images gets smaller, but sharper.

Scanner – A peripheral device that can copy documents, pictures or photographs directly into the computer converting the images into digital files. Images may then be stored or manipulated (changed).

Software – These are the programs (applications) that allow the computer to operate or do certain tasks.

Sound Card – This device allows the computer to reproduce music, sounds and voices. The computer needs a sound card to hear the audio portion of web sites or often to play multimedia games.

Thumb Drive – See Flash Drive

USB Port – The Universal Serial Bus is accessed through small rectangular port on the front or back of computer that allows peripheral devices such as digital cameras and external hard drives to connect to the computer. See Ports for other types of connections.

Video Card – This allows images to be sent to the monitor.

Core Banking System

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction
A core banking system is the software used to support a bank’s most common transactions. Elements of core banking include: Making and servicing loans. Opening new accounts. Processing cash deposits and withdrawals.

Core Banking Software
Banking and financial sectors all around the world have embraced ICT to facilitate their customers with efficient services and innovative products through multichannel. The central engine that runs the core operations of the banking and financial institution is the Core Banking Software (CBS).

Overview

The CBS evolved in the 1970s and has gone through different significant changes over time; the recent CBS has the capacity of real time processing and multi channel integration (Kreća & Barać, 2015). The fundamental function of CBS is to perform deposit and lending in a bank (Chairlone, 2009). Abbate (1999) defined a core banking system as “a back end system that processes daily banking transactions, and posts updates to accounts and other financial records.”

Level of Core Banking Software

CORE BANKING

Sum total of all information technology components that enable a bank to manage its core business activities in a centralized model
Round the clock processing of all the products, services and information of a bank.
24/’7/365 Model

Basic Components

Banking Application Software
Hardware Components
Network Infrastructure
Centralized Data Processing

Application Areas

Balance of payments and withdrawal are done.
Mobile banking
Internet banking
ATM’s
Recording of transactions
Passbook maintenance
Interest calculations on loans and deposits
Customer records

Need of CBS

To meet the regulations.
To meet the changing market dynamics
To meet the demands of customers
To enhance efficiency and effectiveness
To provide better and fast service
To increase the value of bank on the market
To increase customer satisfaction
To increase profit

Challenges and Barrier
1.Cost

Software
Technology
Training
Implementation

2.Change Accept

Challenges of CBS Implementation

Functionality (Capability of software to meet requirements and expectations)
Reaching unanimity within the organization on what is needed
Cost and Financial Terms
Ability of the business to adjust to the new system
Availability of skilled personnel
Vendor capabilities and credentials
System Flexibility
Data migration
User-friendliness of User Interface

Managerial Implications
The managers need to consider all three sources of challenges while choosing, implementing, and upgrading CBS. In the case of software, the most challenging part is CBS’ user interface and user-friendliness. If the user interface is complex and non-user friendly, it may result in poor performance of the users and virtually of the CBS. The second essential factor is the CBS’ functionality; whether it is meeting all the needs of the bank it promised to meet. The most important vendor related challenge is vendor capability and credential. As most of the Banks use the foreign CBS, which is very complex. Vendor support is essential to fix bugs, training, and maintenance. In the case of management related challenges, the managers always need to look for skilled personnel, who knows and can run the CBS.

List of CBS Applications

Infosys Finacle
Oracle Financial Services Software by Oracle Corporation
Fiserv Banking Solutions
Canopus EpaySuite by Canopus Innovative Technologies
Fidelity National Information Services (FIS)

Some Questions

What is Core Banking System (CBS)? What are the components of CBS?
What is the use of CBS in bank?
What do you mean by CBS? What are the components of CBS? What are the challenges to implement CBS in the context of Nepalese banking sector?

ICT in Bank Sectors

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction to Computer Technology
Computer is an electronic machine operating under the control of instructions stored in its memory unit that can:

accept data (inputs)
process data arithmetically and logically
produce results (outputs)

IT and ICT in Banking

Usage of IT and ICT in Bank

Types of Computer
Computers are classified on the basis of work, on the basis of size, on the basis of model and on the basis of brand.

Applications of Computer

Banking and Financial Institutions (BFI)
Education
Industries
Research
Hospital
Data Processing
Science and Engineering
Offices
Advertisement
Communications
Library
Simulation
Weather Forecasting
Hotel Management
Airline Corporation

Computers in Banking

Introduction to ICT

Bank

Banking and Finance

Some Questions

What is Computer? What are the different types of Computer?
What is the use of computer or ICT in Banking industry ?
Define the term Computer. What types of Computer are used in modern banking system?

Information Security

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

5 Challenges of Internet of Things ( IOT )

Security
Privacy
Standards
Regulation
Development

Security Threats in Bank

Mobile Banking Risks
Social Networks and Web 2.0
Malware, Botnets and DDoS Attacks
Phishing
ACH Fraud: Corporate Account Takeover
Cloud Computing
Inside Attacks
First-Party Fraud
Skimming

Information Security
Information Security refers to the processes and methodologies which are designed and implemented to protect print, electronic, or any other form of confidential, private and sensitive information or data from unauthorized access, use, misuse, disclosure, destruction, modification, or disruption.

Techniques

Encryption
Authentication
Firewall
Other Security

Encryption

Encryption is the conversion of electronic data into another form, called cypher text , which cannot be easily understood by anyone except authorized parties.

Authentication
The process or action of proving or showing something to be true, genuine, or valid .

Types:

User Authentication
Machine Authentication

Firewall

A firewall is a network security system, either hardware or software based, that uses rules to control incoming and outgoing network traffic.

Data Center Security Design

Data Centers

Some Questions

What is Information Security? What are the techniques of Information Security?
Why it is required to maintain multilevel security in bank?