tag:blogger.com,1999:blog-81965177380279916792024-08-29T06:02:11.375+05:00Banking laws and practicesFazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-8196517738027991679.post-11034883354091786482009-11-12T13:02:00.001+05:002009-11-12T13:04:23.783+05:00Financial Institutions: (Global Perspective)Financial institutions are also called Financial Intermediaries, these include the following: Commercial Banks Credit Unions Savings and Loan Associations Mutual Saving Banks Mutual Funds Finance Companies Pension Funds etc.  The role of Financial Institution is to act as Financial Intermediary or to provide function of Financial Intermediation, role of go-between for savers and borrowersFazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-64194130460584866672009-11-12T12:32:00.000+05:002009-11-12T12:32:55.850+05:00Types of Financial MarketsTypes of Financial Markets Financial markets are divided as under: 1. Foreign exchange market. 2. Stock market. 3. Bond market. Financial markets are one arena in which savers’ surpluses are transferred to borrowers. Savers can buy stocks and Bonds and Business borrowers can obtain funds by issuing stocks and BondsFazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-62034239986652210582009-11-12T12:30:00.000+05:002009-11-12T12:30:55.895+05:00Functions of Financial Markets and Financial IntermediariesThe function is explained through the following figure:  Those who have saved and lending funds, the Lender Savers are at the left side & those who must borrow funds to finance their spending, the Borrower-Spenders are at the right. The arrows show that Funds flow from lender savers to Borrower – spenders via two routes i.e.; through financial markets (Direct Finance) and through Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-9639039650370950982009-11-12T12:25:00.000+05:002009-11-12T12:25:31.036+05:00Types of FinanceThe financial system brings together savers and borrowers in following two ways. Direct Finance In direct finance, individual savers through financial markets hold the claims issued by individual borrowers. Indirect Finance In indirect finance individual savers through financial intermediaries hold claims over the portfolio of assets of the borrowers. Financial markets provide play field Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-22729153134508402252009-11-12T12:23:00.000+05:002009-11-12T12:23:03.192+05:00Purpose of the financial systemPurpose of the financial system        Most of us at one time or another may need more funds than you have on hand for one purpose or another. At the same time, others spend Jess than their incomes. Those who have surplus funds may be willing to let someone else use their savings if they are compensated for doing so.        The Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-57869743394106672212009-11-12T12:21:00.000+05:002009-11-12T12:21:10.522+05:00FINANCIAL SYSTEM & BANKINGFinancial System Complete and complex ever changing set of rules, regulations, procedures, practices policies, conducts; role of institutions (financial institution), Governments, Policy makers and central bank taken together may be called financial system. The financial system does have its impacts on individuals, businesses, corporations and governments alike. At times in your life, you will Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-36635425771548819452009-10-31T13:46:00.001+06:002009-10-31T13:49:12.879+06:00Sources of law:Sources of law According to Salmond, following are the main sources: - Formal sources - Material sources Formal Sources Formal sources are comprised of statutes and decision of the courts. Material sources Material sources are comprised of legal sources and historical sources. Legal sources are comprised of the following: - Legislation - Precedent - Customs - Agreement The main instruments Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-81722276965269792802009-10-31T13:39:00.000+06:002009-10-31T13:39:02.688+06:00IllustrationsDivine law is imperative law on the following basis: (i) It is laid down by a superior authority (God); (ii) It is followed compulsorily; (iii) Its breach constitutes a sin and is punished with divine wrath. Civil law (the law of the land) is also a form of imperative law on the following basis; --The superior power is the sovereign --the compulsion is fear of punishment by the state. -Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-22994905274724791152009-10-31T13:35:00.000+06:002009-10-31T13:35:50.612+06:00Classification of LawClassification of Law: The law is classified into the following branches: Imperative Law - Physical or Scientific Law - Natural or Moral Law Imperative Law:- Imperative law is a general rule:       It is a rule of general application as distinguished from particular application. A rule which applies only to one individual or one set of circumstances at a given time Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-13857508772943537032009-10-31T13:15:00.000+06:002009-10-31T13:15:41.547+06:00Concepts of LawConcepts of Law: Some of the definitions/concepts from the writings of eminent jurists are given below: According to Blackstone:-- “Law signifies a rule of action, and is applied indiscriminately to all kinds of action”. According to Holland:-- “Law refers to a general rule of action, taking cognizance only of external acts enforced by a determinate authority, which authority is human, and Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-59355397956513933572009-10-31T13:12:00.000+06:002009-10-31T13:12:35.629+06:00JurisprudenceJurisprudence: For understanding law, we must have preliminary understanding of jurisprudence. The legal experts term civil law as science of jurisprudence. Some concepts of jurisprudence are given below: “Jurisprudence means the knowledge of law, or knowledge of just and unjust” It deals with laws that are enforceable by the courts. Kinds of Jurisprudence: The jurisprudence has been Fazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0tag:blogger.com,1999:blog-8196517738027991679.post-89140663845120053852009-10-31T13:06:00.000+06:002009-10-31T13:06:53.480+06:00LEGAL SYSTEM OF PAKISTANWe know that every body around talks about law according to one’s own perception. Before studying the statutory provisions of law, interpretation and significance of law, it is important to know what law is all about. Law in general sense is defined as under: “The law consists of rules that regulate the conduct of individuals, businesses, and other organizations within society” Significance ofFazal Maboodhttp://www.blogger.com/profile/09709460117724208263noreply@blogger.com0