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ABOUT KNOWING ABOUT THE WORLD BANK

India remains the Bank’s largest single borrower. Our lending to the country touched an all time high of $3.7 billion in 2006-2007 - more than double the amount lent a year earlier. The bulk of new lending has gone to much-needed infrastructure and human development projects, reflecting the rapid growth of India’s economy. In June 2007, our assistance was spread over sixty seven projects across the country.

ABOUT THE WORLD BANK

Money in the Bank

With all the different options banks now offer, setting up a bank account can be a confusing thing. But if you want to protect your money it’s important to keep it in a bank so it won’t be stolen. Having a bank account also helps you save money and avoid carrying all your money around with you all the time. You can even make a little money by keeping your money in the bank! Here are some questions you might have about banking and some tips to make the process a little easier.What are the different kinds of bank accounts? A savings account is an account that allows you to store your money and gain interest on it. Interest means that the bank pays you to keep your money in their bank.

Another kind of savings account is a high-interest savings account. This kind of account gives you a higher rate of interest. However, it requires you to have a higher minimum balance, which means you have to have more money in your account at all times.
A checking account is different from a savings account because it doesn’t pay interest on your money. If you have a checking account, you can withdraw money from an ATM (see below for how to use an ATM). You can also write checks.
You can also link your savings and checking accounts. To do this, you open a checking account and a savings account and link them together. This way, you can keep most of your money in your savings account where it will gain interest. Then you can keep the money you need for everyday spending in your checking account so you have access to it. You can always transfer money from your savings to your checking account, but keep in mind that there is often a fee to do so.
You also have the option of setting up a joint account. This is what married couples usually do. It means that you both have equal access to the money in the account.
How do I know which kind of account I want?A savings account is the best option if you’re saving money for something long-term because of the interest the bank pays you for having this kind of account. The more money you have in your account, the more interest they pay you. This makes a savings account a good option if you’re planning to leave the money in the bank for a long time because the longer it stays there, the more money will accumulate.
If you want to use the money in the bank for day-to-day purchases, you should get a checking account. This is more convenient than a savings account because of the access it gives you to ATMs and checks. However, make sure that you’re careful about writing checks. Whenever you write one, make sure you have enough money in your account. If there isn’t, the check will bounce. This means that the bank will be notified and will charge you a large fee. You also will be penalized at the store where you wrote your bounced check.
A joint account is only a good idea if you’re in a stable marriage, because both people have access to all the money in the account. It’s a smart thing for a married couple to have in case there is an emergency or one person dies because then the other person doesn’t have to worry about access to money.
How do I open a Bank Account?First, decide whether you want to open a checking account or a savings account. Then pick a bank. If you’re opening a checking account, make sure that the bank you choose has ATM locations near you. If you’re opening a savings account, find out what interest rate the bank offers. No matter which type of account you’re opening, you should compare the fees each bank charges to transfer money between accounts, use ATMs, or just to keep your money in the bank. You should also make sure that your bank is FDIC insured. This means that any money you deposit is insured up to $100,000.
Once you have chosen a bank, go to their location near you and fill out the forms to open an account. You’ll also need to give them money to put in the account. Some banks require a minimum amount of money to do this. Make sure you have enough money before you go to the bank.
Don’t forget to bring identification with you. You’ll need proof that you’re over 18 years old. You’ll also need to prove your address and identity. Most banks will ask for a driver’s license or Social Security number, but if you don’t have those things usually a passport will do.
How does an ATM work?ATM stands for Automatic Teller Machine, because it does the same job as a bank teller. If you have a checking account, you can use an ATM instead of going into the bank and working with the teller. This can be a much quicker and more convenient way to do your banking.
Using an ATM is simple. All you need is your ATM card, which the bank will give you when you set up your account. They’ll also tell you to choose a 4-digit PIN (personal identification number). This should be a number that has some meaning to you so that you won’t forget it. It’s important that you remember your pin number because you need it to use the ATM. Never give your pin number to anyone! Your pin number is a direct link to the money in your bank account. Therefore whoever knows your pin can empty your bank account very easily. For security reasons, you never even write down your pin number unless you are planning on shredding the document.
Using an ATM you can check your balance, or how much money you have in your account. You can also use it to deposit or withdraw money. To deposit money, insert your card into the machine and type in your PIN when it asks you to. Then select “deposit” and insert your money into the machine. Some ATMs require you to put your money in a deposit envelope before inserting it into the machine. Others allow you to put the money directly into the machine.
To withdraw money, insert your card and type in your PIN when it asks you to. Then select “withdrawal” and select how much money you want to take out. When you’re finished, don’t forget to take your card, your receipt, and your cash.
*Lots of banks charge you a fee if you use another banks ATM to deposit or withdraw money. When you’re choosing a bank, make sure you pick one with ATM locations near you. This way, you don’t have to pay this fee.
WARNING: ATMs are common sites of robbery. Always be aware of your surroundings when using an ATM. Immediately put any withdrawn or deposited money in a secure place, and make sure no one is following you after you use the ATM. There is often a painted line that people must stand behind while others are using the ATM. However, you should still take great caution to conceal your pin number and the amount of money you are taking out.









For more tips on how to protect your money, check out this website: http://www.banksite.com/index1.html**This article is for informational purposes only. It does not constitute legal advice, and readers or visitors are encouraged to seek the counsel of an attorney to directly address their concerns.
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Federal Regulatory Agencies

A bank's primary federal regulator could be the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of the Comptroller of the Currency, or the Office of Thrift Supervision. And within the Federal Reserve Board, there are 12 districts centered around 12 regional Federal Reserve Banks, each of which carries out the Federal Reserve Board's bank regulatory responsibilities in its respective district. Credit Unions in the United States are subject to certain similar bank-like regulations and are supervised by the National Credit Union Administration.
State Regulatory Agencies
State-chartered banks are also subject to the regulation and supervision of the state regulatory agency of the state in which they were chartered. State regulation of state-chartered banks applies in addition to federal regulation. For example, a California state bank that is not a member of the Federal Reserve System would be regulated by both the California Department of Financial Institutions and the FDIC. Likewise, a Nevada state bank that is a member of the Federal Reserve System would be jointly regulated by the Nevada Division of Financial Institutions and the Federal Reserve.
Federal Laws and Regulations
This portion of the article focuses on federal banking laws and regulations. State banking laws also apply to state-chartered banks and certain nonbank affiliates of federally-chartered banks.
Bank Secrecy Act
The Bank Secrecy Act (or BSA) requires financial institutions to assist government agencies to detect and prevent money laundering. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities.
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (or FCRA) regulates the collection, sharing, and use of customer credit information. The act allows consumers to obtain a copy of their credit report records from Credit bureaus that hold information on them, provides for consumers to dispute negative information held, and sets time limits after which negative information is suppressed. It requires that consumers be informed when negative information is added to their credit records, and when adverse action is taken based on a credit report.
Lending Limits
Lending limit regulations restrict the total amount of loans and credits that a bank may extend to a single borrower. This restriction is usually stated as a percentage of the bank's capital or assets. For example, a national bank generally must limit its total outstanding loans and credits to any single borrower to no more than 15% of the bank's total capital and surplus. [4] Some state banking regulations also contain similar lending limits applicable to state-chartered banks. [5] Both federal and state laws generally allow for a higher lending limit, up to 25% of capital and surplus for national banks, when the portion of the credit that exceed the initial lending limit is fully secured.

Financial reporting and disclosure requirements

Banks may be required to:
1. Prepare annual financial statements according to a financial reporting standard, have them audited, and to register or publish them
2. Prepare more frequent financial disclosures, e.g. Quarterly Disclosure Statements
3. Have directors of the bank attest to the accuracy of such financial disclosures
4. Prepare and have registered prospectuses detailing the terms of securities it issues (e.g. deposits), and the relevant facts that will enable investors to better assess the level and type of financial risks in investing in those securities.
Credit rating requirement
Banks may be required to obtain and maintain a current credit rating from an approved credit rating agency, and to disclose it to investors and prospective investors. Also, banks may be required to maintain a minimum credit rating.
Large exposures restrictions
Banks may be restricted from having imprudently large exposures to individual counterparties or groups of connected counterparties. This may be expressed as a proportion of the bank's assets or equity, and different limits may apply depending on the security held and/or the credit rating of the counterparty.
Related party exposure restrictions
Banks may be restricted from incurring exposures to related parties such as the bank's parent company or directors. Typically the restrictions may include:
Exposures to related parties must be in the normal course of business and on normal terms and conditions
Exposures to related parties must be in the best interests of the bank
Exposures to related parties must be not more than limited amounts or proportions of the bank's assets or equity.

Instruments and requirements of bank regulation

Capital requirement
The capital requirement sets a framework on how banks must handle their capital in relation to their assets. Internationally, the Bank for International Settlements' Basel Committee on Banking Supervision influences each country's capital requirements. In 1988, the Committee decided to introduce a capital measurement system commonly referred to as the Basel Capital Accords. The latest capital adequacy framework is commonly known as Basel II. This updated framework is intended to be more risk sensitive than the original one, but is also a lot more complex.
Reserve requirement
The reserve requirement sets the minimum reserves each bank must hold to demand deposits and banknotes. This type of regulation has lost the role it once had, as the emphasis has moved toward capital adequacy, and in many countries there is no minimum reserve ratio. The purpose of minimum reserve ratios is liquidity rather than safety. An example of a country with a contemporary minimum reserve ratio is Hong Kong, where banks are required to maintain 25% of their liabilities that are due on demand or within 1 month as qualifying liquefiable assets.
Reserve requirements have also been used in the past to control the stock of banknotes and/or bank deposits. Required reserves have at times been gold coin, central bank banknotes or deposits, and foreign currency.
Corporate governance
Corporate governance requirements are intended to encourage the bank to be well managed, and is an indirect way of achieving other objectives. Requirements may include:
1. To be a body corporate (i.e. not an individual, a partnership, trust or other unincorporated entity)
2. To be incorporated locally, and/or to be incorporated under as a particular type of body corporate, rather than being incorporated in a foreign jurisdiction.
3. To have a minimum number of directors
4. To have an organisational structure that includes various offices and officers, e.g. corporate secretary, treasurer/CFO, auditor, Asset Liability Management Committee, Privacy Officer etc. Also the officers for those offices may need to be approved persons, or from an approved class of persons.
5. To have a constitution or articles of association that is approved, or contains or does not contain particular clauses, e.g. clauses that enable directors to act other than in the best interests of the company (e.g. in the interests of a parent company) may not be allowed.

General principles of bank regulation

Banking regulations can vary widely across nations and jurisdictions. This section of the article describes general principles of bank regulation throughout the world.

Minimum requirements
Requirements are imposed on banks in order to promote the objectives of the regulator. The most important minimum requirement in banking regulation is maintaining minimum capital ratios.

Supervisory review

Objectives of bank regulation

The objectives of bank regulation, and the emphasis, varies between jurisdiction. The most common objectives are:
1. Prudential -- to reduce the level of risk bank creditors are exposed to (i.e. to protect depositors)
2. Systemic risk reduction -- to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures
3. Avoid misuse of banks -- to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of crime
4. To protect banking confidentiality
5. Credit allocation -- to direct credit to favored sectors