Industry Structure
Generally, a bank is divided into different divisions or departments based on their respective functions and business nature. The degree of division of work may vary according to the scale of the bank. A larger bank will usually have a higher degree of division of work. To have an overall picture of a bankˇ¦s operation, we must first understand the function of each department. The most common departments are:
Sales/ Customer Services Department
- Promote the bankˇ¦s business
- Sell various products and services to customers
- Handle customers' enquiries
Loans/ Credit Department
- Provide loans, credit and overdraft facilities to customers
- Assess applications for loan
- Confirm the debtors' legal rights to the property charged
- Determine the method and period of repayment
Bills Department
- Provide service on the finance of imports and exports (with or without letters of credits)
- Provide services on collections, incoming and outgoing payments, foreign exchanges, indemnities of letters of credit and acceptances in support of trade financing transactions
- Handle import/ export documents
Remittance Department
- Provide foreign exchange services
- Process foreign currency deposits and withdrawal transactions
- Process money transfers to and from foreign countries and travellersˇ¦ cheques, etc.
Personal Finance Department
- Provide comprehensive personal banking and assets management services to the upper end of the retail banking market
- Assess market risks and make recommendations on investment decisions and financial management
Credit Card Centre
- Devise and implement promotion programmes in order to expand the credit card market
- Assess and determine the credit limit for each account
- Provide 24-hour customer services to card holders
Information Technology Department
- Take charge of the development and application of information technology and communication systems
Other departments and services
- In addition to the aforesaid services and departments, banks also have Personnel Department, Accounting and Administration Department etc. Further, some banks provide services on securities and stocks trade, mortgage loan and syndication loan, etc.