Money and banking systems

In recent years, major phenomena such as the digital revolution, the COVID-19 pandemic, wars, and political turmoil have significantly affected people’s lives, economies, and financial markets. Modern technologies and product innovations have transformed banking and banking systems.

Traditional banks remain crucial as financial institutions and entities of public trust. However, new players like digital banks, FinTech, and BigTech present challenges and risks. Money and payment methods are evolving, with central bank digital currencies emerging as potential substitutes for cash, while cashless payments and digital wallets grow increasingly popular. These developments call for an update of existing knowledge.

This book serves as a comprehensive guide to these changes. It is divided into three parts: the first focuses on money and monetary systems, the second on banks and their functioning, and the third on selected banking systems. Each section contains illustrations, data, practical examples, and links to external resources, enhancing the book’s scope and significance.

Designed for students studying banking, finance, or economics at various levels, this book is also a valuable resource for academic teachers seeking clear, non-technical explanations of money and banking systems.

List of abbreviations and acronyms
Introduction (Katarzyna Schmidt-Jessa, Anna Iwańczuk-Kaliska, Anna Warchlewska)
Chapter 1. Money and monetary systems (Paweł Marszałek)
1.1. Concept, characteristics and functions of money
1.2. Evolution of money and the development of monetary systems
1.3. Definition and types of monetary systems
1.4. Mechanism of money creation
Chapter 2. Exchange rates: selected problems (Paweł Marszałek, Katarzyna Schmidt-Jessa)
2.1. Definition, functions and dimensions of exchange rates
2.2. Exchange rate systems: types, determinants, features
2.3. Exchange rates and their measurement
2.4. The foreign exchange market
2.5. Exchange rate risk and risk management
Chapter 3. Central bank and monetary policy (Katarzyna Schmidt-Jessa, Filip Kliber)
3.1. History of central banking
3.2. Functions of central banks
3.3. Strategies and goals of central banks
3.4. Monetary policy tools
3.5. Transmission mechanism of monetary policy
Chapter 4. International aspects of money and banking (Paweł Marszałek, Dawid Banaś)
4.1. Globalisation and internationalisation of banks
4.2. Internationalisation of banks
4.3. International payment infrastructure
4.4. International financial institutions
Table of contents
Chapter 5. The banking system as a part of the financial system (Anna Warchlewska)
5.1. Financial system models
5.2. The role of the banking system
5.3. The role of banks in the economy
5.4. The digital revolution and the new banking environment
Chapter 6. Regulation, supervision and crisis management in banking (Anna Iwańczuk-Kaliska)
6.1. Areas of banking regulation
6.2. The financial safety net
6.3. Bank recovery and resolution
6.4. Shadow banking
Chapter 7. Types of banks (Paweł Mikołajczak, Anna Warchlewska)
7.1. Classification of banks
7.2. Global banks
7.3. From traditional to modern banking
7.4. Socially responsible banking
Chapter 8. Bank reporting and performance (Krzysztof Waliszewski)
8.1. Bank financial structure
8.2. International reporting (accounting) standards for banks
8.3. Bank balance sheet and income statement
8.4. Bank performance and financial ratio analysis
8.5.Non-financial reporting and corporate sustainability reporting of banks
Chapter 9. Financial and risk management in banks (Grzegorz Kotliński)
9.1. Banking activity in the context of financial and risk management
9.2. Asset and liability management (ALM)
9.3. Liquidity, reserves and capital adequacy requirements of banks
9.4. Banking risk
Chapter 10. Banking system in the United Kingdom (Anna Warchlewska)
10.1. History of the UK banking system
10.2. Structure of the UK banking system
Table of contents
10.3. Regulatory framework of the UK banking system
10.4. The UK banking system in numbers
Chapter 11. Banking system in the United States (Katarzyna Schmidt-Jessa)
11.1. History of the US banking system
11.2. Structure of the US banking system
11.3. Regulatory framework of the US banking system
11.4. The US banking system in numbers
Chapter 12. Banking in the European Union (Filip Kliber)
12.1. Monetary integration within the EU
12.2. General features of the Eurozone central banking system
12.3. The structure of banking systems outside the Eurozone
12.4. Regulatory framework of EU banking
12.5. EU banking in numbers
Chapter 13. Banking system in Japan (Katarzyna Schmidt-Jessa)
13.1. The history of the Japanese banking system
13.2. Structure of the Japanese banking system
13.3. Regulatory framework of the Japanese banking system
13.4. The Japanese banking system in numbers
Chapter 14. Banking systems in selected emerging markets (Anna Iwańczuk-Kaliska, Anna Warchlewska)
14.1. Banking system in India
14.2. Banking system in South Africa
14.3. Banking system in Brazil
14.4. Banking system in Mexico
14.5. Banking system in China
14.6. Banking system in Vietnam
Chapter 15. Islamic banking (Dawid Banaś)
15.1. A brief history of Islamic banking
15.2. Regulating Islamic banks
15.3. Basic financial products and services
15.4. Comparing Islamic and conventional banks
Table of contents
Chapter 16. Contemporary trends in banking (Anna Iwańczuk-Kaliska, Paweł Marszałek, Katarzyna Schmidt-Jessa)
16.1. The latest trends in banking
16.2. Recent trends in retail banking
16.3. Recent trends in corporate and investment banking
16.4. Recent trends in central banking
16.5. Challenges and opportunities for banks
References
List of tables  
List of figures