This ia a defination CUSTODIAN: FACILITATOR: LENDER: INFORMATION ASYMMETRY: ASSET PRODUCTS: LIABILITY PRODUCTS:

1. ASSIGNMENT NO: 1
CUSTODIAN:
A custodian bank is an exceptional sort of money related organization which, as the name
recommends, is in charge of securing and saving the benefits of people or firms. As these banks
are occupied with various kind of keeping the money, they are not quite the same as customary
business banks.
The parts of Custodian Banks are as per the following:
 Collecting the about profits being paid out on a stock property or coupon installments or
intrigue installments on bonds.
 Providing the data with respect to the securities being offered and the backers of such
securities, for example, when are their general gatherings being held?
 Conducting remote trade exchange operations.
 Safekeeping of benefits and securities, for example, bonds, stocks or remote coinage.
 Arranging the settlement of procurement and offers of securities and currencies.
FACILITATOR:
A facilitator in business implies somebody who gives a structure and gives benefits in basic
leadership. The part of a facilitator is to control through the procedure yet not lead. Normally
the pioneer is the person who solicits the administrations from the facilitator.
A business bank is a facilitator. In a creating nation, these banks assume a vital part as there are
various hindrances, for example, transportation means are not completely created, industry is
developing at a slow rate, and individuals don't have the activity to begin a business and so on.
Miniaturized scale fund banks are additionally facilitators to independent companies and
business visionaries. Their administrations depend on relationship based keeping money
models and gathering based saving money models. The parts of facilitators are as per the
following:
 To gather and sort out reserve funds for capital arrangement.
 As Pakistan is a rural nation, it is critical for this industry to get suitable financing.
 Financing the businesses which require the capital.
LENDER:

2. In saving money part loaning is a term use in which the bank organize credit offices for their
clients and hope to pay enthusiasm on the sum which client acquired.
In Role of lender Bank there a fun-based loan, non- fund based loan and assets based loan,
whenever in fund based loan there is real outflow of money like short term loans, long term
loans, and revolving credits, in non-fund based loan there are a contingent liabilities like letter
of credit, bank guarantee and in asset-based lending there’s an earning capacity of asset like
project finance.
INFORMATION ASYMMETRY:
The investigation of choices in the exchange where on gathering has progressively or better
data then the other is called data asymmetry. It makes irregularity of force in exchanges, which
can once in a while cause the exchanges to go amiss, a sort of market disappointment in the
most pessimistic scenario.
Role of Information Asymmetry in Banks:
In banks where data is mind boggling and hard to get in those regions, data asymmetries are
have a tendency to be high. To keep mishandle of client or customer by masters, budgetary
markets frequently depend on their notoriety system.
Banks that end up being the most genuine and powerful operators of their customers' benefits
tend to pick up customers, while untrustworthy or ineffectual specialists have a tendency to
lose customers or face lawful harms. The minute when data asymmetry in the credit advertise
turns out to be clearer and its belongings more essential, are in those circumstances in which
banks are less mindful then their borrowers of the dangers accepted in financing a venture.
ASSET PRODUCTS:
Asset products are those products which will provide the owner of that asset with a future
value or benefit. They have a certain economic value and the goal of the company or
organization is to use these assets to increase the value of the company. There are many assets
products few of them are given below:
 Housing loans:
These form a majority of the asset portfolio for a retail bank. To give as to increase funding to
the one who desires to construct a house. The amount extended depends on the expenditure
involved and the repaying capacity of the customer .The repayment period is long-term in
nature.

3.  Personal loans:
This loan is given to customers to help those meet personal expenses like marriage, travel etc. It
depends on the customer’s ability to repay and his credibility. Personal loans give to salaries
employees and self-employed people.
 Property and mortgage loans:
The most common type of loan is extended by the banks. Under this, property assets like land,
buildings, vehicles, and gold etc are mortgaged. Interest rates fixed on the prevailing bank
rates.
 Vehicle loans:
Give credits to purchase for individual vehicles and business vehicles. Regularly financed are up
to 85-90% in the total receipt whole. Repayment is made through thought about frequently
booked installments.
 Agriculture loans:
In agriculture loan, it includes crop loans, farm equipment loans against warehouse receipts.
Provide loans for horticulture activities, poultry, and dairy, rearing of goat and sheep etc.
LIABILITY PRODUCTS:
Commercial banks offer a variety of "liability products" to consumers. These products are
known as "liability products" because they represent liabilities of the bank. Consumers
generally know them as "deposit" products because liability products include checking and
savings accounts, money market accounts and certificates of deposit. They also give consumers
access to cash via checks and ATMs, and except for most checking accounts and allow
consumers to earn interest on their deposits.
 Savings accounts:
The savings account has been intended to individuals put something aside for their future
budgetary necessities. Under this record, the bank gives free ATM cum plastic. The rate of
intrigue is intensified half yearly under this record. Then again, funds in addition to record give
the office of bank account alongside term store account. Any surplus supports in the record
surpassing as far as possible, for a base measure of Rs.10, 000 and in different of Rs.1000 in any
one example, is exchanged as term store and wins enthusiasm as pertinent to term stores.
 Current accounts:
 Non interest-bearing bank account which allows the account holder to write checks
against the funds in the account.

4.  Individuals, public and private limited companies, partnership firms, and trusts.
 Overdraft facility is a short-term credit instrument to secure the liquidity you need
for your operational business @1.5% p.a.
 Fixed deposits/ Term deposits:
 Higher financial gain on surplus funds.
 Bank offers flexibility in an amount from fifteen days to ten years.
 Against your fastened deposit you will take loan/overdraft thought your pressing
monetary demand.
 It will be opened with a nominal quantity of Rs. 1000.
 Recurring deposits:
 To allows the customer to save small amounts of money with bank every month.
 Aimed at people with high expenditure in a month.
 Modest interest paid for the amount saved, quarterly, half yearly or annually.