Banking
Bank accounts, loans, deposits and payments
Lessons: from zero to confident
Topics in order: start with the first lesson and read them one by one. 2 lessons
1Lesson 1 What is a bank: from the money changer's table to the mobile app, and the broken bench in the word «bankrot» (bankrupt)The first lesson of the course: what a bank is in plain words and how it earns money, which Italian word the word «bank» comes from, how it is connected with the word «bankrot» (bankrupt), and where banking services turn up in everyday life.Start →Where did it all begin?
Banking history: why did the first "bank" appear in a temple?
In an age without bank buildings, cash desks or contracts, where did people store their grain and whom did they borrow from? Let us get to know the temples of ancient Mesopotamia.
5 November 2026Banking history: how did the Medici Bank and the bill of exchange work?
In medieval Italy a merchant could transfer money to another city without a bag of gold. Using the Medici Bank as an example, we look at the bill of exchange and the network of branches in short key points.
5 November 2026Banking history: what did the Bank of Amsterdam (1609) and the Bank of England (1694) change?
Coins were a jumble, and the state was sunk in debt. How did two banks founded in the 17th century solve these problems and pave the way for the idea of a central bank?
5 November 2026Banking history: how did central banks and commercial banks become separate?
Why does every country have one central bank and many commercial banks? Let us see in short key points how the crises of the early 20th century shaped this structure.
5 November 2026Banking history: from the ATM to the mobile app
The first ATM worked with a paper voucher and gave out no more than 10 pounds. Today the bank is inside the phone. We trace the short road of digital banking in key points.
5 November 2026From a forgotten wallet to contactless payment: how did the plastic card come about?
A businessman who left his wallet behind at a restaurant, a single town in California, an ID badge for the CIA and a chip that appeared in France. The stages the bank card in our pocket went through, and the problem each stage solved.
6 November 2026Walter Bagehot and "Lombard Street": what should a central bank do during a panic?
In May 1866 a large London financial firm suspended payments and the City fell into panic. Seven years later the journalist and economist Walter Bagehot wrote a book about how a central bank should act at such a time. His rules are still at the centre of debate today.
7 November 2026The law on the Central Bank of Uzbekistan: what did the 1995 text and the new 2019 edition change?
The powers of the Central Bank are set by a law adopted in 1995 and its new edition approved in 2019. After the new edition the bank moved to an inflation targeting regime. Short key points, dates and an example of calculating the real interest rate.
9 November 2026Articles and briefs
All →Documentary collection: if an exporter sends the shipping documents through a bank, does the bank guarantee that it will be paid?
In a documentary collection the bank releases the documents to the buyer only against payment or acceptance of a bill of exchange, but it does not guarantee payment itself. Using one export deal, we compare advance payment, letter of credit, collection and open account by bank cost and expected loss.
11 November 2026The bank sells currency at one rate and buys it at another: what does an exchange really cost?
A firm bought 10 000 dollars, a week later the contract was cancelled and it sold the dollars back to the bank. The rate did not change, yet 1.5 million soums disappeared. How the gap between the selling and buying rates works, why the lowest rate is not always the cheapest, and what is fixed in the accounts and what is left to the accounting policy.
10 November 2026Why does a bank value your collateral below the market price, and how is the amount you can borrow calculated?
The market price of a warehouse, a truck and goods totals 1 150 million soum, but the bank counts them as 720 million and asks for 625 million of collateral for a 500 million loan. This is not unfair, it is protection against losses on a quick sale of the collateral. A full calculation with hypothetical coefficients, the difference between types of collateral and where collateral appears in the accounts.
9 November 2026Paying by letter of credit: how does the bank protect both sides, and how is it accounted for on account 5510?
The buyer says «goods first», the seller says «money first». A letter of credit settles this dispute through the bank: the money is placed in a separate account in advance, and the seller receives it only after presenting the documents. The mechanism, a partly used letter of credit and all the journal entries under NAS No. 21, on the example of a tile sale.
8 November 2026Overdraft or an ordinary short-term loan: which is cheaper and how is it recorded in the accounts?
A bakery needs uneven amounts of cash for flour during the month. We compare the interest on a one-month loan and an overdraft by days, record the overdraft on accounts 6810, 9610 and 6920 and show where it sits on the balance sheet.
7 November 2026How much does a one-off fee increase the real cost of a loan?
A 24 percent loan can turn out more expensive than a 25 percent one if a fee is deducted from it up front. The rule for calculating the real cost, a comparison of two banks' offers and the journal entries.
6 November 2026How does a bank calculate whether you can repay a loan before granting it?
There is collateral and there is profit, yet the bank suggested extending the loan term. Why? Using a furniture workshop as an example, we calculate how many times cash flow covers debt payments and check it ourselves.
5 November 2026If spare cash is placed on a bank deposit, how is it recorded in the accounts?
Money sitting idle in the settlement account was placed on deposit. Which account does it sit in now, and when does interest become income? Accounts 5890, 4830 and 9530, using a carpet factory as an example.
5 November 2026