8. Translate the text into English

Согласно правилам ЕС, отношение капитала к активам не должно быть менее установленного минимума в 8%. Вопрос о том, смогут ли банки на континенте, а именно в Германии и Франции, следовать этому принципу, остается открытым.

В январе 2001 года Базельский комитет по банковскому надзору выдвинул несколько усовершенствованных предложений, которые способны перевернуть всю систему надзора за крупнейшими банками.

В настоящее время банки разрабатывают методы оценки операционного риска.

Существуют опасения, что подготовка проекта директивы займет много времени и замедлит работу по составлению документов в рамках соглашения «Базель - 2».

9. Explain the meaning of the following statements:

A threatened charge for operational risk, based on the amount of funds under management, might be out of proportion to the risks many firms actually run. By writing half-formed rules on capital adequacy into law, Europe is putting the cart before the horse.

10. Work as one group. Dwell upon eurocrats' position in regard to the Basle-2 framework Text 3 Does Euro Prove Top Currency?

Pre-reading tasks

1. Suggest a purpose for reading the text.

2. What do you think the text can be about?

3. What is your opinion of the euro?

The Euro proved the most popular currency in the international bond markets. Economists attribute the euro's success on the debt markets to the growth of liquid capital markets in Europe.

"The US dollar has punched well above its weight in the financial markets over the last 30 years because it had no competitor," said David Knott, head of fixed-income research at Deutsche Bank. "But now borrowers can choose between two markets."

Many analysts dismissed the euro's popularity in early 2010. They said volumes had been artificially lifted by the fact that many European companies wanted to establish a benchmark in the euro for public relations purposes.

However, the volume of bonds launched by US companies in euros has outweighed those issued by European companies during the year. This is in part because interest rates in the euro-zone are much lower (at 3 per cent) than in the US (5.5 per cent), meaning that US companies can borrow at cheaper rates in euros.

"There is a connection between the weakness of the euro and its popularity among borrowers - namely, low interest rates," said head of global research at State Street Bank. "The euro’s weakness against the dollar may also have been helped by the fact that US borrowers will swap the proceeds of their bond issues by selling euros for dollars."

Bankers say the trend, which has been boosted by the decision of European investors to diversify away from domestic government bond markets since their domestic currencies were abolished, will continue during the next 12 months. In particular, non-European central banks are expected to step up their purchase of euro-denominated securities to rebalance foreign exchange reserves away from the US dollar.

US interest rates are likely to continue to rise during the next few months, according to most forecasts. This would increase borrowing costs for US companies, many of which would attempt to reduce costs by the euro.

"Borrowers around the world now have two markets to choose from and they will generally decide on the basis of cost," a banker said.