Lyubimtseva_S_N__Koreneva_V_N_L_93_Kurs_angli

lending interest rate ставка ссудного процента to collect cheques инкассировать чеки

bill п вексель dividends п дивиденды

overdraft facility услуги по овердрафту

discount	v учитывать (векселя)
letter of credit аккредитив
traveller's check дорожный чек
strong-room		facilities сейфовые помещения, хранилища
valuables п pl ценности
safe custody		(of securities) хранение (ценных бумаг) в сейфе
redeem	v выкупать, погашать, возвращать
retail banking			операции банков с широкой клиентурой
wholesale banking операции крупных банков между собой
merging	п слияние, объединение
investment banking инвестиционная деятельность банков
intermediation			п посредничество
underwriting		п андеррайтинг, поручительство
offshore	banking офшорная банковская деятельность
denominated adj деноминированный
transact	v заключать (сделки), вести (дела)
withdrawal п (зд.) снятие со счета
at short notice			с кратковременным уведомлением
percentage п процент; доля, выраженная в процентах
cash ratio норма кассовых резервов (отношение кассовых активов банка к депозитам)
guard v охранять, сохранять
credit policy кредитная политика
cautious	adj осторожный
liquidity	ratio коэффициент ликвидности (отношение ликвидных средств к сумме активов)
"near money"			«почти деньги», квазиденьги (активы, легко обращающиеся в наличность)
money at call			деньги до востребования
Treasury bill		казначейский вексель
В. substantial			adj значительный
profitability		п доходность, рентабельность
substantiate		v приводить доказательства, подтверждать
pre-tax profit прибыль до налогообложения
operating income доход от основной деятельности
net income чистый доход
interest income процентный доход
non-interest income доход, за исключением процентного дохода
progressively			adv постепенно, поступательно

prior adj предшествующий

loan portfolio портфель выданных банком займов specialist area сфера специализации

charity п благотворительность niche п ниша

focus v сосредоточивать (внимание, усилие) cooperative bank кооперативный банк

to bear fruit приносить плоды

commit (oneself) v брать на себя обязательство forefront п передовая линия, передний край credit/debit card кредитная/дебитовая карточка

ATM (automated teller machine ) банкомат

Armchair Banking Service система домашних банковских услуг branch network сеть филиалов

processing centre центр обработки (данных, документов)

to bank one's takings вносить деньги, выручку, поступления в банк a quick return быстрый оборот (возврат) денег

split v дробить, разбивать

operative division оперативное подразделение

treasury п (зд.) подразделение, занимающееся управлением свободными средствами servicing division функциональное подразделение

investment portfolio management управление инвестиционным портфелем foreign exchange deals операции с иностранной валютой

ensure v обеспечивать, гарантировать

money market рынок краткосрочных ссудно-заемных операций considerate adj внимательный, деликатный, тактичный redundancy n (зд.) сокращение, увольнение персонала unavoidable adj неизбежный

Euro service услуги с использованием евровалюты

EXERCISES

Ex. 1. Answer these questions:

A. 1. What services do banks offer?

2.What is the nature of banking? How do banks earn a living?

3.Do commercial banks play a very important role in an economy?

4.What are the more recent developments in banking?

5.What banking policy can guarantee stability?

B. 1. What can prove the substantial progress made by the bank?

2.What can the success of the bank be attributed to?

3.What does the bank specialise in?

4.Are customers' service requirements changing? What are they now?

5.How does the bank respond to these changes?

6.Why and how was the bank restructured?

7.What is the biggest challenge for the bank at the moment? Ex. 2. Give derivatives of:

definition n	advances	competition n	contracts
accept v	intermediary n	activity n	substantiate v
lend v	deposit n	collect v	progress n
borrow v	acquire v	commitment n	withdrawal n

Ex. 3. Find English equivalents for the following Russian phrases from the text:

А. по определению; принимать деньги на хранение; ссужать деньги; предоставлять ссуды;

финансовый посредник; депозитный счет; текущий счет; на различных условиях; удовлетворять потребности; приобретать опыт; оценивать перспективы; выступать в роли посредника; покрывать издержки; разница между процентными ставками; процентная ставка на заемный капитал; ставка ссудного процента; экономия, обусловленная ростом масштаба деятельности (производства);

испытывать воздействие чего-л.; принимать вклады, инкассировать и оплачивать чеки; учитывать векселя; открывать аккредитивы; выписывать дорожные чеки; предоставлять овердрафт;

осуществлять операции с иностранной валютой; предоставлять сейфовые услуги; по поручению клиента; хранить в сейфе; возмещать по полной стоимости; иметь резервы; операции банков с широкой клиентурой; операции крупных банков между собой; слияние банков; удовлетворять требованиям; снятие средств со счетов; с краткосрочным уведомлением; норма кассовых резервов;

коэффициент ликвидности; деньги до востребования; казначейские векселя;

В. значительный прогресс; доля ... на рынке; развивать инфраструктуру; подтверждать; прибыль до налогообложения; доход от основной деятельности; мелкие клиенты; ссуды и авансы клиентам;

улучшить качество портфеля выданных ссуд; профессиональный опыт; проводить политику;

приносить плоды; разрабатывать и вводить в практику новые услуги; соответствовать потребностям заказчиков; достигнуть цели; удобство ведения банковских операций по телефону; приводить к чему-л.; ценить личные контакты; расширять сеть; освобождать от рутинной работы; перестраивать работу; выручка; повышать безопасность; сделать структуру более гибкой; укрепить подразделения;

управление инвестиционным портфелем; свести увольнения в связи с сокращением штата до минимума; самая важная задача.

Ex. 4. Say in a few words what the main text is about. Use the opening phrases from Ex. 4 (Unit 1). Ex. 5. Sum up the contents of the main dialogue. Use the phrases from Ex. 5 (Unit 1).

Ex. 6. Read the dialogue below, translate the Russian remarks into English and act it out:

Foreigner. In my opinion, the main objective of your crisis-hit banks is to achieve financial recovery. How do they set about this task?

Russian: Многие наши банки действительно находятся сейчас в сложном положении. Число вкладчиков значительно сократилось. Люди не доверяют банкам. Кроме того, банки должны более серьезно относиться к проводимой ими кредитной политике.

F.: First of all, your banks should restore confidence of their clients by honouring their obligations. Then they must make their services more attractive to their clients.

R.: Что касается услуг, то наши банки, как правило, предлагают достаточно широкий круг услуг: они принимают средства во вклады, принимают и оплачивают чеки, осуществляют учет векселей,

открывают аккредитивы, предоставляют ссуды, предоставляют кредит по овердрафту, продают и оплачивают дорожные чеки, проводят операции с иностранной валютой, предоставляют сейфовые услуги, осуществляют операции с ценными бумагами, принимают на хранение ценные бумаги своих клиентов.

F.: In my country the customers' service requirements are changing. Increasing numbers of customers prefer the convenience of telephone banking. What about your country?

R.: Мне кажется, наши вкладчики более консервативны в этом отношении, хотя банкоматы и кредитные карточки также широко используются. Кроме того, многие банки также расширяют сеть своих филиалов, что позволяет им уделять больше внимания непосредственному обслуживанию клиентов и оказывать им различные консультации.

F.: It also seems to me that your banks must be more flexible, must pay more attention to the improvement of management.

R.: Полностью с вами согласен. Принимая во внимание усиление конкуренции в банковском бизнесе,

банки должны более активно заниматься управлением своих портфельных инвестиций, сделками с иностранной валютой, должны готовиться к введению единой европейской валюты евро, к

осуществлению операций с этой валютой.

F.: Yes, it's the biggest challenge for the world banking community.

Ex. 7. Work on vocabulary and grammar.

a)Study the key words of the unit in the dictionary at the back of this book: credit, loan, account, interest, bill, check, maturity, deposit;

b)Think of the verbs that are most commonly used with:

loan, bank, check, interest, bill, money, deposit, payment, service; c) Think of the nouns that are most commonly used with:

to pay, to charge, to improve, to increase, to offer, to achieve, to expand, to provide;

d)Make your own sentences with any five word combinations from (b) and (c).

e)Match the verbs from (a) with the nouns from (b) below:

a) to discount	b) needs
to accept	expertise
to provide	bill
to issue	travellers' cheques
to achieve	service
to pay	profit
to acquire	letter of credit
to withdraw	interest rate
to satisfy	deposits
to meet	money
to grant	loans
to open	demand

f) Write out from the main text international words like: agent, credit, etc. Transcribe them and read aloud. Ex. 8. a) Supply the articles where necessary.

b) Write down 3-5 questions about the texts.

c) Say a few words about services provided by commercial banks.

a) A bank was originally ... bench set up in the marketplace for ... exchange of money. In a commercial sense, a bank is ... establishment where money is received on deposit to be repaid on demand or at notice, as may be arranged, and where loans are negotiated, bills discounted, and general financial business transacted. The main functions of... modern commercial bank are:

•to receive money on current accounts repayable on demand, or on deposit accounts repayable subject to an agreed notice;

•to lend money by granting ... loans and ... overdrafts or discounting bills of exchange and ...

promissory notes.

Apart from these two chief functions – linking up lenders and borrowers of capital – the bank performs many other functions:

•... obtaining and giving information as to ... financial standing of customers:

•transferring funds for ... payments or ... investments;

•making foreign currency transactions;

•issuing letters of credit, drafts and travellers' cheques;

•undertaking duties of... agents, trustees and guarantors;

•performing leasing and factoring operations and others.

A very important part of any efficient banking system is ... interbank market.

Some banks get more ... deposits than requests for loans, and vice versa. The interbank market smooths out these imbalances by providing ... way for ... bank with too many deposits to pass them on to ... bank with too many loan requests. In London there are different interbank markets for different currencies and for deposits with different maturities. Of these, ... Eurodollar interbank market is particularly important, and LIBOR (the London interbank offered rate) is ... key dollar rate for all the world's international borrowing and lending.

Words уоu may need: bench n скамья sense n смысл

establishment n учреждение on deposit на депозит

on demand по требованию negotiate v вести переговоры bill n вексель

repayable adj подлежащий оплате bill of exchange переводной вексель promissory note простой вексель apart from кроме, помимо

link up v связывать

financial standing финансовое положение

to issue a letter of credit выставлять/выписывать аккредитив draft n тратта, переводной вексель

trustee n попечитель guarantor n гарант

leasing and factoring operations операции по лизингу и факторингу interbank market межбанковский рынок

vice versa наоборот

to smooth out imbalances сглаживать, устранять диспропорции maturity n срок погашения обязательства; срок платежа

LIBOR ставка предложения (продавца) на лондонском межбанковском рынке депозитов d) Explain the difference between current and deposit accounts.

b) Bank Accounts

When money in placed in ... bank it is said to be "deposited".

The money may be put into ... account from which it can be drawn at any time, or into ... account which can only be drawn upon after certain notice has been given. In British banking, these types of accounts are known as current accounts and deposit accounts respectively. In ... USA, the corresponding terms are "demand deposits" and "time/or notice deposits".

A person uses a current account to provide ... safe way of keeping his money, and having it easily available when he wishes to spend it.

Payments are made from current accounts, and money is withdrawn from them by means of cheques (... very small interest is paid on these accounts).

A deposit account is used for saving money, and ... period of notice must be given before money can be withdrawn from a deposit account, especially when ... amount to be withdrawn is fairly big. A higher rate of interest is paid by the bank on money on deposit accounts compared with current ones. A cheque book is provided for the customer when he opens this account. The terms "cash deposits" and "savings deposits" are sometimes used to denote the deposits continually turned over in ... settlements of debts and those not held for current business, but as investments or savings.

Words you may need:

place v размещать, помещать respectively adv соответственно demand deposit бессрочный вклад available adj доступный

time deposit (амер.) срочный вклад denote v обозначать

turn over v оборачиваться

Ex. 9. a) Supply the prepositions where necessary, b) Write down 3-5 questions about the texts.

a) The first bankers in Britain were Lombards, ... Lombardy in northern Italy. Merchants and traders from this part of Italy came to do business in the City of London. But ... a century of business in London the Lombards had to leave: they loaned money ... kings who did not repay the loans, and eventually made the bankers bankrupt.

Banking came to be conducted ... the goldsmiths as a sideline to their normal activities. Soon merchants, landowners, and other well-to-do .people also started practising banking.

Banking developed, but Lombard Street, a narrow street in the City of London where Italian bankers settled

... in the fifteenth century, is still the centre ... British banking. Many of Britain's best-known banks have

their head offices ... Lombard Street. The English banking system is a tripartite system. The three parts are:

a)The Bank of England, a "State Bank";

b)The commercial, or joint-stock banks, which deal ... the general public;

c)Specialized banking institutions, such as the discount houses and merchant banks.

The place of the commercial banks in the British economy is a very important one. They stand ... the very centre of business activity and can promote prosperity or deflate the economy into unemployment. Commercial banks are most visible ... the general public. Their main business is taking ... deposits and making loans to individuals and industry. This business is conducted ... a network of branches.

They are commercial in two senses: they make loans to commerce (to finance trade) and they are themselves commercial profit-oriented businesses.

Words you may need: Lombards ломбардцы merchant n купец

goldsmith n золотых дел мастер

sideline n побочный, дополнительный бизнес tripartite adj состоящий из трех частей discount house учетный дом

merchant bank торговый банк

to promote prosperity способствовать процветанию

to deflate the economy (зд.) сократить денежную массу в обращении b) The Nature of Banking

The nature ... banks can best be understood ... examining both their long-established functions and new emerging roles. The former include the provision of payment services and intermediation services. The latter include the merging ... investment and commercial banking activities. The banking firm is recognized as a major force ... the financial markets. As intermediaries they collect the deposits of the household sector, held

... the form of demand and savings deposits, and recycle them ... real investment capital. They perform maturity transformation – lending long and borrowing short. Banks provide the real sector ... funds, the major source of financing for the industrial sector. Besides, banks are viewed now as evaluators of investment opportunities available ... both the primary and secondary markets. The bank's role is to screen potential projects, to determine expected return and risk ... the not-always-objective data presented ... the demanders of funds.

What differentiates banks from other financial intermediaries? First, banks issue liabilities that are media of exchange in that the transactions velocities of chequable deposits tend to be much higher than the transactions velocities of other assets. Second, banks differ ... other financial intermediaries with regard ...

the nature of the assets they hold. While most of the assets held ... mutual funds are publicly traded, bank assets tend not to be traded ... securities markets.

Words you may need: nature n природа, характер

emerge v появляться, возникать

the former/the latter первый/ последний (из двух) Savings deposit сберегательный вклад

to lend long предоставлять долгосрочные ссуды to borrow short получать краткосрочные ссуды real sector реальный сектор

evaluator n оценщик

screen v сортировать, проводить проверку expected return расчетная (ожидаемая) доходность to issue liabilities выдавать долговые обязательства media of exchange средства обмена

velocity n скорость

chequable deposit депозит, который может изыматься с помощью чеков publicly traded продаваемые и покупаемые на фондовой бирже

Ex. 10. a) Open the brackets putting the verbs in the correct form. b) Say what you have learnt from the text about international banks.

Basic principles of commercial banking best (to demonstrate) in the case of international banks. These institutions are the dominant traders in the Euromarkets and the foreign exchange markets and are very active in some domestic credit and bond markets. The Eurocurrency market (to consist) of banks, commonly referred to as "Eurobanks", which accept deposits and (to lend) in foreign currencies. Most of the banks active in the Eurocurrency market also (to trade) extensively in the foreign exchange markets. The Eurobanks concerned include some of the largest banks in the world.

Eurobanks are typically London branches of these large international banks and primarily (to engage) in intermediation in short-term deposits denominated in currencies other than Sterling. Eurosterling dealing (to take) place outside of British jurisdiction. The large American and Japanese banks (to dominate) the Eurocurrency business, but major British banks also (to be) very active throughout the 1980's. Some of the large world commercial banks also (to form) "consortium" banks as special purpose joint ventures set up to deal in the Eurocurrency market. From the parent bank's point of view, the Eurobank branch or consortium (to be) able to operate outside the range of domestic banking regulations and therefore (to achieve) considerable cost economies due to the absence of reserve requirements and other regulatory costs. International co-operation on capital adequacy standards (to begin) to erode this privileged position. As a result, the global financial intermediation activities of international banks are now increasingly subject to some form of international control. A further advantage of Eurobanking (to stem) from the scale of borrowing and lending in this market. This means that major economies of scale can be realized by banks. These factors explain why Eurocurrency deposit and lending rates fall within the equivalent domestic values. Thus the Eurosterling loan rate (to be) lower than the British domestic bank loan rate and the Eurosterling deposit rate (to be) higher than the British deposit rate. The resulting very narrow profit margin in the Eurocurrency market is only possible due to the transaction and regulatory cost savings achievable in this market compared with equivalent domestic markets.

Ex. 11. a) Fill each gap with a suitable word from the box.

b) Sum up the text in 5-7 sentences and present your summary in class. levelmergerscompetitionbroughtshowssurveycausepernumbersinglespreadacross Mergers and Acquisitions to Reduce Europe's Overbanking

Europe is vastly overbanked and overbranched, according to a recent_______of 100 European banks from

13 countries.

The survey_______that the UK is the least overbanked country in Europe, with two banks _______ million people, while central Europe is the most overbanked, that is, Germany (44), Switzerland (58) and Austria (131). Southern Europe – Italy, Portugal and Spain is overbranched rather than overbanked. Europe as a whole has 23 banks per million population.

The survey concludes that the_______of banks in Europe is set to fall by over a quarter in the next 10 years, or by about 2,300, of which 1,300 will be in Central Europe, since the bank extinction rate of the last 10 years is likely to continue.

The survey concludes that_______in banking has forced down the rate of return on assets to an uneconomic_______. The main competitors have been the securities and insurance industries. The decline in overbanking will be _______ about mainly through mergers and acquisitions.

Other conclusions include the prediction that there will be more domestic than cross-border_______many of which will involve small savings and mutual banks, merging in some cases with commercial banks. Bankers see European economic and monetary union (EMU) as the single most important_______of the decline in the number of banks, linked with competition and technology.

The Euro will bring down the barriers to the_______banking market and make bank interest rates lower, more transparent and more competitive. The_______of telephone and electronic banking will reduce the need for branches and accentuate competition both within and_______borders.

Words you may need:

acquisition n приобретение, поглощение extinction n вымирание

force down v снижать

the rate of return норма прибыли prediction n предсказание; (зд.) прогноз transparent adj прозрачный

accentuate v подчеркивать

DISCUSSION

Ex. 12. Read and discuss the texts that follow.

a)Explain the difference between loans and overdrafts.

b)Discuss the services provided by banks.

a) Bank Loans and Overdrafts

There are two principal ways in which a businessman can borrow money from his bank: by means of a loan and by means of an overdraft.

An overdraft is "a sum of money drawn from a bank by a customer that is more than the amount he holds in his account with the bank". Permission of the bank has to be obtained for this facility, and interest is charged on the outstanding amount.

Here is an extract from Statement of Terms and Conditions for Non-U.S. Banks of Citibank, N.Y.: "Customer? will receive overdraft interest statements monthy. However, under exceptional temporary circumstances, statements may be issued daily. Charges for overdrafts will be calculated in accordance with normal backing practice at Citibank, New York."

When the bank makes a loan, a separate loan account is opened at the bank in the borrower's name. The

amount of the loan is debited in the loan account and credited in the customer's current account. Interest is charged on the full amount of the loan even though the borrower might not draw on the full amount immediately.

Because bank funds must be kept fluid, loans are nearly always short term, and a bank will not lend money to a customer unless it knows that the money can be repaid quickly. Normally the bank likes to have its loans repaid or its overdrafts charged, within a year.

Words you may need:

to charge interest взимать проценты outstanding amount (зд.) сумма превышения extract n выдержка, отрывок

terms and conditions условия statement n выписка temporary adj временный charges n pl расходы, издержки calculate v рассчитывать separate adj отдельный

to keep fluid (зд.) работать (о деньгах)

с) Discuss the kinds of banks described in the text and their functions.

b) In a country with a developed banking system there are different kinds of banks with widely varying activities: They are:

1.The Universal banks. Those banks (commonly found in Switzerland, West Germany and the Netherlands) are allowed to do almost anything financial, from lending other people's money to underwriting, advising on investments, stockbroking, etc. Some frown on universal banking in the belief that it creates too many conflicts of interest within one bank. Can a bank give advice on a share for which it is the underwriter and also broker and banker to the issuer? That question has not stopped foreigners from wanting a Swiss bank account and taking their Swiss banker's investment advice.

2.The ordinary deposit banks. These include the commercial or joint-stock banks, large and small, some private banks. All these have direct contact with the public which deposits money with them and draws cheques on them.

3.The savings banks. The chief function of these banks is explained by their name. In old times savings banks were banks which accepted only the deposits of small savers. They did no business with industry and provided no money-transmission service, had no cheque-drawing facilities. These distinctions between savings banks and other banks are now being eroded.

4.The merchant banks, or "acceptance houses". Merchant banks are British banks which concentrate on advising companies about raising new capital and about buying or selling other companies. They do a bit of lending too. Some of them also specialize in fund management. Merchant banking is the business carried out over the last two hundred years or so by a small number of London-based institutions. The origins of merchant banking in London lie in the 18th century.

The name "merchant bankers" refers to their origin as mercantile houses specializing in the export of British products and the import of products from foreign countries. This involved remitting money from one country to another, and the bill of exchange on London became the means of financing the import and