1. A debtor nation — страна-должник

2. special currency called bancor — банкор, особая валюта, предложенная Дж. Кейнсом для

международных расчетов по долгам

3. to be charged — взиматься

4. obligations — обязательства

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12.7.1.2. Read the text “Commercial Banks” and make a summary of it.

( ! ) Commercial Banks

Commercial banks are privately owned banks operating cheque current accounts, receiving deposits,

taking in and paying out notes and coin and making loans, in the UK through a large number

of branches. Sometimes they are referred to as retail (wholesale banking) or deposit banks. In the

USA these banks are sometimes referred to as member banks (Federal Reserve System) and in

Western Europe as credit banks to distinguish them from investment banks. In most countries the

commercial banks are concerned mainly with making and receiving payments, receiving deposits

and making short-term loans to private individuals, companies and other organizations. The banks

Increasingly provide a number of other services to their customers: trustee and executor facilities,

the supply of foreign currency, the purchase and sale of securities, insurance, credit transfer, personal

loan and credit-card facilities. The banks have also over the years diversified into other financial

services in competition with the finance houses and the merchant banks, e.g. venture or risk

capital and the management of unit trusts (universal banks). In the UK competition among the

retail banks has intensified as technology has rendered the large branch network far less important

in the delivery of services; and as the division between different types of financial service has broken

down. In 1997, to reflect that, it was announced that a new unified regulatory structure for all

types of financial institution would be created.

Vocabulary Notes to Text 12.7.1.2

1. a large number of branches — разветвленная сеть филиалов

2. retail bank — розничный банк (deposit bank)

3. credit bank — кредитный банк

Credit guarantee is a type of insurance against default provided by a credit guarantee association

or other institution to a lending institution. Credit guarantees enable otherwise “sound” borrowers

who lack collateral security, or are unable to obtain loans for other reasons, to obtain the credit

they require through banks in the normal way. A government loan guarantee scheme insuring loans

to small firms by the commercial banks was introduced in the UK in 1980. Under this scheme the

government guarantees repayment to the bank of 70 per cent of the loan in return for an annual

premium of 1.5 per cent on the guaranteed portion for variable rate loans. Loans are for a period of

two to seven years. All European Union member states (except Denmark), the USA, Japan and

other countries have similar schemes.

12.7.1.4. Read and translate the text “Credit as an Economic Concept” without a dictionary.

Make an annotation of it in English.

By credit economists understand the use or possession of goods and services without immediate

payment. There are three types of credit: (a) consumer credit: credit extended formally and informally

by shopkeepers, finance houses and others to the ordinary public for the purchase of consumer

goods, (b) trade credit: credit extended, for example, by material suppliers to manufacturers,

or by manufacturers to wholesalers or retailers — virtually all exchange in manufacturing