Text-study

1. Learn the following words

transparency – прозрачность;

supervision – контроль;

target – цель;

to urge – призывать;

credibility - вероятность, возможность;

failure – ошибка, просчет;

to outweigh – перевешивать.

2. Answer the following questions

1. What was the ECB widely criticized for?

2. What is the difference between the Bank of England and the ECB?

3. Why should the ECB increase transparency? How, in the view of many critics, should it increase its transparency?

4. What do the authors of the CERP report think of the measures designed to increase the Bank's transparency?

5. What is the tension existing within Europe caused by?

6. How could this tension be reduced?

7. How does the tension between European integration and national control affect bank supervision?

8. What can you say about centralization of bank supervision?

9. What can be done instead of centralization to improve bank supervision?

10. What are the aspects of the so-called disclosure?

3. Complete the sentences with suitable words and word combinations from the box

the infant European Central Bank; transparency; accountability; national interests; inflation target; monitoring banks; executive board; co-ordinate; a market-oriented reform

1. … has been bullied by almost everybody in its first 14 months in the monetary playground.

2. It has been widely criticized for its lack of … and …, and for a flawed system of financial supervision.

3. The ECB is certainly less transparent than the Bank of England, which has been set a clear … by the chancellor.

4. First, the ECB should be set an explicit inflation target by the European Parliament, so there can be no disagreement about the goal of …

5. Second, it recommends that the power of the executive board be increased relative to that of national central-bank governors, who are more likely to be influenced by ….

6. At the moment, all 11 governors can vote, outweighing the six-member ….

7. For its part, the ECB may not have enough information in a crisis, and it would find it hard to … the activities of national regulators.

8. It would still need the backing of a lender of last resort, but … might make banks better able to cope with trouble.

4. Translate into English

1. В самом начале своего существования Банк подвергался критике за недостаточность открытости и отчетности, а также за несовершенную систему финансового контроля.

2. Существующая система банковского контроля недостаточно хорошо приспособлена к тому, чтобы справиться с общеевропейским банковским кризисом.

3. Несмотря на стремление стран к большей интеграции, ситуация в Европе достаточно напряженная, что связано с нежеланием некоторых стран отказаться от политического контроля.

4. Очевидно, что в скором времени банки будут становиться все более пан - европейскими, поскольку единая валюта способствует не только созданию международных корпораций, но и возникновению международных рисков потенциальных убытков.

5. Возможно, введение новых правил предоставления информации заставит банки действовать более осторожно и таким образом снизит риск неудачи.