Brainstorming activity

Problem 1

You are the vice-president of the bank dealing with crediting. A large company-borrower asks to postpone the repay of the large credit and you risk to lose a big amount of profit. You may break your credit relations with this firm and sell the mortgage but you want to keep your profitable borrower. What would you do?

Problem 2

Bank’s interest rates are falling down. Under the competitive pressure you have to decrease the loan interest rates and crediting is becoming less and less profitable for your bank. You may invest your capital into securities, for example. But your bank has been famous for its crediting activity for the last years and you may lose this competitive position on the market. What would you do?

Final discussion

Preparing for final discussion, try to search for extra information in special editions, magazines and financial text-books. Consult your teachers of special subjects and use the Internet resources. It is recommended to subdivide the group into 3 subgroups for better organization of the discussion.

Questions for discussion:

1. What impact does lending have on the financial standing and profitability of banks?

2. What are the types of loans made by modern banks? Comment on them.

3. What makes a loan attractive to the bank from your point of view?

Unit 4. Types of Banking Institutions and their services Part 1. Reading Practice

Vocabulary notes

broker	— брокер, маклер
floor broker	— член биржи, непосредственно работающий в торговом зале
brokerage	—1) брокерское вознаграждение, комиссионные брокера, 2) брокерское дело, маклерство, посредничество
firm of (stock) brokers, brokerage house (US)	— брокерская фирма
commercial bank	— коммерческий банк
credit union	—кредитный союз
disbursement	— выплата в порядке погашения
exchange equalization account	валютный уравнительный счет
fiduciary	— доверенное лицо, фидуциар
finance company	— финансовая компания
lend (v) (lent, lent)	—ссужать, давать взаймы, одалживать
lending institution	—кредитное учреждение
national bank	—национальный банк
Savings and Loan Association (US)	—ссудно-сберегательная accoциация
ration (v)	—нормировать
security, securities	—ценные бумаги
state bank	—государственный банк
stock exchange (S.E., St. Ex.)	—фондовая биржа
scrutiny	—проверка
subscribe (v)	—подписываться на ч.-л., приобретать по подписке
subject to	—подлежащий чему-либо
The Treasury, United States Treasury (Department) (US)	—казначейство, министерство финансов
transaction	—сделка
trust	—траст, кредит
trust company	—трастовая компания
large (small) scale services	—услуги, предоставляемые банком крупным фирмам (мелким фирмам и населению)
to charge comissions	— брать вознаграждение
fiduciary relationship	— имущественные отношения довери­тельного характера
banking facilities	— банковские услуги (операции)