11. Answer the following questions based on text b:

1. What does successful competition in the market of bank services presuppose?

2. What are characteristics and distinctive features of a small bank?

3. What are the potential advantages of large banks?

4. Why is it significant for modern banks to open up new areas and to diversify geographically?

12. Make up sentences of your own using the following expressions from text b.

To be determined by one’s objectives, to have developed organizational forms, to improve competitive advantages, to become market-driven, to be responsible for, the management and staff of each line division, to reduce the risk, new services and facilities.

13. Say what is true and what is false. Correct the false sen­tences.

1. The first and most important function of a central bank is to advise client where to invest their money and how to earn profit.

2. The structure of any bank is organized according to its objectives only.

3. It's not necessary for executives of the bank to follow the changes occurring in the market, because banks provide rather spe­cific services.

4. Downsizing, repositioning, market segmentation and some other measures should be realized in order to improve competitive advan­tages of the bank.

5. Bank size doesn't influence on the bank organization and struc­ture.

6. Senior management, in turn, reports periodically to the cashiers and auditors working in the accounting division

7. There is close contact between top management and the man­agement and staff of each line division.

8. The oldest and most common banking organizations in the United States are banks with branch network.

9. The tendency in recent years has been for most banking institu­tions to become unit banks.

14. Match the following words with the correct definition from the list.

Top management, staff, commercial bank, organization charts, chief

executive officer, audit, board of directors, branch banking

1. A committee elected by shareholders to set the bank's policy and oversee the bank's performance.

2. The most common and most unrestricted type of bank, allowed the most latitude in its services and investments.

3. A chart showing the interrelationship of positions within an organization in terms of authority and responsibility.

1. Banks that offer a full range of services from multiple locations, including the head office and one or more branch offices.

4. Key people in an organization who make most important decisions.

5. Inspection of the accounting records and procedures of any reporting entity by a trained accountant, for the purpose of verifying the accuracy and completeness of the records.

6. Personnel in an organization.

7. The member of staff who has ultimate management responsibility for an organization. He reports directly to the board of directors.

15. Using the words in brackets, explain the meaning of the following terms:

competitive advantage (market share, to increase, to use, to provide new services);

branch banking (affiliate company, market niche, to diversify);

point-of-sale terminals (large store, credit card, to make payment, to be convenient);

financial policy (organization, to plan, financial funds, to direct, to reserve);

line division (organization, department, the same activity, to be responsible, to be subordinated);

joint stock (money, to invest, to get profit, a bank).