The Banking System of Great Britain. X. Read and translate the text

X. Read and translate the text.

The UK banking system is one of the oldest. It is characterized by a high degree of concentration and specialization, well developed banking infrastructure, a close relationship with the international market for loan capital. In a world financial center – London is working more and more foreign banks than English. This is primarily American and Japanese banks. The share of foreign currency deposits in UK banks is significantly higher than in other countries. The English banking system has the most extensive worldwide network of foreign affiliates. Until 1979 in Britain there was no specific legislation governing the banking, has never published an official list of banks, there was no legal definition of the bank. Control of the central bank for the banks was informal. With the adoption of the law on banking in 1979, all credit institutions that take deposits are classified by the Bank of England, or as a “recognized bank” or as “a company licensed to accept deposits.” Banks do not need a license, but they must be “recognized” by the Bank of England. Bank of England recognizes as a “bank” credit institution enjoys an impeccable reputation in financial circles, and provides a wide range of banking services and specializes in a certain category of services.

The most important credit institutions that have received the status of the bank are depository banks (the London and Scottish clearing banks, banks of Northern Ireland), trade, foreign banks, savings banks, discount houses. The banking system is a two-tier in the UK. At the top level is the central bank, on the ground – other banks: commercial (depository) and specialized – trade, foreign banks, savings banks, discount houses. The Central Bank of England, the Bank of England was founded by a special act of Parliament. It was established in 1694 with the aim of providing a loan to the king for the war with France as a joint stock company. It includes the 1268 shareholders, the first installment of which was 1200 pounds. This was the sum of the first loan of the Bank of England to the British government. The loan was granted to the king of 8% per annum in the form of notes and bills. Bank of England was allowed to buy and sell gold and silver, producing bills of exchange, to deal with commercial bills, make loans secured, including commodities. Bank is not permitted, however, lend to the king without the sanction of Parliament. In 1946, the Bank of England was nationalized. The share capital of the Bank of England was transferred to the Treasury, and the former shareholders received compensation in the form of government bonds. The nationalization law has issued a close relationship of government and banks, which are historical: the Bank of England acted as banker to the government until its nationalization.

The Bank of England is working closely with the Treasury. According to Robert Peels Act (1844), the Bank of England is to publish its balance sheet weekly. After the nationalization of the Bank it was to publish an annual report on its activities, and from 1961 – a quarterly newsletter. The balance of the Bank of England is divided into two parts in accordance with the Act, introduced by Robert Peel, – the division of the Bank into two departments (and the Issuing Bank), which merely serves the purpose of accounting. Emission Accounts Department is related only to the issue of banknotes and software, net profit is transferred to the Department of National Fund loans.

Дата добавления: 2015-05-10