EXERCISES. To transact foreign exchange business

To transact foreign exchange business

Joint-stock bank cheque facilities

NOTES accounts tailored to fit particular savers

preferences - рахунки, що відкриваються з урахуванням потреб вкладників to pool risks - об'єднувати ризики to acquire - набувати expertise - професійний досвід to assess - оцінювати inherent - властивий ultimate borrower - основний позичальник

In this intermediation process costs are in­curred which must be met out of the bank's margin between the borrowing and lending interest rates. - Ця посередницька діяль­ність вимагає витрат, що мають бути по­криті за рахунок різниці між процентними ставками на позиковий капітал.

margin - маржа, різниця borrowing interest rate - процентна ставка на залучений капітал lending interest rate - процентна ставка на запозичений капітал

- акціонерний банк послуги з обробки

чеків

здійснювати операції з іноземною

валютою

to collect cheque - інкасувати чек

discount of bills - облік векселів

Letter of Credit - акредитив

strong-room facilities - сейфові

приміщення, сховище

valuables - цінності

to transact stock and share business -

здійснювати операції з цінними

паперами

safe custody {of securities) - зберігання

(цінних паперів) у сейфі

banks write "insurance" type contracts -

банки приймають на себе зобов'язання

за "страховими" контрактами

to redeem - викуповувати, погашати,

повертати

merging - злиття, об'єднання

investment banking - інвестиційна

діяльність банків

underwriting - андерайтинг, гарантоване

розміщення цінних паперів

offshore banking - офшорна банківська

діяльність

cash ratio - норма касових резервів

(співвідношення касових активів банку

до депозитів)

liquidity ratio - коефіцієнт ліквідності

(співвідношення ліквідних засобів до

суми активів)

near money - "майже гроші',' квазігроші

(активи, що легко переводяться в

готівку)

money at call - гроші до запитання

I. Answer the following questions:

1. What services do bank offer?

2. What is the nature of banking?

3. How do banks earn a living?

4. Do commerciai banks play a very important role in an economy?

5. What are the most recent developments in banking?

6. What banking policy can guarantee stability?

II. Writing Practice. Write a short summary about activities of the commercial banks from the above text. Use the opening phrases from Appendix 1.

III. Interview With a Bank Manager. Read the dialogue and answer the questions.

I.

1. What can prove the substantial progress made by the bank?

2. What can the success of the bank be attributed to?

3. What does the bank specialise in?

Reporter: As far as we know, last year was a year of substantial progress for your bank, wasn't it?

Banker: Yes, our bank made excellent progress. We increased market share and profitability. At the same time we continued to develop business infrastructure.

R.: Could you substantiate it by some figures?

UNIT 4. COMMERCIAL BANKS

В.: For example, the pre-tax profit increased by over 80%.

R.: What would you attribute this success to?

B.: This significant improvement arose mainly from higher operating income reflecting improvement in net interest and non-interest income. Retail customer deposits increased progressively during the year. Loans and advances to customers increased during the latter months of the year and at year end were 4% higher than the prior year. Besides we improved the credit quality of our loan portfolios.

R.: Is retail banking your specialist area?

B.: No, not only. Like many banks we offer a combination of wholesale and retail banking. We continued to increase our presence in the health, education and charity sectors, the sectors where we have developed specialized expertise.

II.

1. Are customer's service requirements changing?

2. What are they now?

3. How does the bank respond to these changes?

B.: We are not an ordinary clearing bank. We're a cooperative bank and our mission is to increase customer value, not shareholder value.

R.: Is your policy bearing fruit?

B.: Definitely. We constantly develop and introduce new services and products to match our customers' needs. The number of customers is increasing.

R.: It's known that you are a long-established bank committed to remaining at the forefront of innovation in the interest of the customers.

B.: And the community, I would add. The bank has proved that a business can make profits achieving at the same time socially desirable objectives. All the Bank's Visa credit cards are used to support charities.

R.: Now that you have mentioned credit cards, I'd like to say that customers' service requirements are changing. Increasing numbers of customers prefer the convenience of telephone banking, ATM's for cash withdrawals, as well as debit and credit cards.

В.: І can't agree more. The changing needs of customers and the advances of new technology have resulted in the development of our Armchair Banking Service. It's the largest telephone banking system in the country. Almost half of our personal and corporate customers regularly use the system to conduct all their routine banking business.

R.: That's nice to hear. Nevertheless customers appreciate personal contacts with staff, don't they?

B.: You are right. Not only have we expanded our branch network, but also we have relieved the staff of routine tasks, which allows them to provide a greater focus on direct personal service and consultation.

R.: What else has been done since you started restructuring your branch network?

B.: We've expanded the network of regional processing centres, which gives customers a more immediate service, including evening and weekend processing. Companies can bank their takings sooner and get a quicker return. It also means increased security.

III.

1. Why and how was the bank restructured?

2. What is the difference between operative and servicing divisions?

3. What operations is the Treasury responsible for?

4. How did restructuring of the bank affect the staff?

5. What is the biggest challenge for the bank at the moment?

R.: You were restructured last year, weren't you? What was the restructuring aimed at?

B.: We wanted to make the bank's structure more flexible and to strengthen some of its divisions. Now, we are split into three operative divisions: Personal Banking, Corporate Banking, and Treasury and three servicing divisions: Administrative Division, Information Systems Division and Corporate Planning Division.

PART III. BANKING

R.: Are you happy about the new structure?

B.: Very happy. Now the Treasury (підрозділ, що займається управлінням вільними коштами) can provide a wide range of operations like investment portfolio management, foreign exchange deals, etc. The Treasury function ensures the Bank's well-respected position in the London money markets.

R.: Was the restructuring painful for the staff?

B.: The Bank is committed to implementing staff changes in a considerate manner and redundancies have been kept to a minimum, wherever possible. Nevertheless, job losses were unavoidable.

R.: It's no secret that major changes are taking place in the banking industry; competition is increasing every year. Where do you see your bank in ten years' time?

B.: It's difficult to say. The biggest challenge for all of us will be the single European currency, I think. We are expected to offer good quality Euro service and we shall. Skills and experience of our staff are a good guarantee.

IV Departments. Match the banking departments with the descriptions of them.

Capital Markets	Strategic Planning	Personnel
Correspondent Banking	Corporate Banking	Trade Finance
Comptroller's	Private Banking	Treasury
Statistics and Auditing	Banking Supervision	Secretariat

1. The___ department handles sales of securities.

2. The___ department accounts for the internal finances of the bank.

3. The___ department reports to the Board of Directors.

4. The___ department issues Letters of Credit.

5. The___ department is responsible for checking financial data and preparation of the

Annual Report.

6. The___ department is in charge of deciding the aims of the bank.

7. The___ department offers services to companies.

8. The___ department is divided into two areas - money markets and dealing room

activities.

9. The___ department provides services to private individuals.

10. The___ department attends to all 'people problems'.

11. The___ department regulates the supply of money and protects the currency.

12. The___ department monitors the daylight overdraft limits of overseas banks.

V Commercial Banks.

a) Supply the articles where necessary.

b) Write down 3-5 questions about the texts.

c) Say a few words about services provided by commercial banks.

A bank was originally____ bench set up in the marketplace for_____ exchange of money.

In a commercial sense, a bank is____ establishment where money is received on deposit to

be repaid on demand or at notice, as may be arranged, and where loans are negotiated,

bills discounted, and general financial business transacted. The main functions of__________

modern commercial bank are:

• to receive money on current accounts repayable on demand, or on deposit accounts repayable subject to an agreed notice;

• to lend money by granting____ loans and____ overdrafts or discounting bills of

exchange and___ promissory notes.

Apart from these two chief functions - linking up lenders and borrowers of capital -the bank performs many other functions:

• ___ obtaining and giving information as to_____ financial standing of customers:

• transferring funds for____ payments or____ investments;

• making foreign currency transactions;

• issuing letters of credit, drafts and travellers' cheques;

UNIT 4. COMMERCIAL BANKS

• undertaking duties of____ agents, trustees and guarantors;

• performing leasing and factoring operations and others.

A very important part of any efficient banking system is_____ interbank market.

Some banks get more ______ deposits than requests for loans, and vice versa. The

interbank market smoothes out these imbalances by providing______ way for____ bank with

too many deposits to pass them on to_____ bank with too many loan requests. In London

there are different interbank markets for different currencies and for deposits with

different maturities. Of these,_____ Eurodollar interbank market is particularly important,

and LIBOR (the London Interbank Offered Rate) is _________ key dollar rate for all the

world's international borrowing and lending.

MAY NEED trustee- попечитель, опікун guarantor- гарант leasing and factoring operations- операції з лізингу та факторингу to smooth out imbalances- усувати диспропорції maturity- термін погашення зобов'язання, термін платежу LIBOR- ставка пропозиції (продавця) на Лондонському міжбанківському ринку депозитів

Дата добавления: 2014-12-23