Investment banks

Investment banks most often work with firms, or consumers with large quantities of savings. Most investment banks offer a range of investment portfolios with varying levels of risk. Experts at these financial institutions will aim to get the most out of investment opportunities; customers hand over their savings in order to gain returns. Of course, this method of making money is not always successful, and can result in huge losses.

Industrial Banks / Development Banks

Industrial / Development banks collect cash by issuing shares & debentures and providing long-term loans to industries. The main objective of these banks is to provide long-term loans for expansion and modernization of industries.

5. Change the following active sentences into the passive ones.

1. Nick will put more than US$ 100 000 on his bank account.

2. Bill has lost all his money in the lottery.

3. Banks provide different payment services.

4. Mr. Smith is borrowing some amount of money from his friend now.

5. Harry lost his wallet 2 days ago.

6. Martin is going to deposit some money.

7. A bank can generate revenue in a variety of different ways.

8. In the past 20 years American banks have taken a lot of measures.

9. Banks transfer money from one place to another.

10. The company has to cover all his expenses in the business trip.

6. Complete the passage below using the terms from the box.

withdraw deposit number tellers account checks

The bank is usually a busy place. People have to take a (1)….. and then wait. When your number is called you go to the teller’s desk. (2)…..can help you do many things. They can help you (3)….. money into your account. They can help you (4)….. money from your (5)…... They can help you transfer money from one account to another. They can help to handle (6)……. Tellers are very helpful people.

7. Translate the idioms and learn them.

to bank on something

count on /rely on sth. All I can bank on is that when I tell Dad what happened, he'll know what to do.

not to break the bank

not to be too expensive .And at £12.99 a bottle, this is a champagne that won't break the bank.

to be laughing all the way to the bank (informal)

if someone is laughing all the way to the bank, they have made a lot of money very easily, often because someone else has been stupid. If we don't take this opportunity, you can be sure our competitors will and they'll be laughing all the way to the bank.

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Text B

Universal bank

A universal bank has two main functions: to operate as a commercial bank, and to operate as an investment bank. But with the recent removal of legal and technical barriers, the possibility of a universal bank has become apparent. After the global financial crisis of 2008, universal banks have become more popular as the number of pure investment banks has fallen. In other major countries, almost all large financial institutions operate as universal banks, with some smaller firms specializing in either commercial or investment banking.

Land Development Banks

Land development banks are also known as agricultural banks because these are formed to finance agricultural sector. They also help in land development.

Merchant Bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to. In the United Kingdom, the term "merchant bank" refers to an investment bank.

Exchange Banks

These banks are mainly concerned with financing foreign trade.

Various functions of exchange banks are the following: remitting money from one country to another country, discounting of foreign bills, buying and selling gold and silver, and helping import and export trade.

Consumers Banks

Consumers bank is a new addition to the existing type of banks. Such banks are usually found only in advanced countries like the USA and Germany. The main objective of this bank is to give loans to consumers for purchase of the durables like motor cars, television sets, washing machines, furniture, etc.

Offshore banks

Banks which are located in countries with low taxation and regulation. Many offshore banks are essentially private banks.