Banks offer the public
Banks are financial sevice firms, producing and selling the professional and prudent management of the public's funds as well as performing many other roles in the economy. Their success or failure hinges on their ability to identify the financial services the public demands, produce those services efficiently, and sell them at a competitive price.
Words
1. service услуга, сервис, обслуживание
2. security 1.безопасмость,охрана,защита;2.залог;3.обеспечение
3. dealer биржевой посредник (торговец); дилер
4. brokerage брокерство
5. insurance company страховая компания
6, authority администрация, сфера компетенции, право
7. real estate недвижимость
8. investment инвестирование
9. fund фонд, капитал, государственные ценные бумаги
10. to challenge оспаривать, удовлетворять требованиям, решать задачи
11. strenuous efforts энергичные усилия
12. nonbank кредитно-финансовое учреждение, невыполняющее все функции коммерческого банка
13. deposit вклад, депозит, взнос, затраты
14. withdrawal аннулирование, расход, отзыв, снятие, отмена
withdrawal on demand аннулированные по требованию
15. loan заем, ссуда, кредит
16. to skirt (окаймлять), зд. поправить
17. to strip зд. Мешать
18. checking account чековый счет, текущий счет
19. to subject to stringest подвергать (подлежать) напряженным правительственным
government regulation предписания (нормам, правилам)
20. to sue подвергать судебному разбирательству, подавать в суд
21. federal court федеральный суд
22. to grant давать кредит, субсидии (предоставлять)
23. application (использование), заявление
24. to be filed быть подшитым, быть подданным
25. holding company холдинговая компания
holding пакет акций
26. to pin down привязывать к, связывать с
Answer the questions
1. What institutions are called banks?
2. What functions do banks perform?
3. What services do banks offer?
4. What purpose are nonbanks formed fox?
5. What does the success of ____ of the bank hinge on?
6. Can you name the leading bank holding companies?
7. When was the formation of nonbank banks allowed in the USA?
Translate into English
1. Функции банков и функции их главных конкурентов изменяются.
2. Банки предлагают самые разнообразные услуги, сделки по страхованию, займы, инвестиции и т.д.
3. Банки играют большую роль в экономике.
Lesson 2.
Read and translate the text
The emergence of modern banking
When did the first banks appear? Linguistics (the science of language) and etymology (the study of the origins of words) suggest an interesting story about banking’s origins. Both Old French word banque and the Italian word banca were used centuries ago to mean a “moneychanger’s table”. This describes quite well what historians, looking at the civilizations of Greece and Rome more than 2.000 years ago, have observed concerning the first bankers. They were money-changing institutions, situated usually at a table or in a small shop in the commercial district, aiding travelers who came to town by exchanging foreign coins for local money or discounting commercial notes for a fee.
The first bankers probably used their own capital to fund their activities, but it wasn't long , before the idea of attracting deposits and securing temporary loans from wealthy, customers became an important source of bank funding. Loans were then made to merchants, shippers, and landowners at rates of interest as low as 6 percent per annum to as high as 48 percent a month for the riskiest ventures! Most of the early banks of any size were Grrek in origin. The Romans generally tolerated banking practices, but were hesitant to set up banks of their own.
The banking industry gradually spread outward from the classical civilizations of Greece and Rome into ____ and western Europe. Banking encountered religious opposition during the Middle Ages, primarily because loans made to the poor often carried very high interest rates. However, as the Middle Ages drew to a close and the Renaissance began in Europe, the bulk of bank loans and deposits involved relatively wealthy customers, which helped to reduce religious opposition to banking practices.
The development of new overland trade routes and improvements in navigation in the 15th, 16th, and 17th centuries gradually shifted the center of world commerce from the Mediterranean region to nothern and western Europe, where banking became a leading industry. During this period were planted the seeds of the industrial revolution, which demanded a well-developed financial system. In particular, the construction and acquisition of stream-driven machinery and mass production methods requiring new methods for making payments and credit available. Banks that could deliver on these needs grew rapidly, led by such institutions as the Medici Bank in Italy and the Hochstetter Bank in Germany.
When colonies were established in North and South America, Old World banking practices were transferred to the New World. At first the colonists dealt primary with established banks in the countries from which they had come. As the 19th century began, however, state governments in the United States began chartering banking companies. Many of these were simply extensions of other commercial enterprises in which banking services were largely secondary to, for example, sales of food, housing utensils, and farm equipment, the development of large, professionally managed banking firms was centered in a few leading commercial centers, especially New York. The federal government became a major force in U.S. banking during the Civil War. The Office of the Comptroller of the Currency (OCC) was established in 1864, created by Congress to charter national banks. This divided bunk regulatory system, with both the federal government and the states playing key roles in the control and supervision of banking activity, has persisted to the present day and is a truly unique American invention.
Words
coin монета
to discount скидка, дисконт, учет векселей
commercial note коммерческая запись, расписка, авизо, накладная, долговая ценная бумага
free взнос, сбор, плата за услуги, комиссионный
to fund консолидировать, помещать деньги в
merchant купец
shipper грузоотправитель, экспортер, груз
per annum в год
venture рискованное предприятие
to tolerate допускать (отклонение)
acquisition приобретение, поглощение
to charter фрахтовать, брать в наем
extension продление, пролонгация, предоставление, общая стоимост
utensil принадлежность
comptroller главный финансист
currency валюта, денежное обращение
supervision of banking activities контроль за банковской деятельностью
deposit счет в банке
Answer the questions.
1. When did the first banks appear?
2. How did the first banks look?
3. What did the first bankers use their own capital for?
4. What country did the first banks appear in?
5. What demanded a well-developed financial system?
6. Why were the new methods for making payments required?
7. When was the office of the Comptroller of the Currency established?
8. What was the office of the Comptroller of the Currency created for?
Translated into English
l. Бинжирские конторы 2800 дет назад представляли собой учреждения по обмену денег; 2. Это был стол или небольшая лавочка в торговом районе. 3. Путешественники, приезжавшие в город, могли обменять там иностранные монеты на местные деньги или получить авизо за услуги. 4. Важным источником банковских накоплений стало привлечение депозитов и выдача временных кредитов за счет вложенных денег богатыми вкладчиками. 5. Банковская индустрия постепенно стала распространяться из Греции и Рима на северную и западную Европу. 6. Деньги отданные в займы часто приносили высокие проценты. 7. Когда появились колонии в Северной и Южной Америке, банковская практика перекочевала в Новый Свет.
Lesson 3.
FINANCIAL STATEMENTS OF A BANK
AN OVERVIEW OF BANK BALANCE SHEETS AND INCOME STATEMENTS
The two most important bank financial statements - the balance sheet, or Report of Condition, and the income statement, or Report of Income - may be viewed as a list of bank financial inputs and outputs, as Exhibit.
EXHIBIT 4-1 Financial Output and Inputs in the Two Key Bank Financial Statements.
The Balance Sheet (Report of Condition)
Financial Inputs
(sources of bank funds or Financial Outputs
liabilities plus equity capital) (uses of bank funds or assets)
Deposits from the public Loans and leases
Nondeposit borrowings Inwestments in securities
Equity capital from the stockholders Cash and deposits in other