Bank services

Banks may be defined as films producing and selling financial services. Their success or failure depends on their ability to identify the financial services which the public demands, produce those services efficiently, and sell them at a competitive price. The service menu of banks does not remain unchanged as new services are constantly developed by banks. Many of them offer a combination of wholesale and retail banking.

There are two general reasons for using bank accounts. The first and most common is the convenience and safety provided by a current account at a bank. The second is that small and regular surpluses are available to be saved, and for this purpose a bank provides deposit accounts. So, there is a full range of banking services offered to customers of the bank:

- it is a safe place for your money. You can open savings (deposit) account and earn interest. There are many different term-deposit accounts. Since these certificates of deposit offer very high interest rates they attract depositors to banks. To receive this high interest you needn't withdraw money till the term is due, otherwise you will lose it;

- banks open checking (current) accounts, which pay no interest to a customer but provide him with a checking book to write checks and pay any purchase or transaction. Recently new NOW and Super NOW accounts which pay customers interest have appeared in most banks;

- banks offer credit services to customers: personal loans and different credit cards. They finance industries, commerce and direct services by commercial loans;

- banks provide their customers with such classes of credit as overdraft, mortgages and home improvement loans;

- banks provide their customers travelling abroad with foreign currencies, travellers checks (cheques), eurocheques, eurocards;

- investment advise: banks open ways to find and invest large amounts of money;

- banks provide brokerage services;

- banks provide a wide range of trust services for individuals and businesses in the form of estate settlement, trust administration of a customer's securities, the management of property and agency services.

Banking system of ukraine

The banking system of Ukraine dates to March 1991 when the Ukrainian Parliament passed the law On Bank and Banking Activities, determining this system as two-level, composed of the National Bank and commercial banks.

The National Bank of Ukraine is the central financial body of the state conducting a uniform national monetary, credit and currency policy, aiming to strengthen the national currency, organizing interbank settlements, and coordinating and supervising the whole banking system.

Commercial banks varying in type and ownership are set up by legal entities and private persons as joint stock companies, At present there are about 230 commercial banks in Ukraine. Their main functions include granting loans to businesses and individuals (backed by something valuable like assets of enterprises, institutions, organizations), cash transfers and payment services, currency, and other banking transactions.

Prominvestbank Ukreximbank, bank "Ukraina", Ukrsotsbank, Privatbank are the leading commercial banks in Ukraine. There was founded the Ukrainian

Interbank Currency Exchange which trades efficiently Ukrainian and foreign currencies and prevents significant fluctuations in the international value of the hryvnia.

To secure the banks' stability the National Bank of Ukraine resolved to increase the minimum amount of a commercial hank's own funds to 1 million ECU, and a minimum authorized stock of 3 million ECU was set for the registration of newly established banks.

Ukraine's banking strategy is to promote and stimulate commercial banks in solving economic and social problems in the country.

Answer the following questions:

1. When was the banking system of Ukraine adopt?

2. What is the central financial body of Ukraine?

3. How many commercial banks are there in Ukraine?

4. What famous banks in Ukraine do you know?

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