51

Тема «Банки. Структура и функции»

Banks

1. Read the text

Bank is an organization that holds money, important documents and other valuables in safe keeping, and lends money at interest. It may also arrange mortgages and insurance, and be involved in a number of financial trading activities.

Banks are among the most important financial institutions in the economy and are essential business in thousands of local towns and cities. They are the principle source of credit for householder and for most local units of government (schools, districts, cities, countries, etc.).

Banks must be identified by the functions (serviced or roles) they perform in the economy.

While many people believe that banks play only a narrow role in the economy – taking deposits and making loans – the modern bank has had to adopt new roles in order to remain competitive and responsive to public needs.

Banking’s principle roles today are as follows:

• The intermediation role;

• Payment role;

• The guarantor role;

• The agency role;

The policy role;

The principles of banking system organization are the following:

Credit system is built in two level scheme;

Central bank as “banker’s bank” is on the top level and has real control levers of credit and money circulation;

The second level of credit system is commercial bank

Vital functions performed by full-service banking institutions

The credit function

the trust function

the brocerage function

the insurance function

The essence of bank’s activities is the collection of deposits through current accounts and deposit accounts and the use of these funds to provide loans or funds for investment.

Safe keeping –на хранении

Mortgages – ипотека, закладная

Household – семья, домочадцы; домашнее хозяйство

Intermediation – посредничество

Thrift – бережливость

Underwrite – гарантировать размещение

Source of credit – источник кредитов

Control level – ручка управления, средство воздействия (контроля)

2. Answer the questions

1. What kind of organization is a bank?

2. Are banks among the most important financial institutions in the economy?

3. How must banks be identified?

4. What are banking’s principle roles?

5. Name the vital functions performed by full-service banking institutions?

6. What are bank’s main activities?

3. Find propped definitions

Terms	Definitions
Capital	A sum of money to a shareholder out of profit in relation to his investment
Dividend	An account in a bank from which money can be drawn by cheque
Deposit account	Profits not paid out as dividends and added to the surplus
Retained profits	The money value of the shareholders state in the bank or company
Current account	An account in a bank on which the depositor receives money interest

3. Fill in the blanks with the proper words

Teller Funds Policy Dividends

1. An employee in a bank who pays out and receives money is called …

2. The Board may distribute…to the shareholders out of profits once or twice a year

3. The…may be high even after all the bank’s expenses are paid

4. The Board will discuss the bank’s…in other businesses

5. Translate the sentences

   1. Банки выполняют много функций в экономике любой страны

   2. Мы не могли оформить ипотеку в коммерческом банке

   3. Сумма страхования была не очень большой

   4. Центральный банк управляет циркуляцией денег

   5. Мы оформили кредит в банке, но проценты были очень высокими

   6. Торговая деятельность нашей компании не очень успешна

   7. Мы снимаем деньги с текущего счета

   8. Вкладчик получил проценты на депозитный счет

   9. Банки принимают вклады от населения

   10. Банковская система построена по двухуровневой схеме

6. True – false statements

   1. Current account is an account in a bank on which the depositor receives money interest

   2. Banks play only a narrow role in the economy

   3. Banks are among the most important financial institutions in the economy

   4. The second level of credit system is commercial bank

   5. Credit system is built in three level scheme

   6. Banks cannot fulfill cash management function