AN ENGLISH COURSE FOR STUDENTS OF FINANCE. Учебно-методический комплекс

BLOCK 4

'Protecting and ensuring the stability of the rouble shall be the principal function of the Central Bank of the Russian Federation, which it shall discharge independently from other bodies of state authority. (Article 75 of the constitution passed in December 1993.)

*The CBR's monetary policy is also determined by its obligations as a co-signatory to the CBR/government memorandum on monetary, financial and economic policies to the IMF in relation to the extended financing facility agreed by the IMF in March 1996 and in April 1997. Following most countries' lead. Russia has not published its agreements with the IMF, although it (but not the IMF) is free to do so. We believe the agreement includes upper limits on CBR credits (including indirect credits through second- ary-market purchases of government securities) made to the government and on CBR net domestic assets (which are equivalent to loans to the domestic sector). These ceilings have the iltimate aim, according to IMF models, of reining in inflation by controlling the extension of credit and broad-money creation. The ceiling on CBR credits to the government should be consistent with the government's fiscal policy as agreed with the IMF. We believe there are also other limits, eg, a ceiling on the budget deficit and a floor on budget revenues. This would normally be within the context of targets (but not contractual obligations) for inflation and understandings about the exchange rate.

Vocabulare Notes

1.unlike Bundesbank - в отличие от Бундесбанка.

2.secondary market - вторичный рынок.

3.banking supervision - наблюдение за банком.(контроль)

4.interbank settlement - межбанковский расчет.

5.exchange rate policy - политика валютного курса.

6.monetary policy - денежная политика.

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AN ENGLISH COURSE FOR STUDENTS OF FINANCE

EXERCISES

1.Выпишете выделенные термины из текста, переведи- те их и запомните.

2.Найдите в словаре перевод следующих глаголов, за- пишите и запомните их.

3.В выделенных звездочкой параграфах подчеркните сказуемое в страдательном залоге, определите время и переве- дите на русский язык (см. Грамматический справочник).

4.Прочтите и переведите письменно весь текст.

5.Расскажите на английском языке о центральном бан-

ке, раскрыв основные положения (its independence, its formation, its responsibilities, etc).

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BLOCK 4

TEST

1. Дополните следующие предложения, выбрав соответ- ствующие слова из колонки справа.

... - … … and the CBR for implementation/

AN ENGLISH COURSE FOR STUDENTS OF FINANCE

Additional Practice 4.1

Call to strengthen Switzerland as a financial centre

Pre-reading questions:

(a)Is Mr Frehner satisfied with the present actions of the Swiss authorities?

(b)What would apparently be the attitude of the Swiss government if Swiss banks lost customers abroad?

Swiss Bank Corporation (SBC) yesterday called for more official backing to strengthen Switzerland's position as a financial centre, Reuters reports.

Mr Walter Frehner, chief executive, said, 'Together with other banks we have made big efforts to strengthen Switzerland as a financial centre. But our endeavours have not found the necessary support from the authorities and political bodies.'

He said Switzerland was indulging in a banking policy marked by flagrant contraditions. He cited the following ф, examples:

A.The Cartel Commission* demanded total price competition. Yet the government was proposing that interest rates should be subject to its го control.

B.The banks were being urged to reform the stock market system. On the other hand, elimination of the anachronistic stamp duty was systematically delayed.

C.The National Bank’s monetary policy had led to sharply higher interest rates. But the highest authorities in the land described any adjustments in bank interest rates as unnecessary and undesirable.

Mr Frehner said it was mistaken to think that to make Switzerland more competitive as a financial centre it was sufficient to subject banks to greater competitive pressures.

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BLOCK 4

‘A characteristic of Europe’s modern internal market is precisely its enormous mobility. The other countries are ready and eager to build market share at Switzerland’s expense,’ he said.

Mr Frehner said Switzerland could either face up to the tougher international competition, which would be SBC’s preference, or confine itself to its traditional home market.

But if the country was to remain competitive, it was essential that the national regulatory environment be adapted to meet the new requirements, he said.

He noted that Swiss Finance Minister Mr Otto Stich, when asked in a recent interview whether bank customers might not go abroad if the stamp duty was not repealed, had replied, ‘Let them.’

Comprehension

3.Are the following statements True or False according to the text? Show the lines where you found your answers.

1.SBC wants greater official backing for the Swiss banking System.

2.Mr Frehner criticizes the cooperation of Swiss private banks.

3.Mr Frehner thinks Swiss banking policy is well organized.

4.Mr Frehner thinks that the banking authorities are being selfcontradictory.

2.(a) How many examples of “contradictions” in Swiss banking policy does the text mention?

(b)Match the first part of the contradiction in box A with the second part in Box В that is correct according to the text.

AN ENGLISH COURSE FOR STUDENTS OF FINANCE

4.According to the text, which of the following does Mr Frehner believe that it is ‘mistaken’ to think:

1.that Swiss banking was already competitive enough to make it a good financial centre.

2.that more competition in Swiss banking would improve the country as a financial centre.

3.that becoming a financial centre would make Swiss banks more competitive.

4.that Swiss banks should be forced to be more competitive.

4.(a) What, according to Mr Frehner, are the two options open to Swiss banking?

(b)Which option does Mr Frehner's company favour?

5.(a) In your own words, what does Mr Frehner think is "es-

sential"?

(b)What does Mr Frehner say will happen if this essential action does not occur?

6.(a) What might cause Swiss bank customers to go abroad?

(b)Can you think of any reason for the Swiss Finance Minister's attitude to this situation?

7.When you know a word in one form, e.g. as a noun or verb, it is useful to learn other forms so that your English becomes both more accurate and more flexible. Complete the table below with other forms of the words used in the text. You may need a dictionary.

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BLOCK 5

BLOCK 5

INFORMATION FOR STUDY

British Banking

The British Banking System has developed over the past few hundred years to become one of the most highly specialised financial centres in the western world.

The head offices or main branches of banking institutions are concentrated in the City of London. The Bank of England and the most important commercial, merchant banks all are situated in close proximity to one another.

The Bank of England is the central bank of the United Kingdom. It acts as a banker to the Government and to the other banks; as the central note-issuing authority; as agent of the Government for important financial operations; and as its adviser on many other aspects. The Bank also undertakes management of the National Debt and (as agent of the Treasury) the administration of exchange control.

The Bank of England in some of its functions serves as an agent of the Government and it is through the bank that monetary policy is implemeted. It is not, however, part of the Civil Service. The commercial banks, whose primary business is receipt transfer and encashment of different types of deposits, can be grouped as follows:

London clearing banks (Barclays, Lloyds, Midland, National Westminster -the "Big Four") the Scottish and Nothern Ireland banks, the British overseas commonwealth banks, foreign banks.

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AN ENGLISH COURSE FOR STUDENTS OF FINANCE

Overseas Banks

In London there are from 110 to 120 banks, the bulk of whose business is carried on overseas. Many of these banks were set up in the nineteenth century to provide banking facilities to their customers throughout the world but mainly in the British overseas territories. Many of them afterwards amalgamated and the London clearing banks have considerably interest in some of the largest.

The business of British overseas banks may be described as being basically that of exchange dealers and sources of credit for financing monetary transacions between Britain and the countries in which they are represented, as well as between third countries (these facilities also unclude acceptance credits, generating bills of exchange which can be negotiated at respective discount rates). They are also concerned with the employment in London of their temporary idle funds. They provide a means by which funds intended for investment can readly be switched from one part of the world to another. Thus they facilitate movement of resources between London and abroad, as well as attracting deposits to London from overseas customers.

Foreign Banks

*The number of foreign banks in London and in other major cities in recent years has rapidly expanded. US and Japanese banks are the most prevalent but not at all surprisingly there are also increasing members from various European countries.

Representation takes different forms. *Some banks operate through subsidiaries whilst others have opened branches in their own name. There are also large numbers of representative offices, which do not handle banking business but mainly promote and facilitate business relationships. Quite often a representative office serves as the first step towards setting up a branch or other institution.

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The Merchant Banks

Third term defines the group of banks known as (a) accepting Houses, which specialise in acceptance credit, and (b) issuing houses, which are primarily concerned with raising credit on behalf of domestic and overseas borrowers and, where appropriate, with organising a market for placement of bonds or shares. Some of them belong to both groups at the same time. *Most have greatly extended the scope of their interests in domestic financing, particularly in advising on amalgamations and take-overs, as well as in investment management, hire purchase and leasing finance, they also play an important part in the international short-term capital market (sometimes called "parallel" money market).

*A feature of British banking over the past few years has been the discontinuous blurring of the distinctive features that distinguish commercial and merchant banks.

Standing apart in the British banking system are the discount houses, National Gimbank, Post office Giro, National Savings Bank and Trustee Savings Bank.

Laws affecting banking in Britain are not part of a written constitution, but are contained in a large number of Acts of Parliament relating to Banking.

The Stock Exchange

The International Stock Exchange touches the lives of the majority of people in the United Kingdom. More than 9 million individuals now own shares. Nearly every adult in the UK saves or invests money in some form. The Exchange exists to provide a channel through which these savings can reach those who need finance.

*The Stock Exchange has its main administrative centre in the City of London. There are also centres in Glasgow, Liverpool, Birmingham and Dublin.

The modern Exchange was not created overnight The first Joint Stock Company was formed in London in 1553. In 1694 the King, William III, and Parliament were seeking ways to fund the war with France. Their solution was to set up the Bank of England.

*The Exchange has developed through the years to become the electronic marketplace as it is today. The Exchange developed

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AN ENGLISH COURSE FOR STUDENTS OF FINANCE

a terminal based quotation system, the Stock Exchange Automated Quotations (SEAQ). Market Makers now enter their competing, buying and selling prices on to SEAQ terminals in their offices - anywhere in the UK or overseas.

*The market has been renamed "The international Stock Exchange of the United Kingdom and the Republic of Ireland Ltd". *The Exchange has been changing radically in recent years.

Vocabulary Notes

1.merchant bank - торговый банк;

2.clearing bank - банк, занимающийся клиринговыми опе- рациями;

3.overseas bank - зарубежный банк;

4.foreign bank - иностранный банк;

5.temporary idle funds - временные свободные фонды;

6.accepting house -акцептный дом;

7.issuing house - финансовое учреждение, выпускающее ценные бумаги;

8.take-over - снятие со счета;

9.leasing finance -лизинг финансов;

10.discount houses - дисконтные дома;

11.terminal based- основанный на конечном покупателе;

12.quotation system - система котировки;

13.hire purchase - покупка в рассрочку;

14.idle funds - бесприбыльные фонды.

EXERCISES

1.Выпишите выделенные термины, переведите их и за- помните.

2.К следующим глаголам найдите в словаре русские эквиваленты и запомните их.

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