- •Unit I the bank of england
- •From a National to a Central bank
- •1. Key terms
- •Answer the following questions in your own words:
- •Fill in the blanks in this passage, using words from the list given below:
- •Case Study.
- •Функції Банку Англії
- •V. Opposites and synonyms.
- •VI. Join the halves.
- •VII. Summarize the following passage in about 100 words and an appropriate
- •VIII. Write a memorandum.
- •The court of directors
- •The executive
- •IX. Meanings.
- •X. Make comments on the following charts, paying attention to the information given below
- •XI. Complete the following sentences using your own words:
- •XII. Study the text given below and explain in English the meaning of the following words and word combinations: a Stable Financial System
- •Issue Department
- •The Value of Money
- •Interest Rates
- •I. Key terms
- •II. Answer the following questions in your own words:
- •III. Fill in the blanks in this passage, using words from the list given below:
- •IV. Summarize the following text in English in about 50 words:
- •V. Join the halves.
- •VI. Meanings.
- •VII. Complete the sentences using your own words:
- •Unit II
- •The uk money and banking markets
- •The uk banking market
- •The British banking market structure
- •Key terms
- •Answer the following questions in your own words:
- •Memorize the following terms and use them in your own sentences:
- •Find in the text the following words and word combinations and translate the sentences in which they are used.
- •V. Synonyms and antonyms. Complete the following table:
- •VI. Fill in the blanks with prepositions and translate the text:
- •VIII. Translate the following sentences into English:
- •IX. Complete the text using these words: Types of Bank
- •X. Summarize the following text in English in about 100 words: комерційні банки: IX види та операції
- •XI. Study and translate the following scheme into English:
- •XII. How much do you know about banks? Decide if these statements are true or false.
- •The financial systeм Nature
- •II. Answer the following questions:
- •III. Fill in the blanks. Rewrite the passage filling in the blanks from the list of words below.
- •IV. Match the Ukrainian and English equivalents:
- •V. Read the passage below. Explain the meanings of the words and phrases which have been highlighted:
- •VI. Render the following text into English: Трансформаційні функції комерційних банків
- •VII. Choose the correct alternative to complete each sentence:
- •VIII. Complete the following sentences using words and word-combinations given below:
- •IX. Translate the following words and word-combinations into English and insert them in the sentences given below.
- •X. The following famous quotations are about credit and borrowing and lending. Can you complete them:
- •In business, one way to obtain ……… is to create the impression one already has it.
- •XI. Translate the following text into English without using a dictionary:
- •XII. Discussion topics:
- •XIII. As we have already seen, a bill of exchange might not be honoured, or the order might be cancelled. So, a letter of credit is a more binding method of payment. Documentary Credits
- •Unit III
- •Commercial banks
- •Retail and wholesale activities of financial institutions
- •I. Key terms
- •II. Answer the following questions:
- •III. Find in the text the following word combinations and translate the sentences in which they are used:
- •IV. Find English equivalents to the word combinations given below:
- •V. Complete the table:
- •VI. Fill in the blanks from the list of words below the text:
- •VII. Answer the following comprehension questions based on the text:
- •VIII. Sum up what the following text said about:
- •IX. Complete the sentences using your own words:
- •X. Complete the text using these words:
- •XI. Read the text and the dialogue following it. Find answers to the questions given below. Reproduce the dialogue with your partner. The structure of a Bank
- •The Dialogue
- •XII. Using the information in the text, say what is true and what is false. Correct the false sentences.
- •XIII. Fill in the blanks with proper words or phrases:
- •XV. Read and translate the text. Describe the bank’s management hierarchy. Study the chart following the text. Service operations of a small bank
- •Organization Chart for a Small Community Bank
- •XVI. Match the words above with the definitions which follow:
- •XVII. Fill the spaces with words from the box. Translate the text into Ukrainian:
- •XVIII. Render the following text into English:
- •I. Key terms:
- •II. Answer the following questions:
- •IV. Study the following text and translate the table into Ukrainian: The balance sheets of the retail banks
- •V. Translate the text in writing: Savings banks and the National Giro
- •VI. Reproduce the main idea of the text: The Bankers’ Clearing House
- •VII. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •VIII. Find in the text the terms which match the following explanations:
- •IX. Scan the text. Translate it into Ukrainian. Don’t use the dictionary:
- •X. Join the halves.
- •XI. Translate the text in writing: The Bankers' Clearing House
- •XII. Read and translate the following text: Easy money
- •XIII. Match these terms with their definitions:
- •XIV. Replace the underlined items with words or phrases from the text that have a similar meaning.
- •XV. Choose, the best explanation for each of these words or phrases from the text:
- •XVI. Find a word or phrase in the text that has a similar meaning.
- •XVII. Match the first half of each sentence with the most appropriate second half. Notice the words are used in each sentence to mark a contrasting idea. (These words are in italics.)
- •If possible, find the annual results of a bank in your country and report on its profitability.
- •XVIII. Prepare a brief summary of the text: Savings Banks and the National Giro
- •The changing environment and activities of the uk retail banks
- •XIX. Complete the text using these words:
- •XX. Make an overview of the following texts: current accounts
- •Interest-earning cheque accounting
- •Deposit accounts
- •Budget accounts
- •Loan accounts
- •Personal loan accounts
- •XXI. Add the words and expressions that complete the following sentences below:
- •XXII. Read and discuss the following text. Give answers to the questions below:
- •XXIII. Choose the right answer:
- •XXIV. Say what is true and what is false. Correct the sentences:
- •XXV. For each of the following phrases find the expression in the text or in the dialogue that explains it:
- •XXVI. After reading the text explain in detail explain in detail how to open a current account. Current accounts
- •XXVII. Read and translate the text. Describe to a partner how to open a deposit account. Deposit accounts
- •XXVIII. Match questions and answers:
- •XXIX. Act as an interpreter for a and b:
- •Paying-in slip
- •XXX. Translate into Ukrainian.
- •XXXI. Read the dialogue.Answer the questions which follow it. Reproduce the dialogue in pairs.
- •Choosing a bank account
- •XXXII. Read the text and write a précis in English in about 200 words:
- •Questions:
- •Unit IV Text a Wholesale banks
- •British merchant banks
- •Other British banks
- •Overseas banks
- •I. Key terms
- •II. Answer the following questions:
- •III. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •IV. Fill in the blanks:
- •V. Rearrange the following sentences to make up a coherent and logical text about other British banks. The first sentence is given to help you: Other British banks (iso)
- •VI. Prepare a brief summary of the text:
- •VII. Translate the text in writing: The bill of exchange
- •The merchant banks
- •VIII. Read and retell the following text. Foreign banks
- •IX. After reading the following dialogue translate the passages concerning recent changes and the range of services provided by the bank:
- •X. Study the divisions of the bank and their areas of responsibilities:
- •XI. Look at the terms in the left-hand column. Match each one with its correct definition in the right-hand column:
- •XII. Scan the following text in about 100 words. Give the proper title to the text:
- •XIII. Read the following information:
- •If you represent Company c, look at the following instructions.
- •XIV. Choose words to complete each sentence. In some cases there is more than one possibility.
- •XV. Read the dialogue. Answer the questions which follow it: Part I. Application for credit
- •Part II. Granting the Loan on an Open Note
- •XVI. After reading the text answer the questions which follow it:
- •XVII. Choose the right answer:
- •XVIII. Say what is true and what is false. Correct the false sentences:
- •XIX. Translate the following text into English:
- •XX. Role-play
- •Text b The discount houses
- •I. Key terms:
- •II. Answer the following questions:
- •III. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •IV. For each of the following words you should provide a word with the same or similar meaning and a word, which is opposite in meaning:
- •V. Join the halves.
- •VI. Read about the history of Alexanders. Ask comprehension questions on the text. Alexanders Discount p.L.C.
- •VII. After having read the text below you should be able to answer the questions following the text: Building societies
- •VIII. Analyse the following charter:
- •IX. Make an overview of the following text in English: Other deposit-taking intermediaries
- •Investing financial intermediaries
- •Insurance companies
- •Investment trusts
- •X. Find the terms which match the following definitions:
- •Unit V federal reserve banks
- •Organization of the Banks
- •Monetary Policy Role
- •Supervision and Regulation
- •Government Services
- •Depository Institution Services
- •Key terms
- •Answer the following questions in your own words:
- •III. Fill in the blanks in this passage, using words from the list given below:
- •IV. Case Study:
- •Monetary Policy and the Economy
- •The ultimate targets of monetary policy
- •V. Read the text and prepare your comments on the supply of Federal Reserves, using the given below picture. Supply of Reserves
- •Trading of Reserves
- •VI. Opposites and Synonyms.
- •VII. Join the halves.
- •VIII. Summarize the following passage in about 100 words and give an appropriate title
- •IX. Write a memorandum.
- •X. Read the passage below and explain the meanings of the words and phrases which have been highlighted.
- •XI. Analyze the following text. Make up a plan of it; give the translation of the underlined words and word combinations. Open Market Operations
- •XII. Interpretation of data.
- •XIII. Find in the text given below answers to the following questions:
- •XIV. Give a brief report on the given material Techniques of Open Market Operations
- •Repurchase Agreements
- •Federal Reserve System outright transactions Billions of dollars
- •Matched Sale-Purchase Transactions
- •Federal Reserve System temporary transactions
- •XV. Case study.
- •A typical day in the conduct of open market operations
- •The discount window
- •Interest rates
- •XVI. Analyze the texts. Complete a list of advantages and disadvantages for the borrower of each of the types of credit. Types of Credit
- •Adjustment Credit
- •Adjustment borrowing and the spread of the federal funds rate over the discount rate Seasonal Credit
- •Extended Credit
- •Emergency Credit
- •Unit VI
- •I. Key terms:
- •II. Answer the following questions:
- •III. Find in the text the following word combinations:
- •IV. Explain the following word combinations and use them in your own sentences:
- •V. Fill in the blanks. Rewrite the passage filling in the blanks from the list of words below.
- •Financial institutions: their role in business
- •Commercial Banks
- •Table 1. Top 15 Commercial Banks in the United States (Based on Total Assets)
- •VI. Summarize the following passage in about 100 words: Young Americans Bank
- •VII. Choose the right answer:
- •VIII. Do it in English making use of the active vocabulary: Порівняння банківської структури сша та інших країни
- •X. Express the main idea of each of the paragraphs in the following text in English:
- •XI. Act as an interpreter for a and b:
- •Other Banking Institutions Thrifts and Credit Unions
- •Limited-Service Banks
- •I. Key terms:
- •II. Answer the following questions:
- •III. Find in the text the corresponding English terms:
- •IV. Summarize the functions of savings banking institutions in about 150 words.
- •V. Find in the text the words which correspond to the following explanations:
- •VI. Explain the meaning of the following word combinations and use them in your own sentences:
- •VII. Complete the table:
- •VIII. Do it in English making use of the active vocabulary: Кредитні спілки
- •IX. Make an overview of non-banking institutions. Use comprehension questions given below: Nonbanking Financial Institutions
- •X. Complete the sentences:
- •XI. Match the words and the word combinations given on the left with their dictionary definitions given on the right:
- •XII. Explain the following word combinations and use them in your own sentences:
- •XIII. Role play:
- •XIV. The following are some of the more obvious and important differences in terminology between British and American English in the area of finance.
- •XV. Speak on the following topics:
- •Unit VII the banking system of ukraine
- •Structure of the banking system of ukraine
- •I. Key terms:
- •II. Answer the following questions:
- •III. Study the following information: Selected data on banks of Ukraine
- •IV. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •V. Find English equivalents to the words and word combinations given below:
- •VI. Translate the following text into English: Організація внутрішнього аудиту в комерційних банках України та взаємозв'язок з зовнішніми аудиторами
- •VII. Translate the text in writing: Banking system
- •VIII. Read and discuss the following texts: Monetary policy: The nbu further reduces the discount and reserve requirement rates
- •Financial markets: Although the amount of bad credits has decreased, it is still quite high
- •Bank activity bases concerning automation of electronic payments
- •I. Key terms:
- •II. Answer the following questions:
- •III. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •IV. Study and present the information given in the text: opening a bank account
- •V. Read and retell the following text: Rise and development of the banking system of Ukraine
- •VI. Write a resume of the text given below: Banks and the Association of Ukrainian Banks
- •Unit VIII the national bank of ukraine
- •Issuing centre
- •The National Bank of Ukraine determines the foreign exchange policy.
- •I. Key terms
- •II. Answer the following questions in your own words:
- •III. Fill in the blanks in this passage, using words from the list given below:
- •IV. Case Study.
- •V. Opposites and synonyms.
- •VI. Join the halves.
- •VII. Summarize the following text in about 100 words and give an appropriate title.
- •Herald of the National Bank of Ukraine, May 2000
- •VIII. Read the memorandum (memo) written by the Kyiv National University teacher, who is responsible for the students practicing at one of the nbu departments (International Banking Department).
- •1) Memo 1
- •2) Memo 2
- •IX. Read the passage below and explain the meanings of the words and phrases, which have been underlined. Cash Circulation and Settlements Sphere
- •X. Make a chart using the following data, given by the nbu (20xx).
- •XI. Write a memo to your supervising teacher, in which you should comment on the envisioned monetary parameters, shown in the table.
- •XII. Complete the sentences using your own words:.
- •XIII. Match the words and word combinations given on the left with their dictionary definitions given on the right.
- •XIV. Point all possible advantages and disadvantages (if may be) of the bills of exchange (b/e) given bellow. Bills of Exchange
- •2) Study the letter:
- •XVI. A) Study the text given below and make your comments on it: Role of the Central Bank in Interbank Settlement
- •XVII. Study the Bank’s following tables, add the data on the Bank of England, and the nbu and state what is different and what is not in their performance.
- •Unit IX bank supervision
- •Organization of Effective Bank Supervision
- •Introduction to the Legal Framework
- •I. Key terms
- •II. Answer the following questions in your own words:
- •III. Fill in the blanks:
- •IV. Translate into English
- •V. Study the following text and make up a plan, covering all crucial points
- •IV. Opposites and Synonyms.
- •VII. Join the halves.
- •VIII. Summarize the following passage in about 100 words and give an appropriate title.
- •Introduction to the Camel Rating System
- •IX. Write a memorandum.
- •X. Read the passage below and explain the meanings of the words which have been highlighted.
- •Study the following notes and prepare an oral presentation
- •Component ratings
- •Analysis of Capital
- •Risk Assets
- •Analysis of asset quality
- •XII. When you have considered these problems, express your thoughts in writing.
- •XIII. Asking about credit rating.
- •Using an Enquiry Agency
- •Replying to enquiries about credit rating
- •Refusing to reply
- •Replying favorably
- •Letter to a referee
- •Questions
- •Enquiry Agent's reply
IV. Translate into English
Проконтролювавши початок діяльності, юридичне поле має займатися питаннями щодо структурних вимог. Треба визначити головні умови ліцензії, такі як термін, сплата внесків та, якщо треба переоформлення ліцензії у Центральному Банку (ЦБ). Центральний Банк може визначити обов’язки керівництва. Дозвіл ЦБ, як наглядового органу, на роботу ділерів іноземної валюти може бути прикладом. Це робиться після ретельного вивчення рівня їх ділової кваліфікації та послужних записів.
Також необхідно вивчити питання філій, включаючи дозвіл наглядового органу на створення нових або закриття існуючих, термін їх роботи, робочий час.
Окрім того, треба мати на увазі і питання змін власності (від 5% до 25%), злиття або об'єднання, змін назви, зменшення розміру сплаченого акціонерного капіталу, тощо.
Нарешті, мають існувати права на відміну ліцензії, якщо діяльність компанії не відповідає вимогам: неспроможність почати діяльність в означений термін, закінчення терміну ліцензії або при виникненні взаємовиключаючих законодавчих вимог та при нанесені збитків власникам вкладів.
V. Study the following text and make up a plan, covering all crucial points
Perhaps the most detailed aspect of the legal framework should be on-going prudential requirements and prohibited or restricted activities which are designed to help ensure safety and soundness.
An on-going capital requirement calling for a minimum ratio ensures a minimum level of capital is maintained as a bank grows.
Traditional on-going capital requirements are simple gearing or leveraging ratios where eligible capital, as defined, must equal or exceed a set percentage of assets or deposits;
A more modern and complex approach is to base the ratio on tiers of capital relative to a risk weighted total of both on and off-balance sheet items.
A liquidity requirement, while not ensuring that sufficient liquidity is maintained for all circumstances, forces banks to hold a specified percentage of deposit categories in certain liquid assets, as defined.
The supervisor should also have the authority to approve, or at least be satisfied with, the level of provisions (especially for bad debts) before annual accounts are finalized.
This can be done through consultation with the external auditor and/or bank management and through submission of year-end reports on the status of risk assets and off-balance sheet exposures;
A second option is to base this judgment on results of on-site examinations, including follow-up reports submitted on large classified assets.
A legal lending limit sets the maximum exposure, through various types of credit facilities, a bank can make to one borrower or a related group of borrowers. The limit is usually expressed as a percentage of the bank's total capital.
The limit may vary based on the type of security provided, if any, and the nature of the ties between affiliated or otherwise related borrowers;
This safeguard can be severely diluted in value if the legal framework allows for various exceptions or exemptions from the limit;
The Central Bank should have the authority to determine what constitutes a grouping of related borrowers for purposes of this limit and the length of time allowed for an excess exposure to be disposed of or reduced to within the limit.
Limitations on credit facilities to bank directors and their interests, executive officers, and in some cases, staff, are intended to prevent abuse through excessive lending to “insiders”.
Limits can either be expressed in maximum monetary amounts or as a percentage of bank capital;
Policies may be established by the supervisor to ensure that banks do not relax credit standards on insider loans and do not make such loans on preferential terms.
Finally, restrictions can be placed in a legislative framework to ensure banks do not engage in commercial trade (wholesale or retail) except in the course of banking business, and that real estate holdings be confined to bank premises or in satisfaction of a bad debt until such property can be resold.
While reliance varies among bank supervisors, authorization of and relationship to external auditors provide a useful safeguard in determining and monitoring a bank’s financial position.
External auditors must, of course, be independent in all respects from the bank and its management. While the bank should appoint the external auditor, the firm should be one that is satisfactory to the Central Bank; in turn, the Central Bank can reject an audit and call for a new audit to be done.
The legal framework should ensure that the auditor has full access to all bank records and documents.
The auditor should submit a copy of his report to the Central Bank, normally within 90 days of the financial year-end, and also include a copy of any management letters commenting on weaknesses noted in the audit.
The Central Bank should have the authority to call for trilateral meetings to include bank management and external auditors to discuss findings and matters of supervisory concern.
Before audited accounts are finalised, the Central Bank should have the power to approve provisions for bad debts, as a safeguard to ensure the amount agreed upon by management and the external auditor is sufficient.
While reliance on the work of external auditors often depends upon the extent of (and scope and depth of) the supervisor's on-site examinations. Competent external auditors can add an important link and source of independent information to the supervisor.
Since all bank supervisors rely, to some extent, on data received from banks, reports to and requests for information by the Central Bank should be addressed in the legal framework.
In addition to receiving the audited annual accounts, the Central Bank should receive periodic returns for analysis on a weekly, monthly, or quarterly basis, as need be.
Such returns should include, at a minimum: balance sheet, income statement, liquidity positions, data on large and problem loans, and foreign exchange activities.
The time limit for submitting such data should be made clear, usually one month or less after the reporting date.
While the law can call for returns in broad terms, a regulation specifying content, frequency, the need for accuracy, and how it will be verified, should be in place.
The Central Bank should also have the authority to call for information as it sees fit in its supervisory role.
Such information might include special one-time-only surveys on a certain banking subject.
Calls for information might also be to investigate off-site a recently discovered weakness or problem, which may then lead to an examination.
The legal framework should also provide the Central Bank with the authority to conduct on-site examinations at its discretion.
The framework should enable supervisors to conduct on site examinations, under conditions of confidentiality, whenever the Central Bank sees fit.
In addition, powers should be available for supervisors to examine affiliated institutions, again at the Central Bank's discretion.
Examples of such affiliated institutions might include a pension fund, joint venture, or various nonbank subsidiaries;
The same powers as exist for the examination of the bank itself should be in place for the exams of affiliates.
The bank under examination must also be required to produce for examiners all records, books, minutes, accounts, cash, securities, documents, and vouchers, etc. Penalties for failure to do so should be specified.
On-site examinations are only effective if sufficient enforcement powers are in place to allow the supervisory authority to take action to help correct unsound conditions. Such powers can be implemented in a variety of ways.
If an unlawful or unsound aspect of a bank is disclosed, the Central Bank should have the power to require the bank to take such measures as may be considered necessary to rectify the matter. A common example would be to call for increased provisions for bad debts as a result of problem loans.
In addition, the legal framework, preferably the law itself, should provide the Central Bank with several enforcement powers from which it can choose in dealing with problem banks, such as:
Require that corrective action be taken by management through means of a formal written agreement signed by the bank's directors and management and the Central Bank;
Appoint a qualified person to advise the problem bank on corrective measures to be taken, with costs paid by the bank concerned;
Prohibit the declaration and/or payment of dividends until the problem is corrected;
Withhold approvals on new branches or other expansion of activity;
Initiate a legally binding cease and desist order to force a bank to stop an unacceptable practice;
Initiate a legally binding removal or suspension of management on a temporary or permanent basis;
Impose fines, consistent with law, on individual members of management for violations of law, regulations, or Central Bank directives.