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)

Included in this group are subsidiaries of the clearing banks specializing in international, merchant, and wholesale banking. Funds are used for medium-term loans, installment loans, mortgage loans, international loans, etc., depending on their specialized field. In addition, among the offshore banking institu­tions in the Isle of Man and the Channel Islands (such as Jersey and Guernsey), those British institutions which opted to submit their returns to the Bank of England are included. They acted as efficient allocators of financial resources between different geographical locations and functioned as central banks of British colonies in the past. Also included are finance houses, now authorized as banks, and British overseas banks such as Standard Chartered Bank. Despite the large number of banks, their market share in the banking industry is relatively small, only 4.4 percent. British overseas banks are those which have their head offices in London but their branches located outside the UK, mainly in the UK's old colonies. Subsidiaries of the clearing banks and finance houses depend heavily on interbank and CD markets for their funding needs.

VI. Prepare a brief summary of the text:

In Bank of England statistics, the domestically-owned banks which are not retail banks are divided into two groups: British merchant banks and other British banks. The former group is comprised of large and often old-established institutions that, as well as providing banking services for a limited range of companies and wealthy individuals, act as advisers on corporate finance; in particular they tend to be involved with mergers and acquisitions. It includes well-known names such as Rothschilds, Warburgs and Barings.

The banking business of the British merchant banks is composed largely of wholesale banking-dealing with large corporate clients and operating in the short-term money markets. Their retail business is small and only a minority of such banks have offices in mainland Britain outside London. It can be seen that approximately one-third of deposits are in currencies other than sterling. Nearly 20% of all deposits originate abroad and over 30% of all deposits are derived from the interbank markets. Correspond­ingly, on the assets side of the balance-sheet, much lending is through the various money markets. Large sums are lent on the domestic interbank market and a large amount is lent abroad, much of it to banks abroad. Direct advances to non-bank customers represent a smaller proportion of total assets than in the case of the retail banks. Eligible liabilities are relatively low.

Merchant banks also undertake a number of other financial activities. They act as issuing houses; that is to say, they act for companies wishing offer shares to the public and make all arrangements necessary including drawing up the prospectus, receiving applications for shares and making ^the initial allotment. They also act as fund managers and manage the investments of wealthy individuals, companies, pension funds, etc. Many run unit trusts, and a number are prominent as financial advisers, notably in the field of corporate mergers and takeovers.

The category of "other British banks" comprises a large number of banks of varying origins. Some are specialized subsidiaries of other financial insti­tutions, some have more the characteristics of a charitable trust but are obliged to register as banks in order to be able to accept deposits. But for many the main business is that of a finance house: raising money in the wholesale markets and lending to industry, for the purchase of capital equipment, and to persons, for the purchase of consumer durables. Many of these banks are relatively small.

Foreign Banks

Most have only the one office in or near the City of London. A small number of North American and Western European banks have had a London office since before World War II, in some cases since the nineteenth century, but for the most part these foreign banks are comparative newcomers. Most arrived during the 1960s and 1970s.

Table 1. Foreign Banks: Abridged Balance Sheet. 30 September 1991 (£m)

Sterling Liabilities
Deposits: UK banks	32.922
other United Kingdom	41.426
overseas	44.127
CDs & other short-term paper	24.030
Foreign Currency Liabilities
Deposits: UK banks	62,218
other United Kingdom	44.064
overseas	408.298
CDs & other short-term paper	58.758
Items in suspense and transmission, capital and other funds (sterling and other currencies)	20,892
Total Liabilities	736,736
Sterling Assets
Notes, coins and balances with Bank of England (including cash-ratio deposits)	509
Market loans: UK banks and discount houses	30.368
UK bank CDs	6,582
UK local authorities	156
overseas	17,004
Bills	441
Advances: United Kingdom	80,457
overseas	8,944
Investments	7,625
Other Currency Assets
Market loans and advances: UK banks (including CDs)	65,868
other United Kingdom	64,444
overseas	396,843
Bills and investments	45,073
Miscellaneous (sterling and other currencies)	12,424
Total Assets	736,736
Acceptances outstanding	14,657
Eligible liabilities	102.163