Vocabulary:

to design – розробляти

to be divided into – бути поділеним на

similar to – схожий на

to affect – впливати

advance – аванс

amount – сума, кількість

acceptance – акцепт (прийнята до сплати платіжна вимога)

bill of exchange – переказний вексель, тратта

Stock Exchange – фондова біржа

margin requirement – гранична вимога

market price – ринкова ціна

to limit – обмежувати, лімітувати

restriction – обмеження

bankruptcy – банкрутство

Questions:

1. What does the American banking system consist of?

2. What functions does the FRS perform? What are they similar to?

3. How is the territory of the USA divided (in terms of banking system)?

4. Who governs the FRS?

5. What is the Federal Reserve Board?

6. How can the Federal Reserve Board influence the volume of activity on the Stock Exchanges?

7. What restrictions have been placed on commercial banks by the FRS?

Bank organization

Banks are among the most important financial institutions. The way in which a bank is organized and operates is determined by its objectives.

A central bank accepts responsibility for advising the government to make the country's financial policy, issues national currency and regulates money supply. The aim of commercial bank is to earn profits.

Over the years banks have developed organizational forms, or structures to perform their various roles and to supply services to their customers demand.

Many banks offer the combination of wholesale and retail banking. Wholesale banking provides services to companies and other banks; the retail ones mainly provide services to public (individuals).

Typically a bank consists of some divisions. At the head of it there are Chief Administrative Officers including the Board Chairman and the President, who are elected by the shareholders and are responsible for the efficient management of the bank.

Then come different divisions:

Lending division which deals with commercial and consumer loans;

Accounting and Operations division which consists of Accounting and Audit departments and Operations subdivision dealing with check clearing, posting, account verification, and customer complaints;

Fund-Raising and Marketing division dealing with tellers, new accounts, advertising and planning;

Trust division consisting of Personal Trusts and Business Trust subdivisions.

There is often close contact between top management and the management and staff of each line division. Such banks present a relatively low-risk working environment and place the banker close to the customer and give the bank employees the opportunity to see the results of their work.

Vocabulary:

to accept responsibility – брати на себе відповідальність

money supply – грошова маса (в обігу)

various – різноманітний

wholesale banking – банківські послуги для першокласних корпоративних клієнтів і інституційних інвесторів; міжбанківські операції

retail banking –

divisions – робота банків з індивідуальними клієнтами; банківські послуги для фізичних осіб

Board Chairman – голова ради директорів

to elect – обирати

lending division – відділ кредитування

clearing – кліринг (безготівковий розрахунок, система взаємозаліків)

teller – касир, операціоніст

complaint – скарга

staff – штат, персонал

environment – середовище