2015-09-06
898
Types of Banking Institutions
Active Vocabulary
broker - брокер, маклер
brokerage - 1) брокерское вознаграждение,
комиссионные брокера
2) брокерское дело, маклерство,
посредничество
firm of (stock) brokers - брокерская фирма
brokerage house (US) - брокерская фирма
commercial bank - коммерческий банк
credit union - кредитный союз
disbursemеnt - выплата в порядке погашения
exchange equalization
account - валютный уравнительный счёт
fiduciary - доверенное лицо, фидуциар
finance company - финансовая компания
lend (v) (lent, lеnt) - ссужать, давать взаймы, одалживать
lеnding institution - кредитное учреждение
national bank - национальный банк
savings and loan
Association (US) - cсудно-сберегательная ассоциация (ам)
ration (v) - нормировать
sеcurity, sеcuritities - ценные бумаги
state bank - государственный банк
stock cxchange (S.E., St.Ex.) - фондовая биржа
serutiny - проверка
subscribe (v) - подписываться на что-либо,
приобретать по подписке
subject to - подлежащий чему-либо
The Treasury - казначейство, министерство
финансов
United States Treasury
(Departament) (US) - казначейство, министерство финансов
(амер.)
to somе extent - в какой-то мере, до какой-либо степени
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transaction - сделка
trust - траст, кредит
trust company - трастовая компания
Dialogue
Read the dialogue in parts.
Types of Banking Inslitutions
Student: What type of bank is this?
Banker: We're a commercial bank.
S.: Does that mean that your services are limited?
B.: To some extent. For instance, we can't offer the fiduciary services that trust company can.
S.: What are they?
B.: Well, they have to do with the administration of trusts and estates.
S.: Suppose I wanted to buy or sell some securities. Does your bank handle such transactions?
B.: Yes, through our brokerage house.
S.: Is your broker a member of the stock exchange?
B.: Yes.
S.: This is a state bank, isn't it?
B.: That's right.
S.: Do you offer fewer services than a national bank?
B.: No. In general, the only difference is that a state bank gets its charter from the state it's in, and the national bank gets its charter from the federal government in Washington, D.C.
S.: Are there banks that don't offer regular commercial services?
B.: Oh, yes. For example Savings and Loan Associations and the Federal Land Banks are only lending institutions.
S.: Would you say a savings and loan association is a bank?
B.: No. I'd rather call it a financial institution.
S.: How about a credit union?
B.: That's not really a bank, either.
S.: And a finance company is something entirely different.
B.: Yes.
Questions on the dialogue:
1.What regular services does a commercial bank offer to its customers?
2.What is the difference between a national bank and a state
bank?
3. Which institutions deal with fiduciary services?
4. What do you understand by fiduciary services?
5. What is the job of a broker?
6. Where arc brokerage transactions concluded?
7. What services are offered by:
- Savings and Loan Associations?
- Federal Land Banks?
- credit unions?
Text
The reason for which the Bank of England was founded in 1694 as to look after the Government's debt, commonly called the National Debt, and this is still a most important function. A large proportion of the debt is made up of Government bonds, that is pieces of paper stating that the holder has subscribed such-and-such a sum of money and is entitled to so much interest per year. Two world wars have helped to swell the issue of bonds to some $,40,000 million. Another sizable slice of debt is in the form of Treasury bills which are rather like bonds with a very short life span before the Government buys them back again and so repays the loan. Their purpose is to provide the government with day- to-day money to cover the inevitable gaps which occur between its disbursements, e.g. on such things as unemployment benefit and its receipts from taxation. A third type of debt is the group of National Savings Securities, of which ordinary Post Office (now National Savings Bank) accounts and Premium Bonds are perhaps the best-known examples.
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The Bank of England is the ultimate source from which the general public can obtain cash. Other English banks used to issue their own notes, but now they all use the Bank of England notes. Scottish banks have continued to issue their own, but it is an expensive undertaking, and is closely controlled by the central bank in England.
The Bank also looks after the bank account of the Government just like an ordinary bank does for its customers. Into this account go all tax receipts and any other transfers of money from the various banks, and out of it go all payments.
Because all the important institutions in the City maintain accounts at the Bank, transfers of money between them and the Government, which go on every day, are made very easily. The Bank merely debits one account and credits another. The Bank also holds accounts for important international in stitutions like the World Bank. for just over a hundred central banks and also for some ordinary foreign banks, making a total of nearly two hundred accounts.
The Exchange Equalisation Account is the name of the fund in which are held the gold and foreign currency reserves of the country. The managers of the fund have the task of intervening from time to time in the otherwise free market for foreign currency, so as to influence the price of the pound in line with Government policy, or simply to try to maintain a reasonably orderly market.
The pound is not the only currency whose price has to be carefully controlled. Most of the major world currencies have the same problems, and all greatly benefit from international cooperatioi1. Dealing with other central banks and managing money on an international scale has become an important side of the Bank's work. Every month the Governor flies to Basle to spend a week-end in conference with his opposite numbers from the central banks of other western industrial countries.
The object of the Bank's management in the monetary field is to support the Government's activities in other fields, e.g. taxation policy, export promotion and so on. The methods of control used by the Bank are based on a system in which money available to be borrowed should be rationed by price, not by orders from the Bank or The Treasury.
The battery of instruments of control the Bank has may be summarized as follows:
1. Suggestion and request. From time to time the Bank will make suggestions to the other institutions in the City, indicating the policy the authorities intend to pursue. If they want specific action, the Government makes a “request” like the following:
«Notice to banks.
All banks and finance houses are asked not to provide either loans to persons or check trading facilities for the purchase of...»
2. Open market operations. This is the name given to the activities of the Bank in the financial markets for control purposes. The point is that by its interventions the Bank can influence markets to move in the directions which it desires.
3. Special deposits and supplementary deposits. From time to time, the Government may wish to reduce the amount of money that people can borrow in order to reduce the amount they spend. An effective way of doing this is to reduce what the banks have available for lending, and this is done by requiring them to deposit more money at the Bank of England in special accounts from which it cannot be withdrawn until the Bank says so.
Questions on the text:
1. Why and when was the Bank of England founded?
2. What type of securities make up the National Debt?
3. What is the money raised in this way spent on?
4. Enumerate the most important functions of the Bank of England.
5. What is the object of a central bank's management in the monetary field?
6. What principle does the Bank of England follow in exercising its control over the monetary policy?
7. What instruments of control has the Bank got at its disposal?
