BANKING

Content

• bank and banking;• the clients of the Central banks;• the functions of the Central banks;• bank services;• modern trends in banking;• negotiating for favourable services, credits and

loans.

A bank is a business that keeps and lends money and provides other

financial services. The business of a bank is called banking.

The clients of the Central bank

government commercial banks other Central banks

The functions of the Central bank

Formulation of monetary policy through

Setting interest ratesin short-term period

Keeping inflation and price levelin long-term period

Ensuring the stability of the financial systemsupervising other banks to meet the requirements

Competent management

Adequacy of capital

Adequacy of cash flow

Proper risk management

Printing and distribution of banknotes

Bank services

DEPOSIT operations (transactions)

CREDIT operations (transactions)

PAYMENT operations (transactions)

ADDITIONAL operations

CASH operations (transactions)

DEPOSIT operations

Bank Client

interest rates

money

CREDIT operations

Bank Client

money

interest rates

Bank considers the reliability of Client, i.e.:•the credit history;•the availability of a steady source of income for individual;•enough collateral or security to use as a guarantee;•perspectives of business etc.

PAYMENT operations

Transferring money from one account to another.

CASH operations

Giving out cash money to the clients.Exchanging currency.

ADDITIONAL operations•intermediary services;

•services directed to the companies’ development (inculcation of the stock exchange, placing shares, juridical help, information services etc.);

•giving guaranties and collateral;

•trusting operations (including consultations and help in the management of the clients’ property);

•providing accounting help to the companies;

•presenting the clients’ interests in the court.

Modern trends in banking

On-line banking

+ -•round-the-clock service;•immediate service;•wide variety of options.

security

Negotiating for favourable services, credits and loans

To negotiate use FIRST and SECOND conditionals:

If-clausepresent tense

Main clausefuture tense

If you open an account with our bank, you will benefit from favourable interest rates.

FIRST conditional

SECOND conditional

If-clausepast tense

Main clausewould+infinitive

If a bank failure occurred, you would lose only interest rates.

Basic glossary

Account an arrangement between a customer and a bank that allows the customer to pay in and take out money

Счет

Credit operations operations of giving loans to bank clients and receiving in exchange interest rates on those loans

Кредитные операции

Deposit operations operations of placing clients’ money into the bank on deposit

Депозитные операции

Inflation a continuing increase in the price of goods and services, or the rate of this increase

Инфляция

Interest rate

the cost of borrowing money, expressed as a percentage over a particular period such as a month or year

Процентная ставка

Monetary relating to money, especially all the money in a particular country

Денежный, валютный

Transfer moving money from one account or institution to another

Перевод, перечисление

Transaction 1) a business deal, especially one involving the exchange of money; 2) the act of paying or receiving money

Сделка, транзакция, операция

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