types of banks (2003, 3 oldal)
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Types of Banks
Central banking
The Bank of England as the country's central bank plays the major role in controlling the
British monetary system and it is at the hub of most banking activity. The Bank of England is
controlled by a court of directors appointed by the state. This court consists of a governor, a
deputy governor and sixteen directors.
Functions of the Central Bank:
It is the government's bank. It manages the government's banking accounts, for
example for the Exchequer and other government departments.
It advises the government on formulation of monetary policy and assists the
government in carrying out the monetary policy.
It handles the arrangements for government borrowing: short- term: through the sale
of Treasury Bills, and long-term: management of government stocks It manages the exchange equalisation account and through this the Bank can influence
the value of sterling by selling or buying pounds to affect foreign exchange market
prices.
It controls the note issue: The Bank has the sole responsibility for the issue of bank
notes in England and Wales.
It is the bankers' bank: Each of the clearing banks has an account with the Bank. The
clearing banks keep about the half of their liquid reserves deposited at the Bank (short
call money) and use these for settling debts among themselves. The commercial banks
rely on the Bank if they run short of money or require loan.
It has international responsibilities: The Bank provides services for other central
banks and for example for the IMF.
It is the lender of last resort: If the commercial banks run short of cash they recall
deposits they have in the money market. This leaves the discount houses short of
funds, but The Bank 'lends as last resort' to the discount houses at a higher rate of
interest.
Other banks and financial institutions:
Discount houses:
They accept very short-term deposits in return for a low rate of interest
They use funds to purchase a variety of assets, e.g. treasury bills, bills of exchange
and guilt-edged securities
They provide immediate finance for companies by discounting reliable bills of
exchange = they buy them for less then their face value and resell them and charge a
higher rate of discount to achieve a profit
Clearing banks:
They accept deposits of money
They provide a system of payments mechanism
They provide a wide range of services
They handle the exchange and settlement of cheques
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Trustee Savings Bank (TSB)
It is a fully fledged bank that offers a variety of services similar to the other clearing banks:
current, deposit, savings and investment account, credit transfer facilities, overdrafts,
personal and mortgage loans, combined credit and cheque guarantee card, travel cheques andforeign currency.
State banks
The National Savings Bank operated through the Post office
The National Girobank: financially independent from the Post Office
Merchant banks
They are private firms that offer highly specialised services almost exclusively for business
customers. Their main activities: Acceptance house activities: they lend their name to a bill of exchange issued by less
well-known traders, so that it becomes more acceptable because of the bank's good
reputation. They confirm the buyers ability to pay for the product
Issuing house activities: they sponsor first issues of companies' shares , and they are
intermediaries between companies seeking capital and those willing to provide it.
Capital market activities: they accept larger deposits, provide finance for hire-
purchase, advise on company problems such as capital reorganisations, offer
consultancy services etc.
Foreign banks
There area bout 400 foreign banks in London. They provide services and credit to companies
from their own countries operating in Britain, but some of them make substantial sterling
loans to British borrowers, too.
Banking in the USA
In 1913, the Congress established the Federal Reserve System and required all national banks
to belong to this system. State banks were invited to join and many did. Now most American
banks belong to the FRS, which regulates banking in America.
The nation is divided into 12 Federal Reserve Districts. There is one Federal Reserve Bank in
each district. They operate under the centralised control of the Federal Reserve Board in
Washington. It consists of 7 members appointed by the President and approved by the Senate
for a 14-year term. This Board makes most of the major decisions for FRS.
The Federal Reserve Banks do not business with individuals or business firms. They serve
only the Federal Government and the members banks of FRS.
The Federal Reserve Banks serve two main purposes:
The Federal Government uses them to handle its own banking needs. The Federal
Reserve Banks also handle the sale of bonds issued by the US Administration
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The Federal Reserve Banks provide important services to the member banks. Member
banks are required by law to set aside a part of their depositors' money . This is called
their reserve and each bank must deposit its reserve in the FRB that serves its Federal
Reserve District.
Vocabulary
Deposit bett (bank tmakrben), de lehet lett is
Treasury bill Kincstrjegy
Gilt-edged securities Biztonsgos llamktvnyek
Bill of exchange Idegenvlt; vlt = felttel nlkli fizetsi
felszlts, amit vki alrsval killt vki
msnak; a cmzettet arra utastja, hogy
meghatrozott idben fizessen ki egy adott
sszeget vagy egy bizonyos szemly
szmra, vagy a dokumentum
bemutatjnak.
To discount a bill of exchange vltt leszmtolni, diszkontlni
Clearing Banks klring bankok, zsr bankok = olyan
bankok, melyek tagjai a London Bankers
Clearing Bank Association-nek, mely
lehetv teszi a csekk- s kszpnzforgalom
elszmolst Angliban
Savings bank takarkpnztr
Overdraft szmlahitel, hiteltllps = folyszmla-hitel, meghatrozott hatrrtkig vltoz
sszeggel
To buy on the hire-purchase system rszletre vsrol
Acceptance house/ accepting house vltbank; olyan pnzintzet, melynek
tevkenysgei kz tartozik a vltk
rtkestse akr elfogadssal, akr
garancival. Valjban garantlja az ruk
vsrljnak vagy importrnek pnzgyi
helyzett azzal, hogy vllalja a
vltktelezettsget, azaz alrsval
igazolja, megersti, hogy a vev illetve az
importr az rut ki tudja fizetni
Issuing house kibocsthz; olyan pnzintzet, mely a
vllalatok tzsdei bevezetsben, illetve
rszvnyeik kihelyezsben s a
tkenvekedst clz tovbbi tranzakcik
lebonyoltsban segdkezik
Merchant bank szakosodott kereskedelmi bank
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