Banks

Министерство  образования и науки РФ

Федеральное агентство  по образованию

Государственное образовательное учреждение высшего  профессионального образования

 

 

 

 

 

 

 

 

 

 

Творческое  задание

 

 

 

по английскому языку 

 

на тему:

 

 

«Banks»

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Таганрог 2010

Plan:

 

1. Determination of the banking

 

2. Bank aims

 

3. Types of bank

 

4. Safeguarding and transfer of funds

 

5. Lending and loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banks

 

Banking is the transactions carried on by any person or firm engaged in providing financial services to consumers or businesses.

For these purposes there exist commercial banks, central banks, saving banks, trust companies and merchant banks. Banking consists of safeguarding and transfer or funds, lending or facilitating loans, guaranteeing creditworthiness and exchange of money. In other words, banking is the acceptance, transfer, and creation of deposits. The depositary institutions are central banks, commercial banks, saving and loan associations, building societies, and mutual savings banks.

Banks are organizations that carry out the business of banking taking deposits and then using those deposits to make loans. In essence, a bank aims to make a profit by paying depositors a lower rate of interest than the rate the bank charges borrowers. In accounting terms, deposits are considered liabilities (because they have to be repaid), and loans are considered assets.

Banks in most countries are supervised by a central bank, such as the Bank of England in the United Kingdom, the Bundesbank in Germany, the Federal Reserve System in the United States and Central Bank in Russia.

There are many different types of bank, and the banking structure varies from one country to another. Banks can fall into the following categories:

Retail banks are often referred to as commercial banks. In addition to conventional banking services, such as the provision of checking accounts, they deal in foreign exchange, issue credit cards, provide investment and tax advice, and sell financial products such as insurance. In the United Kingdom the biggest retail banks (by assets) are Barclays Bank, National Westminster Bank, Midland Bank, Abbey National Bank and Lloyds Bank.

Merchant or investment banks act as intermediaries between investors and private or public concerns seeking medium to long-term funds, often acting as underwriters for issue of shares. Increasingly they have played a fundamental role in advising on mergers and acquisitions, and on management buy-outs. In the United Kingdom, some of the longest established and best-known merchant banks are still privately owned.

Building societies were set up in the United Kingdom to take deposits in order to provide long-term loans (mortgages) to homebuyers. They are owned by their members (those who have deposited money with or borrowed money from them).

Saving Banks were set up with the aim of attracting small savers. They resemble retail banks in the services they provide.

Credit unions are the equivalents of savings banks, and are run as a cooperative nonprofit- making organization. Credit unions are widespread in the United States. France's biggest bank, Credit Agricole, is essentially a federation of more than 3,000 credit unions.

Universal bank do everything that the above types of banks do.

 

Safeguarding and transfer of funds

 

Vaults and safes are the means for safeguarding of funds. Money is physically stored there. These physical deposits are in most cases insured against theft, and against the bank being bankrupt and unable to repay the funds. In some banks customers can use safety deposit boxes for valuables. To save money in banks is profitable because bank customers receive interest given on savings accounts, a percentage return on the bank's investments with the money.

Transfer of funds can be handled through written instruments: contracts, checks, or direct transfers performed electronically. Nowadays banks provide the customers with additional ways of gaining access to their funds and using them. These are credit cards and account debit cards, electronic cash tills, computer on-line banking, and other services.

Automated clearing houses perform similar services for business customers by handing regular payments, such as wages, for a company banking with the bank. Longer-term schemes for providing regular income on savings are often offered through trust funds or other investment schemes.

 

Lending and loans

 

Loans to bank customers are drawn on the funds deposited with the bank and the yield interest which provides the profits for the banking industry and the interest on savings accounts. These loans may take the form of mortgages or other policies.

Banks may guarantee credit for customers who wish to obtain loans from other institutions. They also provide foreign exchange facilities for individual customers, as well as handling large international money transfers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vocabulary:

 

1. checking account – счет, позволяющий в любой момент вносить и снимать деньги (до востребования);

 

2. liabilities – задолженность;

 

3. profitable – выгодный;

 

4. assets –актив (баланса);

 

5. retail bank –банк, занимающийся обслуживанием мелкой клиентуры;

 

6. underwriter – гарант размещения (займа, акций);

 

7. intermediary –посредник;

 

8. merger – слияние, объединение (коммерческое, промышленное);

 

9. acquisition –получение, сбор;

 

10. management buy-outs –выкуп прав на управление;

 

11. transactions –операции;

 

12. mutual savings banks –взаимно-сберегательные банки;

 

13. lending –предоставление кредита;

 

14. loans –займы;

 

15. creditworthiness –кредитоспособность;

 

16. deposits –депозиты;

 

17. vaults –хранилища;

 

18. valuables –ценности;

 

19. percentage return –доход в виде процента;

 

20. gaining access –получение доступа;

 

21. account debit cards –карты дебета счета;

 

22. elecrtronic cash till – банкомат;

 

23. computer on-line banking – компьютерные онлайновые расчеты между банками;

 

24. clearing houses – расчетные палаты;

 

25. mortgage – залог, ипотека

 

26. policies - полисы

 

28. handling – обработка

Questions:

 

1. What does banking business consist of ?

 

2. What are the aims of banks ?

 

3. What are the types of banks ?

 

4. What are the activities of different types of banks ?

 

5. What is banking ?

 

6. What kinds of banks there exist ?

 

7. What are the vaults and safes for ?

 

8. Why is it profitable to save money in banks ?

 

9. How can the customers gain access to their funds and use them ?

 

10. How can the transfer of funds be done ?

 

11. What are loans to bank customers drawn on ?

 

12. Do banks give the interest on savings accounts ?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary

 

The author's purpose is to give the reader information on main duty of the banks.

Banking is the transactions carried on by any person or firm engaged in providing financial services to consumers or businesses.

The author underlines, that in essence, a bank aims to make a profit by paying depositors a lower rate of interest than the rate the bank charges borrowers. In accounting terms, deposits are considered liabilities , and loans are considered assets.

The author turns our attention to, that banks in most countries are supervised by a central bank.

The author turns our attention to, that there are many different types of bank, and the banking structure varies from one country to another. Banks can fall into the following categories:

Retail banks are often referred to as commercial banks. In addition to conventional banking services, such as the provision of checking accounts, they deal in foreign exchange, issue credit cards, provide investment and tax advice, and sell financial products such as insurance.

Merchant or investment banks act as intermediaries between investors and private or public concerns seeking medium to long-term funds, often acting as underwriters for issue of shares.

Building societies were set up in the United Kingdom to take deposits in order to provide long-term loans to homebuyers. They are owned by their members. Saving Banks were set up with the aim of attracting small savers.

Credit unions are the equivalents of savings banks, and are run as a cooperative nonprofit- making organization. Universal bank do everything that the above types of banks do.

The author stresses, that vaults and safes are the means for safeguarding of funds. To save money in banks is profitable because bank customers receive interest given on savings accounts, a percentage return on the bank's investments with the money.

The author underlines, that transfer of funds can be handled through written instruments: contracts, checks, or direct transfers performed electronically. Nowadays banks provide the customers with additional ways of gaining access to their funds and using them. These are credit cards and account debit cards, electronic cash tills, computer on-line banking, and other services.

The author stresses, that banks may guarantee credit for customers who wish to obtain loans from other institutions. They also provide foreign exchange facilities for individual customers, as well as handling large international money transfers.

In my view from banks help population in realization of their need.