Экономические

–granting loans;

–investment management services;

–cash dispensers and automated teller machines;

–safe custody;

–economic information;

–banker’s credit cards and many others.

Vocabulary

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–current account;

–to deposit;

–depositor;

–to enter the sum in the account;

–to issue a cheque book;

–deposit account;

–savings account foreign exchange transaction;

–to discount bills of exchange;

–to grant loans;

–investment management;

–cash dispensers;

– safe custody.

II. Sum what the text said about:

–current account services of banks;

–deposit account;

–savings account;

–other services of banks.

III. Say which services of banks seem must important to you, and why.

IV. Translate the text into Russian.

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ENGLISH BANKS

Today the British banking is a complicated tripartite system like a three-layer cake. The system is headed by the Bank of England.

This bank was established under a royal charter in 1694. The head of the Bank is Governor of the Bank appointed by the Queen on the recommendation of the Prime Minister. The Queen also appoints Deputy Governor and the Court of the Directors, which consists of 16 directors.

The Bank of England is a central bank or a national bank. It controls the British banking system, is sues banknotes and mints coins. It lends and borrows money for the government, manages the national debt and is in the control of the nation’s gold reserve. The other two layers are:

–the commercial or joint stock clearing banks;

–specialized banking institutions such as the discount houses and merchant

banks.

The commercial or jointstock banks deal with the general public. The four large English commercial banks are known as the Big Four. They are Barclays, Lloyds, the Midland, and the National Westminster. Together they have upwards of 10.000 branches. Commercial banks render various services to companies and individuals. Some of the services are:

–to receive or accept from their customers the deposit of money;

–to collect and transfer money both at home and abroad against deposit and current accounts;

–to provide overdrafts to both personal and business customers;

–to exchange money;

–to supply economic information and to prepare economic reviews to be published;

–to make foreign exchange transactions, including spot transactions, forward transactions and swap transactions;

–to issue various banker’s cards;

–to lend loans to their customers.

Merchant banks and discount houses deal only with special customers providing funds for special purposes. They accept commercial bills of exchange and offer quite a lot of financial services. They provide advisory services about new issues of securities, mergers, take-overs and reorganizations. They also arrange financing for their customers and provide fund-management services.

Besides there is a big group of banks in the UK made up of foreign banks. All the major foreign banks are represented in the UK by subsidiary, branch, representative offices or consortium. They provide finance both in sterling and in other currencies and offer a wide range of financial services.

Lombard Street is the symbol of British banking. This is the place where the first bankers coming from Italy settled.

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–tripartite system;

–three-layer cake;

–Governor of the Bank;

–Deputy Governor;

–to issue banknotes;

–to mint coins;

–to borrow money;

–to manage the national debt;

–to control the national gold reserve;

–joint stock bank;

–clearing bank;

–merchant bank;

–discount house.

II. Sum up what the text said about:

–Bank of England;

–commercial banks of the U.K.;

–specialized banking institutions of the U.K.;

–foreign banks in U.K.;

–Lombard Street.

III. Translate those parts of the text which speak about the services of:

–commercial bank;

–merchant banks.

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IV. Say a few words about banks of our country imagining you are speaking for a foreign student who knows practically nothing about our banks.

INTERNET ON SBERBANK

Here is a piece of information provided by internet on sberbank, one of the biggest Russian banks, in early 1998.

51% of the bank voting stock belongs to the Central Bank of Russia. Practically no information is available about other major shareholders of the company. By 1995 National Credit Bank acquired a big stake of the bank, but later, in the situation of liquidity crisis in the interbank trading market , National Credit sold off its stake , which was widely distributed – nobody managed to buy the whole stake. It seems that there is no shareholder possessing a stake of even 1% and the ownership is widely distributed.

At the press conference the President of Bank announced that the bank intends to increase its charter capital to R 1 tr through several issues of shares . The 8th issue of shares is, prisumably, to be registered by the end of the year and will only comprise common stock.

Sberbank is one of the largest operators in fixed income securities and conducts 40-44% of the Treasury bill market’s trading volume.

The bank holds negotiations with foreign banks and financial institutions on the sale of government securities abroad, especially, the so-called “taiga” bonds. The bank portfolio seems to be very conservative, comprising, actually, only government securities. They do not give unsecured credits and very seldom agree to have corporate securities as collateral.

Sberbank is going to open a representative office in Prague, which will be the first representative office of the bank abroad.

According to Alfa Capital and “Rye, Man & Dor” brokers, Sberbank common shares seem to be extremely popular, especially, among industrial investors.

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–trading – trading market – trading volume;

–capital – charter capital – working capital;

–common shares – common stock;

–fixed income securities – government securities – other traded securities;

–unsecured credit – trade credit – syndicated credit.

II. Explain the meaning of the following terms in English:

III. Have another look at the text and … 1) Find the answers in the text.

Who are the shareholders of Sberbank? Is National Credit Bank one of them?

Why was the name of this bank mentioned?

What did the President of Sberbank say at the press conference? Does the bank deal in government securities only?

Is it popular with investors?

What representative office is the bank planning to open?

2)Sum up all the information given on Sberbank.

3)Say:

–who might be interested in reading this information;

–what other kind of information Internet supplies for businessmen;

–if Internet is increasingly popular with our business people;

–if you have got some experience in using Internet services.

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UNIT 3

DIRECTORS AND MANAGERS

As a rule a private company has only one director. A public company must have at least two directors.

Usually there is no upper limit on the number of directors a public company may have. The company’s note-paper must list either all or none of the names of its directors.

A limited liability company or a corporation is headed by the board of directors elected by shareholders. The directors appoint one of their number to the position of managing director to be in charge of the day-to-day running of the company. In large organizations managing director is often assisted by general manager. Some companies also have assistant general managers. Many directors have deputies who are named deputy directors.

Directors need not be shareholders. They are responsible for the management of a company’s affairs. They are not subject to any residence or nationality restrictions.

Big companies have many managers heading departments. They are all responsible to be managing director. Among varions departmental managers the following can be mentioned:

–sales manager;

–personnel manager;

–chief manager;

–district manager;

–sales and marketing manager;

–industrial engineering manager etc.

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Exercise

I. Find the answers to the following questions in the text.

1.How many directors can a private company have? And what about a public company?

2.Who heads a limited liability company?

3.How is managing director appointed? What are his duties?

4.Who is general manager?

5.What is assistant general manager?

6.What is deputy manager?

7.What is the status of a director?

8.What do mangers usually head?

9.What managers are there in companies?

10.Whose business card was quoted? What information did it give?

II. Translate into Russian.

1.The company’s note-paper must list either all or none of the names of its directors.

2.Directors need not be shareholders.

3.They are responsible for the management of a company’s affairs.

4.They are not subject to any residence or nationality restrictions.

III. Sum up what the text says about:

–directors of private companies;

–directors of public companies;

–directors of limited liability companies, their assistants and deputies;

–managers;

–the business card of Mr. Taylor.

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UNIT 4

INFLATION AND DEFLATION

An inflationary development is characterized by rising prices within a certain period of time.

The rising prices is a consequence of an uneven development in the quantity of goods on offer and the quantity of money available, which is self determines the demand and is the inflation rate.

The causes of inflation are generally complex and can arise either from the goods or from the monetary side.

The consequences of inflation are extremely damaging for the economy. Inflation becomes stagflation when economic growth decreases or comes to a halt, but inflation continues to rise.

If the state does not take measures to combat stagflation, this leads to defla-

tion.

Deflation, the opposite development to inflation, represents a reduction in the supply of money in comparison with the supply of goods.

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