IІ. Read and translate the text.

 

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 oil the recommendation of the Prime Minister. The Queen also appoints Deputy Governor and the Court of Directors, which consists of 16 directors.

The Bank of England is a central bank or a national bank. It controls the British banking system, issues 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 joint-stock 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 lend loans to their 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.

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 United Kingdom made up of foreign banks. All the major foreign banks are represented in the U.K. 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.

FEDERAL RESERVE SYSTEM OF THE U.S.A.

I. Study the vocabulary:

Federal Reserve System Федеральна резервна система (США)

to set ставити, установлювати, назначати

to set up створювати, засновувати, відкривати

vast просторий, дуже великий

area площа

to travel пересуватися, подорожувати

to divide розділяти

to locate розташовуватися

to coordinate координувати

to exercise здійснювати

supervision спостереження, нагляд

to supply постачати, давати

to act діяти, виступати

lender кредитор, позикодавець

to rediscount переобліковувати (векселя)

to determine визначати

requirement потреба, вимога

rate ставка

discount rate облікова ставка

to correspond відповідати, погоджуватися

collaboration співробітництво

monetary policy грошово-кредитна політика

to aid допомагати, сприяти

mutual взаємний

mutual savings bank взаємно-ощадний банк

trust трастовий

to join приєднати(ся)

to own володіти

purchase закупівля

 

II. Read and translate the text.

Federal Reserve System is the central banking system of the United States of America, set up by the Federal Government in 1913. On account of the vast area of the country, and the greater difficulties of travelling at that time, the country was divided into twelve Federal Reserve Districts, each with its own Federal Reserve Bank.

Here is the map showing FR Districts and the cities where PR Banks are located:

 

 

Federal Reserve Banks

1 Boston 7 Chicago

2 New York 8 St. Louis

3 Philadelphia 9 Minneapolis

4 Cleveland 10 Kansas City

5 Richmond 11 Dallas

6 Atlanta 12 San Francisco

 

There are also twenty five branches of the Federal Reserve Banks to serve particular areas within each district. The activities of the Federal Reserve Banks are coordinated through the Federal Reserve Board of governors in Washington.

The Board exercises general supervision over the Federal Reserve Banks.

The Federal Reserve Banks hold the reserves of the member banks, i.e. the commercial banks which are members of the Federal Reserve System. The FR Banks supply the member banks with currency if necessary and act to them as lenders by rediscounting bills. The Board determines the reserve requirements of the commercial banks. The Board too really determines discount rates. The Board discount rate corresponds in nature to the English Bank rate, though the Federal Reserve Banks do not always have the same discount rate.

The Federal Reserve System, in collaboration with the Government of the U.S.A.,determines monetary policy and, aided by the Federal Reserve Banks, carries it out.

All national banks must be members of the Federal Reserve System. Incorporated state banks including commercial banks, mutual savings banks, trust companies, and industrial banks, may also join the System.

Incorporated state banks are those which have a charter from the state to act as an individual.

Mutual savings banks are savings banks owned by their depositors. Industrial banks make loans for the purchase or manufacture of industrial products.

III. Retell the text.

BANKS OF UKRAINE