Working assignment:__

1. Give brief characteristics of the major methods of payments used in banking.

2. Fill in the gaps without consulting the text.

Banks as Financial _______________________

In what sense are banks financial intermediaries standing between ___________________ and _________________? A bank is a business and its owners or managers aim to _______________________. A bank makes profits by lending and borrowing. To get money in, the bank offers ___________________ terms to potential ___________________. British clearing banks offer ___________________ on sight deposits only to important customers, but they usually offer free ___________________ to people whose sight deposits or current accounts do not fall below a certain level. They do not ___________________ directly for the expenses of clearing and __________________ cheques. And they offer interest on ___________________ deposits.

Next, the banks have to find ___________________ ways to lend what has been borrowed. Most is lent out as advances of overdrafts to households and firms, usually at interest rates ___________________ of the rate simultaneously being paid to the bank customers with time deposits. Some is used to purchase securities such as ___________________. Some is more prudently invested in ___________________ assets. Although these do not pay such a ___________________, the bank knows that it can get its money back quickly if people start ___________________ a lot of money from their sight deposits. And some money is held as cash, the most ___________________ asset of all.

What economic services does the bank provide? It is transforming ___________________ loans to the bank into bank loans to a wide range of people – governments wishing to finance a ___________________, firms borrowing to build a new factory, and individuals borrowing to start a new business or to buy a new home. The bank is using its specialist ___________________ to acquire a ___________________ portfolio of investments though depositors merely observe that they get an interest rate on their time deposits or free chequing facilities. Without the existence of the intermediary, depositors would have ___________________ the time nor the expertise to decide which of these loans or investments to make. That is the economic service that the bank as an intermediary provides.

3. Translate into English:

1. История о ювелире-банкире хорошо иллюстрирует роль современных банков. Предоставляя населению ссуды, золотых дел мастера получали возможность создавать деньги. Они делали это, вновь выпуская в обращение золото, которое раньше лежало у них в подвалах. Выбор величины резервов подразумевает компромисс между прибыльностью и платежеспособностью. Слишком большая сумма предоставленных кредитов делает ювелира неспособным удовлетворить все требования на золото, чересчур маленькая означает отсутствие прибыли.

2. Современные коммерческие банки - это финансовые посредники, извлекающие прибыль. Они привлекают средства через свои депозиты или берут взаймы напрямую и затем используют эти средства для предоставления ссуд.

3. Вместе банки облегчают осуществление платежей в экономике. Система клиринга чеков способствует более быстрой их оплате в масштабах страны.

4. Банки держат менее 10 центов резервов на каждый доллар обязательств по своим депозитам. Как и ювелиры, банки создают деньги, когда предоставляют ссуды. Они делают это или посредством сокращения своих кассовых резервов, или увеличивая суммы своих депозитов.

5. Translate into Russian.

Future Banking (by Kate Stalter/ www.money.usnews.com / june 29, 2015)

When Fifth Third Bancorp said recently that it would close 100 branches and sell properties intended for branches, the Cincinnati–based bank was candid about the reason.

In a statement, Fifth Third CEO Kevin Kabat said, “Consumer demographics and our customers’ preferred channels are undergoing significant changes. Technology continues to impact our service delivery and revenue generation tactics and strategies”.

Fewer Americans are setting foot in bank branches these days, opting to conduct transactions with mobile apps or ATMs. New companies, like Moven, only offer mobile and ATM access, but provide debit cards, account linking and an easy way to send money to friends.

Customers’ views of banking are changing fast, with fewer people seeing the value of visiting a bank branch. In its 2015 North America Consumer Digital Banking Survey, which included more than 4,000 adults in the U.S. and Canada, consulting and technology management firm Accenture found that 81 percent of consumers said they would not switch banks if their local branch closed. Only two years ago, that number was 48 percent.

In addition, 38 percent sad good online banking services were the top reason for staying with a bank. That come in ahead of location and lo fees, both being named at the top reason 28 percent of the time.

Here are some banking-industry changes consumers are likely to see in the next few years:

Fewer branches. “Branch traffic is fallen, and banks will have to figure out how to adapt to this”, sais Wayne Busch, managing director for banking in Acceture.

The Fifth Third branch closures, which the bank expects to complete by mid-2016, may be an early sign of what’s ahead. “That’s just one small piece in a very big story that’s unfolding”, says Jason O’Donnel, chief investment officer at Bluestone Financial Institutions Fund in Wayne, Pennsylvania. The fund focuses on small and midsize community banks.

“You are going to see a lot few branches, and huge consolidations, with fewer banks. The branches that we will have will look and feel very different. In another five or 10 years, the average branch will be 50 percent smaller than the branch sizes we see now, and we’ll see more use of kiosks and other technologies”, O’Donnell says.

Fewer banks. Smaller community banks are facing headwinds as the industry races to implement new technologies. At the same time, megabanks are dealing with the increased regulation and the yearly Federal Reserve stress tests.

That may leave regional banks, perched between the tiniest and the largest institutions, in a good position.

Although the pace of bank consolidation slowed for several years after the financial crisis, Busch and O’Donnell both expect mergers and acquisitions to pick up in the coming years.

Some smaller banks may become acquisition targets because of their particular niche. “A real change is that variety of different organizations are competing not to the Bank of America or Chase, but to pursue one or two segments of value” Busch says.

O’Donnell notes that smaller banks may get rolled into midsize banks. Those mergers and acquisitions will give the midsize banks increased capabilities to take market share from larger firms, O’Donnell predicts. “This will be a “middling” of the industry, with a lot fewer banks. The acquisition pace has picked up considerably over the last several quarters. As consumers, one of the benefits is that we’ll get better service in a bunch of ways”, e says. banks

“True community banks with under $500 million in assets, are dead banks walking”, O’Donnell adds. “Some of this regulation has actually pushed ts way down to these banks”.

That’s hurt small banks profitability. “The beneficiaries are the guys in the middle. They’re big enough to absorb some of these extra regulatory expenses, but small enough that they don’t have to worry about the federal government suing them every other month”, he says.

Дата добавления: 2015-11-14