THE BANK OF ENGLAND

Britain is a major financial centre, housing some of the world's leading banking, securities and other financial services and markets. The heart of the industry is the collection of banks and other financial institutions in and around the "Square Mile" in the City of London. This area has the greatest concentration of banks in the world - responsible for about 20 per cent of total international bank lending, the largest foreign exchange market in the world, with an average daily turnover of about $ 200 billion.

The Bank of England is the central bank of the United Kingdom. Most countries have their own central bank: the Federal Reserve System in the United States, the Deutsche Bundesbank in Germany, the Banque de France, the Bank of Japan.

The Bank of England was founded in 1694 and it is one of the oldest central banks of the world. It started as a commercial bank with private shareholders, and developed a large private banking business, but after 1946 it began to act as public institution carrying out public functions. Now it is considered to be the government's bank. The Bank has always had the right to issue bank notes in England and Wales, and acquired the monopoly after the Bank Charter Act of 1844. It is known as banker to both banks and the government increasing its influence on monetary policy. It accepts responsibility for advising the government to make the country's financial policy. The Bank also takes on a degree of responsibility for maintaining money and capital markets in London, and watches over the soundness of the banks.

The Bank's functions are: first, maintaining the value of the nation's money, mainly through policies and market operations agreed with the government, it regulates the money supply in the country which is one of the most important functions; second, ensuring the soundness of the financial system, including direct supervision of banks and participants in some City financial markets; and third, promoting the efficiency and competitiveness of the financial system, notably in the field of domestic and international payment and settlement systems, so that the City of London can serve industry and commerce at home and maintain its place as the world's leading international financial centre.

1. Read and learn the following words and word combinations:

to house – містити

the City – Сіті (фінансовий район Лондона)

responsible –відповідальний

bank lending – банківське кредитування

average daily turnover – середній щоденний обіг

foreign exchange market – фондовий ринок

to be founded – бути заснованим

shareholder – акціонер

to act – діяти

public institution – громадська установа

to carry out – виконувати

to acquire – набувати

to accept responsibility - брати на себе відповідальність

money and capital markets – ринки грошей та капіталу

to agree smth with smb – погоджувати, узгоджувати щось з кимось

soundness – міцність

supervision – нагляд

participant – учасник

competitiveness – конкурентоспроможність

domestic – внутрішній, вітчизняний

2. Answer the following questions:

1. What place is the heart of British banking industry?

2. When was the Bank of England founded?

3. What right has the Bank of England?

4. How many functions does the Bank of England perform?

5. Who promotes the efficiency and competitiveness of the financial system of GB?

3. Put all possible questions to the following sentence: The Bank of England was founded in 1694 and it is one of the oldest central banks of the world.

4. Translate into English:

Фінансові установи –

Сукупність банків –

Вважається –

Ефективність

Конкурентоспроможність -

Забезпечувати –

Сприяти -

Банківське кредитування -

Середній щоденний обіг -

Приватні акціонери -

Громадська установа -

Грошова політика -

Ринкові операції -

Забезпечення ефективності та конкурентоспроможності -

5. Translate into Ukrainian:

To be responsible for smth -

Foreign exchange market –

Securities –

To carry out –

To maintain –

Money supply –

Settlement system -

To issue banknotes -

To acquire the monopoly -

To accept responsibility -

Financial policy -

Soundness of the banks -

Domestic and international payment systems –

6. Find synonyms to the following words in the text. Give some examples of your own: major, centre, bank, private

7. Fill in the blanks. Explain your choice:

1.The bank of England... responsibility for maintaining money and capital markets in London.

a) accepts; b) receives; c) gives.

2.This area has the... concentration of banks in the world.

a) greatest; b) largest; c) least.

3.The Bank of England is one of the... central banks of the world.

a) oldest; b) most ancient; c) youngest.

4.The Bank was constantly... its influence on monetary policy.

a) increasing; b) multiplying; c) decreasing.

5.Its functions include... supervision of banks and participants in some financial markets of the City.

a) direct; b) strict; c) indirect.

6.It promotes the … and competitiveness of the financial system.

a) efficiency; b) effectiveness; c) inefficiency.

7. The City of London is the world's … international financial center.

a) leading; b) chief; c)last.

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