Text A. Belarussian Banking

Text A. Belarussian Banking

Task 1. Memorize the words.

legal basis, procedure, supervision, objectives, monetary policy, guidelines exchange reserve, purchasing power, currency.

Task 2. Present the general idea of the text in 7-8 sentences. Ask questions about the text. Let you follow – students answer your questions.

The national banking system of Belarus represents an efficient and quickly developing sector of economy formed in accordance with the objectives of social and economic development and taking account or the world standards and rules.

The banking system of the Republic consists of the following two levels.

Level one.

The National Bank of the Republic of Belarus. It performs the following functions state registration and regulation of activities of the Banks; licensing Banking activities; regulation of credit relations and money circulation; establishment of the procedure of settlement; it has the exclusive right to issue money.

The National Bank has been interacting with the International Monetary Fund since the date of admission of Belarus to this international financial institution in 1992. In 1996 it joined the Banking Supervisors' Group for the countries of Central and Eastern Europe (BSCEE Group), which is a regional structure of the Basel Banking Supervision Committee, and is involved in establishing and developing contacts and information interchange with the banking supervision bodies in any part of the world.

Level two.

Commercial banks and non-banking financial institutions. As of November 1, 2005, 31 banks with their 455 branches were operating in Belarus. Foreign capital has its share in the authorized capital of 27 banks, including 9 banks with 100% foreign capital. 7 banks are the residents of free economic areas. There are 12 representative offices of foreign banks (4 representative offices of the Latvian banks, 3 - of the Russian banks, the German, Polish, Lithuanian and Kazakh banks have got 1 representation office each).

The legal foundation of the banking system functioning was laid in the Banking Code of the Republic of Belarus and normative legal acts of the National Bank. Such legislation establishes guidelines of the banking activities and legal status of the subjects of banking relationships, regulates relations between the same, and establishes the procedure of formation, activity, reorganization, and dissolution of any banks (non-banking financial institutions).

The subjects of banking relationships, when effecting any banking transactions with non-residents, also apply the international unified rules and practice, normative acts of the international organizations, international banking standards, and other legal acts, provided they are not in conflict with the legislation of Belarus.

The banking supervision system formed in this country substantially complies with the world standards. In includes the following stages:

- licensing of any banks and non-banking financial institutions;

- remote supervision on the bases of accounts;

- local supervision in the form of inspections, and taking appropriate measures relative to the banks that violate the banking legislation or face financial crisis;

- reorganization and dissolution of the banks, if necessary.

Informational transparency of the banking activities is ensured in Belarus (subject to keeping the bank secrecy as established by the law), such method being the most efficient for development of healthy competition, maintaining strict discipline in the banking market, protection of the interests of the creditors and depositors.

According to the banking code, the banks shall publish their annual statements (balance sheet, profit and loss statement, statement of capital movement) approved by the auditing company, in the office mass media not later than on April 25 of the year following financial year. Such information shall also be placed in the site of the National Bank of the Republic of Belarus and appear in the Banking Bulletin (informational issue) published by the National Bank.

The National Bank.

The National Bank is the central bank of the Republic of Belarus, it is owned by the republic and acts in the interests of the state. The main functions of the National Bank are the following: to devise and implement monetary policy of the Republic Belarus, to issue licenses. The National Bank of the Republic of Belarus acts as a "bank of last resort", performs the functions of a financial agent for the Government of the Republic of Belarus, represents the Republic of Belarus in all councils and organizations on monetary policy, offers banking services to foreign governments, central banks and financial institutions as well as international organizations of which Belarus is a member, participates in international organizations which maintain financial and economic stability through developing international cooperation in the monetary sphere.

The supreme governing body of the National Bank of the Republic of Belarus is the Board of the National Bank, of the Republic of Belarus. The Chairperson of the Board directs all activities of the National Bank and is personally responsible for compliance with the functions of the National Bank.

The National Bank of the Republic of Belarus is a centralized system made up of the Main Office and institutions, enterprises and organizations answerable thereto.

Relations between the National Bank of the Republic of Belarus and international financial organizations received an impetus after the Republic of Belarus adopted the Declaration of Independence. In 1992, following a preparatory process, the country gained membership in major financial institutions, such as the International Monetary Fund, World Bank group, European Bank for Reconstruction and Development.

Ex. 1. Match the English and Russian equivalents.

1. the main functions	a. международное сотрудничество
2. monetary policy	b. высший орган управления
3. banking services	c. декларация независимости
4. financial and economic stability	d. председатель правления
5. international cooperation	e. банковские услуги
6. the supreme governing body	f. Правление Национального банка
7. the Board of the National Bank	g. централизованная система
8. the Chairperson of the Board	h. монетарная политика
9. a centralized system	i. главная функция
10. declaration of independence	j. финансовая и экономическая стабильность

Ex. 2. Choose the right word or word-combination.

1 The National Bank is the ……………….. of the Republic of Belarus

a) commercial bank b) merchant bank c) central bank

2. The National Bank represents the Republic of Belarus …………….....

a) on monetary bank b) on foreign policy c) on home policy

3. The Supreme governing body of the National Bank of the Republic of Belarus is ………………..

a) the Main office b) the Board of the National Bank c) Banking college

4. …………………..... directs all activities of the National Bank

a) the President b) the Prime-Minister c) the Chairperson of the Board

5. In 1992 our country gained membership in ………………..

a) the European Union b) the international Monetary c) the North Atlantic Treaty Organization

Ex. 3. Answer the questions on the text.

1. What bank is the central bank of the Republic of Belarus?

2. What are the main functions of the National Bank?

3. When was the National Bank established?

4. Does the National Bank represent our Republic in all councils and organizations on monetary policy?

5. The supreme governing body of the National Bank is the Board of the National Bank, isn't it?

6. Who is the Chairperson of the National Bank now?

7. What is the Chairperson personally responsible for?

8. What major financial institutions did our republic gain membership in 1992?

Ex. 4. Give a short summary of the text.

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 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 ior 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 Barclay Lloyds, the Midland, and the National Westminster. Together they have upwards of 10,000 branches. Commercial banks render various services Lo 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 find 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 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.

Vocabulary

to complicate	усложнять запутывать
complicated	сложный, запутанный
tripartite	тройственный, трехсторонний
layer	слой, пласт
royal	королевский
governor	управляющий
minister	министр
prime minister (syn. secretary)	премьер-министр
court of directors	совет директоров (в Банке Англии)
Syn. board of directors	(в др. банках, на фирмах)
to lend	давать взаймы, ссужать
to borrow	занимать, брать взаймы

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