BANKING
BANK SERVICES
1. deposit taking
2. money transfer
3. advances (money which a bank lends)
4. other services
1. DEPOSIT TAKING
1. CURRENT ACCOUNT
2. DEPOSIT ACCOUT
3. FOREIGN CURRENCY ACCOUNT
4. GIRO ACCOUNT
Movements in the accounts






put money into the account
withdraw money from the account
be in credit (in the black)
be in debit (in the red, overdrawn)
direct debit (paying bills on POS)
direct credit (paying in salaries)
Bank statement
•
•
•
•
•
a) date
b) details
c) debits = money out
d) credits = money in
e) balance = money in the account
2. MONEY TRANSFER
a) encashment (at the counter)
b) ATM/cash machine/cash dispenser
c) bank credit cards
d) standing order
3. ADVANCES
a) credit cards
b) overdrafts
c) mortgages
d) business loans
e) personal loans
4. OTHER SERVICES
a)
b)
c)
d)
e)
f)
g)
insurance
night safe
safe deposit (box/vaults)
unit trust
investment management
executor and trustee (wills, property)
taxation advice
TYPES OF BANKS
1. BANK OF ENGLAND/HNB
(CENTRAL BANK)
2. COMMERCIAL/CLEARING BANKS
3. MERCHANT BANKS
1. BANK OF ENGLAND
1. Implements monetary policy
– limits the fluctuations of the interest rate
– prints or destroys money
– buys and sells government bonds to and from commercial
banks
2. Supervises exchange rates
3. Supervises commercial banking
4. acts as a lender of last resort (bankers’ bank)
5. manages the accounts of government departments
6. manages the Public Sector borrowing and the national debt
2. COMMERCIAL/RETAIL BANKS
Make profit from SPREAD (MARGIN)
a)
b)
c)
d)
e)
receive and hold deposits
pay money according to customers’ instructions
lend money
exchange foreign currencies
offer advice
3. MERCHANT/INVESTMENT
BANKS
Make profit from fees and commissions
a)
b)
c)
d)
e)
f)
raise funds for industry
finance international trade
issue and underwrite securities
deal with takeovers and mergers
issue government bonds
offer stockbroking and portfolio services
4. BUILDING SOCIETIES
(SAVINGS AND LOAN ASSOCIATIONS - S&L)
Lend money to buy property against the security
of the property which is being bought
MK: p. 73: Reading: Banks and financial institutions
Insert the names of financial institutions in the
spaces in the text.
p. 74: a) Vocabulary
b) Match up the verbs with the nouns
MATCH UP THE VERBS AND THE NOUNS:
1. receive
a) capital___________________
2. charge/pay
b) loans/services_____________
3. offer/provide/grant
c) shares/bonds _____________
4. raise
d) interest __________________
5. issue
e) deposits __________________
COMBINE THE WORDS TO FORM BANKING SERVICES:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
current
credit
foreign currency
internet
standing
debit
deposit
automated
investment
hedge
REMEMBER: borrow from
lend to
a) order ______________________
b) fund _______________________
c) card _______________________
d) advice _____________________
e) teller machine _______________
f) account ____________________
g) exchange ___________________
h) card _______________________
i) account _____________________
j) banking _____________________
(We borrow money from the bank)
(The bank lends us money)
(“Can you lend me $5 ?”)
MATCH THE TERMS WITH THEIR DEFINITIONS:
1. bank charges
a) money kept in the bank to earn interest
2. interest rate
b) money lent to buy property, the property being the security
3. savings
c) a sum of money borrowed from a bank
4. overdraft
d) what customers pay the bank in return for its services
5. standing order e) the price paid for borrowing money, paid to the lenders
6. loan
f) take out more money than you have in your bank account
7. mortgage
g) all the investments owned by an individual or organization
8. portfolio
h) instruction to a bank to pay an amount at regular intervals
Visit a website of a bank in Croatia and write down the bank services
they offer.
How are they organized?
FILL IN THE BLANKS WITH THE FOLLOWING WORDS:
raising, spread, overdraft, deposits, portfolio, loans, takeovers, interest, issue, standing, withdraw,
current
Commercial or retail banks take ___________and pay _____________ to the
depositors. Then they use the deposited money to grant/give __________– a
fixed sums of money for a fixed period on which interest is paid.
Banks make a profit from the __________ or differential between the interest
rates they pay on deposits and those they charge on loans.
There are different bank products. A ___________ account usually pays little
or no interest, but allows the holder to _____________ his/her cash
whenever they want, even more than they have in the account which is
known as an_____________. Customers may arrange a ______________
order for paying regular bills at regular intervals.
Merchant banks specialise in _____________ funds for industry on the
various financial markets, finance international trade, deal with
________________and mergers, ____________ government bonds. They
also offer stockbroking and _______________management services.
Commercial or retail banks take deposits and pay interest to the
depositors. Then they use the deposited money to grant/give loans – a
fixed sums of money for a fixed period on which interest is paid.
Banks make a profit from the spread or differential between the interest
rates they pay on deposits and those they charge on loans.
There are different bank products. A current account usually pays little
or no interest, but allows the holder to withdraw his/her cash whenever
they want, even more than they have in the account which is known as
an overdraft. Customers may arrange a standing order for paying
regular bills at regular intervals.
Merchant banks specialise in raising funds for industry on the various financial
markets, finance international trade, deal with takeovers and mergers, issue
government bonds. They also offer stockbroking and portfolio management
services.
http://www.youtube.com/watch?v=D0IJCGuNtqk&feature=fvwrel
What have you learnt about the history of money?
.