Banking

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Banking

• RB, MK

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MK, p.73,4 Reading

• 1. COMMERCIAL BANKS
• 2. INVESTMENT BANKS
• 3. PRIVATE BANKS
• 4. HEDGE FUNDS
• 5. STOCKBROKERS
• 6. ISLAMIC BANKS
• 7. NON-BANK FINANCIAL INTERMEDIARIES

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MK 14 p. 74 Vocabulary

• 1. DEPOSIT
• 2. LOAN
• 3. CAPITAL
• 4. SHARES
• 5. BONDS
• 6. MERGER
• 7. TAKEOVER BID

• 8. STOCKBROKING
• 9. PORTFOLIO
• 10. RETURNS
• 11. BANKRUPT
• 12. DEREGULATION
• 13. CONGLOMERATE
• 14. INTEREST

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The bare essentials (RB, p. 56) Part I

• go bust go bankrupt
• deposit ? loan
• borrow ? lend
• interest price of loans or reward for deposit

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The bare essentials (RB, p. 56) Part I

• 7 interest rates
• 8 depositors
• 9 shortages
• 10 borrow
• 11 central bank
• 12 goes bust /bankrupt

• 1 bank account
• 2 cash
• 3 in
• 4 deposits
• 5 interest
• 6 loans

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The bare essentials (RB, p. 56) Part II

• debit (withdraw money from) an account
• ? credit (deposit money into) an account
• securities stocks bonds...
• cartels ? regulators
• foreign currencies , , , , kn...
• transactions payment, debiting, crediting

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The bare essentials (RB, p. 56) Part II

• 18 foreign currency
• 19 securities
• 20 investments
• 21 payment system
• 22 cartels
• 23 regulators

• 13 payments
• 14 debit
• 15 credit
• 16 transaction
• 17 financials services

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The bare essentials (RB, p. 56)

1. Why are retail/commercial banks useful?
2. How do retail banks make a profit?
3. How can you pay for goods? List different types
   of payment.
4. Explain investment banks deal in securities
   and derrivatives, and manage payments on behalf
   of their clients.
5. Explain Regulators ... their chief concern
   remains that banks are sound.

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RB p. 57 II

• 8 go bust (bankrupt)
• 9 make payments
• 10 offer financial services
• 11 give financial advice
• 12 exchange foreign currency
• 13 deal in securities/derivatives
• 14 manage investments

• 1 take deposit
• 2 pay interest
• 3 make loans
• 4 charge interest
• 5 manage depositors mny
• 6 make losses
• 7 borrow money

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RB p. 57 III FIND WORDS

• a computerized machine that allows bank customers
  to withdraw money, check their balance and so on
  -gt _____
• an account which is debited too much is -gt
  ________
• the amount of money in a financial repository,
  such as a checking account, at any given
  moment-gt _________
• an instruction to a bank to pay fixed sums of
  money to certain people or organizations at
  stated times -gt _______ _________

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RB p. 57 III FIND WORDS

• a computerized machine that allows bank customers
  to withdraw money, check their balance and so on
  -gt ATM
• an account which is debited too much is -gt in the
  red
• the amount of money in a financial repository,
  such as a checking account, at any given moment-gt
  balance
• an instruction to a bank to pay fixed sums of
  money to certain people or organizations at
  stated times -gt standing order

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More banking vocabulary guess VERB account

• o_ _ n an account o_ _ _ d _ _ _ an account
• c_ _ s _ an account c_ _ _ g _ sth. to an
  account
• w_ _ _ d _ _ _ money from an account
• d _ p _ _ _ t money in an account
• d _ _ _ t money from an account (take money
  from)
• c _ _ d _ t money to an account (add money to)
• a current account p_ y _ a small interest
• s _ tt _ _ an account
• h _ _ d an account (with ZABA)

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Verb account

• open an account overdraw (..) account
• close an account charge sth. to an account
• withdraw money from an account
• deposit money in an account /di pozit/
• debit money from (...) account (take money from)
• credit money to an account (add money to)
• a current account pays a small interest
• settle an account
• hold an account (with ZABA)
• READER P 57, task III

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MK, 73/Lead-in find the terms that are defined
below

1. An account that pays interest, but usually cannot
   be used for paying cheques, and on which notice
   is often required to withdraw money.
2. A card issued by a financial company giving the
   holder an option to borrow funds, usually at
   point of sale. These cards charge interest.
3. An account that generally pays little or no
   interest, but allows the holder to withdraw his
   or her cash without any restrictions.
4. An electronic card issued by a bank which allows
   bank clients access to their account to withdraw
   cash or pay for goods and services.

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MK, p. 73 find the terms that are defined below

1. An account that pays interest, but usually cannot
   be used for paying cheques, and on which notice
   is often required to withdraw money. Savings/
   deposit (BrE) time/notice account (AmE)
2. A card issued by a financial company giving the
   holder an option to borrow funds, usually at
   point of sale. These cards charge interest.
   Credit card
3. An account that generally pays little or no
   interest, but allows the holder to withdraw his
   or her cash without any restrictions. Current
   (BrE) checking account (AmE)
4. An electronic card issued by a bank which allows
   bank clients access to their account to withdraw
   cash or pay for goods and services. Debit card

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RB p. 58 Bank statements

• What are bank statements for?
• How often are they sent to bank account holders?
• What kind of information do they contain?
• Tasks
• RB, p. 58 / I
• RB, p. 58 / II

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(No Transcript)
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RB p. 58 Bank statements -KEY

• MONTHLY MAINTENANCE CHARGE
• ACCOUNT NUMBER
• ACCOUNT SUMMARY
• DETAILED CHECK LIST
• DEPOSITS AND OTHER CREDITS
• STATEMENT PERIOD
• WITHDRAWAL LIST
• ATM LOCATIONS USED
• CHECKS AND OTHER DEBITS

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MK 14 p.74 match up - solution

• PASS laws
• PAY interest,
• PROVIDE services, capital
• RAISE capital
• RECEIVE deposits,
• SHARE profits/losses

• CHARGE interest, advice
• DO business
• GIVE advice
• ISSUE bonds, shares/stocks
• MAKE profits, laws
• OFFER advice, loans

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Services offered by banks and financial
institutions.Say which institution offers which
service.

• Receive, hold deposits
• Investment services for the wealthy
• Raise funds/capital
• Riskier investments, higher returns
• Finance international trade
• Make a loan
• Banking that follows the principles of Sharia law
• Offer financial advice
• Arrange takeovers and mergers
• Issue government bonds
• Department stores offering personal loans, credit
  cards

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The Glass-Steagall ActFind answers

• When was this law passed?
• What did it do?
• When was it repealed?
• What was the result?
• Explain financial deregulation

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The Glass-Steagall Act

• When was this law passed? - gt in 1934
• What did it do? -gt separated commercial banks
  from investment banks and stockbroking firms
• When was it repealed? -gt in 1999
• What was the result? -gt intl. conglomerates
  banking stockbrokinginsurance services
• financial deregulation changes in laws that
  give financial institutions more freedom in how
  they compete

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MK p.76 Microfinance Listening

• Listen for terms defined below
• Assets promised by a borrower to a lender if the
  borrower cannot repay the loan.
• The managing of investments in ways that produce
  as much profit as possible while limiting the
  danger of losses.
• Reducing risk by investing in a variety of assets
  / lending money to large number of people.

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MK p.76 Microfinance Listening KEY

• Listen for terms defined below
• Assets promised by a borrower to a lender if the
  borrower cannot repay the loan - collateral
• The managing of investments in ways that produce
  as much profit as possible while limiting the
  danger of losses risk management (tool)
• Reducing risk by investing in a variety of assets
  / lending money to a large number of people
• risk diversification

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Microfinancing Listening

• Listen and compare your answers
• 1 In microfinance, what replaces normal financial
  collateral?
• 2 What is the risk management tool Anna-Kim
  mentions?
• 3 Why is lending money to poor people not
  necessarily as risky as it sounds?
• 4 Why are conventional banks now developing
  microcredit products?
• 5 In which three continents are there successful
  microfinance schemes ?

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Microfinancing Listening

• Listen and compare your answers
• 1 In microfinance, what replaces normal financial
  collateral? SOCIAL COLLATERAL
• 2 What is the risk management tool Anna-Kim
  mentions? VERY SMALL LOANS
• 3 Why is lending money to poor people not
  necessarily as risky as it sounds? PORTFOLIO OF
  DIVERSIFIED RISK
• 4 Why are conventional banks now developing
  microcredit products? GOOD FOR BUSINESS
• 5 In which three continents are there successful
  microfinance schemes ? ASIA, LATIN AMERICA,
  AFRICA

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Microfinancing quiz

• 1. What is microfinancing?
• Giving loans to poor people
• Financing microtechnology.
• 2. Microfinancing is risky.
• Yes
• No

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• 3. Decide which statement is true
• In microfinancing the loans are very small so
  defaults are rare.
• In microfinancing a large number of people are
  given small loans and so the risk is diversified.
• 4. What kind of collateral do banks use when
  giving microloans?
• Social
• Financial

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• 5. What motivates micro-borrowers to repay their
  loans?
• The bank can take away their property.
• Their lending group will put peer pressure on
  them to make them pay.