Сорокина А.И

ГБОУ СПО Волгоградский политехнический колледж имени В. И. Вернадского

РАССМОТРЕНО И ОДОБРЕНО

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Учебное пособие «Профильные тексты по английскому языку для специальности 030912 Право и организация социального обеспечения

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Сорокина А.И.

Волгоград 2015

Lesson 1.

I. Read and translate the text.

WHAT IS A BANK?

As important as banks are to the economy as a whole and to local communities, there is much confusion about exactly what a bank is. Certainly banks must be identified by the functions (services or roles) they perform in the economy. The problem is not only that the functions of banks are changing, but the functions of their principal competitors are changing as well. Indeed, many financial institutions - including leading security dealer, brokerage firms, and insurance companies - are trying to be as similar as possible to banks in the services they offer. And bankers, in turn, are challenging these nonbank competitors by lobbying for expanded authority to offer real estate and full-service security brokerage, insurance coverage, investments in mutual funds, and many other new services.

A good example of the strenuous efforts on the part of many institutions to become bank-like occurred in the 1980s when several large brokerage and security firms, including Merrill Lynch and Dreyfus Corporation, moved aggressively to enter the banking business by establishing what they called nonbank banks. They were aware that under U.S. law any institution offering deposits subject to withdrawal on demand (such as by writing a check) and making loans of commercial or business nature is a bank. Merrill Lynch and other nonbank firms decided they could skirt federal laws avoid regulation, and still sell bank- like services to the public simply by stripping the banks they controlled of either their business loans or their checking accounts. However, the Federal Reserve Board, unhappy with the invasion of banking by these pseudo-banks, decided to include the making of loans to consumers (individuals and families) as one of the activities that differentiated banks from other financial institutions thus bringing Merrill Lynch and similar businesses under the definition of a bank, subject to stringent government regulation.

Leading security and brokerage firms then sued in federal court, charging that the Federal Reserve Board had exceeded its authority. In 1984, the federal courts agreed and ordered the Fed to allow the formation of nonbank banks and grant them access to federal deposit insurance. Whithin a few weeks of their authorization, dozens of applications for nonbank banks were filed. Among the leading financial service companies organizing nonbank banks were E.F Hutton, J.C. Penney and Sears Roeback. Moreover, several leading bank holding companies, including Citicorp and Chase Manhattan, launched their own nonbank banks because, unlike full-service bank offices, they could establish these service units freely across state lines. In 1987, Congress put a halt to further nonbank bank expansion by subjecting the parent companies of nonbank banks to the same regulatory restrictions that traditional banking organizations face. Moreover, Congress took one last shot at pinning down the legal definition of a bank, defining it as a corporation that is a member of the Federal Deposit Insurance Corporation. A clever move, indeed-under U.S. law a bank is not what a bank does, but rather its identity depends on which government agency insures its deposits!

The result of all these legal maneuverings is a state of confusion in the public’s mind today over what is or is not a bank. The safest approach is probably to view institutions in terms of what types of services they offer the public. Banks are those financial institutions that offer the widest range of financial services-especially credit, savings, and payments services-and perform the widest range of financial functions of any business firm in the economy. This multiplicity of bank services and functions has led to banks being labeled “financial department stores" and to such familiar advertising slogans as Your Bank-a Full- Service Financial Institution.

BANKS OFFER THE PUBLIC

Banks are financial sevice firms, producing and selling the professional and prudent management of the public's funds as well as performing many other roles in the economy. Their success or failure hinges on their ability to identify the financial services the public demands, produce those services efficiently, and sell them at a competitive price.

Words

1. service услуга, сервис, обслуживание

2. security 1.безопасмость,охрана,защита;2.залог;3.обеспечение

3. dealer биржевой посредник (торговец); дилер

4. brokerage брокерство

5. insurance company страховая компания

6, authority администрация, сфера компетенции, право

7. real estate недвижимость

8. investment инвестирование

9. fund фонд, капитал, государственные ценные бумаги

10. to challenge оспаривать, удовлетворять требованиям, решать задачи

11. strenuous efforts энергичные усилия

12. nonbank кредитно-финансовое учреждение, невыполняющее все функции коммерческого банка

13. deposit вклад, депозит, взнос, затраты

14. withdrawal аннулирование, расход, отзыв, снятие, отмена

withdrawal on demand аннулированные по требованию

15. loan заем, ссуда, кредит

16. to skirt (окаймлять), зд. поправить

17. to strip зд. Мешать

18. checking account чековый счет, текущий счет

19. to subject to stringest подвергать (подлежать) напряженным правительственным

government regulation предписания (нормам, правилам)

20. to sue подвергать судебному разбирательству, подавать в суд

21. federal court федеральный суд

22. to grant давать кредит, субсидии (предоставлять)

23. application (использование), заявление

24. to be filed быть подшитым, быть подданным

25. holding company холдинговая компания

holding пакет акций

26. to pin down привязывать к, связывать с

Answer the questions

1. What institutions are called banks?

2. What functions do banks perform?

3. What services do banks offer?

4. What purpose are nonbanks formed fox?

5. What does the success of ____ of the bank hinge on?

6. Can you name the leading bank holding companies?

7. When was the formation of nonbank banks allowed in the USA?

Translate into English

1. Функции банков и функции их главных конкурентов изменяются.

2. Банки предлагают самые разнообразные услуги, сделки по страхованию, займы, инвестиции и т.д.

3. Банки играют большую роль в экономике.

Lesson 2.

Read and translate the text

THE EMERGENCE OF MODERN BANKING

When did the first banks appear? Linguistics (the science of language) and etymology (the study of the origins of words) suggest an interesting story about banking’s origins. Both Old French word banque and the Italian word banca were used centuries ago to mean a “moneychanger’s table”. This describes quite well what historians, looking at the civilizations of Greece and Rome more than 2.000 years ago, have observed concerning the first bankers. They were money-changing institutions, situated usually at a table or in a small shop in the commercial district, aiding travelers who came to town by exchanging foreign coins for local money or discounting commercial notes for a fee.

The first bankers probably used their own capital to fund their activities, but it wasn't long, before the idea of attracting deposits and securing temporary loans from wealthy, customers became an important source of bank funding. Loans were then made to merchants, shippers, and landowners at rates of interest as low as 6 percent per annum to as high as 48 percent a month for the riskiest ventures! Most of the early banks of any size were Grrek in origin. The Romans generally tolerated banking practices, but were hesitant to set up banks of their own.

The banking industry gradually spread outward from the classical civilizations of Greece and Rome into ____ and western Europe. Banking encountered religious opposition during the Middle Ages, primarily because loans made to the poor often carried very high interest rates. However, as the Middle Ages drew to a close and the Renaissance began in Europe, the bulk of bank loans and deposits involved relatively wealthy customers, which helped to reduce religious opposition to banking practices.

The development of new overland trade routes and improvements in navigation in the 15th, 16th, and 17th centuries gradually shifted the center of world commerce from the Mediterranean region to nothern and western Europe, where banking became a leading industry. During this period were planted the seeds of the industrial revolution, which demanded a well-developed financial system. In particular, the construction and acquisition of stream-driven machinery and mass production methods requiring new methods for making payments and credit available. Banks that could deliver on these needs grew rapidly, led by such institutions as the Medici Bank in Italy and the Hochstetter Bank in Germany.

When colonies were established in North and South America, Old World banking practices were transferred to the New World. At first the colonists dealt primary with established banks in the countries from which they had come. As the 19th century began, however, state governments in the United States began chartering banking companies. Many of these were simply extensions of other commercial enterprises in which banking services were largely secondary to, for example, sales of food, housing utensils, and farm equipment, the development of large, professionally managed banking firms was centered in a few leading commercial centers, especially New York. The federal government became a major force in U.S. banking during the Civil War. The Office of the Comptroller of the Currency (OCC) was established in 1864, created by Congress to charter national banks. This divided bunk regulatory system, with both the federal government and the states playing key roles in the control and supervision of banking activity, has persisted to the present day and is a truly unique American invention.

Words

1. coin монета

2. to discount скидка, дисконт, учет векселей

3. commercial note коммерческая запись, расписка, авизо, накладная, долговая ценная бумага

4. free взнос, сбор, плата за услуги, комиссионный

5. to fund консолидировать, помещать деньги в

6. merchant купец

7. shipper грузоотправитель, экспортер, груз

8. per annum в год

9. venture рискованное предприятие

10. to tolerate допускать (отклонение)

11. acquisition приобретение, поглощение

12. to charter фрахтовать, брать в наем

13. extension продление, пролонгация, предоставление, общая стоимост

14. utensil принадлежность

15. comptroller главный финансист

16. currency валюта, денежное обращение

17. supervision of banking activities контроль за банковской деятельностью

18. deposit счет в банке

Answer the questions.

1. When did the first banks appear?

2. How did the first banks look?

3. What did the first bankers use their own capital for?

4. What country did the first banks appear in?

5. What demanded a well-developed financial system?

6. Why were the new methods for making payments required?

7. When was the office of the Comptroller of the Currency established?

8. What was the office of the Comptroller of the Currency created for?

Translated into English

l. Бинжирские конторы 2800 дет назад представляли собой учреждения по обмену денег; 2. Это был стол или небольшая лавочка в торговом районе. 3. Путешественники, приезжавшие в город, могли обменять там иностранные монеты на местные деньги или получить авизо за услуги. 4. Важным источником банковских накоплений стало привлечение депозитов и выдача временных кредитов за счет вложенных денег богатыми вкладчиками. 5. Банковская индустрия постепенно стала распространяться из Греции и Рима на северную и западную Европу. 6. Деньги отданные в займы часто приносили высокие проценты. 7. Когда появились колонии в Северной и Южной Америке, банковская практика перекочевала в Новый Свет.

Lesson 3.

FINANCIAL STATEMENTS OF A BANK

AN OVERVIEW OF BANK BALANCE SHEETS AND INCOME STATEMENTS

The two most important bank financial statements - the balance sheet, or Report of Condition, and the income statement, or Report of Income - may be viewed as a list of bank financial inputs and outputs, as Exhibit.

EXHIBIT 4-1 Financial Output and Inputs in the Two Key Bank Financial Statements.

The Balance Sheet (Report of Condition)

Financial Inputs

(sources of bank funds or Financial Outputs

liabilities plus equity capital) (uses of bank funds or assets)

Deposits from the public Loans and leases

Nondeposit borrowings Inwestments in securities

Equity capital from the stockholders Cash and deposits in other

Institutions

As with any firm's balance sheet, total sources of bank funds must equal total uses of bank funds (i.e.. total liabilities + equity capital = total assets).

The Income Statements (Report of income)

Financial Inputs Financial Outputs

(the cost of acquiring funds (revenues from making use of bank

and other resources needed funds and other resources to

by the bank to produce services) produce and sell services)

Deposit costs Loan income

Costs of nondeposit borrowings Security income

Employee costs Income from deposits in other

Overhead expenses Institutions

Taxes Income from miscellaneous services

As with any firm’s income statement, total revenues less total costs must equal net earnings (income) of the bank.

The Report of Condition (balance sheet) shows the amount and composition of funds sources (financial inputs) the bank has drawn upon to finance its lending and investing activities and how much has been allocated to loans, securities, and other funds uses (financial outputs) at any given time.

In contrast, the financial inputs and outputs on the Report of Income indicate how much it has cost the bank to acquire its deposits and other funds sources and to generate revenues from the uses of these funds. These costs include interest paid to depositors and other creditors of the bank, the expense of hiring management and staff, overhead costs in acquiring and using office facilities, and taxes paid for government services. The Report of Income also shows the revenues (cash flow) generated by selling bank services to the public, including making loans and leases and servicing customer deposits. Finally, the bank's Report of Income shows the bank's net earnings after all the costs (including taxes) are deducted from the sum of all revenues.

Words

1.income statement отчет о доходах

2. balance sheet балансовый отчет

3. report отчет

4. input затраты на производство, вводимые ресурсы, поступления

5. output отдача, итог, результат, затрат, расходы

6. liability пассив (правая сторона бухгалтерского баланса), обязательства, долги, ответственность

7. equity capital собственный капитал

8. nondeposit borrowings не депозитные ссуды, заем без взноса

9. financial output финансовые итоги

10. output выпуск продукции, объем производства

11. cash наличные деньги

12. to revenue валовый доход, выручать, выручка, госдоходы, доход, статьи бюджета

13. overhead expenses накладные расходы

14. tax налог

15. net earning чистый заработок (net – актив, чистая прибыль без вычетов)

16. amount объем, количество, сумма, итог, составлять сумму

17. to allocate распределять, размещать, ассигновать, отчислять

18. interest процент

19. to hire нанимать

20. lease аренда, срок аренды, арендованное имущество, договор об аренде

21. assets имущество

22. security ценные бумаги

Answer the questions

1.What are the services the bank offers reflected in?

2.What are the two main financial statements like?

3. How else is the income statement named?

4. How else is the balance sheet named?

5. How may the income statement and balance sheet be viewed?

6. What do financial inputs of the balance sheet include?

7. What do financial outputs of the balance sheet include?

8. What do fianacial inputs of the income statement include?

9. What do fianacial outputs of the income statement include?

10. What does the balance sheet show?

11. What does the income statement show?

12. What does the bank’s report of incomes show?

Переведите на английский язык

1.Каждый банк и организация составляет два типа отчетов: балансовый отчет и отчет о доходах. 2. Финансовые поступления в балансовом отчете отражают пассив плюс собственный капитал. 3. Финансовые затраты в балансовом отчете отражают использование банковских фондов (т.е. имущество). 4. Балансовый отчет показывает объем и состав источников, т.е. финансовых поступлений и финансовых расходов, т.е. он показывает отчисления на ссуды, инвестиционную деятельность, ссуды, товары, ценные бумаги. 5. Отчет о доходах показывает затраты на депозиты, источники фондов, прибыль предприятия. Он показывает движение денег.

Lesson 4

MANAGEMENT OBJECTIVE

The principial reason banks art chartered by state and federal authorities is to make loans to their customers. Banks are expected to support their local communities with an adequate supply of credit for all legitimate business and consumer activities and to price that credit reasonably in line with competitively determined interest rates. Indeed, making loans is the principal economic function of banks - to fund consumption and investment spending by businesses, individuals, and units of government. How well a bank performs its lending function has a great deal to do with the economic health of its region because bank loans support the growth of new businesses and jobs within the bank’s trade territory and promote its economic vitality.

For most banks, loans account for half or more of their total assets and about two- thirds of their revenues. Moreover, risk in banking tends to be concentrated in the loan portfolio. When a bank gets into serious financial trouble, its problems usually spring from __niflcant amounts of loans that have become uncollectible due to mismanagement, illegal manipulation of loans, misguided lending policies, or from an unexpected economic lownturn.

TYPES OF LOANS MADE BY BANKS

What types of loans do banks make? The answer, of course, is that banks make a wide variety of loans to a wide variety of customers for many different purposes - from purchasing automobiles and buying new furniture, taking dream vacations, or pursuing college educations to the construction of homes, shopping centers, and office buildings. Fortunately, we can bring some order to the diversity of bank lending by grouping bank loans according to their purpose - what the customer plans to do with the proceeds of his or her bank loans. At least once each year the Federal Reserve System and Comptroller of the Currency require each bank to report the composition of its loan portfolio by purpose of loan on a report form know as Schedule A, attached to its balance sheet.

Bank loans may be divided into seven broad categories of loans, delineated by their purposes:

1. Real estate loans, which are secured by real property - land, buildings, and other structures - and include short-term loans for the construction of buildings and land development and longer term loans to finance the purchase of farmland, family homes, apartments and other multyfamily structures, commercial (nonfarm and nonresidential) structures, and foreign properties.

2. Financial institutions loans, which include both long - and short-term credit to banks, insurance companies, finance companies, and other financial institutions to help them meet their obligations to customers and to expand their services and operations.

3. Agricultural loans, extended to farm and ranch operations to assist in planting and harvesting crops and to support the feeding and care of livestock.

4. Commercial and industrial loans, granted to businesses to cover such expenses as purchasing inventories, paying taxes, meeting payrolls, and to cover other operating costs.

5. Loans to individuals, which include credit to finance the purchase of automobiles, mobile homes, home appliances, and other retail goods and loans to repair and modernize homes, cover the cost of vacations, medical care, and other personal expenses, either extended directly to individuals or indirectly through the purchase of consumer installment paper from retail dealers.

6. Miscellaneous loans, which include all those loans not classified above, including securities loans made to brokers, dealers, and other investors desiring to purchase stocks, bonds, and other securities.

7. Lease financing receivables, where the bank buys equipment or vehicles and leases them to its customers.

Of the loan categories shown, the largest in dollar volume is real estate loans, accounting for nearly one-third of total bank loans. These loans are made to both individuals and businesses in order to construct and purchase homes, apartments, office buildings, retail shops, and industrial structures. The next largest category is commercia and industrial loans (C&I), also representing close to one -third of the total. These loans include credit to purchase inventories of goods and raw materials, to cover operating expenses, and to finance new equipment. Next in importance are loans to individuals and families for living costs, medical expenses, automobile purchase, home appliances, vacations, education and so on.

Words

1. lending кредитование, ссуда, заем

2. to character фрахтовать, брать в наем по чартеру, сдать в наем, преимущественное право

3. loan заем, ссуда, кредит

4. customer клиент, покупательная задолженность

5. community общность, сообщество, объединение

6. adequate адекватный, компетентный

7. supply снабжение, поставка, запасы, сырье

8. legitimate законный

9. rate ставка, такса, курс, оценка

10. со fund consumption ассигновать, финансировать, потребление, расход, затраты, фонд потребления

11. investment spending капитальные расходы

12. units of government единица (правительственный отдел)

13. vitality жизнедеятельность, жизнеспособность

14. to account for открывать счет для

15. revenue выручка, валовый доход

16. to spring from появляться

17. uncollectible неспособные к инкассации

18. downturn экономический спад

19. diversity разнохарактерность, диверсифицированность

20. proceeds поступление, выручка, доход, сумма выплачиваемая при учете векселя

21. to secure обеспечивать, гарантировать

22. short-term loan краткосрочный заем

23. harvesting crop урожай

24. feeding кормление

25. livestock живой инвентарь, домашний скот

26. inventiry опись, инвентаризация, инвентарная ведомость

27. payroll платежная ведомость, общая сумма заработной платы

28. mobile home подвижный, передвижной дом

29. home appliances поступления (внутренние), (обратные, естественные)

30. retail goods розничные товары

31. repair ремонт

32. expenses расходы, издержки, затраты

33. consumer installment потребительский взнос, платеж, партия

34. dealer дилер, торговец, посредник, биржевой торговец

35. miscellaneous разнообразный

36. stock запасы, ассортимент, акция

37. bond облигация

38. security охрана, защита, обеспечение, гарантия

39. lease аренда

40. receivables дебиторская задолженность, счета дебиторов

from customers задолженность клиентуры

receivables подлежащий получению

Answer the questions

1. What is the principal economic function of banks?

2. What types of loans do banks make?

3. Which loans are real estate loans?

4. What sorts of credits do financial institutions loans include?

5. What operations are agricultural loans used for?

6. Which expenses do commercial and industrial loans cover?

7. Which credits do loans to individuals finance?

8. What loans do miscellaneous include?

Translate into English

1.Основная причина, по которой государством выделяется лицензия банкам при их открытии – это то, что они выдают ссуды клиентам. 2. Банки снабжают кредитом местные объединения для осуществления юридически законного бизнеса под определенные проценты. 3. Ссуды, представляемые банком, способствуют росту и оздоровлению бизнеса. 4. Финансовые затруднения банков возникают из-за неправильного руководства или незаконных манипуляций. 5. Ссуды выдаются для разнообразных целей: покупки мебели, строительства дома, открытия торговых центров и т.д. 6. Банковские ссуды делятся на семь категорий: займы, для покупки недвижимости, ссуды финансовым учреждениям, на сельское хозяйство, на торговые и промышленные цели, займы отдельным лицам, разнообразные займы, ссуды на получение аренды.