BANKING

BORROWING AND LENDING borrowing - lending taking deposits - making loans savings - loans depositors - borrowers lenders - borrowers creditors - debtors

BORROW-LEND Borrow (from) v.reg. Lend (to) v.irreg. lend, lent, lent He .................. a lot of money from me. Can you .................. me $15,000? I have never .................. money to anyone. The bank will .................. us $ 0.5m, You shouldn’t .................. money. You never know if the debtors will pay it back to you. I wonder if it’s possible to take a loan and .................. $50,000 for the project.

BORROW-LEND He borrowed a lot of money from me last year. Can you lend me $15,000? I have never lent money to anyone. The bank will lend us $ 0.5m, You shouldn’t lend money. You never know if the debtors will pay it back to you. I wonder if it’s possible to take a loan and borrow $50,000 for the project.

What happens when taking a loan? The client... The bank ... The loan... applies for a loan approves a loan makes a loan takes a loan borrows money lends money allows a grace period of 1 year repays the loan in instalments charges fees pays interest charges interest reaches maturity* (becomes mature, falls due, is due, comes due) *repaying the full amount of the loan: principal & interest

BANK ACCOUNTS current account (checking account) giro-account How much do we have in the account? current account (checking account) giro-account savings account, deposit account, time account, notice account

BANK ACCOUNTS bank statement account balance bank order I ordered (instructed) my bank to transfer €4,000 to your account.

BANK ACCOUNTS credit an account vs. debit an account Translate: We kept our account in credit last month. US$15,000 have been debited to my account. The amount will be credited to your account. credit an account vs. debit an account to keep an account in credit / in debit to overdraw an account → overdraft

CLIENTS AND BANK SERVICES retail banking/commercial banking corporate banking investment banking private banking Islamic banking Clients? MK: pp.73-74

A wide range of SERVICES loans financial advice mergers and takeover bids stockbroking portfolio management investment funds (e.g.hedge funds) insurance

Services provided Retail banks receive … and make … . Investment banks give …, raise … by issuing …, arrange …, and offer … . Private banks provide wealthy clients with … . Islamic banks offer …., so they neither pay …. nor charge …, but invest in … and share … .

Retail and investment banking: 3 phases? Use the verbs below and establish the chronology of events described in MK (pp.73-74): Prevent Deregulate Go bankrupt Pass, separate Repeal

Central banks are in charge of… implementing monetary policy ensuring price stability supervising the exchange rate supervising commercial banks holding bank reserves (required reserve) providing currency (cash) to banks providing loans to banks – discounting acting as lender of last resort acting as the government’s bank acting as the bankers’ bank RB: pp.62-64