BANKING

Content bank and banking; the clients of the Central banks; the functions of the Central banks; bank services; modern trends in banking; negotiating for favourable services, credits and loans.

A bank is a business that keeps and lends money and provides other financial services. The business of a bank is called banking.

The clients of the Central bank governmentcommercial banksother Central banks

The functions of the Central bank Formulation of monetary policy through Setting interest rates in short-term period Keeping inflation and price levelin long-term period Ensuring the stability of the financial system supervising other banks to meet the requirements Competent management Adequacy of capital Adequacy of cash flow Proper risk management Printing and distribution of banknotes

Bank services DEPOSIT operations (transactions) CREDIT operations (transactions) PAYMENT operations (transactions) ADDITIONAL operations CASH operations (transactions)

DEPOSIT operations BankClient interest rates money

CREDIT operations Bank Client money interest rates Bank considers the reliability of Client, i.e.: the credit history; the availability of a steady source of income for individual; enough collateral or security to use as a guarantee; perspectives of business etc.

PAYMENT operations Transferring money from one account to another.

CASH operations Giving out cash money to the clients. Exchanging currency.

ADDITIONAL operations intermediary services; services directed to the companies’ development (inculcation of the stock exchange, placing shares, juridical help, information services etc.); giving guaranties and collateral; trusting operations (including consultations and help in the management of the clients’ property); providing accounting help to the companies; presenting the clients’ interests in the court.

Modern trends in banking On-line banking +- round-the-clock service; immediate service; wide variety of options. security

Negotiating for favourable services, credits and loans To negotiate use FIRST and SECOND conditionals: If-clause present tense Main clause future tense If you open an account with our bank, you will benefit from favourable interest rates. FIRST conditional SECOND conditional If-clause past tense Main clause would+infinitive If a bank failure occurred, you would lose only interest rates.

Basic glossary

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