1. BANKING

2. BORROWING AND LENDING borrow-lend take deposits-make loans savings-lending depositors- borrowers lenders-borrowers creditors-debtors

3. BORROW-LEND  Borrow (from) v.reg.  Lend (to) v.irreg. lend, lent, lent 1.He.................. a lot of money from me. 2.Can you.................. me $15,000? 3.I have never.................. money to anyone. 4.The bank will.................. us $ 0.5m, 5.You shouldn’t.................. money. You never know if the debtors will pay it back to you. 6.I wonder if it’s possible to take a loan and.................. $50,000 for the project.

4. BORROW-LEND 1.He borrowed a lot of money from me last year. 2.Can you lend me $15,000? 3.I have never lent money to anyone. 4.The bank will lend us $ 0.5m, 5.You shouldn’t lend money. You never know if the debtors will pay it back to you. 6.I wonder if it’s possible to take a loan and borrow $50,000 for the project.

5. 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

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

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

8. BANK ACCOUNTS 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

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

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

11. 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 ….

12. 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  Repea l

13. 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