1. BANKING

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

3. 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.

4. 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.

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 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

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

8. 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

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
Repeal

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
RB: pp.62-64