1. Banks and their products
VOŠ – 3. ročník – 2. semestr

2. Definition
a commercial or state institution that provides financial services, such as:
issues money in form of coins, banknotes or debit cards
receives deposits of money
lends money
processes transactions
accepts deposits from customers and in turn makes loans based on those deposits
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3. BANKING SYSTEM most banks are profit-making, private enterprises
some are owned by the government, or are non-profit organizations
banks’ activities can be divided into:
retail banking - dealing directly with individuals and small businesses
business banking - providing services to mid-market businesses
corporate banking - directed at large businesses
investment banking - relating to activities on the financial markets
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4. TYPES OF BANKS: Central Bank Commercial Banks Savings Banks
Investment Banks
Specialized banks
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5. Central Bank controls the monetary policy of its country
regulates and supervises the banking industry
determines discount interest rates
issues the currency and maintains its stability
controls exchange rates
acts as a lender of last resort during times of financial crisis
manages the country's foreign exchange and gold reserves
in the Czech Republic it is the Czech National Bank
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6. Commercial banks
are banks or a divisions of a bank that mostly deal with deposits and loans from firms or individuals
accept savings deposits, time or term deposits from businesses and consumers and invest these funds
provide loans to firms and consumers
buy corporate bonds and government bonds
handle customers’ accounts
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7. Savings banks accept savings deposits from customers and keep them
make personal loans
arrange mortgages
provide easily accessible savings products
focus on payments, credits and insurances for individuals or small and medium-sized enterprises
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8. Investment banks
help companies and governments and their agencies to raise money by issuing and selling securities in the market
provide strategic consultancy services for financial transactions
compete with commercial banks
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9. Specialized banks private banks merchant banks building societies
postal savings banks
mortgage banks
export and import banks
guarantee banks
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10. BANKS’ FINANCIAL RESOURCES
liabilities – deposits accepted by a bank
assets – loans granted to customers
margin – interest received on loans minus interests paid on deposits
income from trading in securities and foreign currencies
borrowed money from the Central Bank
issuing new shares and bonds
offer various bank products
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11. BANK PRODUCTS
all bank services currently offered in various areas of bank activities
can be performed in the domestic and foreign currencies
can be offered within the country or abroad
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12. Traditional bank products:
taking deposits from their customers
opening and maintenance of various types of accounts
making personal and commercial loans to individuals and businesses
exchanging foreign currencies
cashing cheques
offering investment banking services – trading bonds and shares
making mortgages
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13. consumer & commercial financial advisory services
providing bank guarantees for its clients
offering safe custody services
doing money transactions such as wire transfers and cashiers checks
issuing credit cards, ATM cards, and debit cards
storing valuables in a safe deposit box
arranging electronic money transfers
pension & retirement planning
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14. TRANSACTION CHANNELS
a branch, banking centre or financial centre where a bank offers face to face services to its customers
ATM - a device that provides financial transactions in a public space without the need for a bank clerk
mail - a system in which written documents are enclosed in envelopes and delivered to destinations around the world
telephone banking allows the customers to perform transactions over the telephone
online banking is used for performing transactions, payments etc. over the Internet
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15. Answer the following questions
What types of banks are there in Příbram?
Which bank products do you or your family use?
Do you prefer doing bank transactions at a branch or do you use other transaction channels?
What are the advantages and disadvantages of internet banking?
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16. Reading At a bank Act out a similar dialogue
Student A – client, you want to open a bank account, decide about the type and other services (credit card, telephone banking, etc.)
Student B – bank clerk, ask about personal details (name, address, tel. etc.), offer some possible services, check the clients creditworthiness
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17. Listening Banks Have you ever had any bad experience with a bank?
What do you think about bank charges? Are they high? What do clients pay for?
Would you like to work in a bank? Why/why not?
Credit cards
What are the pros and contras of having a credit card? Is it safe to use it?
What is the difference between a credit card and a cash card?
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18. Resources
English in Economics, Miroslav Kaftan, Libuše Horáková:, Karolinum 2004
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