Переведенная на английский лекция по теме Money and banking (деньги и банковское дело), the role of banks (роль банков), modern banking (современная банковская система)

short of gold - у мастера не было достаточно золота

to reckon - полагать, считать

at any rate - во всяком случае

a transaction - сделка

to owe - быть должным

assets and liabilities - активы и пассивы

the vа1uе of his loan - стоимость ссуды, которую он дал

to equal - равняться, быть равным

the firm didn't really want to саrry that gold around, so it asked the gold­smith If, instead of actually taking the gold, it could be given a deposit - фир­ма не хотела держать золото при себе (носить золото с собой) и вместо того, чтобы на самом деле его забрать, попросила мастера принять это золото на хранение в виде вклада

(they) were worth $110 - их стоимость составляла, они оценивались (имели ценность) в 110 долларов

to write (syn. to draw, to issue, to make out) a cheque - выписать чек

his assets failed - зд. его активы снизились

to fail - (о банках) обанкротиться

initial loan - первоначальная ссуда

reserves - резервы

the amount of gold that is immediately available in the vault - запасы (ко­личество) золота, которое всегда находится (и может быть немедленно получено) в хранилище банка

depositors'demands - требования вкладчиков

leaving himself with $90 -оставив себе только 90 долларов

to rely on - рассчитывать, надеяться на что-либо

the reserve ratio • резервная норма

dare - осмеливаться

to make a profit through his interest charges - получить прибыль за счет платежа процентов

What are the risks involved? - Чем он рискует?

to panic (panicked) -пугать, приводить в панику

to doubt - сомневаться

he was bound to lose some of the gold - он непременно должен был по­терять часть золота

a run on the bank - натиск вкладчиков на банк

the financial panic - финансовая паника

to fear - опасаться, страшиться

to go bankrupt - обанкротиться

MODERN BANKING

(СОВРЕМЕННАЯ БАНКОВСКАЯ СИСТЕМА)

The goldsmith bankers were an early example of a financial intermediary.

A financial intermediary is an institution that specializes in bringing lenders and borrowers together.

A commercial bank borrows money from the public, crediting them with a deposit. The deposit is a liability of the bank. It is money owed to depositors. In turn the bank lends money to firms, households or governments wishing to borrow.

Banks are not the only financial intermediaries. Insurance companies, pension funds, and building societies also take in money in order to relend it. The crucial feature of banks is that some of their liabilities are used as a means of payment, and are therefore part of the money stock.

Commercial banks are financial intermediaries with a government licence to make loans and issue deposits, including deposits against, which cheques can be written.

Let's start by looking at the present-day UK banking system. Although the details vary from country to country, the general principle is much the same everywhere.

In the UK, the commercial banking system comprises about 600 registered banks, the National Girobank operating through post offices, and a dozen trustee saving banks. Much the most important single group is the London clearing banks. The clearing banks are so named because they have a central clearing house for handling payments by cheque.

A clearing system is a set of arrangements in which debts between banks are settled by adding up all the transactions in a given period and paying only the net amounts needed to balance inter-bank accounts.

Suppose you bank with Barclays but visit a supermarket that banks with Lloyds. To pay for your shopping you write a cheque against your deposit at Barclays. The supermarket pays this cheque into its account at Lloyds. In turn, Lloyds presents the cheque to Barclays, which will credit Lloyds' account at Barclays and debit your account at Barclays by an equivalent amount. Because you purchased goods from a supermarket using a different bank, a transfer of funds between the two banks is required. Crediting or debiting one bank's account at another bank is the simplest way to achieve this.

However on the same day someone else is probably writing a cheque on a Lloyds' deposit account to pay for some stereo equipment from a shop banking with Barclays. The stereo shop pays the cheque into its Barclays' account, increasing its deposit. Barclays then pays the cheque into its account at Lloyds where this person's account is simultaneously debited. Now the transfer flows from Lloyds to Barclays.

Although in both cases the cheque writer's account is debited and the cheque recipient's account is credited, it does not make sense for the two banks to make two separate inter-bank transactions between themselves. The clearing system calculates the net flows between the member clearing banks and these are the settlements that they make between themselves. Thus the system of clearing cheques represents another way society reduces the costs of making transactions.

The Balance Sheet of the London Clearing Banks.

Балансовый отчет лон­донских клиринговых банков

Таbl. 7 shows the balance sheet of the London clearing banks. Although more complex, it is not fundamentally different from the balance sheet of the goldsmith-banker shown in Таbl 6. We'll begin by discussing the asset side of the balance sheet.

The Balance Sheet of the London Clearing Banks.

Assets	£b	Liabilities	£b
Sterling: Cash Bills and market loans Advances Securities Lending in other currencies Miscellaneous assets TOTAL ASSETS	2,9 34,7 83,0 9,4 54,6 15,5 200,1	Sterling: Sight deposits Time deposits CDs Deposits in other currencies Miscellaneous liabilities TOTAL LIABILITIES	54,1 59,9 8,1 46,2 31,8 200,1

Cash assets are notes and coin in the banks' vaults. However, modem banks' cash assets also include their cash reserves deposited with the Bank of England. The Bank of England (usually known as the Bank) is the central bank or banker to the commercial banks.

Apart from cash, the other entries on the asset side of the balance sheet show money that has been lent out or used to purchase interest-earning assets. The second item, bills and market loans, shows short-term lending in liquid assets.

Liquidity refers to the speed and the certainty with which an asset can be converted back into money, whenever the asset-holders desire. Money itself is thus the most liquid asset of all.

The third item, advances, shows lending to households and firms. A firm that has borrowed to see it through a sticky period may not be able to repay whenever the bank demands. Thus, although advances represent the major share of clearing bank lending, they are not very liquid forms of bank lending. The fourth item, securities, shows bank purchases of interest-bearing hug-term financial assets. These can be government bonds or industrial shares. Although these assets are traded daily on the stock exchange, so in principle these securities can be cashed in any time the bank wishes, their price fluctuates from day to day. Banks cannot be certain how much they will get when they sell out. Hence financial investment in securities is also illiquid.

The final two items on the asset side of the balance sheet show lending in foreign currencies and miscellaneous bank assets. Total assets of the London clearing banks were £200,1 billion. We now shall examine how the equivalent liabilities were made up.

Deposits are chiefly of two kinds: sight deposits and time deposits. Whereas sight deposits can be withdrawn on sight whenever the depositor wishes, a minimum period of notification must be given before time deposits can be withdrawn. Sight deposits are the bank accounts against, which we write cheques, thereby running down our deposits without giving the bank any prior warning. Whereas most banks do not pay interest on sight deposits or cheque (checking) accounts, they can afford to pay interest on time deposits. Since they have notification of any withdrawals, they have plenty of time to sell off some of their high- interest investments or call in some of their high-interest loans in order to have the money to pay out deposits.

Certificates of deposit (CDs) are an extreme form of time deposit where the bank borrows from the public for a specified period of time and knows exactly when the loan must be repaid. The final liability items in Таbl. 7 show deposits in foreign currencies, miscellaneous liabilities, such as cheques, in the process of clearing.

VOCABULARY NOTES

a financial intermediary - финансовый посредник

to bring together - соединять, сводить вместе

insurance companies - страховые компании

pension lands - пенсионные фонды

the money stock - денежная масса, деньги в обращении

to issue deposits - открывать вклады

the National Girobank - англ. Национальный жиробанк

trustee saving banks - доверительные сберегательные банки

London clearing banks - лондонские клиринговые банки (банки - чле­ны расчетной палаты)

a central clearing house - центральная расчетная палата

inter-bank accounts - межбанковские счета

Barclays - Барклайз банк (Великобритания)

Lloyds - Ллойдз банк (Великобритания)

to credit - кредитовать

to debit - дебетовать

cheque recipient - получатель чека

cash assets - денежные активы

the Bank of England - Банк Англии, Английский банк

interest-earning (syn. interest-bearing) assets - активы, приносящие про­центный доход

bills and market loans - векселя и рыночные займы

short-term lending - краткосрочное кредитование

liquid (ant. illiquid) assets - ликвидные активы

liquidity - ликвидность

advances - ссуда в вида аванса

a sticky period - трудный период

securities - ценные бумаги

interest-bearing long-term financial assets - долгосрочные финансовые активы, приносящие процентный доход

government bonds - государственные облигации

industrial shares - промышленные акции

the stock exchange - фондовая биржа

niscellaneous bank assets - прочее имущество банка

sight deposit - депозит до востребования; бессрочный вклад

time deposit - срочный вклад

to withdraw - отзывать (вклад)

to run down a deposit - уменьшать вклад

cheque (checking) accounts - текущий (чековый) счет

to sell off - распродавать

cad in high-interest loans - требовать возврата займов (требовать уплаты процентов)

certificates of deposit - депозитные сертификаты

miscellaneous liabilities ' прочие (другие) пассивы

1. GENERAL DEFINITION OF ACCOUNTING

Today, it is impossible to manage a business operation without accurate and timely accounting information. Managers and em­ployees, lenders, suppliers, stockholders, and government agen­cies all rely on the information contained in two financial state­ments. These two reports — the balance sheet and the income statement — are summaries of a firm's activities during a specific time period. They represent the results of perhaps tens of thou­sands of transactions that have occurred during the accounting period.

Accounting is the process of systematically collecting, an­alyzing, and reporting financial information. The basic prod­uct that an accounting firm sells is information needed for the cli­ents.

Many people confuse accounting with bookkeeping. Book­keeping is a necessary part of accounting. Bookkeepers are re­sponsible for recording (or keeping) the financial data that the ac­counting system processes.

The primary users of accounting information are managers. The firm's accounting system provides the information dealing with revenues, costs, accounts receivables, amounts borrowed and owed, profits, return on investment, and the like. This infor­mation can be compiled for the entire firm; for each product; for . each sales territory, store, or individual salesperson; for each divi­sion or department; and generally in any way that will help those who manage the organization. Accounting information helps managers plan and set goals, organize, motivate, and control. Lenders and suppliers need this accounting information to evaluate credit risks. Stockholders and potential investors need the information to evaluate soundness of investments, and government agencies need it to confirm tax liabilities, confirm payroll deductions, and approve new issues of stocks and bonds. The firm's accounting system must be able to provide all this information, in the required form.

2. THE BASIS FOR THE ACCOUNTING PROCESS

The basis for the accounting process is the accounting equation. It shows the relationship among the firm's assets, liabil­ities, and owner's equity.

Assets are the items of value that a firm owns —'cash, inven­tories, land, equipment, buildings, patents, and the like.

Liabilities are the firm's debts and obligations — what it owes to others.

Owner's equity is the difference between a firm's assets and its liabilities — what would be left over for the firm's owners if its assets were used to pay off its liabilities.

The relationship among these three terms is the following:

Owners' equity = assets - liabilities

(The owners' equity is equal to the assets minus the liabilities)

For a sole proprietorship or partnership, the owners' equity is shown as the difference between assets and liabilities. In a part­nership, each partner's share of the ownership is reported sepa­rately by each owner's name. For a corporation, the owners' eq­uity is usually referred to as stockholders ' equity or sharehold­ers ' equity. It is shown as the total value of its stock, plus retained earnings that have accumulated to date.

By moving the above three terms algebraically, we obtain the standard form of the accounting equation:

Assets = liabilities + owners' equity

(The assets are equal to the liabilities plus the owners' equity)

3. A BALANCE SHEET

A balance sheet (or statement of financial position), is a summary of a firm's assets, liabilities, and owners' equity ac­counts at a particular time, showing the various money amounts that enter into the accounting equation. The balance sheet must demonstrate that the accounting equation does indeed balance. That is, it must show that the firm's assets are equal to its liabilities plus its owners' equity. The balance sheet is prepared at least once a year. Most firms also have balance sheets prepared semi-annually, quarterly, or monthly.

4. AN INCOME STATEMENT

An income statement is a summary of a firm's revenues and expenses during a specified accounting period. The in­come statement is sometimes called the statement of income and expenses. It may be prepared monthly, quarterly, semiannually, or annually. An income statement covering the previous year must be included in a corporation's annual report to its stockholders.

5. THE IMPORTANCE OF THE ABOVE TWO STATEMENTS

The information contained in these two financial statements becomes more important when it is compared with corresponding information for previous years, for competitors, and for the indus­try in which the firm operates. A number of financial ratios can also be computed from this information. These ratios provide a picture of the firm's profitability, its short-term financial position, its activity in the area of accounts receivables and inventory, and its long-term debt financing. Like the information on the firm's fi­nancial statements, the ratios can and should be compared with those of past accounting periods, those of competitors, and those representing the average of the industry as a whole.

Vocabulary

1. General Definition of Accounting

general accounting account impossible manage without accurate lender stockholder agency rely (on) statement report balance sheet income statement summary specific represent perhaps transaction occur accounting period report needed client confuse bookkeeping responsible record data process user provide deal (with) revenue accounts (debt) receivables amount borrow owe profit investment return on investment and the like compile sales territory store	общий счет (бухгалтерский) учет ведение счетов невозможный зд. руководить, управлять без точный кредитор, заимодавец акционер зд. ведомство, орган полагаться (на) зд. отчет отчет балансовый отчет, баланс отчет о доходах обобщенный отчет, итоги конкретный представлять возможно сделка, деловая операция зд. происходить, иметь место отчетный период сообщать нужный клиент смешивать (в уме), путать счетоводство, ведение бухгалтерских книг, бухгалтерия ответственный записывать, вести учет данные обрабатывать пользователь обеспечивать зд. иметь отношение (к) доход дебиторская задолжен­ность (долг, который следует получить ком­пании, счета дебито­ров, счета к получению сумма занимать, брать взаймы быть должным выгода, прибыль инвестиция, инвестирование прибыль на инвестиро­ванный капитал и тому подобное собирать территория продажи магазин
individual salesperson	отдельный продавец
division	зд. сектор
department	отдел
generally	вообще
in any way	зд. в любой форме
set goals	ставить цели
control	контролировать, управлять
evaluate	оценивать
potential investor	потенциальный инвестор
soundness	надежность
confirm	подтвердить
tax	налог
liability	зд. пассив; задолженность
payroll	платежная ведомость (по зарплате)
deduction	удержание, вычеты
approve	зд. утверждать, одобрять
issue	выпуск
stock	амер. акции, англ. ценные бумаги
bond	облигация
be able	быть способным
provide	предоставлять
in the required form	в требуемом виде

2. The Basis for the Accounting Process

basis	основа
accounting equation	бухгалтерская сбалансированность (дебет и кредит)
relationship	соотношение
assets	активы, авуары, зд. актив баланса
own	владеть
item of value	материальные ценности
owner	владелец, собственник
debt obligation	долг обязанность, обязательство
owner's equity	собственный (уставной) акционерный капитал
pay off	расплачиваться (с)
term	зд. понятие, значение
sole proprietorship partnership	единоличный право собственности партнерство, товарищество
share	доля