MONEY AND BANKING
Страница 3
(they) wereworth $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
hisassetsfailed - зд. его активы снизились
tofail - (о банках) обанкротиться
initialloan - первоначальная ссуда
reserves - резервы
theamountofgoldthatisimmediatelyavailableinthevault - запасы (количество) золота, которое всегда находится (и может быть немедленно получено) в хранилище банка
depositors' demands- требования вкладчиков
leavinghimselfwith $90 -оставив себе только 90 долларов
torelyon - 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?
topanic (panicked) -пугать, приводить в панику
todoubt - сомневаться
hewasboundtolosesomeofthegold - он непременно должен был потерять часть золота
arunonthebank - натиск вкладчиков на банк
the financial panic - финансовая паника
tofear - 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.