BUSINESS ENGLISH advanced

12. Banking and taxation

Match up these terms with the definitions below.

 

Cash card        cash dispenser credit card       home banking

Loan    mortgage         overdraft         standing order

Current account (GB) or checking account (US)

Deposit account (GB) or time or notice account (US)

 

1 an arrangement by which a customer can withdraw more from a bank account than has been deposited in it, up to an agreed limit; interest on the debt is calculated daily

2 a card which guarantees payment for goods and services purchased by the cardholder, who pays back the bank or finance company at a later date

3 a computerized machine that allows bank customers to withdraw money, check their balance, and so on

4 a fixed sum of money on which interest is paid, lent for a fixed period, and usually for a specific purpose

5 an instruction to a bank to pay fixed sums of money to certain people or organizations at stated times

6 a loan, usually to buy property, which serves as a security for the loan

7 a plastic card issued to bank customers for use in cash dispensers

8 doing banking transactions by telephone or from one’s own personal computer, linked to the bank via a network

9 one that generally pays little or no interest, but allows the holder to withdraw his or her cash without any restrictions

10 one that pays interest, but usually cannot be used for paying cheques (GB) or checks (US), and on which notice is often required to withdraw money

 

 

31. Types of banks

 

Read the text below and write short headings (one or two words) for each paragraph

 

5         ……………………………..

Commercial or retail banks are businesses that trade in money. They receive and hold deposits, pay money according to customers’ instructions, lend money, offer investment advice, exchange foreign currencies, and so on. They make a profit from the difference (known as a spread or a margin) between the interest rates they pay to lenders or depositors and those they charge to borrowers. Banks also create credit, because the money they lend, from their deposits, is generally spent (either on goods or services, or to settle debts), and in this way transferred to another bank account – often by way of a bank transfer or a cheque (check) rather than the use of notes or coins – from where it can be lent to another borrower, and so on. When lending money, bankers have to find a balance between yield and risk, and between liquidity and different maturities.

5         ……………………………

Merchant bank in Britain raise funds for industry on the various financial markets, finance international trade, issue and underwrite securities, deal with takeovers and mergers, and issue government bonds. They also generally offer stockbroking and portfolio management services to rich corporate and individual clients. Investment banks in the USA are similar, but they can only act as intermediaries offering advisory services, and do not offer loans themselves. Investment banks make their profits from the fees and commissions they charge for their services.

5         ……………………………..

In the USA, the Glass-Steagall Act of 1934 enforced a strict separation between commercial banks and investment banks or stockbroking firms. Yet, the distinction between commercial and investment banking has become less clear in recent years. Deregulation in the USA and Britain is leading to the creation of ‘financial supermarkets’: conglomerates combining the services previously offered by banks, stockbrokers, insurance companies, and so on. In some European countries (notably Germany, Austria and Switzerland) there have always been universal banks combining deposit and loan banking with share and bond dealing and investment services.

5         ………………………………

A country’s minimum interest rate is usually fixed by the central bank. This is the discount rate, at which the central bank makes secured loans to commercial banks. Banks lend to blue chip borrowers (very safe large companies) at the base rate or the prime rate; all other borrowers pay more, depending on their credit standing (or credit rating, or creditworthiness): the lender’s estimation of their present and future solvency. Borrowers can usually get a lower interest rate if the loan is secured or guaranteed by some kind of asset, known as collateral.

5         ……………………………

In most financial centres, there are also branches of lots of foreign banks, largely doing Eurocurrency business. A Eurocurrency is any currency held outside its country of origin. The first significant Eurocurrency market was for US dollars in Europe, but the name is now used for foreign currencies held anywhere in the world (e.g. yen in the US, DM in Japan). Since the US$ is the world’s most important trading currency – and because the US has for many years had a huge trade deficit – there is a market of many billions of Eurodollars, including the oil-exporting countries’ ‘petrodollars’. Although a central bank can determine the minimum lending rate for its national currency it has no control over foreign currencies. Furthermore, banks are not obliged to deposit any of their Eurocurrency assets at 0% interest with the central bank, which means that they can usually offer better rates to borrowers and depositors than in the home country.

 

Commercial / retail bank – bancă comerciale / bancă de depozit

Merchant bank / Investment bank – bancă comercială / de investiţii

 

 

·         Vocabulary

a.       Find the words or expressions in the text which mean the following.

 

1 to place money in a bank; or money placed in a bank

2 the money used in countries other than one’s own

3 how much money a loan pays, expressed as percentage

4 available cash, and how easily other assets can be turned into cash

5 the date when a loan becomes repayable

6 to guarantee to buy all the new shares that a company issues, if they cannot be sold to the public

7 when a company buys or acquires another one

8 when a company combines with another one

9 buying and selling stocks or shares for clients

10 taking care of all a client’s investments

11 the ending or relaxing of legal restrictions

12 a group of companies, operating in different fields, that have joined together

13 a company considered to be without risk

14 ability to pay liabilities when they become due

15 anything that acts as a security or a guarantee for a loan

 

b.The text contains a number of common verb-noun partnerships (e.g. to lend money, to finance international trade). Match up the verbs and nouns below to make common collocations.

 

Charge             advice

Do                    bonds

Exchange          business

Issue                currencies

Make                deposits

Offer                funds

Pay                  interest

Raise                loans

Receive                        profits

Underwrite       security issues

 

 

 

 

 

 

 

 

 

32. Opening an account and means of payment

 

 

At the Bank – Opening an account

 

Mr. X – I would like to open an account with you.

Bank Clerk – Very well, sir. Here is a form you’ll have to fill in.

Mr. X – There may be a problem. You see, I’m a foreign resident.

Bank Clerk – This is quite all right, sir. Quite a large number of our clients are foreigners. Do you want to open a current account or a deposit account?

Mr. X – Well, I’m going to stay and work here for a while, and I’d like my salary to be paid into my account. But I don’t want to have to give notice before I can withdraw money.

Bank Clerk – It’s obviously a current account you need.

Mr. X – How long will take to open an account?

Bank Clerk – Doesn’t take long, sir. Let me see… Today is Thursday, if you can complete this form today, your cheque-book will be ready for you on Tuesday.

Mr. X – Fine. So, my salary could be paid in at the end of the month.

Bank Clerk – No doubt, sir.

Mr. X – There are two questions I’d like to ask. Will this be the only place where I can cash a cheque?

Bank Clerk – Oh, no, sir. You can have them cashed at any of our branches.

Mr. X – Good. And what about statements of account? How frequently does one get them?

Bank Clerk – Normally, once a month. But we shall send one out after each transaction if you want us to.

 

 

General Information:

When do/are you open?

How late do you stay open?

When do you close?

What are your opening hours?

In the US: Does this bank have an ATM (Automatic Teller Machine – bancomat)

In the UK: Do you have a cash point/dispenser?

The ATM ate/kept my card.

The cash dispenser won’t give me my card back.

 

If you want to use bank services you may have to queue (UK) or stand in line (US) and wait for the next available teller (US) – or clerk (UK): When their desk is free, a light will come on:

Next, please.

Please step down (US).

I’m open over/down here.

 

Queue / stand in line = a sta la coadă

Teller / clerk = funcţionar la ghişeu

 

You can then tell him or her what you want:

I want/need/would like to cash a check.

I’d like to cash these travelers checks, please.

Can you change a ten-pound note, please?

I’d like ten dollars’ worth of quarters, please.

I need a roll of quarters.

 

If you have an account there:

I’d like to make a deposit.

I’d like to withdraw some money from my account.

I’d like to make a withdrawal.

 

If you want to withdraw some money from abroad:

I’d like to transfer some money from an overseas bank account.

Before the clerk gives you any money, she/he will ask:

How would you like that?

Any preference?

Large or small bills (US) notes (UK)?

 

Your reply:

It doesn’t matter (which denomination)

All twenties, please.

Just tens and twenties, please.

Five, tens and three fives, please.

No small bills/notes, please.

 

 

If you want to transfer some money, the clerk will say:

Are you a customer here?

First of all, I need some ID, please.

May I see some identification?

Do you have a bank card with you?

I’d like the name and address of your bank, your account number and your sorting code, please.

Please fill in this form.

I’m afraid you’ll have to go to the enquiries desk (biroul de informaţii).

 

Or, if you’re cashing a check:

Could you endorse this (sign it on the back), please.

 

Perhaps you’re withdrawing money with a credit card:

Enter your PIN number, please (PIN: Personal Identification Number).

 

If you have foreign currency:

Do you handle foreign exchange here?

Is there a foreign exchange desk?

I’d like to change/buy some foreign currency.

What’s the current exchange rate, please?

How many marks to the dollar, please?

 

And the reply:

The exchange rate is 1,5 marks to the dollar.

I’m afraid the rate has gone up today.

 

You might want to know:

Do I have to pay bank charges (comision) on top of that?

Is that inclusive of commission?

Are there any additional expenses?

What commission do you charge?

 

Maybe you’re staying in an Anglophone country for more than a year and you want to open a bank account there:

I’d like to open a deposit/checking/ savings account, please.

I’d like to apply for a loan.

I’d like to get a safety deposit box (safe de depuneri).

What’s the interest rate on this account?

Could you explain the service charges on this account?

Could I have a new checkbook, please?

I’d like to apply for a bank/cheque/credit/cash card, please.

 

 

Means of payment.

 

I’d just had a phone call from the bank. They couldn’t cash in D’s cheque. They were told there were insufficient funds on his account.

I’m surprised. That would be the first time. Can you remind me of the amount?

It’s not a large sum: only 135 pounds.

This is all the more surprising. He is not the kind of person to overdraw his account. What sort of a cheque did he make out?

I’m looking into his file… Now… It was a giro cheque. Usually he pays us by bank cheque for small amounts, and by draft for large sums.

It makes more sense. Just give him a ring, will you? I’m sure he’ll settle immediately.

I’ll do that. Something else. I’ve had very bad information about B, you know, the reseller (vânzător) who wanted immediate delivery.

I see who you mean. It’s his first order with us?

That’s it. He’s already had a current account cancelled and has a reputation for being a slow payer.

If so, insist on payment with the order (plata la comandă). Delivery is out of the question until the sum has been paid into our account.

Well, I think that’s all. Oh yes! One more thing, the drafts to be discounted…

 

 

Means of payment. Key sentences.

 

His account is overdrawn (in the red).

Cecul său este descoperit.

The settlement is long overdue.

Plata ar fi trebuit să fie făcută demult.

What’s his current account number?

Care este numărul contului său curent?

Charge it to my account.

Scoateţi suma din contul meu.

Settle the amount by money order if you find it more convenient.

Plătiţi suma prin mandat poştal dacă consideraţi că este mai practic.

The cheque was made out to his order.

Cecul era făcut la ordinul său.

He intends to open a deposit account at one of our branches.

El are intenţia să deschidă un cont pentru depuneri la una din sucursalele noastre.

I think I remember it was a bearer cheque.

Cred că îmi amintesc, era un cec la purtător.

Normally, that payment-in ought to have been recorded on my last statement of account.

Normal, acea plată (vărsământ) ar trebuie să figureze pe ultimul meu extras de cont.

For sight withdrawals, you simply have to go to counter no.3

Pentru retragerile la vedere, ajunge să mergeţi la ghişeul nr.3

She will pay us by instalments over six months.

Ea ne va plăti în rate eşalonate pe şase luni.

I have kept the stub (counterfoil) of the cheque which I issued on March 6th.

Am păstrat talonul cecului pe care l-am emis pe 6 martie.

The holder of the credit card must inform our nearest office in case of loss or theft.

Titularul cărţii de credit trebuie să informeze imediat biroul nostru cel mai apropiat în caz de pierdere sau de furt.

Thanks to your credit card, you may rent a car without leaving a deposit.

Datorită cărţii dumneavoastră de credit veţi putea închiria o maşină fără să lăsaţi o garanţie.

How is it that this cheque has not been endorsed?

Cum se face că acest cec nu a fost andosat?

I suppose you’d rather be paid in cash?

Presupun că preferaţi să fiţi plătiţi cu bani gheaţă.

The draft will fall due at the end of the month.

Trata ajunge la scadenţă la sfârşitul lunii.

Why haven’t you presented this draft for acceptance yet?

De ce nu aţi prezentat încă această trată la acceptare?

How long will it take to have the sum transferred to my account?

Cât durează să viraţi suma în contul meu?

It has been rejected for non-conformity of the signature (because the signature was not true).

El a fost refuzat din cauza nepotrivirii semnăturii (din cauză că semnătura nu era cea adevărată).

This is not the first time he has issued bad cheques (dud checks; cheques that bounce).

Nu este prima dată când el emite cecuri fără acoperire.

 

 

33. Banking – Key words and sentences

 

 

The banks have played a prominent role in the development of modern economy since the very beginning of commercial activities. Their branches have become a familiar sight on many city streets, but also in villages, as more and more people now “bank” with any one of the national or local banks.

Banks offer their services both to private individuals and to businesses. One can open a current account or a deposit account with them. The former will enable a person to use a cheque for payment instead of hard cash, whereas the latter will bring a small interest. People can ask their bank to pay recurring expenses for them, such as subscription, rents, telephone, gas or electrical bills. Valuables or deeds can be left in custody in a bank safe on payment of certain charge. The bank will obtain foreign currencies, issue traveller’s cheques and letter of credit payable at their branches or at correspondent banks.

Besides, banks will operate transactions on the stock exchange for you and give advice on investments. They also lend money, generally on a short term basis: thus they can allow overdraft facilities or personal loans; if your credit rating is good and if you can offer some sort of security, they may consider longer term credit. Most of this applies to business discounting of their bills – Bills of Exchange (drafts), or even Promissory Notes. In the field of foreign trade, the banks can help by financing or advising their clients. They can be referred to by either party for status enquiries in business transactions.

 

Recurring expenses = cheltuieli recurente

Valuables / deeds = acte, valori

Overdraft = cont debitor, descoperire de cont

Be referred to = a fi îndrumat

 

 

 

Definition

A cheque is signed by the payer and payable to the payee or to his order. A draft (or bill of exchange) is drawn by the creditor on the debtor and payable to the drawer or to a third party after acceptance by the drawee.

 

Un cec este semnat de plătitor şi se plăteşte beneficiarului sau la ordinul său. O trată este trasă de creditor asupra debitorului şi se plăteşte trăgătorului sau unei terţe părţi după acceptare de către tras.

 

 

 

Bank. Key sentences.

 

1.       An interest is charged on all banks services.

Se percepe dobândă pentru toate serviciile bancare.

2.       You had better ask for an overdraft before your account is overdrawn (in red).

Ar fi bine să cereţi un descoperit înainte de a vi se epuiza contul.

3.       I always deposit my valuables and my wife’s jewels in a bank safe before leaving for a long holiday.

Depun întotdeauna obiectele mele de valoare şi bijuteriile soţiei la o bancă înainte de a pleca într-o vacanţă de lungă durată.

4.       Where can I cash this cheque (check – U.S.)?

Unde pot încasa acest cec?

5.       Remember to record all withdrawals on counterfoils (U.S. – stubs) in your cheque-book.

Nu uitaţi să înregistraţi toate retragerile pe talonul carnetului dumneavoastră de cecuri.

6.       They offered me to refund a 2,000 personal loan over a 30-month period.

Ei mi-au propus să rambursez un împrumut personal de 2.000 de lire în treizeci de rate lunare.

7.       When writing out or endorsing a cheque, one must be careful to avoid any erasure.

Când se redactează sau se andosează un cec, trebuie să se evite orice ştersătură.

8.       She made out so many dud (bad) cheques that no bank will trust her with a cheque-book.

Ea a întocmit atâtea cecuri fără acoperire, încât nici o bancă nu-I va mai încredinţa un carnet de cecuri.

9.       Don’t forget to have these bills discounted by the end of this month.

Nu uitaţi să scontaţi aceste efecte la sfârşitul lunii.

10.   Recently a trader sued his banker after he could no longer have his bills discounted.

Recent, un comerciant a intentat un proces băncii sale după ce n-a mai avut posibilitatea să-şi sconteze efectele de comerţ.

11.   The clearing-house will centralize all the operations dealing with the exchange of bills and cheques between banks.

Camera de decontări/oficiul de cliring va centraliza toate operaţiunile care se referă la schimbul interbancar de efecte de comerţ şi cecuri.

12.   The U.S. investment banks have just r

Cauta