Đỗ Thanh Hiếu

Unit 14 : Banking Đỗ Thanh Thảo

Lê Thị Tú Linh
 Vocabulary
1 Find the words or expressions in the text which mean the following:
1 money placed in a bank
2 a sum of money borrowed from a bank
3 the money invested in a business
4 certificates representing part-ownership of a company
5 certificates of debt issued by governments or companies to raise money
6 when one company combines with another one
7 when one company offers to buy or acquire another one
8 buying and selling stocks or shares for clients
9 all the investments owned by an individual or organization
10 the profits made on investments
11 unable to pay debts or continue to do business
12 the ending or relaxing of legal restrictions
13 a group of companies, operating in different fields, which have joined together
14 the price paid for borrowing money, paid to the lenders
1 money placed in a bank : deposits
2 a sum of money borrowed from a bank : loan
3 the money invested in a business: capital
4 certificates representing part-ownership of a company: stocks or shares
5 certificates of debt issued by governments or companies to raise money: bonds
6 when one company combines with another one: merger
7 when one company offers to buy or acquire another one: takeover bid
8 buying and selling stocks or shares for clients: stockbroking
9 all the investments owned by an individual or organization: portfolio
10 the profits made on investments: returns
11 unable to pay debts or continue to do business: bankrupt
12 the ending or relaxing of legal restrictions: deregulation
13 a group of companies, operating in different fields,which have joined together:
conglomerate
14 the price paid for borrowing money, paid to the lenders: interest
 deposit /dɪˈpɒzɪt/ khoản tiền gửi được lưu giữ tại ngân hàng
loan /ləʊn/ khoản vay
capital /ˈkæpɪtl/ vốn doanh nghiệp
stock /stɒk/ Cổ phiếu
share /ʃeə(r)/ Cổ phiếu
bond /bɒnd/ trái phiếu
merger /ˈmɜːdʒə(r)/ mua bán và sáp nhập
takeover bid /ˈteɪkəʊvə(r)/ /bɪd/ mua thôn tính
stockbroking /ˈstɒkbrəʊkɪŋ/ người môi giới chứng khoán
portfolio /pɔːtˈfəʊliəʊ/ danh mục đầu tư
return /rɪˈtɜːn/ lợi tức
bankrupt /ˈbæŋkrʌpt/ phá sản
deregulation /ˌdiːˌreɡjuˈleɪʃn/ bãi bỏ thủ tục
conglomerate /kənˈɡlɒmərət/ tập đoàn
interest /ˈɪntrəst/ lãi suất
2 Match up the verbs in the left-hand box with the nouns in the right-hand box to
make common verb-noun combinations found in the text above.

charge pass advice loans

do pay bonds profits
give business interest
provide capital services
issue raise deposits stocks of
make laws shares
receive
offer share
2 The following verb-noun combinations are in the text :
charge interest do business give advice
issue bonds issue stocks or shares make loans offer
advice offer services pass laws pay interest provide
services raise capital receive deposits share profits
Other common combinations include:
make laws make profits offer loans pay a deposit provide
capital provide loans
 READING : BANKS AND FINANCIAL INSTITUTIONS
➢Insert the names of the following types of financial
institutions in the spaces in the text.
Retail banks or (1) ………………………… (often called High Street banks in
Britain) receive deposits from, and make loans to individuals and small
companies. (2) ………………………… work with big companies, giving
financial advice, raising capital by issuing stocks or shares and bonds,
arranging mergers and takeover bids, and so on. They also generally offer
stockbroking and porfolio management services to rich corporate and
individual clients. Wealthy individuals can also use (3)
…………………………, which provide them with banking and investment
services, and (4) …………………………, which are private investment funds
for wealthy investors (both individuals and institutions) that use a wider variety
of (risky) investing strategies than traditional investment funds, in order to
achieve higher returns.
In the USA, where many banks went bankrupt following the Wall Street Crash in
1929, a law was passed in 1934 (the Glass-Steagall Act) that separated
commercial banks and investment banks or stockbroking firms. For the rest of the
20th century, there were regulations in the US, Britain and Japan that prevented
commercial banks from doing investment banking business. In other countries,
including Germany and Switzerland, large banks did all kinds of financial
business. But starting in the 1980s, many rules were ended by financial
deregulation, and Glass-Steagall was repealed in 1999. Large banks
became international conglomerates offering a complete range of financial
services that were previously provided by banks, (5) ………………………… and
insurance companies.
(6) …………………………, in Islamic countries and major financial centers,
offer interest-free banking. They do not pay interest to depositors or charge
interest to borrowers, but invest in companies and share the profits (or losses)
with their depositors.
Some car manufacturers, food retailers and department stores now offer products
like personal loans, credits cards and insurance. Technically these are not banks
but (7) ………………………….
Retail banks or (1) …………………………
commercial banks (often called High Street
banks in Britain) receive deposits from, and make loans to individuals
and small companies. (2) ………………………… workbanks
Investment with big
companies, giving financial advice, raising capital by issuing stocks or
shares and bonds, arranging mergers and takeover bids, and so on. They
also generally offer stockbroking and porfolio management services to
rich corporate and individual clients. Wealthy individuals can also use (3)
…………………………, which provide them with banking and
investment private
services, and (4) …………………………, which are private
banks
investment funds for wealthy investors (both hedge funds
individuals and institutions)
that use a wider variety of (risky) investing strategies than traditional
investment funds, in order to achieve higher returns.
 In the USA, where many banks went bankrupt following the Wall Street Crash in 1929, a
law was passed in 1934 (the Glass-Steagall Act) that separated commercial banks and
investment banks or stockbroking firms. For the rest of the 20th century, there were
regulations in the US, Britain and Japan that prevented commercial banks from doing
investment banking business. In other countries, including Germany and Switzerland,
large banks did all kinds of financial business. But starting in the 1980s, many rules
were ended by financial deregulation, and Glass-Steagall was repealed in
1999. Large banks became international conglomerates offering a complete range of
financial services that were previously provided by banks, (5) …………………………
and insurance companies. (6) …………………………, in Islamic countries and major
financial centers, offer interest-free banking. They do not pay interest to depositors or
Islamic banks
charge interest to borrowers, but invest in companies and share the profits (or losses)
with their depositors. Some car manufacturers, food retailers and department stores now
offer products like personal loans, credits cards and insurance. Technically these are not
banks but (7) …………………………………………………

non-bank financial intermediaries

LISTENING 1
 Listening 1: Commercial banking
Listen to Tony Ramos, a recruitment manager at HSBC in London, talking about investment
and commercial banking, and answer the questions 。
1 How does Tony Ramos describe commercial banking? 'A kind of
best kept secret
______________________
2 What was Tony Ramos's job before he moved into recruitment?
He worked as a commercial bank manager.
_________________________________________________________________________
3 What does he say commercial banking actually consists of? Fill in the gaps
local market place
‘ ... you're kind of working in a ______________________________________,you're working
local entrepreneurs
you know with, like, _____________________, kind of what the day-to-day job consists of,
actually ________________________________________ going to see
people with their businesses,
___________________________ helping startthose
up businesses, seeing those
businesses grow
________________________________________________________________________
4 What does he say students wrongly think it consists of?
Sitting in front of a computer looking at spreadsheets, doing a lot of dull analysis.
__________________________________________________________________________
READING
 Reading : The subprime crisis and the credit crunch
Deregulation in the 1980s was one of the factors that led to the subprime crisis.
Read about the crisis and then put the sentences below in the right order.
When American house prices began to fall in 2007, many and banks bought them because they believed that house
'subprime' borrowers, defined as those with poor credit prices would continue to rise, and households would
ratings and consequently a high risk of default, stopped continue to make their mortgage payments. But when many
paying their mortgages, as their debt was greater than the subprime borrowers stopped paying, the value of subprime
value of their house. Unfortunately, the institutions which related securities fell dramatically. Many banks in the USA,
had issued the mortgages had created financial products
Britain and elsewhere lost billions of dollars on their MBSS;
called mortgage-backed securities (MBS) and collateralized
some went bankrupt, and others had to be rescued by
debt obligations (CDO), which had been bought by many
governments. It is estimated that banks around the world
financial institutions including investment banks, hedge
funds, insurance companies, pension funds. mutual funds, will eventually have to write off $1.5 trillion of worthless
and so on. This process is called securitization: financial subprime MBSS (now often referred to as 'toxic debt').
assets like mortgages which produce a cash flow are pooled These losses destroyed much of the capital of the world
(grouped together) and converted into securities that are banking system, leading to a credit crisis or a 'credit crunch':
then sold to investors. a massive reduction in the amount of credit available for
MBSS and CDOs give their buyers the right to receive the banks to lend to other banks, businesses and households.
payments on the underlying mortgages.
3 American house prices fell and many borrowers stopped repaying.
1 Lenders granted mortgages to 'subprime' borrowers.
5 Some went bankrupt, and others had to be rescued by governments.
2 The mortgage lenders sold mortgage-backed securities to financial institutions.
The value of MBSS fell to almost zero and many banks lost billions of dollars.
4 There was a credit crisis as there was little capital left for lending and borrowing.

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THANK YOU