Read the following text. Decide which answer A, B or C best fits each space

Date: 2015-10-07; view: 386.

Foreign Participation in the Banking sector

Foreign banks may …1…. a local subsidiary or a representative office in the Russian Federation.
A foreign bank may establish a subsidiary in Russia in the form of a

Russian legal …2…. (a joint-stock company or a limited liability

Company (see Chapter … Establishing a Legal Presence )

Representative offices of foreign banks are accredited by the Bank of

Russia for a term of three (3) years. Accreditation can be …3… an unlimited

number of times. The Bank of Russia may…4…. to open a

representative office to a foreign bank that meets all the following

…5….. : (i) the foreign bank has been operating in its country of

incorporation for at least five years; (ii) the foreign bank has a good

reputation in the banking system of its country; and (iii) the foreign

bank has a stable financial position. .

Representative offices of foreign banks are subject to the …..6…… of Bank of Russia, which may close the representative office

of a foreign bank at any time at its …7…..

Banking Activities

Under the Banking Law only credit organizations holding the

respective …1… are allowed to carry out certain activities, which are

called “banking operations”. The list of banking operations includes

the following:

- Attraction of monetary funds for on-demand and term

deposits and …2…. of such funds in the name and at the

expense of the relevant credit organizations;

- …3…. deposits and placement of precious metals;

- Opening and maintaining bank …4…for individuals and

legal entities;

- …5….money, promissory notes and bills of exchange,

payment and settlement documents;

- Providing cash services to individuals and legal entities;

- Exchanging foreign currency;

- Issuing bank guarantees; and

-…6…. money (including e-money) with or without

opening of bank accounts.

1. A- patent B- solution C- license
2. A – placement B – accommodation C - withdrawal
3. A - detaining B – holding C – withholding
4. A– bills B- guarantees C – accounts
5. A – collecting B – clearing C – issuing
6. A – relocating B– transferring C - transferal

Read the following text. Complete the sentences with the appropriate prepositions :
Lending

Of course one of the major activities of a credit organization in Russia

is lending. While lending …1… Russian corporate entities, a number of

issues should be taken into account.

The parties ..2.. a transaction with a foreign element (i.e. a foreign

counterparty) may generally choose foreign law as the law governing

their contractual relationship. Thus, if financing is provided ..3… a

Russian company by a foreign bank the loan agreement is usually

governed …4… foreign law (usually English law and LMA-style

agreements are used). The choice of governing law ..5… security

documents however is generally determined by where the proposed

collateral is situated or created.
1. In , on, to
2. Of, to, in
3. To , with , in
4. By , with , -
5. On, to , for

Read the following text and answer the following questions :
1. What are the functions of the central Bank of Russia ?
2. What is the Bank of Russia responsible for ?
3. Writing : Translate the last paragraph from English into Russian paying special attention to underlined legal terms

1.Central banks are usually responsible for …….. and distributing banknotes.
2. There will be low and stable …….. if monetary policy is successful.
3………….. …….. , including setting interest rates , is designed to maintain financial stability.
4. In many countries , the central bank ……….. …………. the banking system and the whole financial sector.
5. Most money exists on paper , …….. ……… , rather than in notes and coins
6.The attempt to control the amount of money in ………. and the rate of inflation is called monetary policy.
7.The greater the risk for the bank of not being repaid , the higher ….. ……. they charge.

Render the following sentences from Russian into English :
1.Центральный банк РФ ,контролируя работу коммерческих банков , стремится обеспечить надежность и стабильность банковской системы. Он выдает и отзывает банковские лицензии , устанавливает резервные требования , оказывает в случае необходимости помощь банкам , имеющим проблемы с ликвидностью.
2.Российские банки в определенной степени защищены от конкуренции иностранных банков , хотя иностранные банки имеют свои филиалы и представительства в Москве .
3.Российские банки предлагают достаточно широкий спектр услуг : они принимают и оплачивают чеки , осуществляют учет векселей , предоставляют ссуды , проводят операции с иностранной валютой , предоставляют сейфовые услуги .
4. Банки должны более активно заниматься управлением своих портфельных инвестиций , сделками с иностранной валютой, расширять сеть своих филиалов в условиях возрастающей конкуренции в банковском бизнесе.

Suggest English equivalents of the following word partnerships:

текущий счет , предоставлять сейфовые услуги , снятие средств со счетов , выписывать чеки , осуществлять операции с иностранной валютой , коэффициент ликвидности , депозитный счет , казначейские векселя ,
управление инвестиционным портфелем , слияние банков , учитывать векселя.

Suggest Russian equivalents of the following word partnerships :

interest rate , lender of last resort , issue coins and bank notes , pursue moderate monetary policy , deposit a certain amount of money with the central bank at zero interest , liquid ratio , treasury bill , interbank market , exchange control , Bank Rate , assets and liabilities , cash settlement center ,credit rating , standby facility.

Try to find additional information and give extensive answers to these discussion questions:

1. What is monetary policy ?
2. Why is monetary policy necessary ?
3. What banking system exists in Russia ?
4.How does the CBR (Central Bank of Russia)ensure the banking system stability ?
5.What monetary policy does the CBR pursue ?
6.What are the shortcomings of the financial system in Russia ?
7. What happens when a country pursues a “ tight ” or an “easy “ monetary policy?
8.How can money supply be regulated ?
9. Why do many countries experience banking problems ?
10.How do European countries try to solve their banking problems ?

Over to you : Prepare a short talk on the following:

1.The structure of the Federal Reserve System / Bank of England , how it provides services to banks , stabilizes the banking system .
2. The monetary policy pursued in Russia at the present time.