FINANCE HOUSES

Finance houses are major suppliers of hire purchase finance for the personal sector and of short-time credit and leasing to the corporate sector. About 80 per cent of all their business is accounted for by the 42 firms, which constitute the Finance Houses Association (FHA).

The leading finance houses comply with the authorities polices on lending similar to those applied to banks, and all finance houses are required to observe term controls affecting the minimum deposits and maximum repayment period for specific goods financed by certains forms of lending.

Notes:

Corporate sector частная промышленность

Промышленные корпорации

Finance houses финансовая компания

Компания по финансированию покупок в рассрочку

Lending ссуживание, кредитование

Comply уступать, соглашаться

Исполнять просьбу, требование.

Unit 5

LEASING COMPANIES.

Leasing companies buy and own plant or equipment required and chosen by business and lease it at an agreed rental. This form of finance has grown quickly in importance, partly because the leasing companies can take advantage of investment to the benefit of customers whose tax position would otherwise make them unavailable.

Notes:

Leasing лизинг, долгосрочная аренда машин и оборудования.

Выдача оборудования на прокат

Rental сумма арендной платы.

Unit6

The London gold market.

Anyone may deal with gold but, in practice, dealings are largely concentrated in the hands of the five members of the London gold market. The five members meet twice daily to establish a London fixed price for gold. This price provides a reference point for world-wide dealings in gоld. Although much interest centers upon the fixing prices, active dealings takes place throughout the day. A futures market in gold is planned.

Notes:

Futures товары, закупаемые заблаговременно

Futures market рынок с длительным сроком поставок;

Рынок по сделкам на срок, фьючерский рынок.

Commodity market.

Britain remains the principal international center for transaction in a large number of commodities, although most of the sales negotiated in London relate to consignment which never pass through the ports of Britain. The need for close links which sources of finance and with shipping and insurance services often determined the location of these physical markets in the city of London. There are also future markets in cocoa, coffee, grains, rubber, Soya bean meal, sugar, wool, and non-ferrous metal (aluminium, copper, lead, nickel, silver, zink), potatoes and oil.

PUBLIC FINANCE OF GREAT BRITAIN.

Through the public finance system government raises money from individuals and companies by taxation, borrowing and other means, and spends it on behalf of the community in the provision of goods and services such as education, health and defence, in payments to people and organizations, and in capital investment. The term public finance also covers the raising of revenue and its expenditures by local authorities and certain other public bodies and the financial relationship between these agencies and central government.

The broad principle of public finance is based on an assessment of expenditure needs, followed by proposals for raising the required amount of money. public expenditure plans are published annually, usually at the same time as the Budget, which consists of proposals for changes in taxation necessary to raise the revenue to finance public spending. Tax revenues and other receipts are paid into the Consolidated fund, the Government’s sterling expenditures is financed. Any excess of expenditure over receipts is met by borrowing, most of it from the National Loans Fund, also operated as an official sterling account at the bank of England.

Notes:

Consolidated Fund консолидированный фонд/ образован в результате консолидации

нескольких налогов.

Loan fund ссужаемые средства

Sterling account банковский счет в фунтах стерлингов.

THE PUBLIC SECTOR.

The public expenditures planning total includes the current and capital expenditure of central government and local; authorities, collectively known as general government. This definition is used for published figures of public expenditure totals, in particular for the government’s public expenditure White Paper. Public expenditure also includes finance for the nationalized industries; the capital expenditure of certain other public corporations and the contingency reserve (to cover essential unforeseen or unquantifiable expenditure). It does not include payment of debt interest.

Expenditure by certain government (including finance for the nationalized industries) accounted for about three-quarters of the planning total in 1980- 81)

Notes:

Total сумма, итог

Public expenditure гос. расходы

Capital expenditure капиталовложения

Contingency reserve резерв на покрытие чрезвычайных потерь,

Резерв предусмотрительности.

THE BUDGET.

The budget incorporates the Government’s proposals for financing its expenditures, particularly for changes in taxation. The proposals are announced to the House of Commons, usually in March or April, although supplementary budgetary measures may also be introduced at other times of the year.

The budget speech by the Chancellor of the Exchequer is followed by the moving of set of Ways and Means (or Budget) resolutions in which proposals are embodied. These resolutions, when passed by the House, become the foundation of the Finance Bill, in which the proposals are set out for detailed consideration by Parliament, becoming law as the Finance Act, usually in July.

A major function of the Budget is to act as an instrument of economic management. The budget statements is normally the main occasion for a review of general economic policy and is accompanied by publication of the Financial Statement and Budget Report. The Budget is concerned with the balance between the total of goods and services which are likely to be available to the nation and the total claims which are likely to be made on them. Through taxation the Government can exert a considerable influence on the pattern of demand and through, for instance, increasing incentives, on the long-term performance of the economy.

The bulk of taxation proposals in the Budget are concerned with changes in the rates or coverage of existing taxes, the introduction of new taxes or the abolition of existing ones and changes in the administrative machinery relating to taxation. In two cases (income tax and corporation tax), however, annual Ways and Means resolutions followed by a Finance Act clause are necessary to maintain the taxes in existence at all, since they are annual taxes. Thus a Budget at or about the beginning of each fiscal year is a necessity.

Changes in taxes coming into effect before the Finance Bill has received Royal Assent, usually from Budget Day or from the start of the tax year, are dealt with under the Provisional Collection of Taxes Act. This enables the Government to collect certain taxes provisionally; income tax, for example, either at the rates previously in operation or at new rates following the passage of the appropriate Ways and Means resolutions. Some changes affecting expenditures, such as increases in pensions and family allowances, are usually announced in the Budget statement. Such measures, however, are generally given effect by separate legislation, statutory instruments or administrative action. Other ways of changing taxation are by special legislation or the use of the regulator, which permits limited changes between Budgets in the rates of value added tax (by up to 25 per cent) and the main groups of excise duties (by up to 10 per cent).

Notes:

Financial statement финансовый отчет; синоптический, обзорный анализ доходности/

баланс

total claims общая сумма претензий

income tax подоходный налог

corporation tax налог с доходов корпораций

clause пункт, статья,/договора или контракта/ условие, оговорка

financial bill финансовый законопроект

finance bill финансовый вексель

assent согласие, одобрение

statutory instrument имеющий силу закона документ,

законодательный, установленный или подписанный законом

документ.

Excise duties акциз, акцизный сбор.

Text1

The banks.

Traditionally, banks are the places to which one goes to deal in money, and certainly, for most individuals – whether business people or not – an ordinary bank seems the natural place to start looking for finance. This being the case, you could do worse than follow your natural instincts. Not only are banks in the business of trading money, but they are also an available source of information when it comes to looking at the other various options available for funding any part of your business operation.

It is often said of banks that if you do not need their help, they want to give it, and when you really need them, they do not want to know. This is most certainly true, but only if you approach your bank in wrong way. As in everything in this life, you cannot expect something for nothing. A bank is going to be very susceptible to lending your money if can demonstrate that you are prepared to put some of your own personal funds into your venture. The bank will take the view that if you are prepared to risk your money then it is probably a safe bet for them to risk theirs. If you have no money to invest than you have to demonstrate in other ways that you have something to give – expertise, hard work, determination, a well-thought-out plan. It has to be remembered that a bank’s first duty is to protect its customers’ funds. Whilst, of course, banks do lose millions of pounds a year on advices which go wrong, they must be relatively certain that any venture they support has a good chance for success.

Another popular misconception in approaching a bank is the assumption that banks will provide permanent capital for a new business. This is not the function of a bank. A bank’s job is really twofold :

a) to support your day to day trading, usually by means of an overdraft facility, and b) to loan you long-term money for specific project, such as the purchase of a property, plan or equipment.

Overdrafts . for the new small business, the most common form of funding is an overdraft facility. The main advantages of an overdraft is that, unlike a fixed loan, your borrowing will fluctuate according to the requirements to your business. Interest is usually calculated at between 2 and 3 per cent over base rate, so it is not cheap, but at least you are not borrowing any more money than you need at one time. The disadvantage of an overdraft facility is that it is rather insecure – technically, repayable on demand.

Loans. By contrast, a bank loan is far more secure. You agree with your bank to borrow, say, 20000$ over five year period, repayable by monthly installment. Nothing – flood, ( famine nor pestilence) will change that agreement; it is the subject of a contract between you and your bank, provided, of course, you keep up the repayments.

Notes:

You could do worse than follow вам бы лучше последовать

This being this case поскольку это так

Expertise = skill, knowledge

…. Bank do loose …. Банки действительно теряют

an overdraft овердрафт.

Text 2.

U.S. BANKS

Banking institutions associated with commercial banks that are operated by the government should be distinguished from the private part of the banking system. There exists Federal Reserve System. The board of Governors of the federal reserve in Washington, D.C., and the 12 regional Reserve banks and their branches are run by the government. The Federal Reserve System is supposed to operate with national goals rather than for profit maximization.

Private commercial banks and savings banks (or thrifts) can join the Federal Reserve System. Private commercial nonmember banks may purchase and members must purchase federal insurance for their depositors from the Federal Deposit Insurance Corporation (FDIC). The FDIC is a federal agency that provides insurance and regulations for insured banks.

Individuals who wish to open a bank must receive a charter from either a state government or the federal government. The federal charters are issued by the Comptroller of the Currency, whose office supervises the national banks. The Comptroller of the Currency is part of the Treasury Department. Federally chartered private banks are referred to as national banks, whereas private banks operating under state charters are referred to as state banks.

All national banks must be Federal Reserve members, and all of them must carry FDIC insurance.

There are also credit unions, they are consumer cooperatives with the objectives of providing loans and means of regular savings to their members.

Commercial banks that supply services to other commercial banks are called correspondent banks. They are paid indirectly, in the form of income from deposit balances maintained by its bank customers, as well as by direst money payments.

The largest banks in the United States are located in New York city, San Francisco, Los Angeles, and Chicago.

Bank of America, the country’s largest bank, located in California, where branching is allowed, has more than one thousand branches. The Continental Illinois National Bank and Trust Co, and the First National Bank, the two largest banks in Illinois, have no brunches outside the downtown Chicago area, since Illinois has tight restrictions on brunches.

There are also bank holding companies that hold controlling stock in one or more commercial banks. By the end of 70 th’s bank holding companies had become predominant organizational from the commercial banking in the U.S.A., possessing 71 per cent of all domestic bank deposits.

Notes:

To run руководить

Profit maximization погоня за максимальной прибылью

A charter разрешение, лицензия

The Comptroller of Currency отдел эмиссии денег

The Treasury department Министерство финансов США

National banks государственные, федеративные, национальные

банки

State banks банки штатов

The controlling stock контрольный пакет (более 50 %)

P a r t 2.

LESSON ONE

UNIT 1

BANKING INSTITUTIONS OF GREAT BRITAIN.

The main institutions which form the British banking system are the Bank of England (the central bank), the deposit bank, the Trustee Savings Bank, the overseas bans, the merchant banks and the discount market. In addition, the Department for National Savings is responsible for the administration of government savings schemes.

Specialized financial services outside the banking system are provided by, among the others, finance houses, leasing companies, factoring companies, finance corporations, pension funds, investment and unit trust building societies credit unions, the insurance market, the Stock Exchange, the foreign exchange market, the London gold market and commodity market.

Notes:

Discount market учебный, дисконтный рынок

Factoring факторные операции/ 1. перепродажа права на взыскание

налогов ; 2. перепродажа на комиссионных началах; 3.

коммерческие операции по доверенности/

Unit trust общий инвестиционный траст-фонд / для инвестирования

на доверительной основе объединенного капитала мелких

владельцев

Insurance market страховой рынок: «страховое поле»

THE BANK OF ENGLAND.

The Bank of England was established in 1694 by act of parliament and Royal Charter as a corporate body; the entire capital stock was acquired by the Government under the Bank of England Act 1946. The Bank’s main functions are as note-issuing authority, to advise the Government on financial matters, to execute monetary policy and to act as banker to the Government. It also exercises prudential supervision over the banking system and manages the Exchange Equalization Account on behalf of the Treasury.

The Bank of England has the sole right in England and Wales of issuing bank notes. The note issue is fiduciary, that is to say, it is no longer backed by gold but by government and other securities. The Scottish and Northern Ireland banks have limited rights to issue notes; these issues must be fully covered by holdings of Bank of England notes. The provision of coin for circulation is the responsibility of the Royal Mint, a government department.

The bank is liable to influence monetary conditions through its dealings with the discount houses which developed in the 19^th century as bill brokers for industrials. If the Bank wishes to withdraw cash from the banking system it sells government securities in the open market, leading to transfer of funds from the public to the Bank; bank deposits fall in the process and the banks recall short-term loans to the discount market. If the banking system is short of funds the Bank relieves the shortage either by buying bills from the houses or by lending directly to them.

As banker to the Government the Bank is responsible for arranging the financing of the Government’s borrowing and for managing the National Debt.

On behalf of the Treasury the Bank manages the Exchange Equalization Account (EEA), which holds Britains official reserves of gold, foreign exchange, Special Drawing Rights (SDR), on the International Monetary Fund and European Currency Units (ECU). Using the resources of the EEA, the bank may intervene in the foreign exchange market to cheсk undue fluctuations in the exchange value of sterling.

Notes:

The treasury государственное казначейство, министерство

финансов

Exchange Equalization Account фонд стабилизации валюты

Fiduciary 1 непокрытый/например: о деньгах, не покрытых

золотом /; 2 фидуциарный/напр. об эмиссии денег/

Royal Mint Королевский монетарный двор /в Лондоне/

Discount house 1 учетный дом: вексельная контора

2 розничный магазин, торгующий по сниженным

ценам

Bill broker вексельный маклер

Open market открытый рынок / с неограниченным числом

участников/

Drawing rights права заимствования

European currency unit европейская валютная единица (экю)

Fluctuation колебание, изменение.