Text A. Belarussian Banking

Electronic meters work by measuring the current flowing through the resistors in it at any time. The unit of measurement in the meter is the number of pulses, which is the smallest unit of energy measured by the meter. The pulses are calibrated in terms of kilowatt-hours of electricity, typically 3200 pulses per unit. Apart from the numbered wheel display found in mechanical meters, the energy consumed is also noted inside chips in the meter, so tampering can be detected.

Text A. Belarussian Banking

Task 1. Memorize the words.

legal basis, procedure, supervision, objectives, monetary policy, guidelines exchange reserve, purchasing power, currency.

Task 2. Present the general idea of the text in 7-8 sentences. Ask questions about the text. Let you follow – students answer your questions.

The national banking system of Belarus represents an efficient and quickly developing sector of economy formed in accordance with the objectives of social and economic development and taking account or the world standards and rules.

The banking system of the Republic consists of the following two levels.

Level one.

The National Bank of the Republic of Belarus. It performs the following functions: state registration and regulation of activities of the Banks; licensing Banking activities; regulation of credit relations and money circulation; establishment of the procedure of settlement; it has the exclusive right to issue money.

The National Bank has been interacting with the International Monetary Fund since the date of admission of Belarus to this international financial institution in 1992. In 1996 it joined the Banking Supervisors' Group for the countries of Central and Eastern Europe (BSCEE Group), which is a regional structure of the Basel Banking Supervision Committee, and is involved in establishing and developing contacts and information interchange with the banking supervision bodies in any part of the world.

Level two.

Commercial banks and non-banking financial institutions. As of November 1, 2005, 31 banks with their 455 branches were operating in Belarus. Foreign capital has its share in the authorized capital of 27 banks, including 9 banks with 100% foreign capital. 7 banks are the residents of free economic areas. There are 12 representative offices of foreign banks (4 representative offices of the Latvian banks, 3 - of the Russian banks, the German, Polish, Lithuanian and Kazakh banks have got 1 representation office each).

The legal foundation of the banking system functioning was laid in the Banking Code of the Republic of Belarus and normative legal acts of the National Bank. Such legislation establishes guidelines of the banking activities and legal status of the subjects of banking relationships, regulates relations between the same, and establishes the procedure of formation, activity, reorganization, and dissolution of any banks (non-banking financial institutions).

The subjects of banking relationships, when effecting any banking transactions with non-residents, also apply the international unified rules and practice, normative acts of the international organizations, international banking standards, and other legal acts, provided they are not in conflict with the legislation of Belarus.

The banking supervision system formed in this country substantially complies with the world standards. In includes the following stages:

- licensing of any banks and non-banking financial institutions;

- remote supervision on the bases of accounts;

- local supervision in the form of inspections, and taking appropriate measures relative to the banks that violate the banking legislation or face financial crisis;

- reorganization and dissolution of the banks, if necessary.

Informational transparency of the banking activities is ensured in Belarus (subject to keeping the bank secrecy as established by the law), such method being the most efficient for development of healthy competition, maintaining strict discipline in the banking market, protection of the interests of the creditors and depositors.

According to the banking code, the banks shall publish their annual statements (balance sheet, profit and loss statement, statement of capital movement) approved by the auditing company, in the office mass media not later than on April 25 of the year following financial year. Such information shall also be placed in the site of the National Bank of the Republic of Belarus and appear in the Banking Bulletin (informational issue) published by the National Bank.

Date: 2014-12-29; view: 1061