Read and translate text B using a dictionary

Text B

Banks are among the most important financial institutions. The way in which a bank is organized and operates is determined by its objectives. The first and most important function of a central bank is to accept responsibility for advising the government on the making of the country's financial policy, and then to see that it is carried out. The aim of commercial banks is to earn profit. Over the years banks have developed organizational forms, or structures, designed to per­form these various roles and to supply the services their customers demand.

A commercial bank which provides the same range of services year after year is less likely to be successful. Successful competition in the constantly changing global business environment requires mar­ket-driven strategies that are responsive to customers' needs and wants. Executives who do not recognize the changes occurring in the vast array of markets for products and services will not be able to cope with the unprecedented competitive pressure in the market place. To improve competitive advantages they are drastically alter­ing their business and marketing strategies which may include down­sizing, repositioning, market segmentation, market niching, altering the business portfolio, pricing, promotion and strategic alliances be­tween companies. With the global increase in the number of competi­tors banks face in their major markets, more and more banking firms have become market-driven and more alert to the changing service demands of their customers and also to the challenges posed by bank and nonbank competitors. This trend forced bank managers to be­come more concerned with service marketing activities and with profitability and growth.

Banks are usually organized to follow their functions and supply the services demanded by them as efficiently as possible. Moreover, because larger banks generally play a wider range of roles and offer more services, a bank's size is also a significant factor in determining how banks are organized.

Usually the service operations of a small bank are monitored by a cashier and auditor working in the accounting division and by vice-presidents heading up the bank's loan, fundraising, marketing and trust departments (if the bank offers trust services). These offi­cers report to the senior executives of the firm, consisting of the board chairman, the president (who usually runs the bank from day to day), and senior vice-presidents, who are responsible for long-range planning and for assisting heads of the various departments in solving their most pressing problems. Senior management, in turn, reports periodically (at least once each month) to members of the board of directors. There is often close contact between top management and the management and staff of each line division.

The large banks possess some potential advantages over small and medium-size banks. Because the largest institutions serve many different markets with many different services, they are better diver­sified, both geographically and by product line, to withstand the risks of a fluctuating economy. They also possess the important advantage of being able to raise financial capital at relatively low cost and the professional expertise to focus that new capital on the most promis­ing loans and business acquisitions.

The oldest and most common banking organizations in the United States are unit banks. They offer all of their services from one office though a small number of services (such as taking deposits or cashing checks) may be offered from limited-service facilities, such as drive-in windows, automated teller machines (ATM) and retail store point-of-sale (POS) terminals that are linked to the bank's com­puter system. Nowadays, however, most banks desire to open up new market areas and to diversify geographically in order to reduce the risk that comes from relying on a single office location for customers and income. The tendency in recent years has been for most banking institutions to become more complex organizations. When a bank begins to grow it usually adds new services and new facilities. With them come new departments and divisions to help the management more effectively to focus and control the bank's resources and service the most profitable customer segments.

11. Answer the following questions based on text B:

1. What does successful competition in the market of bank services presuppose?

2. What are characteristics and distinctive features of a small bank?

3. What are the potential advantages of large banks?

4. Why is it significant for modern banks to open up new areas and to diversify geographically?

12. Make up sentences of your own using the following expressions from text B.

To be determined by one’s objectives, to have developed organizational forms, to improve competitive advantages, to become market-driven, to be responsible for, the management and staff of each line division, to reduce the risk, new services and facilities.

13. Say what is true and what is false. Correct the false sen­tences.

1. The first and most important function of a central bank is to advise client where to invest their money and how to earn profit.

2. The structure of any bank is organized according to its objectives only.

3. It's not necessary for executives of the bank to follow the changes occurring in the market, because banks provide rather spe­cific services.

4. Downsizing, repositioning, market segmentation and some other measures should be realized in order to improve competitive advan­tages of the bank.

5. Bank size doesn't influence on the bank organization and struc­ture.

6. Senior management, in turn, reports periodically to the cashiers and auditors working in the accounting division

7. There is close contact between top management and the man­agement and staff of each line division.

8. The oldest and most common banking organizations in the United States are banks with branch network.

9. The tendency in recent years has been for most banking institu­tions to become unit banks.

14. Match the following words with the correct definition from the list.

Top management, staff, commercial bank, organization charts, chief

executive officer, audit, board of directors, branch banking

1. A committee elected by shareholders to set the bank's policy and oversee the bank's performance.

2. The most common and most unrestricted type of bank, allowed the most latitude in its services and investments.

3. A chart showing the interrelationship of positions within an organization in terms of authority and responsibility.

4. Banks that offer a full range of services from multiple locations, including the head office and one or more branch offices.

5. Key people in an organization who make most important decisions.

6. Inspection of the accounting records and procedures of any reporting entity by a trained accountant, for the purpose of verifying the accuracy and completeness of the records.

7. Personnel in an organization.

8. The member of staff who has ultimate management responsibility for an organization. He reports directly to the board of directors.

15. Using the words in brackets, explain the meaning of the following terms:

competitive advantage (market share, to increase, to use, to provide new services);

branch banking (affiliate company, market niche, to diversify);

point-of-sale terminals (large store, credit card, to make payment, to be convenient);

financial policy (organization, to plan, financial funds, to direct, to reserve);

line division (organization, department, the same activity, to be responsible, to be subordinated);

joint stock (money, to invest, to get profit, a bank).

16. Look through the text and then fill the spaces with the words below. Translate the text into Russian.

Organization, board of directors, services, markets, offers, serve, top management

If a bank is owned and controlled by a holding company, its share­holders elect a ... (1) to oversee bank and nonbank firms allied with the same holding company. Selected members of this board of direc­tors ... (2) on the bank's board as well. The key problem in such an ... (3) is span of control, with ... (4) often knowledgeable about banking practices, but less informed about the products and ... (5) offered by other subsidiary companies. Moreover, because the bank itself... (6) so many different services in both domestic and foreign ... (7), seri­ous problems may not surface for weeks or months.

Date: 2015-12-11; view: 1773