The banks of England

5. The banks of England

 

 Most countries have a central bank, which is responsible for the operation of the banking system. The central bank in the UK is the Bank of England, which was taken into public ownership in 1946. It has many responsibilities, which are summarized below and discussed in more detail later in this charpter.

1)   It is the government’s bank. It handles the income and expenditure of Exchequer and other government departments.

2)   The clearing banks maintain accounts at the Bank of England. The final cash settlements within the banking the banking system and between the banking system and the Bank of England take place through these accounts. The Bank is a banker for about 100 overseas central banks and international monetary institutions.

3)   It manages the national debt. This is a major responsibility which involves making repayments on government securities when they mature, undertaking new issues of long-term securities, making regular payments on interest to holders of existing government securities, and handling the weekly issues of Treasury bills. The management of the national debt, as we shall see later, has important effects on the supply of money and the rate of interest.

4)   It is the lender of last resort. The Bank of England stands ready to come to the assistance of the banking system in times when it is threatened by a shortage of cash.

5)   It acts as the government’s agent in the foreign exchange market, in which it can intervene to influence the value of sterling against other currencies.

6)   It has the responsibility for carrying out the government’s monetary policy.

7)   It has legal powers to supervise the operations of other banks. All banks are expected to supply the Bank of England with information about their business, and they have to respond to directives given to them by the bank.

 Although the Governor of the Bank of England has a certain amount of independence and his advice is sought and heeded, the Bank is subordinate to the Treasury which may give introductions to the Governor at any time.

6. The banking system of Russia

 

 The Russian money institute is called a banking system, so it has to conform to the standards and try to approximate the generally accepted level. As we can see from the facts, however, Russia is yet far away from the accepted standards and the real practice of the Russian banking services is different from what it should be according to the Russian law and theory of the banking system. Of course, I do not presume to present a detailed analysis of all the problems involved. But even my personal research can show that the Russian banking system is far from ideal. First of all, all banks are using their superior position in the finance market, and all their activities are boiling down to making bigger profits with the minimum risk. Thus, banks are often breaking the law by not conducting operations in which they could lose their money, or operations with low profitability. The result is that not all operations are fulfilled as they should be, because of the prepossession of the banks to their clients.

But in Russia everything is different: the government issues impossible laws and banks demand impossible interest rates, delay the money and break the law. How can it help the Russian economy? In the end, clients are afraid of using banking services and this apprehension limits cash flows. This leads to less investment in industry, and undeveloped industry is the main problem of the government. On the other hand, companies are receiving fewer loans because of the unwillingness of banks to give any. This again leads to undeveloped industry. Therefore we may conclude that one reason for the recession in Russia is the deficiency of the banking system that leads to unhealthy money circulation. The government should review its banking laws if it really wants to see a stable economy in Russia.

The conclusion

 

 To finish I would just like to remind you that everything in the economy is controlled by money, and banks are a tool-kit for the economy - controlling the money circulation between firms, depositors and loaners, and offering services to make that circulation easier for them.

 A healthy and stable economy of any country depends on healthy banking services.

The literature:

 

1.   L.A. Ilyina «Money and banking», Новосибирск – 2002г.

2.   В.Д. Португалов «Учебник по английскому языку», Москва – 2003

3.   Интернет

THE TRASLATION

 

1. Введение

 

 Моя научная работа посвящена исследованиям банковской системы. Сегодня в своем рассказе я рассмотрю банковские услуги и банковскую систему в Англии и России.

Я выбрала банковскую систему для темы моей научной работы, поскольку это - один из самых важных инструментов экономики(экономии).

Ни для кого не секрет, что банки - самая важная связь в мире денег. Это - то, потому что, прежде всего, банки в настоящее время исполняют главную часть работы передачи денег от клиента продавцу, используя систему платежей в экономике. Почти каждый в мире пользовался банковскими услугами. Семьи держат свои сбережения там, и банки платят им процентные ставки на их депозитах и дают им ссуды, чтобы покупать дорогие товары. Компании проводят платежи через них. Коммерческие организации, которые работают над рынком и в производстве, берут ссуды для их потребностей и проводят все платежи с покупателями и продавцами через них. Землевладельцы и владельцы недвижимого имущества берут ссуды от банков, чтобы покупать состояние или использовать его и заплатить данные взаймы деньги.