COMMERCIAL AND RETAIL BANKING PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 20. COMMERCIAL AND RETAIL BANKING

 

A Commercial and retail banks When people have more money than they need to spend, they may choose to save it. They deposit it in a bank account, at a commercial or retail bank, and the bank generally pays interest to the depositors. The bank then uses the money that has been deposited to grant loans – B Credit Banks also create credit – make money available for someone to borrow – because the money they lend, from their deposits, is usually spent and so transferred to another bank account. The capital a bank has and the loans it has made are its assets. The customers’ deposits C Loans and risks Before lending money, a bank has to assess or calculate the risk involved. Generally, the greater the risk for the bank of not being repaid, the higher the interest rate they charge. Most retail banks have standardized products for personal customers, such as personal loans.   EXERCISES 20.1 Complete the sentences from banks’ websites. Look at A and C opposite to help you. 1 If you need instant access to all your money, this is the _________ _________ for you. 2 Our products for _________ _________ include business overdrafts, loan repayments that reflect your cash flow, and commercial mortgages. 20.2 Match the two parts of the sentences. Look at A, B and C opposite to help you. 1 Banks lend savers’ deposits 2 They also create credit by 3 How much credit banks can create 4 Before lending money 20.3 Find verbs in A, B and C opposite that can be used to make word combinations with the nouns below. Then use some of the verbs to complete the sentences.

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