Banking and Finance Flashcards
what are credit unions?
cooperative initiatives with depositors being shareholders
what is crowdfunding?
raising funds from the general public who make financial pledges
what are microcredits?
very small loans for borrowers who lack collateral
how did banking start?
in China (flying cash = gov certificates to pay distant merchants) Knights templar is euroope
where does the word bank come from?
italian ‘banco’ (bench)
why are banks considered as risk managers?
the risk is a loan will not be repaid
why is the risk involved in banking calculated?
bc banks are fully aware of the potential default
what triggered the 2008 GFC?
bankers accepted subprime mortgages; deregulation; unregulated use of derivatives
how did govs help banks during GFC?
they bailed them out with bail-out packages
what do modern banks do? (4)
- receive deposits
- ensure withdrawals
- give loans
- offer financial services
how to banks make money? (4)
charge interest
charge fees and comission
invest deposits
deal with diff financial products
what are the three types of banks?
central banks (central banking) commercial banks (retail banking) = high street banks investment banks (wholesale banking) = merchant banks
translate the three types of banks
centralno bančništvo
poslovanje s strankami / občani
bančni posli za podjetja
what do central banks do? (5)
- control inflation and money supply
- set minimum interest rate
- maintain financial stability
- implement monetary policy
- act as lenders to other banks
what do commercial banks do? (6)
- manage customer accounts
- receive and hold deposits
- offer loans
- issue credit and debit cards
- pay standing orders
- provide atms and foreign exchange
what do investment banks do? (4)
- give advice on corporate finance
- arrange M & A
- issue and underwrite securities
- finance international trade
what is a universal bank?
commercial + investment bank
what does ‘issue and underwrite securities’ mean?
determine the risk and the price of a security
what is ECB and where is it HQed?
the European Central Bank
Frankfurt
how is the US central bank called?
The Federal Reserve (the Fed)
how is the UK central bank called?
The Bank of England / Scotland
how is the Slovenian central bank called?
The Bank of Slovenia or The Slovenian Central Bank
tr overdraft
limit, dovoljena prekoračitev stanja na računu
def lender of the last resort
a creditor to other banks when there is none other availabile
def current account
a way for a customer to deposit money and take it out without restrictions
def overdraft
an arrangement that allows the customer to overdraw their account at a relatively high interest rate
def savings account
= deposit account
intended to keep money for a longer period of time
def time (notice) deposit
an arrangement to leave money in your savings account for an agreed period of time
def credit crunch
a situation where there is not enough credit available for all companies
def austerity measures
strict economic policies implemented by a government to reduce government spending and public debt
def stockbroking
buying and selling stocks and bonds for clients
def shares
equal units of ownership in a company
def collateral
debt guarantee
def installments
monthly payments of loans
what does every bank need?
reserves
tr standing order
trajnik
what does ATM mean?
automatic teller machine
def and tr deregulation
opposite of gov control
odprava državnega nadzora
tr austerity measures
varčevalni ukrepi
tr pri kateri banki ste?
which bank are you with?
im with…
tr current account
tekoči račun / transakcijski
tr deposit account
varčevalni račun / depozitni
tr savings account
hranilna vloga
tr notice / time deposit
vezana vloga
tr sight deposit
vloga na vpogled
tr joint account
skupni račun
tr collateral
varščina, jamstvo
tr credit history
pretekla posojila
tr creditworthiness
kreditna sposobnost
what does a bank charge for a loan?
interst
what does the borrower have to repay for a loan?
principal + interst
tr the banking industry / sector
bančni sektor
tr lender of the last resort
posojilodajalec v skrajni sili
tr banking facilities / services
bančne storitve
tr banking operations
bančno poslovanje
tr banking hours
uradne ure bank
synoym bank clerk (3)
bank assistant, bank teller, cashier
tr bank clerk
bančni uradnik, blagajrnik
tr issue and underwrite securities
izdati vrednostne papirje in zagotoviti njihov odkup
tr credit crunch
kreditni krč
tr bailout
finančna pomoč s strani države
def quote
offer (quotation)
def guarantor
a person that can guarantee you can pay the loan (if you can’t pay, they pay) - usually close relatives
tr to repossess
odvzeti (nepremičnino)
synonym to service the loan
to pay payments of a loan
def hard goods
equipment
tr principal
glavnica
def personal assets
jewelry, paintings
def interest rate ceiling
a highest interest rate is imposed
def bank reserve
an easily accessible amount of money to ensure liquidity
def capital flow controls
gov control on cash flows of a bank
tr financial disclosure
finančno razkritje
def impetus
something that makes a process or activity happen or happen more quickly
def dubious
questionable
def tax haven
a country or jurisdiction with low taxes
p_ _ into an account
pay
def sight deposit
a bank account that allows customer to take out money whenever they want without informing the bank in advance
transfer synonym
remittance
def time deposit
= savings account
tr credits
dobropis, v dobro
tr debits
breempis, v breme
the balance IN/ON your account
in
BY/WITH card (and standing order)
by
you have overdraft enabled, you go ______
overdrawn
installment or instalment?
two Ls in the US, one L outside
tr guarantor
porok
tr indebtedness
zadolženost
tr interest
obresti
tr boniteta
credit rating
tr they credited
nakazali so mi
tr white goods
bela tehnika
tr bankable (can be used figuratively)
unovčljiv
tr promissory note
zadolžnica
tr to bank a cheque
unovčiti ček
def to bank (a cheque)
to put money into a bank
def a default
non-payment
def to default
to be unable to pay off a debt
give 3 examples of austerity measures
lay-offs
no new jobs offered
promotion stalled
time deposit synonym
notice deposit
