Ex.4. On the basis of additional information prepare a written essay

‘Men of Fortune in Modern Russia.’ (about 150-180 words)

TEXT 3

BANKING IN RUSSIA

Russia has no tradition of commercial banking known in the West. In pre-

Revolutionary times, the development of a capitalist credit system started with the

founding of the Imperial State Bank in 1896. Until the abolition of serfdom,

Russia’s Ex.4. On the basis of additional information prepare a written essay government banks behaved like savings banks, until the mid-1980s, even

the Imperial State Bank depended for its funds mainly on deposits and current

accounts, on which it paid interest, complemented by treasury funds. Its disposable

profits were classed as a source of budget revenue. By 1914, the State Bank network

included 10 offices in major Ex.4. On the basis of additional information prepare a written essay cities and 127 branches. All credits issued by

subsidiaries, however small the credit might be, were approved by the board of the

State Bank, which мейд operations very slow indeed. The Finance Ministry was the

direct manager of the bank and had the right to dispose of most of the funds. As Ex.4. On the basis of additional information prepare a written essay in

the Soviet system, there were credits directed to favoured clients at low or no interest

rates at all. Debts were sometimes written off and there seemed little distinction

between loans and subsidies. Russia by that time had a widespread of

underdeveloped credit system.

The 1917 Revolution put an end to any further development Ex.4. On the basis of additional information prepare a written essay of banking in


Russia and the sector took a different turn into monobanking, in which the Soviet

Gosbank handed out part of the government’s budget to special channel banks

which distributed it as soft credit to chosen industries and economic sectors. The

only contract with public was provided by the official savings bank, whose Ex.4. On the basis of additional information prepare a written essay many

branches took in all household saving and used them to finance government deficits.

The government, however, did guarantee the savings deposits. That was the only

form of banking experienced by Russians for 70 years, until shortly before the

break-up of the Soviet Union.

In 1991 Gosbank, the leading banking structure, was formally liquidated Ex.4. On the basis of additional information prepare a written essay. The

Central Bank of Russia assumed all the functions of Gosbank in the Russian

Federation. The assets and liabilities were divided between the former republics.

Now all main functions of the State Bank belong to the Bank of Russia.

Almost all deposits are kept with Sberbank (Savings Bank). It Ex.4. On the basis of additional information prepare a written essay has a lot of branches

(about 50.000) all over Russia. Sberbank has virtual monopoly on household

deposits. The main controlling owner of Sberbank is the Bank of Russia.

There are lots of commercial banks in the Russian Federation. They specialise

in lending to different branches of industry. For example, Promstroibank lends

money to construction enterprises. It Ex.4. On the basis of additional information prepare a written essay has many affiliated bodies. The peculiarity of

such banks is that much of its capital base and investment fund was provided by the

State. Promstroibank relies on borrowing from the Bank of Russia which is given at

cheap interest.

Rosselkhozbank primarily financed agricultural enterprises at subsidised

interest rates. Rosselkhozbank borrows Ex.4. On the basis of additional information prepare a written essay from the Bank of Russia. Part of the interest

rate subsidy is assumed by the Government. The bank is trying to reduce its

dependence for funds in the Bank of Russia by competing with Sberbank for

deposits.

There are joint-stock banks with foreign partnerships. They фокус on the

international financial transactions and Ex.4. On the basis of additional information prepare a written essay various types of financial services.

Vnesheconombank is responsible for official reserves, financing foreign trade

and for managing the country’s foreign debt.

Vocabulary


abolition of serfdom

funds

complement

budget revenue

branch

subsidiary

to write off


отмена крепостного права

средства, деньги

дополнять

доходы бюджета

отделение

дочерняя компания, филиал

списывать (долг)



to take a turn into

channel banks

household saving

virtual

affiliated (bodies,

companies)

to rely on

cheap interest

disposable (profits)

soft credit

subsidy

joint-stock

transaction

foreign Ex.4. On the basis of additional information prepare a written essay debt


перевоплотиться, обратиться

банки системы массового обслуживания

личные (семейные) скопления

фактический, в реальности

дочерняя компания, компания в составе

группы

полагаться, основываться

низкая процентная ставка, букв. дешевенький

процент

располагаемый доход

льготный кредит, с низким процентом

субсидировать, субсидия

акционерный

операция, сделка

наружный долг

Exercises


Ex.1. Make a short written summary of the text.

Ex.2. On the basis of the text (and, optionally, some additional

information) prepare a talk ‘System of Ex.4. On the basis of additional information prepare a written essay Banking in Russia: the Past, the

Present, the Future.’

Contents

LESSON 1 ................................................................................................................................ 3

LESSON 2 ................................................................................................................................ 8

LESSON 3 .............................................................................................................................. 14

LESSON 4 .............................................................................................................................. 20

LESSON 5 .............................................................................................................................. 27

LESSON 6 .............................................................................................................................. 33

LESSON 7 .............................................................................................................................. 38

LESSON 8 .............................................................................................................................. 43

LESS0N 9 ............................................................................................................................... 49

LESSON 10 ............................................................................................................................ 54

LESSON 11 ............................................................................................................................ 58

LESSON 12 ............................................................................................................................ 63

LESSON 13 ............................................................................................................................ 68

LESSON 14 ............................................................................................................................ 74

SUPPLEMENTARY TEXTS ................................................................................................. 79

TEXT 1 ................................................................................................................................... 79

TEXT 2 ................................................................................................................................... 81

TEXT 3 ................................................................................................................................... 85


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