The banking system of Ukraine dates to March, 1991, when the Ukrainian Parliament passed the Law on Banks and Banking Activities. Ukrainian present day banking system features two levels of banking institutions, the National Bank of Ukraine (high level) being the regulating body and commercial banks and credit institutions (lower level) being banking services providers for economic subjects.
The principal purposes of the National Bank activities are:
- protection of the national currency,
- development and enhancement of national banking system,
- provision for efficient payment system functioning.
Some of its functions are as follows:
- currency issue,
- payment regulation,
- issue and withdrawal of banking licenses,
- regulation of operations in foreign currency.
Major payment transactions in Ukraine are effected via the National Bank clearing system a set of arrangements in which debts between banks are settled by adding up all the transactions in a given period and paying only the net amounts needed to balance inter-bank accounts.
The National Bank reports to the Parliament.
Commercial banks and credit institutions are founded and operated in compliance with the Law on Banks and Banking Activities. Other applicable law regulations are issued by the National Bank.
Commercial bank is considered founded and regarded as a legal entity after registration of its charter at the National Bank of Ukraine. The license issued in its name by the National Bank of Ukraine confirms its entitlement to effect banking operations.
Assignments
I. Answer the questions.
1. Who are the owners of a bank?
2. Who are the Chairman and the Board of Directors elected by?
3. What is the Board of Directors concerned with?
4. What is the essence of a banks activities?
5. What does the banking system of Ukraine consist of?
II. Translate the following sentences into Ukrainian. Put questions to any two of them.
1. The English commercial banks have branches in all the major towns and a similar structure and mode of working is common to them all.
2. The Chairman and the Board of Directors are elected by the ordinary shareholders at the Annual General Meeting and are responsible for the efficient management of the bank.
3. The Board is concerned with the overall policy of the bank and the major decisions which put that policy into effect.
4. At the end of each business year the Board of Directors recommend and the Annual General Meeting decides how much of the profit should be distributed to the shareholders as dividend, and how much should be retained in the business.
5. The banking system of Ukraine dates to March, 1991, when the Ukrainian Parliament passed the Law on Banks and Banking Activities.
III. Translate the following sentences into English.
1. .
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2. .
3. : ( ) ( ).
4. .
IV. Name the following definitions.
1. Account, which is the one commonly held and drawn upon by cheques and standing orders.
2. Another type of account, which is more in the nature of a savings account.
3. The body concerned with the overall policy of the bank and the major decisions which put that policy into effect.
4. A person appointed by the Board of Directors, who is directly responsible to them and a member of the Board.
5. In preparation for the Annual General Meeting, a bank publishes these papers showing the total profits the bank has earned and how much is available for distribution and sends them to every shareholder.
V. Make a scheme to 1) the structure of a bank, 2) Ukrainian Banking System.
VI. Work in pairs. Make a dialogue based on the text. Exchange roles and report your partners replies.
VII. Sum up what the text says about:
1) the structure of a bank;
2) Ukrainian Banking System.
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