金融英语证书

1金融英语证书Part1overviewofthefinancialindustryinChinaTheyplayauniqueroleintheeconomythroughmobilizingsavings,allocatingcapitalfundstofinanceproductiveinvestment,transmittingmonetarypolicy,providingapaymentsystemandtransformingrisks.ThestatecouncildecidedtomakethePBCasacentralbankwhichwascharacterizedbyamono-bankengagedinbothpolicyandcommercialbankingoperations.Thegovernmentintroducedacomprehensivepackageofmeasuresaimedatrestoringfinancialorderaswellasaddressingtheinflationarypressureandsignsofoverheating,particularlyintherealestatesectorandthestockmarkets.Thereformsincethenhasbeenfocusedondevelopingasoundandrobustfinancialsystemtoguardagainstanddissolvefinancialrisks,cleaningupthebalance-sheetsofthebanks,improvingtheirownershipstructure,strengtheningtheircorporategovernance,2developingmarketinfrastructure,enhancingsupervisorycapacity,andfurtheropeningthebankingsectortoforeignparticipation.Thewhollystate-ownedcommercialbanks,namely,restructuringtheirbalancesheets,establishingcorporategovernance,transformingtheiroperationalmechanisms,invitingstrategicinvestors,listingtheminstockmarkets.Apartfromthetraditionaldeposittakingandlendingbusiness,commercialbanksnowofferabroadrangeofintermediaryservicessuchasinternationalsettlement,bankcards,personalbanking,andfinancialconsulting.Astheeconomybecomesincreasinglycomplex,thereisanemergingneedfordevelopinguniversalbanking.Untilrecently,foreignbankinginstitutionswereonlyallowedtooperateinthespecialeconomiczonesandcoastalcities.Toencouragecompetitionformforeignfinancialinstitutions,Chinahasexpandedthelistofareasopentoforeignbankingestablishmentstoincludealllargecitiesthroughoutthecountry.Thebankinginstitutionsarenowengagedinlocalcurrencybusinessin25majorcities.3Strengtheningbakingsupervisionhasbecomeauniversaltask.Manycountriesincludingsomeadvancedeconomieshavebeenpenalizedforweakfinancialsupervision.Forchina,thistaskisparticularlyrelevant,astheauthoritiesarewellawarethattheChinesefinancialsystemisfacedwithrisksassociatedwitheconomictransition,inadditiontocreditandmarketriskscommontoallcountriesContinuedprogressinstructuralreforminthefinancialsectorwillcontributetotheviabilityofcommercialbanks.First,furtherinterestrateliberalizationwillenhancebanks’capacityforriskpricing.Second,freercross-bordercapitalmovementwillallowthemtoseekhighreturnsanddiversifyrisksonamuchbroaderhorizon.Third,greaterexchangerateflexibilitywillfacilitateexpansionofforeignexchangebusinessandfostertheirabilitytomanageforeignexchangerisks.Sharesarecertificatesorbookentriesrepresentingownershipinacorporationorsimilarentity.Bondsarewrittenevidencesofdebts.Theprimarymarketisthatpartofthecapitalmarketthatdealswiththeissuanceofnewsecurities.The4secondmarketisthefinancialmarketfortradingofsecuritiesthathavealreadybeenissuedinaninitialprivateorpublicoffering.Bondsareformsofborrowingfirmscanundertakeintheformofmediumorlong-termsecurity,whichcommitsthemtospecificrepaymentdates,withfixedonvariableinterest.Treasurybonds,alsoknownasT-bonds,refertocouponbearinggovernmentsecuritieswitharelativelylongermaturity.Inpractice,notallriskscanbeinsured,andtheinsurabilityofagivenriskdependsonanumberoffactors:1.Lossesaremeasurableinmonetaryterms.2.Onlypurerisksareinsurable,3.Theinsurermustbeabletocollecttogetherasufficientlylargegroupofseparateandindependentexposureunitswhicharesubjecttobroadlysimilarrisks.ThisissothattheLawofLargeNumberscanoperateeffectively.4.Lossesmustbefortuitous.5Part2supervisionofbankingandfinancialinstitutionsFirst,thekeyobjectiveofsupervisionistomaintainstabilityandpublicconfidenceinthefinancialsystem.Thesecondgoalofbanksupervisionistoensurethatbanksoperateinasafeandsoundmannerandthattheyholdcapitalandreservessufficienttocovertherisksthatmayariseintheirbusiness.Third,arelatedgoalistoprotectdepositors’fundsandifanybankshouldfail,tominimizethelossestobeabsorbedbythedepositinsurancefund.Thefourthgoalofbanksupervisionistofosteranefficientandcompetitivebankingsystemthatisresponsivetothepublic’sneedforhighqualityfinancialservicesatreasonablecost.Thefifthandfinalgoalofbanksupervisionistoensurecompliancewithbankinglawsandregulations.RisksofbankCreditriskAmajortypeofriskthatbanksfaceiscreditriskorthefailureofacounterparttoperformaccordingtoacontractualarrangement.6TwospecificelementsofmarketriskareforeignexchangeriskandinterestrateriskBanksfaceariskoflossesinon-andoff-balancesheetpositionsarisingfrommovementsinexchangerates.Interestrateriskreferstotheexposureofabank’sfinancialconditiontoadversemovementsininterestrates.LiquidityriskLiquidityriskarisesfromtheinabilityofabanktoaccommodatedecreasesinliabilitiesortofundincreasesinassets.OperationalriskThemostimportanttypesofoperationalriskinvolvebreakdownsininternalcontrolsandcorporategovernance.LegalriskBanksaresubjecttovariousformsoflegalrisk,includinginadequateorincorrectlegaladviceordocumentationthatmayresultinunexpecteddeclineinthevalueofassetsorunexpectedincreaseinthevalueofliabilities.ReputationriskReputationriskarisesfromoperationalfailures,