金融专业英语课件PartⅡFinancialInstitutionsandTheirOperations

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1、PartⅡFinancialInstitutionsandTheirOperationsChapter5CommercialBankingChapter6InvestmentBankingChapter7InsuranceChapter8SecuritiesChapter5CommercialBanking5.1IntermediaryServicesFunctionsperformedbycommercialbanksare:1)creationofmoneythroughlendingandinvestingactivities;2)holdingoft

2、hedeposits;3)provisionofamechanismforpaymentandtransferoffunds.IntermediaryservicesofcommercialbankscoverInternationalSettlement,TrustServices,LeaseandFactoring.5.1.1RelationshipbetweenBanksandCustomers1.Debtor-CreditorRelationshipItarisesoutofthefactthatthebankholdsmoneythatbelong

3、stothecustomer.Themoneyhastoberepaidatsometime,andthereforethebankisthedebtor,whilethecustomeristhecreditor.Asforthebank’sintermediaryservices,itisnotreferringtothoselendingandborrowingactivities,i.e.,therelationshipbetweenabankeranditscustomersisnotdebtor-creditorone.Therelationsh

4、ipbetweenabankeranditsclientasintermediaryservicesisaprincipal-agentone,i.e.thebankisactingasanagentforitsclient.2.Principal-AgentRelationshipAbank,whendealingwithitscustomerdirectly,hasadebtor-creditorrelationship.Butwhereathirdpartyisinvolvedtherelationshipbecomesoneofthatbetween

5、aprincipalandanagent.Agreement:oneparty(agent)agreestoactonbehalfoftheotherparty(principal).Agentshavetheauthoritytoperformlegalactsfortheprincipalwiththeagencyagreement.Principal’sobligations:1)compensatetheagentaccordingtotheagreement;2)reimbursetheagentforreasonableexpenses;3)in

6、demnifytheagentagainstlossorliabilityfordutiesperformedonbehalfoftheprincipaland4)informtheagentofrisks.Agent’sobligations:1)actinthebestinterestoftheprincipalandwithcompleteloyalty;2)carryouttheinstructionoftheprincipalwithreasonablecareandskills;3)accounttotheprincipal;4)indemnif

7、ytheprincipalfordamageswrongfullycausedtotheprincipaland5)provideinformationtotheprincipal.5.1.2ItemsofIntermediaryServices1.SettlementSettlementisthestrikingofabalancebetweentwoormorepartieshavingdealingswithoneanother.Theevolutionofthesettlementgoesthroughthreestages:Cash-based，P

8、aper-basedandElectronic-ba