I.

STARTING UP
B. BANKING PRODUCTS & SERVICES: Match the following terms and their
definitions.

1. debit card
2. credit card
3. a current account (BrE) = a checking account (AmE)
4. a saving(s) account/ deposit account (BrE) = a time account/ notice account (AmE)
5. cashpoint (BrE) = ATM (Automated Teller Machine, AmE)
6. a chequebook (BrE) = a checkbook (AmE)
7. a mortgage (BrE) = a real estate (AmE)
8. internet banking (payments, transfers)
9. mobile banking (payments, transfers)
10. foreign exchange - ngoại hối
11. an overdraft - thấu chi
12. investment advice - tư vấn đầu tư

a) cash machine = cashpoint (BrE) = ATM (Automated Teller Machine, AmE)

b) the possibility to borrow money by spending more than you have in your bank account =
an overdraft - thấu chi

c) a bank account that pays you interest, in which you usually leave money for a long time
= a saving(s) account/deposit account (BrE) = a time account/ notice account (AmE)

d) a bank account that you can take money from at any time and that usually earns little or
no interest = a current account (BrE) = a checking account (AmE)

e) a book of cheques with your name printed on them that is given to you by your bank to
make payments with = a chequebook (BrE) = a checkbook (AmE)

f) a small plastic card that can be used to buy goods or services and then pay for them at a
later time = credit card

g) a small plastic card that you can use to get cash from cash machines, or to pay for
goods and services. When you use the card, the money is taken directly from your bank
account=_debit card__

h) the buying and selling of currencies; a financial market in which foreign currencies are
bought and sold = foreign exchange

i) an agreement that allows you to borrow money from a bank or similar organization by
offering something of value, esp. in order to buy a house or apartment = a mortgage (BrE) =
a real estate (AmE)

II. READING
A. READING 1: Banks and Financial Institutions
BEFORE YOU READ
Below are some basic banking terms. Match up the words in the box to the
definitions.
bankrupt stocks or shares portfolio deposits
dividend merger takeover bid (đấu thầu tiếp quản) stockbroking
interest earnings conglomerate returns
deregulation capital (vốn) bonds

1) Deposits (tiền gửi) = money placed in a bank

2) Capital (tiền vốn) = the money invested in a business
3) Stocks or shares (cổ phiếu) = certificates representing part-ownership of a company
4) Bonds (trái phiếu/giấy nợ?) = certificates of debt issued by governments or companies
to raise money
5) Merger (sự hợp nhất) = when one company combines with another one
6) Takeover bid (TOB: mua thôn tính ) = when one company offers to buy or acquire
another one
7) Stockbroking (môi giới chứng khoán ) = buying and selling stocks or shares for clients
8) Portfolio (danh mục đầu tư)= all the investments owned by an individual or organization
9) Returns = the profits made on investments
10) Bankrupt phá sản ) = unable to pay debts or continue to do business
11) Deregulation (bãi bỏ quy định )__ = the ending or relaxing of legal restrictions

12) Conglomerate (tập đoàn ) = a group of companies, operating in different fields, which
have joined together

13) Interest (lãi) = the price paid for borrowing money, paid to the lenders

WHILE YOU READ

Reading 1: Banks and Financial Institutions

Insert the names of the following types of financial institutions in the spaces in the
text.

commercial banks hedge funds(>< mutual fund:quỹ tương hỗ)

investment banks Islamic non-bank financial intermediaries private banks
stockbrokers banks

Retail banks or commercial banks (ngân hàng thương mại ) (1) (often called High Street
banks in Britain) receive deposits from, and make loans to, individuals and small companies.
investment banks (ngân hàng đầu tư) (2) work with big companies, giving financial
advice, raising capital by issuing stocks or shares and bonds, arranging mergers and
takeover bids, and so on. They also generally offer stockbroking and portfolio management
services to rich corporate and individual clients. Wealthy individuals can also use private
banks (ngân hàng tư nhân) (3), which provide them with banking and investment services,
and hedge funds (quỹ đầu tư) (4), which are private investment funds for wealthy investors
(both individuals and institutions) that use a wider variety of (risky) investing strategies than
traditional investment funds, in order to achieve higher returns.
In the USA, where many banks went bankrupt following the Wall Street Crash in 1929, a law
was passed in 1934 (the Glass-Steagall Act) that separated commercial banks and
investment banks or stockbroking firms. For the rest of the 20th century, there were
regulations in the US, Britain and Japan that prevented commercial banks from doing
investment banking business. In other countries, including Germany and Switzerland, large
banks did all kinds of financial business. But starting in the 1980s, many rules were ended
by financial deregulation, and Glass-Steagall was repealed in 1999. Large banks became
international conglomerates offering a complete range of financial services that were
previously provided by bank, stockbrokers (môi giới chứng khoán) (5) and insurance
companies. Islamic (hồi giáo) banks (6), in Islamic countries and major financial centres,
offer interest-free banking. They do not pay interest to depositors or charge interest to
borrowers, but invest in companies and share the profits (of losses) with their depositors.

Some car manufacturers, food retailers and department stores now offer products like
personal loans, credit cards and insurance. Technically these are not bank but non-bank
financial intermediaries (trung gian tài chính phi ngân hàng) (7).

AFTER YOU READ

Make common verb-noun combinations found in the text above. What other
verb-noun combinations can you make with these words?
● Verb-noun:

Charge interest Do business Give advice issue bonds

issue stocks or shares Make loans Offer advice Offer services-

Pass laws Pay interest Provide services Raise capital

Receive deposits Share profits

● Các kết hợp khác:

Make laws Make profits Offer loans Pay a deposit

Provide capital Provide loans

B. READING 2: The Subprime Crisis and the Credit Crunch (Cuộc khủng hoảng nợ xấu và tín
dụng)

Vocabulary: Match up the words and definitions.

 1 credit rating: (n.) điểm tín dụng - b
2 default (n.) sự vỡ nợ -c
3 collateralized: (adj.) có thế chấp - e
4 cash flow: (n.) lãi đầu tư - d
5 write off: (v.) xóa sổ/ xóa nợ - a
6. Mortgage-backed + N - f
a) cancel a bad debt or a worthless asset from an
account
b) estimates of people’s ability to fullfil their financial
commitments
c) failure to repay a loan
d) the money generated by an investment
e) with property or another asset used as a guarantee
of payment
f) used to describe an investment, especially a bond,
in which the money that is used to pay back
mortgages is used to pay interest on the
investment

Deregulation (sự bãi bỏ quy định) in the 1980s was one of the factors that led to the
subprime crisis.
Read about the crisis and then put the sentences below in the right order.
When American house prices began to fall in 2007, many “subprime” borrowers, defined as
those with poor credit ratings and consequently a high risk of default, stopped paying their
mortgages, as their debt was greater than the value of their house. Unfortunately, the
institutions which had issued the mortgages had created financial products called
mortgage-backed securities (MBSs) and collateralized debt obligations (CDOs), which had
been bought by many financial institutions including investment banks, hedge funds,
insurance companies, pension funds, mutual funds, and so on. This process is called
securitization: financial assets like mortgages which produce a cash flow are pooled
(grouped together) and converted into securities that are then sold to investors.

MBSs and CDOs give their buyers the right to receive the payments on the underlying
mortgages, and banks bought them because they believed that house prices would continue
to rise, and households would continue to make their mortgage payments. But when many
subprime borrowers stopped paying, the value of subprime related securities fell
dramatically. Many banks in the USA, Britain and elsewhere lost billions of dollars on their
MBSs; some went bankrupt, and others had to be rescued by governments. It is estimated
that banks around the world will eventually have to write off $1.5 trillion of worthless
subprime MBSs (now often referred to as ‘toxic debt’). These losses destroyed much of the
capital of the world banking system, leading to a credit crisis or a ‘credit crunch’: a massive
reduction in the amount of credit available for banks to lend to other banks, businesses and
households.
1. A. American house prices fell and many borrowers stopped repaying. _3__ Đoạn 1
2. B. Lenders granted mortgages to ‘subprime’ borrowers. _1___ Đoạn 1
(Các nhà cho vay đã cấp các khoản thế chấp cho những người đi vay ‘dưới chuẩn’)
3. C. Some went bankrupt, and others had to be rescued by government. _5___ đoạn 2
4. D. The value of MBSs fell to almost zero and many banks lost billions of dollars. _4___
đoạn 2
5. E. There was a credit crisis as there was little capital left for lending and borrowing. _6_
6. F. The mortgage lenders sold mortgages-backed securities to financial institutions. _2
-Đoạn 1

Trans:
Khi giá nhà của Mỹ bắt đầu rơi vào năm 2007, nhiều người vay "Subprime", được định
nghĩa là những người có xếp hạng tín dụng kém và do đó nguy cơ mặc định cao, hãy ngừng
trả các khoản thế chấp của họ, vì nợ của họ lớn hơn giá trị của nhà họ. Thật không may, các
tổ chức đã ban hành các khoản thế chấp đã tạo ra các sản phẩm tài chính được gọi là
chứng khoán được thế chấp (MBS) và nghĩa vụ nợ tài sản thế chấp (CDO), đã được nhiều
tổ chức tài chính mua bao gồm các ngân hàng đầu tư, quỹ phòng hộ, công ty bảo hiểm, quỹ
hưu trí, quỹ tương hỗ, vân vân. Quá trình này được gọi là chứng khoán hóa: Tài sản tài
chính như thế chấp sản xuất dòng tiền được gộp lại (được nhóm lại với nhau) và được
chuyển đổi thành chứng khoán sau đó được bán cho nhà đầu tư.
MBSS và CDO cho người mua quyền nhận các khoản thanh toán trên các khoản thế chấp
cơ bản và các ngân hàng đã mua chúng vì họ tin rằng giá nhà sẽ tiếp tục tăng và các hộ gia
đình sẽ tiếp tục thanh toán thế chấp. Nhưng khi nhiều người vay dưới chuẩn đã ngừng
thanh toán, giá trị chứng khoán liên quan đến thành phố giảm đáng kể. Nhiều ngân hàng ở
Hoa Kỳ, Anh và những nơi khác đã mất hàng tỷ đô la trên MBSS của họ; Một số đã phá sản,
và những người khác phải được chính phủ giải cứu. Người ta ước tính rằng các ngân hàng
trên khắp thế giới cuối cùng sẽ phải viết tắt 1,5 nghìn tỷ đô la MBSS DEBPRIME (hiện
thường được gọi là 'nợ độc'). Những khoản lỗ này đã phá hủy phần lớn vốn của hệ thống
ngân hàng thế giới, dẫn đến một cuộc khủng hoảng tín dụng hoặc 'khủng hoảng tín dụng':
giảm lượng tín dụng có sẵn cho các ngân hàng cho vay, doanh nghiệp và hộ gia đình khác.

C. READING CLOZE

MICROCREDIT

opened pioneered incredible rise loans adopted income

money access terms flexible rates rotate differ fees

The term microcredit is used to describe the extension of small loans to entrepreneurs too
poor to qualify for traditional bank (1)……loans………… It is often associated with the work
of professor Muhammad Yunus, who has (2)………pioneered……… many innovative
programs for the rural poor, several of which have been (3)……adopted………… by the
Bangladeshi government.

Although definitions of microcredit (4)………differ……… from country to country, there are a

number of common essential characteristics. First of all, loans are very small in size, and the
target users are always very small entrepreneurs and low-(5)…income……………
households. Secondly, funds are used for income (6)……(generation)………… enterprise
development, or community use. Finally, most (7)……terms………… and conditions for
microcredit loans are (8)……flexible…………, easy to understand, and suited to the local
conditions of the community.

Microcredit has proved an effective and popular measure in the ongoing struggle against
poverty, enabling those without (9)……access………… to lending institutions to borrow at
bank (10)……rates…, and start small business.
II. LISTENING

A. MICROFINANCE (1.31)

Do you know (and can you explain) what ‘microfinance’ is?

Anna-Kim Hyun-Seung from South Korea is a former MBA student

from the Judge Business School in Cambridge who works in the not-for
profit sector.

Microfinance __schemes ( kế hoạch)______(1) started with several NGOs and ___social

enterprises_____(2), for example Grameen bank in Bangladesh. They distribute very small
loans to poor people, often without _financial_______(3), sometimes it can be _social
collateral_______(4), so they create a group of people and within the group people help
each other to ________the ________(5), but it’s usually a very small amount of money, and
from the bank’s point of view, it actually provides a ________(6) risk-management tool. Of
course, distributing loans to poor people ________very ________(7), but because we are
talking about a large number of people, with a very small amount of money, it actually create
a very ________(8) in which the risk can be ________(9)

________(10) and social enterprises proved that these kinds of schemes can be
________(11) , and the poor people are actually repaying the loans, so now the
________(12) like Citibank and Barclays are taking part in these schemes, not for the
purpose of ________(13) only, they are actually doing it as part of their business. They are
developing their ________(14) products in developing countries. It seems that ________(15)
is doing really well particularly in Bangladesh and part of India, and there are some
________(16) in Latin America and Africa too.

B. COMMERCIAL BANKING (1.30)

Listen to Tony Ramos, a recruitment manager at HSBC in London, talking about

investment and commercial banking, and fill in the gaps.

I think there is a real kind of perception around kind of the world of ________(1) and kind of
what it offers. I think also as well I think ________(2) , and I guess I would say this as a
previous ________(3) , I think is a kind of a ________(4). I think if you actually and when
you do talk to students, when I talk to students and I talk them to about what the commercial
banking role is and I talk to them about the fact that you’re kind of working in a ________(5),
you’re working you know with, like, ________(6), kind of what the day-to-day job consists of,
actually going to see people with ________(7), helping startup those businesses, seeing
those businesses ________(8) and the kind of excitement and the ________(9) that
provides you, you actually do see their eyes kind of ________(10) and open up, because
they kind of think, oh, I actually I didn’t think it was about that, I actually though it was kind of
sitting in front of a computer looking at ________(11) , I think it was doing a lot of
________(12) , it seemed ________(13) and stuffy to me…