SUMMARY OF UNIT 1: BANKING [ TOGETHER WE LEARN,

TOGETHER WE SHINE ]
1. Organizational chart / organization chart
+ Definition: Organizational chart is a diagram that shows the structure of an organization.

 Định nghĩa: Sơ đồ tổ chức là một sơ đồ thể hiện cơ cấu của một tổ chức.

+ What are the benefits of an organizational chart?

 Lợi ích của sơ đồ tổ chức là gì?

It helps to differentiate (phân biệt) between small-business organizations and large-business

organizations.
It helps to outline a road map for internal promotions.
It provides an information portal for the sake of transparency.

 Nó giúp phân biệt giữa các tổ chức doanh nghiệp nhỏ và các tổ chức doanh
nghiệp lớn.
 Nó giúp phác thảo lộ trình cho các quảng cáo nội bộ.
 Nó cung cấp một cổng thông tin vì mục đích minh bạch.

Vocabulary: To differentiate between something and something: phân biệt cái gì với cái gì
To outline a road map: vạch ra lộ trình
For the sake of transparency: vì tính minh bạch
+ What is a functional department?

 Các bộ phận chức năng gì?

Employees are grouped according to the function they provide.

 Nhân viên được phân nhóm theo chức năng mà họ cung cấp

Examples: Human resources department (personnel department) : phòng nhân sự

                     Training department : phòng đào tạo
                     Finance department : phòng tài chính
                     International cooperation department…: bộ phận hợp tác quốc
 To be in charge of = to be responsible for… : chức năng của ….
- Human resources department is responsible for recruiting and managing staff
To recruit staff: tuyển dụng nhân viên => To be recruited => recruitment agency
To manage staff: quản lý nhân viên : => management
- Training department is in charge of developing plans and conducting training courses
for the staff to improve their skills.
To develop plans: lên kế hoạch
To conduct training courses : tổ chức các khoá học đào tạo
To improve skills: cỉa thiện các kỹ năng
- Finance department
To prepare the financial reporsts : lập các BCTC
To manage the cash flow : quản lý dòng tiền
To handle financial problems : xử lý các vấn đề liên quan đến tài chính
- International cooperation department is responsible for developing and maintainng
relationships with foreign partners to expand the working networks with a view to
promoting the image of the company
To develop and maintain relationships with foreign partners: xây dựng và duy tri mối
quan hệ với các đối tác nước ngoài
To expand the working networks: mở rộng mạng lưới làm việc
To promote the image of the company : xây dựng hình ảnh cho công ty

+ What is an organization by product lines?

 Tổ chức theo dòng sản phẩm gì?

If a company is producing multiple products or offering different services, it can be grouped
according to the product or the service.
  Nếu một công ty đang sản xuất nhiều sản phẩm hoặc cung cấp các dịch vụ
khác nhau, nó có thể được nhóm lại theo sản phẩm hoặc dịch vụ.

Vocabulary: To be grouped according to: được nhóm theo

2. What risks does the bank take when it grants a loan?
=> những rủi ro của ngân hàng cho vay?
+ Credit default risk : rủi ro vỡ nợ tín dụng
This risk occurs when a borrower cannot repay the loan.
Solutions: Banks can reduce credit default risk by screening loan applicants, requiring collateral
for a loan, performing a credit analysis, and by diversifying credit risks.

 to apply for a loan: nộp đơn xin cấp khoản vay

Vocabulary: To screen loan applicants: sàng lọc những người xin cấp khoản vay

 A loan application (n) đơn xin cấp khoản vay

 A loan applicant (n) người nộp đơn xin cấp khoản vay
 To perform a credit analysis : thực hiện phân tích tín dụng
 To diversify credit risks: đa dạng hoá rủi ro tín dụng
 To require collateral: yêu cầu vật thế chấp cho khoản vay

+ Exchange rate risk: rủi ro tỷ giá hối đoái

The exchange rate risk occurs when the exchange rate fluctuates, which can financially harm
banks.
Solution: Banks must analyze and examine the trends in exchange rate when granting loans.
Vocabulary: To fluctuate: dao động
+ Liquidity risk: rủi ro thanh khoản
It is the risk that a bank may be unable to meet the short term financial demands.( đáp ứng nhu
cầuu tài chính ngắn hạn )
Liquidity risk generally arises when a bank with immediate cash needs, holds a valuable asset
that it cannot be traded or sold at market value.
Solutions: Banks should develop strategies, policies to manage liquidity risk in accordance with
the risk tolerance and ensure that banks maintain sufficient liquidity.
Banks should identify alternative sources of funding that strengthen its capacity to withstand a
variety of severe liquidity risks.
Vocabulary: financial demands (n) nhu cầu tài chính
To meet the short term financial demands: đáp ứng nhu cầu tài chính trước mắt
In accordance with the risk tolerance: phù hợp với khả năng chịu đựng rủi ro
To develop strategies, policies : xây dựng các chiến lược, các chính sách
To maintain sufficient liquidity : duy trì đủ lượng tiền mặt
3. Types of loans
+ Consumer loans are loans lent to individuals for personal, family purposes.

 Bank lend money to poor students to cover their daily expenses

+ Commercial loans are loans advanced to businesses instead of consumers.
+ Mortgage loans include loans to clients who want to buy a flat or a house.
+ Unsecured loans are issued based on the creditworthiness of the borrower and do not require
any collateral.
+ Secured loans are backed up by the personal property of the borrower.
Vocabulary: To be advanced to businesses: được cấp cho các doanh nghiệp
To lend money to somebody: cho ai vay tiền
To be advanced to somebody: được ứng/ được cung cấp cho ai
Insteaf of…: thay thế cho
Credutworthiness : tín nhiệm
Personal property: tài sản cá nhân
To be based on the creditworthiness of the borrower: được dựa trên độ tin cậy về mặt tín dụng
của người đi vay.
Reasons for security on a loan: lý do bảo đảm cho khoản vay
+ Collateral is normally required for all loans because loans involve risks, so in order to reduce
the risks, lenders require collateral to help ensure repayment.

 Tài sản đảm bảo thông thường là bắt buộc đối với tất cả các khoản vay vì
các khoản vay đều có rủi ro, vì vậy để giảm thiểu rủi ro, người cho vay yêu
cầu tài sản đảm bảo để đảm bảo trả nợ
+ Collateral is valuable because it can reduce the losses in the event of a suspension of payments.

=> Tài sản đảm bảo có giá trị vì nó có thể giảm bớt tổn thất trong trường hợp tạm
ngừng thanh toán.

 To ensure repayment: đảm bảo việc hoàn trả khoản vay

 To reduce losses: giảm sự mất mát
 Suspension of payment : ngưng thanh toán
 Collateral : tài sản thế chấp
4. Loan officer responsibilities: trách nhiệm của nhân viên tín dụng
 A loan officer helps clients to complete the loan application forms. => To complete the
loan application: điền vào mẫu đơn xin cấp khoản vay

 Nhân viên cho vay giúp khách hàng hoàn thiện các mẫu đơn xin vay.

 He/she gathers the clients’ financial information. => To gather the client’s financial
information: thu thập thông tin tài chính của khách hàng

 Anh ấy / cô ấy thu thập thông tin tài chính của khách hàng.

 He/she sees if the application meets the credit limits set by the bank and assesses the
clients’ ability to repay the loan. => To meet the credit limits: đáp ứng hạn mức tín dụng
To assesses the clients’ ability to repay the loan: đánh giá khả năng hoàn trả khoản vay

 Anh / cô ấy xem hồ sơ có đáp ứng các giới hạn tín dụng do ngân hàng quy
định hay không và đánh giá khả năng trả khoản vay của khách hàng.

 They also explain the different options the client has based on the clients’ assets,
creditworthiness and potential collateral.
=> To explain different options : giải thích các lựa chọn
Creditworthiness: độ tin cậy về mặt tín dụng
 Potentail collateral: vật thế chấp tiềm năng

 Họ cũng giải thích các tùy chọn khác nhau mà khách hàng có dựa trên tài
sản, mức độ tín nhiệm và tài sản thế chấp tiềm năng của khách hàng.

Vocabulary: 
 To complete the loan application form: điền vào mẫu đơn xin cấp khoản vay
 To gather the client’s financial information: thu thập thông tin tài chính của khách hàng
 To meet the credit limits: đáp ứng hạn mức tín dụng
 To repay the loan: hoàn trả lại khoản vay
5. Skills needed for a loan officer
- Bachelor’s degree in banking or finance
- Demonstrated communicative & negotiation skills
- Excellent critical thinking & analytical skills
- Proven problem-solving skills
- Good at mathematics
- Skilled in MS Word, Excel, and banking software
- Bilingual is preferred
6. Challenges of an entrepreneur
+ He/she has to compete on a global stage.
He/she has to adapt to a changing economic climate. Preparing for and embracing the change are
the best ways to meet these challenges.
+ He/she has to decide how to invest in and utilize new technologies.
Technologies change practically at the speed of light, so it is vital for companies to innovate or to
be left behind.
+ Finding  the right people to work with and developing the right skills and competencies are the
keys to a sustainable future.
Once realizing all these challenges will make a difference between a bright future and a murky
one.
Vocabulary: To compete on a global stage: cạnh tranh trên phạm vi toàn cầu
To adapt to a changing economic climate: thích nghi với một trường kinh tế thay đổi
To embrace the change: nắm bắt sự thay đổi
To utilize new technologies: sử dụng công nghệ mới
A sustainable future: tương lai bền vững
7. Which of these opinions do you think are true about banks after the credit crisis?
+ “There are parts of the banking system that are a socially useless ( các hoạt động không
có ích cho xh) activity” Lord Turner, chairman of the Financial Services Authority (FSA),
UK in 2009:
Poor performance is detrimental to the company’s success. => To be detrimental to : gây bất lợi
cho…
We should eliminate inefficient divisions because they waste time & efforts, reduce productivity,
hurt the net income/bottom line of the company:
Total revenue - cost of goods sold = Gross profit
Gross profit  - operating expenses (salaries, rent, utilities, depreciation, interest, taxes) = bottom
line
Vocabulary: To eliminate inefficient divisions: loại bỏ những bộ phận làm việc không hiệu quả
To reduce productivity: giảm năng suất lao động
To hurt the net income / bottom line: ảnh hưởng đến lợi nhuận dòng
+ Banks have to offer big bonuses in order to keep their best performing staff:
Being well-paid will motivate them to do the job to the best of their ability, never turn away from
challenges. Besides, companies should introduce flexible working schedule. The flexible
schedule allows employees to make full use of their time to complete their work in the most
efficient way.
Vocabulary: To motivate somebody to do something: khích lệ ai làm gì
To turn away from challenges: né tránh khó khăn
To be well-paid: được trả lương cao
To do the job to the best of somebody’snability: làm một công việc theo khả năng tốt nhất của ai
đó
To introduce flexible working schedule : áp dụng lịch làm việc linh hoạt
To allow somebody to do something: cho phép ai làm gì
To make full use of something: tận dụng cái gì
+ “A global bank is much more secure than a regional local bank.”: => global bank : ngân
hàng toàn cầu/ a regional local bank: ngân hàng địa phương trong khu vực.
Global banks provide the same services at lower costs, they offer better interest rates on savings
(time deposits / demand deposits), better terms on credit cards and other loans for their
customers.
Vocabulary: To provide the same services at lower costs: cung cấp cùng dịch vụ với chi phí
thấp hơn
+ “The state has no place in the banking sector.”
The central bank should promote monetary stability, formulate monetary policies, recommend
economic policies to the government.
They should tighten or loosen monetary policies to stimulate the economic growth.
Vocabulary: To promote monetary stability: thúc đẩy sự ổn định tiền tệ
To formulate monetary policies: xây dựng chính sách tiền tệ
To recommend economic policies to the government: tham mưu chính sách kinh tế cho chính
phủ
8. Miscellaneous words / phrases:
Credit limit refers to the maximum amount of money a bank is prepared to lend to a customer.
Credit history means a history of the client’s previous and current borrowings and repayments.
Loan schedule refers to a timetable showing the amount of interest to be paid each month and
the conditions for repayment of the loan.
Credit check refers to a bank’s investigation into a client’s previous borrowings and current
debts before agreeing to provide any new loans.
Sub-prime loans are loans offered to individuals who do not qualify enough for a loan due to
their poor credit history.
Toxic assets are certain financial assets whose value has fallen significantly and for which there
is no longer a functioning market, so that such assets cannot be sold at a price satisfactory to the
holder.
Credit crunch is an economic condition in which investment capital is difficult to obtain.
A bank bailout is an act of offering financial assistance to a failing business in order to prevent
the consequences that arise from a business’s downfall.
Recapitalization is a change in a company’s capital structure with the aim of making a
company’s capital structure more stable.
OR: the act of lending money to the banks to give them new capital so they could continue to
offer loans to business and customers.
Tailored products are products designed to suit specific needs of the customers.
Asset finance is a short-term loan by a company to obtain tangible assets. 
Debt financing  is a long-term financing instrument of a company to raise money for financing
its business.
Cross-selling  generally occurs when the sales representative has more than one type of product
to offer customers that might be beneficial to them.
Note: Up-selling differs somewhat from cross-selling in that the salesperson is not so much
concerned with selling an additional product to generate additional commissions, but rather with
selling a higher-end version of the product.
10. Bank’s profile
- Headquarters / head office: To be located / to be situated / to be based …
- Foundation: To be founded in …
- Number of staff: The bank employs … / The total number of employees is …
- Organization structure: The bank is divided into … divisions / The bank consists of … / The
bank is made up of … divisions.
- Types of products / services / brands it offers: The bank provides various services to meet
the needs of the customers at home and abroad.
- Its turnover or its profit for last year: The turnover amounted to + number /  The turnover
was worth + number / The turnover reached + number.
- Overseas operations: The bank expands its operations to countries in …..
- Commitments: The bank is committed to trying its best to come up to the customers’
expectations
OR: The bank makes its utmost efforts to exceed the customers’ expectations.
Write a bank’s profile on your own with the above guidance:
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SUMMARY OF UNIT 2 [ STOCK MARKETS ]
1. What is the difference between a private company and a public company? Which of
them is listed on a stock market?

=> Sự khác biệt giữa công ty tư nhân và công ty đại chúng là gì? Cái nào trong số
chúng được niêm yết trên thị trường chứng khoán?

* The principle difference between private and public companies is that public companies have
shares that can be publicly traded on a stock market, private companies are privately held.

=> To be publicly traded on a stock market : được giao dịch công khai trên TTCK
To be privately held: thuộc quyền sở hữu của công ty

=> Sự khác biệt về nguyên tắc giữa công ty tư nhân và công ty đại chúng là công ty
đại chúng có cổ phần có thể được giao dịch công khai trên thị trường chứng khoán,
công ty tư nhân được nắm giữ bởi tư nhân.

* Private companies are not required to publicly disclose financial information, while public
companies are required by the State Security Commission to file an annual report documenting
their performance in detail (profit statements and future forecasts).
=> To file an annuanl report : nộp bản báo cáo thường niên
To disclose financial information: tiết lộ thông tin tài chính

=> Các công ty tư nhân không bị yêu cầu công khai thông tin tài chính, trong khi
các công ty đại chúng được Ủy ban An ninh Nhà nước yêu cầu nộp báo cáo hàng
năm ghi lại chi tiết hoạt động của họ (báo cáo lợi nhuận và dự báo trong tương lai).

* Private companies don’t need shareholders’ approval for operational and growth strategy
decisions made by the company.
Public companies must inform shareholders about and get approval for the company’s
operations,   financial performance, management actions, and other decisions.

=> To need shareholders’ approval : Cần có sự đồng thuận

=> Các công ty tư nhân không cần sự chấp thuận của cổ đông đối với các quyết
định chiến lược hoạt động và tăng trưởng do công ty đưa ra.
Công ty đại chúng phải thông báo cho cổ đông về và được chấp thuận về hoạt
động, hiệu quả tài chính, các hoạt động quản lý và các quyết định khác của công
ty.

* Public companies can go private by having the owners buy back shares from the shareholders.
A private company might become a public company by conducting an initial public offering.

=> To go private : trở thành công ty tư nhân

To conduct an initial public offering: thực hiện chào bán cổ phiếu lần đầu ra công chúng

=> Các công ty đại chúng có thể chuyển sang tư nhân bằng cách để chủ sở hữu
mua lại cổ phần từ các cổ đông.
Một công ty tư nhân có thể trở thành công ty đại chúng bằng cách thực hiện chào
bán lần đầu ra công chúng

2. What is a stock index? .

=> chỉ số chứng khoán là gì?
* A stock index or stock market index is a measurement of the value of a section of stocks on the
stock market. It is computed from the prices of selected stocks.
It is a tool used by investors and financial managers to describe the market movements, and to
compare the return on specific investments.

=> Chỉ số chứng khoán hay chỉ số thị trường chứng khoán là phép đo giá trị của
một bộ phận cổ phiếu trên thị trường chứng khoán. Nó được tính toán từ giá của
các cổ phiếu đã chọn.
Nó là một công cụ được các nhà đầu tư và nhà quản lý tài chính sử dụng để mô tả
các chuyển động của thị trường và so sánh lợi tức của các khoản đầu tư cụ thể.

* The FTSE 100 is an index composed of the 100 largest companies listed on the London Stock
Exchange (LSE). These are often referred to as “blue chip” companies, and the index is seen
traditionally as a good indication of the performance of major companies listed in the UK.

=> FTSE 100 là chỉ số bao gồm 100 công ty lớn nhất được niêm yết trên Sở giao
dịch chứng khoán London (LSE). Chúng thường được gọi là các công ty “blue
chip” và chỉ số này theo truyền thống được coi là một dấu hiệu tốt về hiệu quả hoạt
động của các công ty lớn được niêm yết ở Anh.

* The Standard & Poor’s 500 is an American stock market index based on the market
capitalization of 500 large companies having common stock listed on the NYSE or NASDAQ.

=> Standard & Poor’s 500 là chỉ số thị trường chứng khoán của Mỹ dựa trên giá trị
vốn hóa thị trường của 500 công ty lớn có cổ phiếu phổ thông niêm yết trên NYSE
hoặc NASDAQ

3. Where can you find the stock market indices:

Dow Jones - New York                                   FTSE 100 - London                            Nikkei -
Tokyo
CAC 40 - Paris                                                     DAX - Frankfurt                                 Hang Seng
- Hong Kong
NASDAQ – New York                                      Bovespa - Sao Paulo                       MICEX -
Moscow
Straits Times Index – Singapore
4. Answers for questions in the textbook:
- What is the difference between a share and a stock?
Generally, these words are used interchangeably to refer to the pieces of paper that denote
ownership in a particular company, called stock certificates. “Share” is used in UK and “stock”
is used in US.
- What rights do you get if you buy a company’s shares?
If you buy a company’s shares, you will have the rights to vote at the AGM (annual general
meeting) and to receive dividends.
- What is a dividend?
A dividend is the money paid to shareholders from the company’s profits as a return on their
investment.
- Who decides how much dividend to pay?
The Board of Directors decides how much dividend to pay.
- Why do some companies not pay dividends?
Some companies do not pay dividends because the money is kept in the company to reinvest in
growth.
- What are the two main ways shareholders make money from shares?
Two main ways shareholders make money from shares are dividends and capital increase when
they sell them.
- How does a company become a listed company?
The company has to register with the stock exchange and comply with the regulations of the
Securities and Exchange Commission.
- What is an IPO?
An IPO stands for Initial Public Offering, the first listing of a company on a stock market.
- What does it mean when an investment bank ‘underwrites’ a company’s shares?
When an investment bank “underwrites” a company’s shares, it means the bank guarantees to
buy any shares which are not bought by other investors.
- What is the difference between a primary listing and a secondary market?
“Primary listing” is the first registration of a company’s shares, the shares are then traded every
day in the “secondary market”.
- What is the role of the market regulators?
 The “market regulators” are those who enforce regulations and protect investors from fraud.
- What is a rights issue?
A rights issue is an invitation to existing shareholders to purchase additional new shares in the
company. OR When a company issues more shares for sale on the market.
- When a company makes a rights issue, the share price usually goes down? Why is that?
Increasing the overall number of shares means the value of each individual share will be less, i.e.
The share is diluted.
5. Mutual funds and hedge funds
Similarities: Investments are pooled and professionally managed.
Differences: Hedge funds are open to a limited number of investors and require a very large
initial minimum investment.
6. Market capitalization
The total market value of all of a company's outstanding shares. Market capitalization is
calculated by multiplying a company's outstanding shares by the current market price of one
share. The investment community uses this figure to determine a company's size.
7. EPS
Earnings per share is a measurement of a company’s profit. It is calculated by:
    Profit – preferred dividends
   Outstanding shares
Exercise: Al’s Ice Cream’s profit is $1,000,000; preferred dividends are $200,000; outstanding
shares are 100,000 => earnings per share is ------------
8. P/E ratio
Price earnings ratio is used to determine how much investors are willing to pay for a stock
relative to the company’s earnings. It is calculated by:
   Current price of a stock
   Company’s earnings per share
Exercise: Al’s Ice Cream’s share price is traded at $18 per share; Al’s Ice Cream’s EPS is $2 =>
Al’s Ice Cream P/E ratio is ------------
9. Bull market
A bull market refers to a stock market in which prices are expected to rise.
10. Bear market
A bear market is used to describe a market condition in which the prices of securities are
expected to fall.
11. Primary market
The primary market refers to a market in which new stocks and bonds are sold to the public for
the first time.
12. Secondary market
The secondary market refers to a market in which investors purchase securities from
other investors,
rather than from issuing companies.
13. A bull
A bull is a person who buys shares because he/she expects share prices to rise.
14. A bear
A bear is a person who sells shares because he/she expects share prices to fall.
15. The number of shares traded yesterday is called ----------------------
- The percentage return you can expect to receive each year for investment in each share is called
--------
- The price you must pay for one share today is called --------------------
- The total value of the company yesterday is called ------------------
- The relation between the earnings made by the company on each share and the current
price of the
shares is called -------------------
- The highest price paid by investors for a share this year is called -------------------
- The lowest price paid by investors for a share this year is called -------------------
- The share price increased or fell yesterday is called --------------------
- The code you need to look up the shares online is called ------------------
16. Common stocks/shares and preferred stocks/shares
- A common stock carries voting rights.
+ A preferred stock or preference stock does not carry voting rights but is legally entitled
to receive a certain level of dividend payments before any dividends can be issued to other
shareholders.
OR Preferred stockholders get paid before those who own common stock when the company
is liquidated. If a company goes bankrupt, preferred stockholders enjoy priority distribution of
the company’s assets, while holders of common stock don’t receive corporate assets unless all
preferred stockholders have been compensated (bond investors take priority over both common
and preferred stockholders).
17. Over-the-counter market (OTC market)
Over-the-counter market is a decentralized market where market participants trade with one
another through various communication modes such as the telephone, email and proprietary
electronic trading
systems.
18. Main factors behind the daily movements of a stock market
Macro data
Macro data includes inflation rate, interest rates, unemployment figures… (macro level).
Micro data
Micro data includes things that affect a particular company, like a company’s results, or news of
a big contract win, rumors (micro level).
19. Types of investors
Retail investors
A retail investor is an individual who purchases securities for his or her own personal account
rather than for an organization. They trade in much smaller amounts than institutional investors.
Institutional investors
Institutional investors are large organizations (such as banks, finance companies, insurance
companies, mutual funds, pension funds…) which have considerable cash reserves that need to
be invested.
20. Market regulators
Market regulators are authorities who enforce regulations and protect investors from fraud.
21. Market makers
A market maker is an institution or an individual that quotes bid and offer prices for specific
stocks, and is prepared and able to buy or sell those securities.