BANKS

TYPES, SINGULARITIES, TRANSLATIONS

 A bank is a financial

banks in
institution licensed to
receive deposits and make
loans.

general
There are several types of
banks including retail,
commercial, and
investment banks.
What to Know In most countries, banks are
regulated by the national
government or central
bank.
entidad financiera
depósitos, préstamos
banca al por menor,
entidad de crédito, banca
de inversión
banco central
What is the function
of banks?
As financial services providers, they give you a
safe place to store your cash. Through a variety
of account types such as checking and
savings accounts, and certificates of deposit
(CDs), you can conduct routine banking
transactions like deposits, withdrawals, check CUENTA CORRIENTE
writing, and invoice payments. You can also CUENTA DE AHORRO O
LIBRETA
save your money and earn interest on your Certificado de Depósito de
investment. Ahorro o CDA (no habitual)
REINTEGROS
PAGO DE FACTURAS
What is the function of
banks?

Banks also provide credit opportunities for people and

corporations. The money you deposit at the bank—
short-term cash—is used to lend to others for long-
EFECTIVO A CORTO PLAZO
term debt such as car loans, credit cards, mortgages, DEUDA A LARGO PLAZO
and other debt vehicles. This process helps create HIPOTECAS
INSTRUMENTOS DE DEUDA
liquidity in the market—which creates money and LIQUIDEZ (DINERO EN
keeps the supply going. CIRCULACIÓN)
What is the function
of banks?
INSTRUMENTOS DE AHORRO
COBRAR, CARGO
BENEFICIO BRUTO

Just like any other business, the goal of a bank is to

earn a profit for its owners. For most banks, the
owners are their shareholders. Banks do this by
charging more interest on the loans and other debt
they issue to borrowers than what they pay to people
who use their savings vehicles. Using a simple
example, a bank that pays 1% interest on savings
accounts and charges 6% interest for loans earns a
gross profit of 5% for its owners.
 THE GLOBAL FINANCIAL
CRISIS
Banks cameI under intense scrutiny
after the global financial crisis that
occurred in 2007 and 2008. The
regulatory environment for banks
has since tightened considerably
as a result. Banks are regulated in
issues such as permitted practices,
how much interest a bank can
charge, and auditing and inspecting
banks.
marco normativo
endurecer
auditoría y supervisión
 La banca al por menor es aquélla cuyo
descubierto público o cliente objetivo está constituido
grandes patrimonios personales por personas físicas con un patrimonio
gestión del patrimonio
inferior a un determinado nivel, fijado por la
propia entidad financiera y por las
pequeñas y medianas empresas (PYMES)

RETAIL BANKING
RETAIL CONSUMERS

These banks offer services to the general public and are also
called personal or general banking institutions. Retail banks
BANCA AL POR provide services such as checking (current) and savings
MENOR accounts, loan and mortgage services, financing for
automobiles, and short-term loans like overdraft
protection. Larger retail banks also often cater to high-net-
worth individuals, giving them specialty services such as
private banking and wealth management.
 COMMERCIAL BANKING
gestión de efectivo/circulante
servicios de intermediación inmobiliaria
servicios a la patronal
financiación comercial/mercantil

Commercial or corporate banks provide specialty services

ENTIDADES DE to their business clients from small business owners to
CRÉDITO large, corporate entities. Along with day-to-day business
banking, these banks also provide their clients with other
things such as credit services, cash management,
commercial real estate services, employer services, and
trade finance
Un banco comercial es realmente un banco al por menor
para nosotros: su negocio principal es tratar con el público
general. Es decir, ofrecen cuentas corrientes, dan
prestamos, tienen productos financieros como planes de
pensiones y fondos de inversión, etc. Se trata de bancos
cuyo negocio se encuentra en la comercialización de estos
productos. Los bancos que operan online, las cajas de
ahorros y cooperativas de crédito (cajas rurales, building
societies) pertenecen a este tipo de bancos. En definitiva,
es lo que normalmente llamamos un banco.
 INVESTMENT BANKS
garantías, suscripciones, aseguramiento
operaciones de venta de empresas, fusiones
y adquisiciones, emisión de acciones para la
entrada de nuevos inversionistas
(tradicionalmente realizada en Bolsas de
Valores)
Capital riesgo (fondos de inversión libre)

Investment banks focus on providing corporate clients with complex

BANCA DE services and financial transactions such as underwriting and
assisting with merger and acquisition (M&A) activity. As such, they
INVERSIÓN are known primarily as financial intermediaries in most of these
transactions. Clients commonly range from large corporations, other
financial institutions, pension funds, governments, and hedge funds.
What are central banks?

MINT: ACUÑAR; THE MINT:

CASA DE LA MONEDA

For one, they’re in charge of printing

money.
 By managing a country’s interest
rates central banks aim to keep
the economy stable: keeping
unemployment and inflation low,
while maintaining steady
economic growth. The interest
rate set by a central bank will
dictate the return investors
receive without taking any risk of
losses.
RETORNO, BENEFICIO,
RENDIMIENTO (DE UNA
INVERSIÓN, OJO)
They oversee commercial banks (the ones, AS
WE'VE SEEN, that normal people deal with on a
daily basis), lending money to them and setting
rules that prevent them from doing anything
too risky.

THE BANK OF BANKS

 BANKERS TO THE
GOVERNMENT

Since the financial crisis of 2008, plenty of central banks

have also been tasked with monitoring the financial health
of their nation’s commercial banks. Some will periodically
“stress test” banks by estimating their chance of collapse
should the economy slow dramatically or house prices
plummet.
Some countries try to manage their currency’s
exchange rate, keeping it at a certain price – usually
against the US dollar. The central banks in these
economies are responsible for maintaining this
exchange rate, by buying and selling currencies in
huge quantities
Unlike the banks listed above, central banks are
not market-based and don't deal directly with the
general public. Instead, they are primarily
responsible for currency stability, controlling
inflation and monetary policy, and overseeing
a country's money supply. They also regulate
the capital and reserve requirements of member
banks.

Some of the world's major central banks include

the U.S. Federal Reserve Bank, the European
Central Bank, the Bank of England, the Bank of
Japan, the Swiss National Bank, and the
People’s Bank of China.
 BALANCE
DEPOSIT
BANK ACCOUNT
LOAN
PAY IN
WITHDRAW
CREDIT CARD
CHEQUEBOOK
PAYEE
The amount of money that is deposited in a bank
account at any time.

A small narrow printed book containing a specific

number of cheques that is issued by the bank.

A card (plastic) that a bank gives to their

customers to buy something or pay fees.
A financial account for the deposit and withdraw
of money and maybe paid interest.

To put money in a bank account by cash or

cheque; amount of money in a bank account.

The money that banks pay for a saving account

or take out of a customer behalf of a loan.
A person who receives money by the means of a
cheque.

To take out money of a bank account in cash.

The amount of money that banks lend to a

customer.
 Other (commercial) Banking Services

Checking (current) accounts are designed to make spending

money, transferring funds, and paying bills convenient—typically
with no cap on the number of transactions you can have per
month.
Savings accounts can help you grow your money with interest and
are subject to national regulations governing the number of
withdrawals you can make each month.
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