Unit 5 Commercial Bank2.docx

1、Unit 5 Commercial Bank2Unit5 Commercial BankOff-Balance Sheet Activities1. Once negligible in amount, and therefore worthy of no more than passing mention in banking texts, off-balance sheet items of banks now amount to trillions of dollars in the United States. They include contingent claims that r

2、epresent a variety of exposure across markets and credit risks-standby letters of credit, interest rate and currency swaps, note issuance facilities, options, foreign currencies, fixedand variablerate loan commitments, and futures and forward contracts on everything from Treasury bills to gold. Loan

3、 commitments are among the largest components of the off-balance sheet items of banks. Also, when added together off-balance sheet items exceed the banks total recorded assets. This is a little misleading, however, since only some contingent claims impose a (contingent) liability on the bank, and th

4、is contingent liability is only a fraction of its outstanding contingent claims.Once negligible in amount, and therefore worthy of no more than passing mention in banking texts, off-balance sheet items of banks now amount to trillions of dollars in the United States.negligible ：adj. 十分轻微的,可以忽视的,微不足到

5、的。amount to：（数量上）总计,达到。如果不考虑绝对数量,那么在考察商业银行的业务时我们就不仅仅要关注银行的资产负债表了。目前,美国商业银行的表外业务已经达数十亿美元。They include contingent claims that represent a variety of exposure across markets and credit risks-standby letters of credit, interest rate and currency swaps, note issuance facilities, options, foreign currenci

6、es, fixedand variablerate loan commitments, and futures and forward contracts on everything from Treasury bills to gold.表外业务指那些反映大量市场风险和信用风险的或有债权-如：备用信用证,利率及货币互换,票据发行便利,期权,外汇,固定和浮动利率贷款承诺,及从国库券到黄金的各种期货和远期合约。（近年来,金融市场最重要的发展就是期货、期权及相关衍生工具市场的成长。这些衍生工具为我们提供了取决于其他各类资产价值的支付手段,这些资产价值有商品价格、债权与股票的价格或市场指数值。由于这

7、一原因,这些工具有时被称为衍生资产(derivative assets)或或有债权(contingent claims)。它们的价值由其他资产的价值派生出来的,或由其他资产的潜在价值派生出来。）Balance sheet: 资产负债表Off-balance sheet: 表外业务Contingent claims: 或有债权, Contingent: dependent on something that is uncertain or that will happen in the future. 因情况而变的,视情况而定的。Contingency: 可能性,或有性Claim: a righ

8、t to have or get something such as land, a title that belongs to you. 权利,所有权。Contingent liability: possible future liabilities that are mentioned in notes added to a balance sheet. 或有负债。Exposure: 汉语常常把它翻译成揭发,暴露,如：skin cancer can be caused by prolonged exposure to the sun. 翻译成：长时间晒太阳（暴露在太阳下）可能会导致皮肤癌。

9、我们来看一下朗文词典对这一词的英语解释。to danger, means the state of being put into a situation that is harmful because you have no protection from something that is dangerous. 从英文解释我们可以看出这个词实际上可以理解为：处于某种危险状态。Exposure across market: 理解为：市场带来的风险。Loan commitments are among the largest components of the off-balance sheet

10、 items of banks.贷款承诺是商业银行表外业务的最主要成分之一。Also, when added together, off-balancesheet items exceed the banks total recorded assets.把表外业务加总,它将超过银行帐户上记录的资产的总额。This is a little misleading, however, since only some contingent claims impose a(contingent)liability on the bank, and this contingent liability is

11、 only a fraction of its outstanding contingent claims.Impose: impose sth on sb. 给某人带来某物。Outstanding: 未偿还的。Outstanding contingent claim: 未偿或有债权Outstanding loan: 未偿还的贷款然而,由于Some contingent claims impose a liability on the bank. 仅有一小部分的或有债权给银行带来了负债。This contingent liability is only a fraction of its ou

12、tstanding contingent claims. 而且这种或有负债只是银行未偿或有债权的一部分。This is misleading 所以人们往往对表外业务缺乏足够的认识。2. OBS banking refers to transactions that do not appear on the banks balance sheet, except possibly as footnotes. OBS items Can be divided into two groups：option-like contingent claimsand nonoption contingent

13、claims. Table 1 8-l shows the various items within each group. Any contingent claim involves a commitment on the part of the bank. According to Websters dictionary, a “commitment” is a promise to do something in the future. An option like contingent claim is a promise by the bank to settle in the fu

14、ture at pre specified terms and at the option of the holder of the commitment. Thus an option 1ike contingent claim imposes a contingent liability on the bank (the seller) and endows the buyer of the commitment with an option. In a competitive market for contingent claims. The bank should be paid a

15、fee at the time the contingent claim is sold that equals the value of the option contained in that claim. Nonoption contingent claims may also involve fees for the bank, but they do not necessarily impose acontingent liability on the bank because there is a symmetry in the obligations of the bank an

16、d the customer. Thus even though there is a future contingency that determines the settlement of the contract, it is not one that gives the customer all option. for example, a forward or futures contract is a nonoption contingent claim. OBS banking refers to transactions that do not appear on the ba

17、nks balance sheet, exceptpossibly as footnotes.表外业务(OBS)指那些不在银行的资产负债表上出现的(除去可能在脚注中出现的)交易。OBS items Can be divided into two groups：OBS可以分为两类：option-like contingent claims and nonoption contingent claims.带有选择权特征的或有债权和非选择权或有债权。Table 1 8-l shows the various items within each group.表18.1表示以上两类中包含的具体项目。An

18、y contingent claim involves a commitment on the part of the bank.任何或有债权都涉及银行的承诺。According to Websters dictionary, a“commitmentis a promise to do something in the future.根据韦氏大词典,“commitment”是在未来做某事的允诺。An optionlike contingent claim is a promise by the bank to settle in the future at prespecified term

19、s and at the option of the holder of the commitment.Prespecified: specify, to state sth in an exact and detailed way. 具体指明,明确的规定。Prespecified 指事先就具体指明的,明确规定好的。Settle：支付,偿还,结算。具有选择权特征的或有债权是银行做出承诺,即在未来按预先确定的条件,在持有者行使选择权时进行偿付的承诺。Thus. an option like contingent claim imposes a contingent liability on th

20、e bank(the seller)and endows the buyer of the commitment with an option.Endow: endow sb with sth赋予,给予某人某物因此,选择权性质的或有债权给银行(卖者)带来了或有负债而赋予了承诺购买者一种选择权。In a competitive market for contingent claims. the bank should be paid a fee at the time the contingent claim is sold that equals the value of the option

21、 contained in that claim.在或有债权的竞争性市场中,银行在出售或有债权的时候收取一定的费用,that指代的是fee, 该笔费用在数量上等于或有债权所含选择权的价值。Nonoption contingent claims may also involve fees for the bank, but they do not necessarily impose a contingent liability on the bank because there is a symmetry in the obligations of the bank and the custo

22、mer.非选择权或有债 权也可能涉及付给银行的费用,但这种债权不一定构成银行的或有负债,因为这种情况下银行 与其客户的义务是平衡的。Symmetry: exact likeness in size and shape between two sides of something. 对称性,平衡。Thus even though there is a future contingency that determines the settlement of the contract, it is not one that gives the customer all option.这样,尽管存在着

23、未来的或有性并决定着合同的最终履行,但却没 有给客户提供选择权。For example, a forward or futures contract is a nonoption contingent claim.例如,远期或期货合同就是非选择权或有债权3. Why has OBS banking grown so explosively in the 1970s and 1980s? It was during this period that interest rates and foreign exchange rates became increasingly volatile. Th

24、is increased volatility in financial and foreign exchange markets created a strong demand from corporations for financial risk management services, and banks found it profitable to provide these services. Thus German companies that once borrowed only in marks but derived income in other currencies f

25、rom their foreign operations were now helped by banks to control their foreign currency risk. Similarly, technology-intensive firms for whom unpredictable short-term revenues imposed severe constraints on research and development(R&D)budgets, approached banks that provided products designed to hedge

26、 overseas income and plan R&D over longer periods. The growth of OBS banking was a natural outcome of banks providing these risk management services.Why has OBS banking grown so explosively in the 1970s and 1980s? explosively : adv. Explosive:除了我们非常熟悉的爆炸性的意思之外,还表示数量或数字的激增,increasing suddenly or rapi

27、dly in amount or number. 因此,grown explosively理解为迅速的发展。这句话的意思是：为什么OBS业务在20世纪7080年代会有如此迅速的发展呢? It was during this period that interest rates and foreign exchange rates became increasingly volatile. 原因是在这一时间利率和汇率变得日益波动不稳。Increasingly: =more and more 越来越Volatile: a volatile situation means a situation i

28、s likely to change suddenly and without warning. 易变的,动荡不定的。This increased volatility in financial and foreign exchange markets created a strong demand fromcoorporations for financial risk management services, and banks found it profitable to providethese services金融和外汇市场日益增加的波动性创造出了公司对财务风险管理服务的大量需求,而

29、银行也发现提供这些服务具有丰厚的利润。Thus, German companies that once borrowed only in D-marks but derived income in other currencies from their foreign operations were now helped by banks to control their foreign currency risk.这样,曾经借入德国马克但是却在外汇交易中收入其他货币的德国公司,就可以在银行的帮助下控制其交易中的汇率风险。Similarly, technology-intensive firm

30、s for whom unpredictable short-term revenues imposed severe constraints on research and development(R&D)budgets, approached banks that provided products designed to hedge overseas income and plan R&D over longerperiods.整句的主体结构是：technology-intensive firms approached banks技术创新行公司接近银行。For whom后面告诉了公司有什

31、么样的问题,unpredictable short-term revenues imposed severe constraints on research and development(R&D)budgets, 不可预测的短期收入给研发预算带来很多限制,banks后面的that引导从句告诉我们银行可以提供的服务也就是解释了技术创新行公司technology-intensive firms为什么愿意接近银行。provided products designed to hedge overseas income and plan R&D over longer 提供为海外收入套期保值和为R&D

32、制定长期计划的金融产品, Hedge v. 作为动词,它本意就是规避风险的意思。作为金融术语我们把它理解为：reducing the risk of unfavorable movement in commodity or security prices, or exchange or interest rates, by way of future contracts. 通过远期和约来规避商品或证券价格,汇率及利率的变动所带来的风险。也就是我们汉语所说的套期保值。The growth of OBS banking was a natural outcome of banks providing these risk management services OBS业务的增长是银行提供此类风险管理服务的自然结果。4. A banks customer faces two main types of risks. The first is business risk. It may be routine. Such as that arising from unpredictable shifts in demand for the firms output. Or it may be strategic. Such as