Bài giảng tiếng anh chuyên ngành bf10 Đại học mở hà nội

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<b>LESSON 1:THE RATE OF EXCHANGE </b>

Hello everybody, welcome to English for Banking and Finance. Iam Nguyen Thi Quy from Faculty of Banking and Finance, Hanoi open university.

<b>THE PURPOSES OF THE PROGRAMME </b>

1. to enrich your specialized vocabulary for terms, essential words and phrases in finance and banking.

2. to improve your reading and translation skills.

3. to revise and consolidate theoretical knowledge related to your major.

Lesson 4: commercial banks

Lesson 5: international payment and Lesson 6: trade finance.

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by Bach Thanh Minh, Ng thi thanh Yen, Thanh Nien publisher, 2007, the book english for banking and finance by many authors, Thong ke publisher, 2008.

I do hope that you will be great successful in this program.

<b>Now, let's start with the lesson 1: The rate of exchange </b>

<b>OBJECTIVES </b>

After this lesson, you will be able to

1. Understand the overview of exchange rates, determinants of exchange rates and exchange rate intervention.

2. Also Improve vocabularies of the exchange rates and translation skill with doing some further practice exercises.

<b>STUDENT’S TASKS </b>

In order to understand this lesson, you need to recall your Vietnamese knowledge of exchange rates

<b>REFERENCES </b>

<b>For your reference, You can read </b>

- chapter 1 of the book English for Banking and finance by M.A Pham thi Bich Diep, HOU

- chapter 2,3,4 of the book Bank , stocking english by Bach Thanh Minh, Nguyen thi thanh Yen, Thanh Nien publisher, 2007

- Unit 6 of the book english for banking and finance by many authors, Thong ke publisher, 2008

<b>Main contents </b>

In this lesson, we will focus on 3 points including an overview of exchange rate, determinants of exchange rates and exchange rate intervention.

<b>I. An overview of exchange rates </b>

<i>Now, let's start with the first part: An overview of exchange rates with some </i>

definitions of the exchange rates.

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<b>1. Definition: </b>

T. P Fitch (1997:169) presents the notion as ‘Exchange rate is conversion price for exchange one currency for another’ while P. Collin (1996:87) states that ‘Rate of exchange or exchange rate is price at which one currency is exchanged for another’. Another author defines the term of exchange rate as ‘the price of one currency in terms of another’, K. Pibean, (2006:4).

Based on Eitenam (2007:21) exchange rate means the price of one country’s currency in units of another currency or commodity (typically gold or silver). Finally, in a recent publication, Mishkin (2009:433) states that the price of one currency in terms of another is called the exchange rate’.

<b>2. Classification of exchange rates </b>

Next, classification of exchange rates are clarified with a fixed exchange rate, a floating or fluctuating exchange rate and managed float rate. Regarding to a fixed exchange rate, In a fixed exchange rate system, the monetary authority picks rates of exchange with each other currency and commits to adjusting the money supply, restricting exchange transactions and adjusting other variables to ensure that the exchange rates do not move

In terms of A floating or fluctuating exchange rate: It is a type of exchange rate regime wherein a currency’s value is allowed to fluctuate according to the foreign exchange market. A currency that uses a floating exchange rate is known as a floating currency.

With a managed float rate, Since central banks frequently intervene to avoid excessive appreciation or depreciation, these regimes are often called

<i>managed float. Managed float exchange rates are determined in the foreign </i>

exchange market.

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<b>3. Economic rationale </b>

<i><b>3.1 Choice of an exchange-rate regime </b></i>

Economic rationale will be provided with the Choice of an exchange-rate regime

There are economists who think that, in most circumstances, floating exchange rates are preferable to fixed exchange rates.

However, in certain situations, fixed exchange rates may be preferable for their greater stability and certainty

The debate of making a choice between fixed and floating exchange rate regimes is set forth by the Mundell–Fleming model which argues that an economy cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy. It can choose any two for control, and leave the third to market forces.

For this reason, emerging countries appear to face greater fear of floating, as they have much smaller variations of the nominal exchange rate, yet face bigger shocks and interest rate and reserve movements.

<b>II. Determinants of exchange rates</b>

Secondly,Determinants of exchange rates include Review of theories, Factors influencing the supply and demand of a currency.

<b>1. Review of theories </b>

With Review of theories,

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The following theories explain the fluctuations in exchange rates in a floating exchange rate regime, (in a fixed exchange rate regime, rates are decided by its government).

International parity conditions: These include relative purchasing power parity, interest rate parity, domestic fisher effect, international fisher effect have been taken into account.

Balance of payment model: This model, however, focuses largely on tradable goods and services, ignoring the increasing role of global capital flows.

Asset market model: This views currencies as an important asset class for constructing investment portfolios. Assets prices are influenced mostly by people’s willingness to hold the existing quantities of assets, which in turn depends on their expectations on the future worth of these assets.

<b>2. Factors influencing the supply and demand of a currency </b>

There are some Factors influencing the supply and demand of a currency

<i><b>2.1. Economic factors </b></i>

The first factor is Economic factors

Economic policy: This comprises government fiscal policy (budget/spending practices) and monetary policy

Economic conditions: Government budget deficits or surpluses, balance of trade levels and trends, inflation levels and trends, economic growth and health, productivity of an economy.

<i><b>2.2. Political conditions </b></i>

The second factor is Political conditions:

Internal, regional, and international political conditions and events can have a profound effect on currency markets. All exchange rates are susceptible to political instability and anticipations about the new ruling party. Events in one country in a region may spur positive/negative interest in a neighboring country and, in the process, affect its currency.

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<i><b>2.3. Market psychology </b></i>

Last but not least, Market psychology

Market psychology and trader perceptions influence the foreign exchange market in a variety of ways: flights to quality, long-term trends, “buy the rumor, sell the fact”, economic numbers, technical trading considerations.

<b>III. Exchange rate intervention </b>

It is necessary to talk about EXCHANGE RATE INTERVENTION with direct instruments and indirect instruments:

<b>1. Direct instruments </b>

These comprise devaluation the measure is intended to make the currency depreciated, revaluation/upvaluation which results in currency appreciation and direct intervention on the forex market, namely via the open market operation.

<b>2. Indirect instruments </b>

These include a number of measures. Particularly, the practice of the rediscount rate and the introduction of tariff, quota, pricing, required foreign reserves, low interest rates on foreign currency deposits, etc., are popular.

<b>Summary </b>

Our lesson today is finished now, let's summarize what we have learnt

In this lesson, you have studied about some terms of the rate of exchange . Concerning the exchange rate regime, three basic types, namely float, fixed and managed float rates, are normally listed though the most popular one is the managed float rate.

* The exchange rate can exert great influence on aspects of the economy and it is, in turn, influenced by various factors, particularly economic, political conditions and the market psychology.

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* Also, the exchange rate can be regulated by both direct and indirect instruments implemented by the government.

I do hope that you understand the lesson thoroughly

In order to revise what you have learnt, a FURTHER PRACTICE part will be provided for your further understanding with full answer key for each exercise. I hope you will complete all exercises well. Good bye and see you again in the next lesson.

<i>Good luck to all of you! </i>

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<b>LESSON 2: THE FOREIGN EXCHANGE MARKET </b>

Hello everybody, did you complete all previous exercises successfully? today, we continue to study with lesson 2

<b>OBJECTIVES: </b>

After this lesson, you will be able to

1. Understand the overview of the foreign exchange market, the roles of the foreign exchange market, the forex market features and benefits of forex trading forms and the forex market participants. 2. Also, improve your vocabularies of the foreign exchange market and

translation skill with doing some further practice exercises.

<b>STUDENT’S TASKS: </b>

In order to understand this lesson, you need to recall your Vietnamese knowledge of foreign exchange market.

<b>REFERENCES: </b>

For your reference, You can read:

- chapter 2 of the book English for Banking and finance by M.A Pham thi Bich Diep, HOU

- unit 9,10,11,17 and 18 of the book: english for finance by Cao Xuan Thieu, Tai chinh publisher, 2008.

- Unit 1 of the book english for banking and finance by many authors, Thong ke publisher, 2008

<b>Main contents </b>

In this lesson, we will focus on 4 points including an overview of the foreign exchange market, the roles of the foreign exchange market, the forex market features and benefits of forex trading forms and the forex market participants.

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<b>I. An overview of the foreign exchange market 1. The concept of foreign exchange </b>

<i>Now, let's start with the first part: An overview of the foreign exchange </i>

market with the concept of foreign exchange:

- The foreign exchange comprises financial assets used in international transactions:such as (i) a foreign currency, namely coins, notes, traveler’s cheque, credit in bank accounts and other forms used as money; (ii) documents valuated in a foreign currency, gold of international standard and a domestic currency held by non-residents; (iii) foreign currencies.

<b>2. Description of the foreign exchange market </b>

Regarding to the Description of the foreign exchange market

• The foreign exchange market, commonly referred as forex, FX, or currency market, is a form of exchange for the global decentralized trading of international currencies.

• The foreign exchange market determines the relative values of different currencies.

• It is the market for banks, investors and speculators to exchange one currency to another, and the largest foreign exchange activity retains the spot exchange between five major currencies: US dollar, British pound, Japanese yen, Euro dollar and the Swiss franc.

• The foreign exchange market is considered an over-the-counter (OTC) or ‘Interbank’ market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.

• Until now, professional traders from major international commercial and investment banks have dominated the foreign exchange market. • Other market participants range from large multinational

corporations, global money managers, registered dealers,

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international money brokers, and futures and options traders, to private speculators.

<b>II.The roles of the foreign exchange market </b>

Secondly, The roles of the foreign exchange market

• The foreign exchange market plays an indispensable part in the market economy. First and foremost, the foreign exchange market assists international trade and investment by enabling currency conversion.

• Also, corporate treasurers and money managers also enter the foreign change market in order to hedge against unwanted exposure to future price movements in the currency market.

• Last but not least, foreign currency transactions play a primary role in the regulation of the exchange rate. Governments can introduce interventions on the foreign exchange market so as to implement their monetary policies, piloting the economy on their expected macro scale.

<b>III. The forex market features and benefits of forex trading forms </b>

Thirdly,The forex market features and benefits of forex trading forms There are some forex market features

• Its huge trading volume representing the largest asset class in the world leading to high liquidity.

• Its geographical dispersion.

• Its continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 Greenwich mean time (GMT) on Sunday until 22:00 GMT Friday.

• The variety of factors that affect exchange rates.

• The low margins of relative profit compared with other markets of fixed income

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• The use of leverage to enhance profit and loss margins and with respect to account size.

<b>2. The benefits of forex trading forms </b>

<i><b>2.1 Benefits of trading forex on the Internet </b></i>

Talking about The benefits of forex trading forms, there are two types of benefits including Benefits of trading forex on the Internet and Benefits of forex trading vs. equity trading

First, Benefits of trading forex on the Internet

• Dealing directly from live price quotes: very few on-line brokers are able to offer their clients real-time bid/ask quotes, which facilitates instantaneous deal execution – no missed market opportunities. • Instantaneous trade execution and confirmation: Timing is

everything in the fast-paced forex market. On-line trades are executed and confirmed within seconds, which ensures that traders do not miss market opportunities.

• Lower transaction costs: Simply, executing trades electronically reduces manual effort, thereby lowering the costs of doing business. On-line brokers are then able to pass along the savings to their client base.

• Real-time profit and loss analysis: The fast-paced nature of the forex market compels traders to execute multiple trades each day. It is vital for each client to have real-time information about their current position in order to make well-informed trading decisions.

• Full access to market information: Access to timely and relevant information is critical. Professional traders pay thousands of dollars each month for access to major information providers.

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<i><b>2.2 Benefits of forex trading vs. equity trading </b></i>

Second, Benefits of forex trading vs. equity trading

• 24-hour trading: The main advantage of the forex market over the stock market and other exchange-traded instruments is that the forex market is a true 24-hour market.

• Liquidity: with a daily trading volume that is 50 times larger than the New York Stock Exchange, there are always broker/dealers willing to buy or sell currencies in the forex markets.

The liquidity of this market, especially that of the major currencies, helps ensure price stability. Investors can always open or close a position, and more importantly, receive a fair market price.

• Lower transaction costs: It is much more cost efficient to invest in the forex market, in terms of both commissions and transaction fees. In general, the width of the spread in a forex transaction is less than 1/10 as wide as a stock transaction, which typically includes a 1/8 wide bid/ask spread.

• Equal access to market information: professional traders and analysts in the equity market have a definitive competitive advantage by virtue of that fact that they have first access to important corporate information

• Profit potential in both rising and falling markets: in every open forex position, an investor is long in one currency and short in the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate.

<b>IV.The forex market participants 1. Central banks </b>

Now, I will continue to present The forex market participants The First participant is Central banks

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• The national central banks play an important role in the forex markets. Ultimately, central banks seek to control the money supply and often have official or unofficial target rates for their currencies. • As many central banks have very substantial foreign exchange

reserves, their intervention power is significant. Among the most important responsibilities of a central bank is the restoration of an orderly market in times of excessive exchange rate volatility and the control of the inflationary impact of a weakening currency.

<b>2. Other banks </b>

The second participant is Other banks

• The interbank market caters to both the majority of commercial turnover as well as enormous amounts of speculative trading.

• The interbank market has become increasingly competitive in the last couple of years and the god-like status of top foreign exchange traders has suffered as equity traders are again back in charge.

• A large part of the banks’ trading with each other is taking place on electronic booking systems that have negatively affected traditional foreign exchange brokers.

<b>3. Interbank brokers </b>

The third one is Interbank brokers

• Until recently, foreign exchange brokers were doing large amounts of business, facilitating interbank trading and matching anonymous counterparts for comparatively small fees.

• The traditional broker box, which lets bank traders and brokers hear market prices, is still seen in most trading rooms, but turnover is noticeably smaller than just a few years ago due to increased use of electronic booking systems.

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<b>4. Commercial companies </b>

The forth one is Commercial companies

• The commercial companies’ international trade exposure is the backbone of the foreign exchange markets.

• Commercial companies often trade in sizes that are insignificant to short term market moves, however, as the main currency markets can quite easily absorb hundreds of millions of dollars without any big impact.

<b>5. Retail brokers </b>

The fifth participant is Retail brokers

• The arrival of the Internet has brought us a host of retail brokers. There is a numbered amount of these non-bank brokers offering foreign exchange dealing platforms, analysis, and strategic advice to retail customers.

<b>6. Hedge funds </b>

The sixth one is Hedge funds

• Hedge funds have gained a reputation for aggressive currency speculation in recent years. There is no doubt that with the increasing amount of money some of these investment vehicles have under management, the size and liquidity of foreign exchange markets is very appealing.

<b>7. Investors and speculators </b>

The last participant is Investors and speculators

• In all efficient markets, the speculator has an important role taking over the risks that a commercial participant hedges. The boundaries of speculation in the foreign exchange market are unclear, because many of the above mentioned players also have speculative interests, even central banks

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<b>Summary </b>

Our lesson today is finished now, let's summarize what we have learnt In this lesson, you have studied that The forex market enables transactions related to foreign currencies and their equivalents to be conducted, satisfying the needs of governments, organizations, institutions and individuals.

*The forex market has its distinctive features in comparison with other financial markets.

* A numbers of participants among whom the central banks, commercial banks non-banking institutions and brokers are prominent ones play their part in the forex market.

• I do hope that you understand the lesson thoroughly.

• In order to revise what you have learnt, a FURTHER PRACTICE part will be provided for your further understanding with full answer key for each exercise.I hope you will complete all exercises well. Good bye and see you again in the next lesson.

<i>Good luck to all of you! </i>

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<b>LESSON 3: BALANCE OF PAYMENTS </b>

Hello everybody, did you complete all previous lessons successfully? today, we continue to study with lesson 3:BALANCE OF PAYMENTS

<b>OBJECTIVES: </b>

After this lesson, you will be able to

1. Understand the overview of balance of payment, principles in the compilation of the balance- of- payment statement, components of balance of payments.

2. Also Improve vocabularies of the balance of payment and translation skill with doing some further practice exercises.

<b>STUDENT’S TASKS: </b>

In order to understand this lesson, you need to recall your Vietnamese knowledge of balance of payments.

<b>REFERENCES: </b>

For your reference, You can read

- chapter 3 of the book English for Banking and finance by M.A Pham thi bich Diep, HOU

- unit 42 of the book: english for finance by Cao Xuan Thieu, Tai chinh publisher, 2008.

- chapter 4 of the book Bank , stocking english by Bach Thanh Minh, Nguyen thi thanh Yen, Thanh Nien publisher, 2007

<b>Main contents </b>

In this lesson, we will focus on 3 points including an overview of balance of payment, principals in the compilation of the balance of payment statement and components of balance of payments.

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<b>I. An overview of balance of payment 1. Definitions </b>

<i>Now, let's start with the first part: An overview of balance of payment </i>

with the Definitions

The balance of payments (BOP) is a statistical statement that systematically summarizes, for a specific time period, the economic transactions of an economy with the rest of the world.Transactions, for the most part, between residents and nonresidents, consist of those involving goods, services, and income; those involving financial claims on, and liabilities to, the rest of the world; and those (such as gifts) classified as transfers, which involve offsetting entries to balance, in an accounting sense, one-sided transactions, IMF (1996:7).

<i><b>2. The roles of balance of payments </b></i>

Regarding The roles of balance of payments

• The balance of payments plays an important role in the balance system of countries as its condition exerts great impacts on changes in the exchange rate, forex, foreign trade, BOP and the economy as a whole. • The BOP serves as an instrument governments and public institutions

make use of to regulate external relations on the macro scale so as to ensure economic stability and protect the domestic economy from negative influences international crises may result in.

<b>II. Principles in the conpilation of the balance- of- payment statement </b>

There are some. Principles in the conpilation of the balance- of- payment statement

• Firstly, The balance of payments is a statistical statement structured in systematic fashion; data in the statement are presented according to specific accounting rules. The basic accounting convention for a BOP statement is that every recorded transaction is represented by two

<i>entries with exactly equal values. </i>

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• Secondly, Under the conventions of the system, the compiling economy records credit entries for (i) exports of goods, provision of services, provision of the factors of production to another economy and (ii) financial items reflecting a reduction in the economy’s external assets or an increase in external liabilities.

• the compiling economy records debit entries for (i) imports of goods, acquisition of services, use of production factors provided by another economy and (ii) financial items reflecting an increase in assets or a decrease in liabilities.

<b>III. Components of balance of payments 1. Current account </b>

<i><b>1.1 Trade balance </b></i>

Components of balance of payments include current account and capital and financial with

Current account

We need to analyzeTrade balance

• The balance of trade encompasses the activity of exports and imports. The balance of trade forms part of the current account, which includes other transactions such as income from the international investment position as well as international aid.

• If the current account is in surplus, the country’s net international asset position increases correspondingly. Equally, a deficit decreases the net international asset position.

• The trade balance is identical to the difference between a country’s output and its domestic demand.

• Measuring the balance of trade can be problematic because of problems with recording and collecting data.

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• Factors that can affect the balance of trade including the cost of production in the exporting economy; the cost and availability of raw materials, intermediate goods and other inputs; exchange rate movements; multilateral, bilateral and unilateral taxes or restrictions on trade; non-tariff barriers such as environmental, health or safety standards; the availability of adequate foreign exchange with which to pay for imports; prices of goods manufactured at home.

<i><b>1.2 Goods, services and incomes </b></i>

With regard to Goods, services and incomes

• The standard components covering goods, services, and income are designed to reflect the provision or acquisition of real resources by the reporting economy to or from the rest of the world.

• Flows recorded as credits measure that portion of the reporting economy’s domestic product provided to other economies, exports of goods and services, as well as the reporting economy’s factors of production used in the productive process in the rest of the world.

• Flows recorded as debits measure acquisition of the rest of the world’s domestic product including imports of goods and services in the reporting economy’s balance of payments

• According to the BPM, transactions in goods, services, and income should be presented on a gross basis; that is, debit entries are shown separately from credit entries.

• Effective compilation of data on goods, services, and income for the balance of payments requires classification as well as definition.

• However, the balance of payments would become most unwieldy if every commodity traded, every service performed, and every type of income receivable were listed as separate components.

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• Goods, services, and income must therefore be classified – that is, grouped into categories containing items that behave similarly in response to a particular stimulus.

• Transactions typically recorded together in source data may have to be classified in the same standard component.

• The components cover three types of transactions: changes in ownership – which can be legal or imputed – of goods, performance of services, and accrual of income.

• Whereas goods and services are outputs of the process of production, transactions involving use of the factors of production can only be inputs for the production process.

<i>Transfers are classified as current or capital. </i>

<i>• Current transfersoffset the provision of real or financial resources that </i>

are immediately consumed or those that are consumed shortly after the transfer is made.

• The relationship between current transfersand consumption is the basis for including them in the current account.

<b>2. Capital and financial account </b>

<i><b>2.1 Capital account </b></i>

The second components of balance of payment is Capital and financial account

With Capital account

• The capital account, which is a subdivision of the capital and financial

<i>account, includes an economy’s transactions with nonresidents in </i>

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<i>non-produced, nonfinancial assets such as patents, copyrights, and licenses and in capital transfers. </i>

• These transactions are separated from transactions recorded in the current account because capital account transactions are not directly related to the processes of production and consumption.

• The capital account of the balance of payments is synonymous with the capital account of the national accounts. Gross credit and gross debit entries should be shown separately for capital account transactions.

<i>• Offsets to transactions in capital transfers can be recorded in the </i>

current account or in the capital or financial components of the capital and financial account.

<i>• A transfer is classified as capital if the transfer involves the provision </i>

of a capital asset or if the transfer involves the provision of a financial asset and that financial asset is linked to the acquisition or disposal of a capital asset.

• A capital asset is any nonfinancial asset that can produce a stream of services over time. For example, aircraft are capital assets because aircraft can provide passenger services for many years.

<i><b>2.2 Financial account </b></i>

In terms of Financial account

• Transactions in the compiling economy’s financial assets and liabilities are recorded in the financial account, which is a subdivision of the capital and financial account.

• The financial account shows how an economy’s BOP transactions are financed.

• If an economy’s savings exceed its investment, the surplus must be reflected in net financial outflow or net financial investment in the rest of the world.

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• This financial outflow finances, in turn, the acquisition of nonfinancial resources by other economies.

• Financial account transactions are classified by (i) functional type of

<i>investment (direct investment, portfolio investment, other investment, and reserve assets); (ii) assets and liabilities or, in the case of direct investment, direction of investment; (iii) type of instrument (for </i>

example, equity, debt securities, and loans); and, in some cases, by (iv) domestic sector and (v) original contractual maturity.

• Users of BOP statistics are generally interested in net, rather than gross, financial account transactions. For this reason, it is recommended in the

<i>BPM that – for the most part – financial account items be shown as net </i>

credit (financial inflow) or net debit (financial outflow) entries.

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<b>Summary </b>

Our lesson today is finished now, let's summarize what we have learnt

In this lesson, you have studied that The balance of payments are the comparisons of a nation’s incoming and out-going capital concerning transactions with other countries within a particular period of time.

*Techniques of BOP analysis are largely based on the double entry recording system of BOP statements. BOP analysis identifies and groups transactions that are autonomous.

*Important components in the balance of payments consist of current account, capital and financial account. Balance, surplus and deficit are three indicators listed in the BOP states.

I do hope that you understand the lesson thoroughly.

• In order to revise what you have learnt, a FURTHER PRACTICE part will be provided for your further understanding with full answer key for each exercise.I hope you will complete all exercises well. Good bye and see you again in the next lesson.

<i>Good luck to all of you! </i>

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<b>LESSON 4: COMMERCIAL BANKS </b>

Hello everybody, today, we continue to study the program of english for banking and finance with lesson 4:COMMERCIAL BANKS

<b>OBJECTIVES: </b>

After this lesson, you will be able to

1. Understand the definitions, the roles of commercial banks, commercial banks’ functions and the scope available, commercial bank services, types of loans granted by commercial banks, commercial bank assets.

2. Also Improve your vocabularies of the commercial banks and translation skill with doing some further practice exercises.

<b>STUDENT’S TASKS: </b>

In order to understand this lesson, you need to recall your Vietnamese knowledge of commercial banks.

<b>REFERENCES: </b>

For your reference, You can read

- chapter 4 of the book English for Banking and finance by M.A Pham thi bich Diep, HOU

- unit 7 of the book english for banking and finance by many authors, Thong ke publisher, 2008

- chapter 11 of the book Bank , stocking english by Bach Thanh Minh, Nguyen thi thanh Yen, Thanh Nien publisher, 2007

<b>Main contents </b>

In this lesson, we will focus on 6 points including definitions, the roles of commercial banks, commercial banks’ functions and the scope available, commercial bank services, types of loans granted by commercial banks and commercial bank assets.

<b>I. Definitions </b>

<i>Now, let's start with the first part: Definitions of commercial banks: </i>

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