Unit 11 INFLUENCES ON BANKING STANDARDS

1. Unit 11 INFLUENCES ON BANKING STANDARDS

2. Skills focus Listening • recognizing the speaker’s stance • writing up notes in full Speaking • building an argument in a seminar • agreeing/disagreeing • Vocabulary focus • words/phrases used to link ideas (moreover, as a result, etc.) • stress patterns in noun phrases and compounds • fixed phrases from academic English • words/phrases related to technological issues

4. A Look at the diagram on the opposite page. 11.1 Vocabulary 1 Name the factors. Economic Technological Political Globalization Ethical

5. A Look at the diagram on the opposite page. 11.1 Vocabulary 2 Discuss how the examples of each factor might influence banking.

6. A Look at the diagram on the opposite page. 11.1 Vocabulary 3 Give more examples of each factor. Possible answers: Technological factors • credit + smart cards • staff need new skills • new business model Globalization factors • different business norms and cultures • reduction of government controls • increased competition • growth of new economies • development of new/changing financial instruments • global organizations such as the World Bank and the United Nations • international conventions and agreements such as Basel I and Basel II

7. A Look at the diagram on the opposite page. 11.1 Vocabulary 3 Give more examples of each factor. Possible answers: Political factors • deregulation • privatization • control by governments Economic factors • economic/business cycle • taxes • changes in financial legislation, e.g., monetary controls

8. B Study the linking words in box a. 11.1 Vocabulary 1 Put them into two groups for: a discussing reasons and results b building an argument. 2 Is each linking word used to join ideas: a within a sentence? b between sentences? 3 Can you think of similar linking words? See Vocabulary bank.

9. Vocabulary bank Linking words We use linking words and phrases to join ideas together in a sequence, to show how the ideas are related. Some linking words can be used to join independent and dependent clauses in a sentence. Examples: Information technology has revolutionized banking operations because it has increased efficiency. OR Because it has increased efficiency, information technology has revolutionized banking operations.

10. Vocabulary bank Linking words Other linking words join sentences in a text. Example: Many banks cover payments from accounts with insufficient funds. As a result, the customer is charged a penalty rate. When building an argument, it is a good idea to use linking words to add points. Examples: Firstly, … Another point is … In addition, … … whereas … For example, … Secondly, … Moreover, … Finally, …

11. B Study the linking words in box a. 11.1 Vocabulary And another thing, between building an argument reasons and results between Consequently, reasons and results within as building an argument between Lastly, To begin with,To start with, For one thing, building an argument between building an argument between For instance,

12. B Study the linking words in box a. 11.1 Vocabulary Also, between building an argument between Furthermore, building an argument One consequence of this is …; Because of this, between reasons and results building an argument between Next, Then, as reasons and results within reasons and results between Therefore, Thus, Hence,

13. B Study the linking words in box a. 11.1 Vocabulary 4 Put the words in 1b in a suitable order to list points in support of an argument. making the major support point Firstly, supporting the point with a specific example For example, In addition, adding another related point in support Secondly, making the second major support point adding another related point in support Another point is … Moreover, adding more information to the point above Finally, making the last point

14. C Study the words in box b. 11.1 Vocabulary 1 Sort into three groups according to whether they are concerned with people, money or change. 2 In pairs, explain your decisions. 3 Are the words nouns, verbs or adjectives? What is their stress pattern? 4 What other words or phrases have the same meaning?

15. 11.1 Vocabulary C Study the words in box b. n, pl bank customers a'ccount 'holders people money v (T) 'charge require (payment) people n (U) con'sent agreement, permission money money needed n, pl funds money adj insuf'ficient inadequate change adv in'creasingly more and more v (I, T) keep 'track change monitor v (T) ma'nipulate change influence

16. 11.1 Vocabulary C Study the words in box b. organization that deals with complaints people n (C) 'ombudsman money n (C) 'penalty rate fine re'tain change v (T) keep change v (T) 'rethink alter , change

17. D Read the text on the right. 11.1 Vocabulary 1 Complete each space with a word or phrase from box a or box b. account holders In 2007, a large number of UK bank ________________ complained to the financial ___________ over penalty charges for going unexpectedly overdrawn. __________ , an inquiry was held by the Office of Fair Trading. In the past, banks stopped payments from accounts with _________funds, and charged the account owner a ‘bounced-cheque’ fee. However , payments today are __________ made as electronic transactions. ________ , instead of stopping payments from accounts with insufficient ______, banks cover the payment. _______________that the customer is provided with an unauthorized overdraft. The bank _______ a fee on every subsequent transaction until the account is in funds. ombudsman So/as a result insufficient increasingly So funds One result of this is charges

18. D Read the text on the right. 11.1 Vocabulary 1 Complete each space with a word or phrase from box a or box b. penalty rates The Consumer Federation of America (June 9, 2005) claims the _____________ on overdrawn accounts are unfair , _____ they are extremely high. __________ , in the United States banks can legally __________ the order in which they pay debt transactions. ____________ that the Federal Reserve does not consider overdraft fees as finance charges (which have to be disclosed). ___________, with an online account, the bank customer may see fees charged by the bank but no information on the basis for them. Regardless of how a bank decides to post transactions, customers should __________ of their account balance, ________ going into overdraft is their responsibility. However , it could be argued that the banks need to _______ this policy if they want to _______ their customers. ______, banks should obtain written ________ before providing an overdraft facility. _______, a warning system could be installed so that customers know when there are insufficient funds for an ATM withdrawal. _________, banks could allow time for cancelling the transaction. since Moreover manipulate Another point is For example keep track because rethink retain Firstly consent Secondly In addition

19. D Read the text on the right. 11.1 Vocabulary 2 Match the phrases below with a later phrase that refers back to them, as in the example. unexpectedly overdrawn banks cover the payment penalty rates Example: unexpectedly overdrawn – insufficient funds See Vocabulary bank.

20. Vocabulary bank Using words with similar meanings to refer back in a text It is a good idea to learn several words with similar or related meanings. We often build cohesion in a text by using different words to refer back to something previously mentioned. Examples:

21. D Read the text on the right. 11.1 Vocabulary 2 Match the phrases below with a later phrase that refers back to them, as in the example. customer is provided with an unauthorized overdraft overdraft fees

22. D Read the text on the right. 11.1 Vocabulary 3 Can you think of other words with the same meaning as the underlined words? exceeding credit balance inadequate without permission payments revealed reason duty service alerting stopping

23. E Do the quiz on the opposite page. 11.1 Vocabulary

24. E Do the quiz on the opposite page. 11.1 Vocabulary 1 ATM automated teller machine, used to dispense cash via debit cards. If a card and its PIN are stolen, cash can be withdrawn from a customer’s account. 2 biometrics a scientific technique for identifying an individual from his or her unique physical attributes 3 chip and PIN the use of a computer chip embedded in a credit or debit card, together with a Personal Identification Number, to verify the cardholder’s identity 4 firewall a means of controlling computer access to or from external networks

25. E Do the quiz on the opposite page. 11.1 Vocabulary 5 iris scan a technique which analyses the unique appearance of a person’s eye, in order to verify identity 6 keylogger spyware which records every keystroke to allow information to be transmitted to an unknown third party 7 smart card a card (generally the same size as a credit card) which can process electronic information 8 pharming infusing false information into a server so that users are directed to a fraudulent site

26. E Do the quiz on the opposite page. 11.1 Vocabulary 9 phishing sending an email that falsely claims to be from a legitimate source, to obtain private information for use in identity theft 10 proxy server web server which intercepts all requests to the real server 11 spyware software that gathers information (e.g., email addresses, passwords, credit card numbers) by monitoring user activity on the Internet 12 Trojan horse product unwittingly installed on a computer when the user installs something else

27. E Do the quiz on the opposite page. 11.1 Vocabulary 13 two-factor ID the use of two checks in order to verify someone’s identity 14 virus a program that can replicate itself and attack a computer without the knowledge of the user

28. A You are going to listen to a lecture by a guest speaker in the Banking faculty at Hadford University. Look at the poster on the right. 11.2 Listening 1 What is the lecture going to be about?

29. A You are going to listen to a lecture by a guest speaker in the Banking faculty at Hadford University. Look at the poster on the right. 11.2 Listening 2 Decide on how you are going to make notes. Prepare a page in your notebook. The lecturer is clearly going to list causes and effects. This suggests that possibly a flowchart or spidergram might be a suitable form of notes, as well as the Cornell system or the more conventional numbered points system.

30. B Listen to Part 1 of the lecture and make notes. 11.2 Listening 1 What is the focus of the lecturer’s talk? 2 What are the two main factors that the lecturer will discuss? 3 What examples of these factors does the lecturer give? 4 To which factor do the examples belong?

31. B Listen to Part 1 of the lecture and make notes. 11.2 Listening 1 What is the focus of the lecturer’s talk? the problems banks face in maintaining banking standards; the policies and procedures required to address these problems. 2 What are the two main factors that the lecturer will discuss? technological and globalization 3 What examples of these factors does the lecturer give? how to enforce compliance in different jurisdictions; dealing with a country whose business practices are dubious 4 To which factor do the examples belong? globalization 请将本单元的音频和此PPT放在一个单独的文件夹内，点击小喇叭即可播放音频。（下同）

32. C Listen to Part 2 of the lecture and make notes. 11.2 Listening

33. D Using your notes, answer the questions on the handout on the right. 11.2 Listening 1 What factor did the lecturer discuss first? technological factors 2 What examples of this factor did the lecturer mention? Internet banking; Internet fraud: phishing, pharming and spyware 3 What are two significant issues for banks? privacy and data protection 4 How might banks deal with these issues? client education programmes; recruiting staff with the appropriate technological expertise

34. D Using your notes, answer the questions on the handout on the right. 11.2 Listening 5 What was the topic of the Unisys and Gartner Research surveys? identity theft 6 What are the solutions proposed for dealing with ID theft? biometrics, two-factor ID, legal measures 7 How have economic factors affected banking standards? conflict-of-interest problems 8 What affected global financial markets in 2007? US sub-prime mortgage crisis

35. D Using your notes, answer the questions on the handout on the right. 11.2 Listening 9 Who provided loans to banks with insufficient liquidity? central banks, as lender of last resort 10 Name three important tools for banks in maintaining standards. a code of conduct; clearly set out departmental operating procedures; a clear ethics policy 11 What type of behaviour does the code of conduct cover? specific information for all staff on appropriate behaviour, e.g., accepting unsolicited gifts 12 How does an ethics policy differ from a code of conduct? An ethics policy focuses on relationships both within the bank and with the wider community. It is about risk and risk management.

36. E Refer to the model Cornell notes on page 105. 11.2 Listening 1 Check your answers with the model.

37. E Refer to the model Cornell notes on page 105. 11.2 Listening 2 Complete the Review and Summary sections of the Cornell notes.

38. F The lecturer talks about security against ID theft. 11.2 Listening 1 Is biometric data recommended? Possible answers: The lecturer expresses reservations about the effectiveness of biometrics, because of the quality of the technology that may be used.

39. F The lecturer talks about security against ID theft. 11.2 Listening 2 Listen again to part of the lecture. Which words tell us whether the information is fact or opinion? give a strong opinion support strongly the speaker’s opinion the lecturer’s opinion, but there is an assumption that it is shared by the listeners give both a speaker’s own opinion as well as an opposing view introduce a counter argument

40. G Study the phrases below. Which type of information below follows each phrase in box a? Listen to some sentences from the lecture. 11.2 Listening • restatement • definite point • summary of a source • example • statement of a topic • another point • tentative point • clarification • purpose for speaking

41. G Study the phrases below. Which type of information below follows each phrase in box a? Listen to some sentences from the lecture. 11.2 Listening restatement clarification clarification statement of a topic an example tentative point reference to a source tentative point reference to a source another point definite point a purpose for speaking

42. G Study the phrases below. Which type of information below follows each phrase in box a? Listen to some sentences from the lecture. 11.2 Listening restatement clarification clarification statement of a topic an example tentative point summary of a source tentative point summary of a source another point definite point a purpose for speaking

43. H Write out one section of your notes in complete sentences. 11.2 Listening See Skills bank.

44. Skills bank Writing out notes in full When making notes we use as few words as possible. This means that when we come to write up the notes, we need to pay attention to: • the use of symbols for words and ideas, e.g., Notes: Gartner research → ID theft (2003–6) ↑50% Gartner research into ID theft showed a 50% increase between 2003 and 2006. • making sure the grammatical words are put back in, e.g., Notes: information technology → revolutionized banking operations Information technology has revolutionized banking operations. • making the implied meanings clear, e.g., Notes: biometrics – quality/ cost? There are quality and cost issues relating to the use of biometrics.

45. A Study the phrases in box a. 1 Mark the stressed syllables in each phrase. 2 Listen and check your answers. 'bank se'curity 'business oppor'tunities com'puter 'hacking 'data pro'tection eco'nomic 'factors 'ethics 'policy globali'zation 'factors 'unsolicited 'gifts 11.3 Extending skills

46. A Study the phrases in box a. 3 Check that you understand the meanings. Which phrases have adjective + noun? Which word has the stronger stress in these phrases? Adjective + noun : unsolicited gifts, economic factors 11.3 Extending skills the heavier stress falls on the first word

47. B Look at the topics below. inadequate regulation and supervision; fraud; security 1 What would you like to know about these topics? 2 Prepare a page in your notebook to make some notes. 3 Listen to Part 3 of the lecture and make notes. If there is information which you miss, leave a space. 4 Compare your notes with someone else. Fill in any blank spaces. 11.3 Extending skills

48. C Answer the questions on the Hadford University handout, using your notes. 11.3 Extending skills

49. C Answer the questions on the Hadford University handout, using your notes. Model answers: 1 the development of new and changing financial instruments 2 technological, globalization, political (deregulation) 3 a reduction of government controls 4 sub-prime mortgages, US; BNI bank’s export loans, Indonesia; fraud and bribery at Bank Bali 5 feeble regulation and supervision; mismatch between assets and liabilities; wasteful investment; inadequate bank regulations; corruption 11.3 Extending skills

50. C Answer the questions on the Hadford University handout, using your notes. Model answers: 6 to prevent fraudulent activity, especially in operations located in foreign jurisdictions 7 implement robust financial controls; improve security, particularly Internet security; provide total security of all data; invest in IT personnel knowledgeable in the latest technology and bank security threats; establish a comprehensive ethics policy and high banking standards to guide Employees 11.3 Extending skills