home Loans Analysis and evaluation of deposit (deposit) operations. Assessment of bank deposit operations Value of the indicator by quarter of the year

Analysis and evaluation of deposit (deposit) operations. Assessment of bank deposit operations Value of the indicator by quarter of the year

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Evaluation of deposit and credit operations of a commercial bank

Page 1

The bank represents a wide range banking services organizations of all sectors of the economy, large, small and medium-sized enterprises

The bank takes into account the specifics of each client’s activity and provides financial services taking into account his needs - for the successful conduct and development of business. The basic principle in working with corporate clients– effective solutions, the latest technologies, individual approach, high standards of service. Experience and professionalism in its work allowed the bank to win the trust of more than 30 thousand organizations and companies.

Bank clients have the opportunity to place available funds on favorable terms for business: individual terms of placement; flexible rates; guarantee of safety of funds and secrecy of deposits; receiving income from storage on deposit Money.

In order to promote the development of business relations between the bank and clients, and increase customer loyalty to the bank, since 2005 the bank has been holding the “Best Client” competition among legal entities. In order to identify the share of deposits from legal entities, it is advisable to analyze the structure of the bank's deposits. (Table 2.2.1) The share of deposits from legal entities is clearly shown in Appendix 2.

Table 2.2.1. Share of deposit investments from legal entities in the total structure of raised funds from 01.01. 2008 to 01/01/2010

Index				Deviations 2008–2009	Deviations 2009–2010
Index	Amount, thousand rubles.	Amount, thousand rubles.	Amount, thousand rubles.	abs., thousand rub.	abs., thousand rub.

State deposits
Deposits of legal entities
Deposits of individuals

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Performance Analysis deposit operations commercial bank

Analysis of the effectiveness of deposits takes place in four stages.

At the first stage, it is necessary to consider the composition, structure and dynamics of funds in the balance of deposits, as well as their crediting and withdrawal.

There are two types of analysis - horizontal and vertical, they can be carried out according to the following criteria:

by the term of the deposit;
by type of deposit currency;
by type of depositor;
according to the deposit form.

The second stage involves assessing the cash flow in the deposit. The purpose of the analysis is to substantiate management decisions that are aimed at increasing the efficiency of using clients' deposit funds.

The third stage of the analysis is necessary to study the influence of factors on the dynamics of changes in the amount of interest expenses on deposit transactions. This is necessary because the attraction of funds to the deposit is carried out in conjunction with the payment of interest to the depositor.

To make such calculations, the formula is used:

$P = (O · St) / 100$, where:

P - interest expenses, million rubles;
ABOUT - average balances of funds in deposits, million rubles;
St – deposit interest rate, interest.

The efficiency of using deposit funds is assessed at the fourth stage.

Note 1

The goal of deposit policy is to attract as much money as possible into deposits for their further issuance in the form of loans. Therefore, to evaluate efficiency, it is necessary to compare the indicators of funds invested in the bank (deposits) with the indicators of funds issued by the bank (loans).

The formula for calculating the efficiency of using deposit funds is as follows:

$Kef = VC / KR$, where:

VC - total amount of deposits, million rubles;
KR – total amount of loans issued, million rubles.

This indicator characterizes the entire amount of deposits per ruble of funds in the form of a loan.

Note 2

The main goal of analyzing the deposit operations of a commercial bank is to substantiate strategic and tactical management decisions, the task of which is to increase the level of efficiency in the use of funds in deposits.

Evaluation of deposit transactions

An assessment of deposit policy and deposit operations allows a commercial bank to:

Establish monitoring of the implementation of goals, objectives, as well as the basic principles of the deposit policy of a commercial bank;
Assess the need to use a variety of ways to attract funds into deposits;
Carry out a check based on analysis deposit portfolio, as well as evaluate the deposit portfolio for the presence of an expanded line of products, and subsequently assess the level of stability and efficiency of the portfolio;
Assess the bank’s need to attract deposits and establish their volume;
Rate level effective use deposit resources;
Assess the need to maintain the existing or form a new deposit policy.

As with the analysis of deposit policy, the assessment of deposit policy is also carried out in stages. Let's consider the main stages of assessing deposit operations:

The first stage is an assessment of methods for organizing deposit policy. At this stage it is necessary to identify the presence of:

deposit policy document;
internal bank regulations on customer deposits;
specialized units focused on participation in the analysis of deposit policy;
an information database that allows you to evaluate the effectiveness of depository activities;
the results of this stage are in documentary form, reflecting the main shortcomings of deposit activities and methods for eliminating them.

The second stage is the analysis of the deposit portfolio. The purpose of this stage is to collect and summarize data relating to the bank’s depository activities, determine compliance with declared and implemented plans, etc.

This analysis covers the following areas of the bank’s activities:

Resource base;
Funds in bank liabilities;
Analysis of clients by their segments;
Deposit portfolio stability analysis,
And so on.

The third stage is assessing the sufficient level of attracted resources. Here we evaluate how sufficient the level of funds raised is. The assessment involves monitoring the implementation of the plan regarding the indicators of attracted resources.

The fourth stage is assessing the effectiveness of the bank’s use of deposit funds. Efficiency assessment is carried out based on the requirements that deposit resources must have:

dependence of factors that influence the profitability of the bank;
interdependence of deposit funds and areas of conduct active operations jar;
the need to use most of the deposit resources in active operations that generate income.

The fifth stage is adjusting the deposit policy. At this stage, the commercial bank needs to decide whether to leave the existing deposit policy, adjust it, or completely replace it with a new one.

Note 3

The process of assessing deposit policy allows a bank to evaluate the consistency of plans with the actual results of its depository activities.

Formation of sources financial resources, that is, liabilities, is one of the basic goals of the bank. To solve it successfully, a commercial bank must have sufficient own resources, as well as attract funds from various sources. The main objectives of a commercial bank in this area are: attracting as large sums of cheap and reliable resources as possible and maintaining an optimal ratio between the size of its own and borrowed funds.

The purpose of analyzing a bank's deposit (deposit) operations is to substantiate optimal strategic and tactical management decisions aimed at increasing the efficiency of using funds in deposits.

The following main stages are identified in the methodology for analyzing bank deposit (deposit) operations.

At the first stage of the analysis, it is necessary to study the composition, structure and dynamics of deposit balances, their inflow and outflow. Horizontal and vertical analysis of funds in deposits can be carried out:

By terms of placement of deposits (term, on demand);

By type of currency ( National currency, currencies of other foreign countries);

By type of depositor ( individuals, legal entities);

By type of deposit (cash, securities) .

At the second stage of the analysis, the movement of funds in deposits is assessed. For this purpose, it is proposed to calculate the following indicators presented in Table 1.2.

Table 1.2 - Methodology for calculating indicators of the movement of funds in deposits

Indicators	Calculation method	Economic interpretation
1. Coefficient of deposit of received funds on deposit accounts	The ratio of the difference between the balances of funds in deposits at the end and beginning of the reporting period to the turnover upon their receipt	Characterizes the amount of increase in the balance of funds in deposits per one ruble of their receipt
2. Coefficient of influx of funds into deposits	The ratio of the difference between the balances of funds in deposits at the end and beginning of the reporting period to the balance of funds in deposits at the beginning of the reporting period	Characterizes the amount of inflow of deposits per one ruble of cash balances in deposit accounts at the beginning of the reporting period
3. Average shelf life of a deposited ruble	The ratio of average balances of funds in deposits to the one-day turnover upon their disposal	Characterizes the average period of storage of funds in deposits in a bank

These indicators are calculated both for the bank (branch, branch) as a whole, and by types of deposits, by terms of their placement, by types of currencies and types of depositors.

The study of the considered indicators in dynamics should be supplemented by factor analysis, which makes it possible to assess the reasons for their changes and determine the reserves for their optimization.

At the third stage of the analysis of the bank's deposit operations, it is necessary to study the influence of factors on the change in the amount of interest expenses on the bank's deposit operations, since attracting funds to deposits is associated with the payment of interest to depositors.

The efficiency of banks and the problems of its assessment constantly attract close attention of both scientists and practitioners. This interest is caused, first of all, by the need to attract investments that will ensure the growth of banks’ equity capital, their credit potential, that is, they will increase the possibilities of lending by banks real sector the country's economy and maintaining enterprises in this sector in the sphere of national interests in order to avoid control by foreign capital.

The profitability of a bank deposit is its most significant characteristic, which attracts the bulk of depositors. Bank deposit is considered as the most affordable and effective way not only to reliably preserve, but also to increase savings.

Particular attention in the research process should be paid to determining the level of profitability of various types of deposit products and the level of their risk, which as a result constitutes a qualitative assessment of the bank’s deposit activities.

Profitability is characterized by absolute (the amount of income in monetary terms) and relative indicators (the average level of profitability of deposit resources). In general, the profitability of a bank's deposit portfolio over a fixed period depends on the volume of the portfolio and the level of interest rates on deposits. The level of interest rates is a general indicator, since through the level interest rate factors such as the duration of use of the deposit (more than long term- the highest rate), method of calculation and method of payment of interest.

The profitability of the deposit portfolio is calculated by attributing the bank's total income on deposits (items of Form No. 2 "Profit and Loss Statement") on a certain date to the value of the total deposit portfolio in the same period.

The level of profitability should be analyzed over time to be able to determine trends in the development of deposit activity in a given bank. For a more detailed assessment, you should calculate the profitability of each type of deposit placed.

The analysis process identifies the most and least profitable types of deposits. It is mandatory to study the profitability of various items of deposit attractions over time. Objective conclusions in this study can only be obtained by comparing the calculated profitability with the average deposit rate prevailing in the regional market, as well as taking into account the refinancing rate National Bank RB.

At the fourth stage of analyzing the bank's deposit operations, the efficiency of using funds in deposits should be assessed. Since the main purpose of attracting funds to deposits is their further use by the bank as credit resources, therefore, to assess the effectiveness of deposit operations, it is necessary to compare the amount of attracted deposits and the amount of funds issued in the form of a loan to legal entities and individuals.

In this regard, it should be noted that in the economic literature the main indicator of the efficiency of a bank’s deposit operations is the efficiency ratio of the use of raised funds, which is defined as the ratio of the amount of funds received in deposits to the amount of loans issued by the bank and is calculated using formula (1.1):

where VC is the amount of funds raised into bank deposit accounts;

KR - the amount of loans issued by the bank.

This indicator characterizes the amount of funds in deposits per one ruble of funds issued in the form of a loan in the total amount of loans issued by the bank.

Assessment of the effectiveness of a bank's deposit operations should be based on a comparison of interest income on credit operations and interest expenses on deposit operations. The indicators of the group of profitability of deposit operations are presented in Table 1.3.

Table 1.3 - Indicators of profitability of deposit operations

Indicators	Calculation method	Economic interpretation
1. Net income from deposit transactions	The product of the difference between the interest rate on loans and the interest rate on deposit transactions by the average balance of funds raised on deposits	Characterizes the amount of excess of income on loans over expenses on deposit transactions used as credit resources
2. Return on deposit funds	Ratio of interest income on credit transactions to interest expenses on deposit transactions	Characterizes the amount of interest income on credit transactions per one ruble of interest expenses on deposit transactions
3. Profitability of raising funds on deposits	The ratio of net income from deposit transactions to the amount of funds attracted to bank deposit accounts	Characterizes the amount of net income from deposit transactions per ruble of attracted deposits
4. Profitability of expenses on deposit transactions	Ratio of net income on deposit transactions to the amount of interest expenses on deposit transactions	Characterizes the amount of net income on deposit transactions per one ruble of interest expenses on deposit transactions

These indicators of the efficiency of deposit operations are studied in dynamics both for the bank as a whole and for its branches and affiliates.

The formation of a resource base is inextricably linked with risk, but it can be controlled, i.e. use measures that allow, to a certain extent, to predict the occurrence of a risk event and take measures to reduce the degree of risk.

When forming a resource base, the bank must take into account the likelihood of an increase in costs for attracting resources in the event of a change in the situation financial market. The bank's deposit policy has the goal of providing the bank with resources for a certain time at a certain price to carry out certain active operations. Its implementation means solving two opposing problems: stability of the resource base and minimizing the costs of its formation. The ideal option is that long-term investments should be balanced by long-term deposits. Otherwise, upon expiration of the deposit period, the bank may face the problem of rising costs of resources and incur losses from long-term investment funds

Another form of manifestation of the risk of forming a deposit base is losses in the form of lost income due to the need to keep a certain percentage of the volume of the resource base in the form of cash for settlement and cash services (payment of advances for business trips, wages, withdrawal of deposit in cash, etc.). For the bank, these are assets that do not generate income. Their size depends on external circumstances (the degree of trust in the bank, the state) and on the structure of the bank’s clientele (for example: high percent trading organizations means a large volume of cash collection, therefore, there is no need for special cash reserves to ensure obligations to return cash deposits from the population).

It is also important to take into account seasonal and monthly fluctuations in cash flows. For example, savings bank, working, as a rule, with deposits from the population, making utility payments and paying wages, can enter into contracts for a period so that payments fall during the period of mass utility payments, but do not coincide with wage payments. Attention should also be paid to the factor of resource base placement. It is believed that when investing in credit operations For 85 percent or more of the amount of deposits, the bank pursues a risky deposit policy. This is explained by the fact that credit operations have much less elasticity for timely and, especially, early withdrawal than the resource base. This is partially compensated by a higher interest rate, part of which is the risk of loss, partly by placement in more liquid, although less profitable, assets. The National Bank reduces the impact of this risk by introducing mandatory reservation of a portion of the funds raised, depending on the type of deposits.

The risk of unbalanced liquidity is the danger of losses in the event of a bank’s inability to cover its obligations on balance sheet liabilities with claims on assets.

The presented methodology for analyzing bank deposit operations allows for a comprehensive study of them, including a study of the composition, structure and dynamics of deposit balances, their movement, the impact on the amount of the bank’s interest expenses, as well as the efficiency of use.

In conditions financial crisis cash flow management of a commercial bank becomes more important in terms of maintaining the required level of liquidity. Since the main control lever in banking activities is the interest rate, the issue of determining the interdependence of the volume of deposit operations on the interest rate on these operations becomes relevant.

Determine the relationship between the volume of deposit transactions and interest on them to be able to predict changes in the value of deposit transactions and passive operations bank in the interbank lending market.

We will construct the dependence functions using the method of regression analysis in accordance with the following algorithm:

– Preliminary data analysis, visualization and classification of statistical data, development of research hypotheses;

– Construction of a regression relationship between the volume and interest on deposit transactions in accordance with their preliminary classification;

– Economic interpretation of the results obtained.

Analyzing statistical data on volumes and interest rates from passive operations of bank “X” for the period of four months of the current year, you should pay attention to the fact that when comparing each current period with the previous one, there are four possible situations:

growth in the volume of deposit transactions with an increase in interest on these transactions;
reduction in the volume of deposit transactions with a decrease in interest rates on these transactions;
growth in the volume of deposit transactions with a decrease in interest rates on these transactions;
a decrease in the volume of deposit transactions with an increase in interest on these transactions.

For each situation, there is a growing trend in the dependence of the amount of a deposit transaction on the interest rate on them. So, we can put forward the following hypotheses: with an increase in the interest rate on deposit transactions, their volume increases; When the interest rate on deposit transactions changes, their volume changes with a time delay, that is, it has an inertial nature.

The analysis of the bank's deposit activity confirmed the research hypotheses.

The results of regression analysis of the bank’s passive operations in the interbank lending market make it possible to state the following:

the more banks carry out passive operations on the interbank loan market, the higher the interest rate on these operations will be;
an increase in the interest rate on passive transactions in the interbank lending market leads to an increase in the volume of these transactions;
the growth in the volume of passive operations of the bank in the interbank lending market reduces the overall result of the bank’s activities in the interbank lending market.

The work further developed the use of regression analysis methods, cognitive and simulation modeling to improve the efficiency of managing the activities of a commercial bank according to the criterion of liquidity and profitability. The developed model allows us to both assess the level of deposit operations and passive operations of the bank in the interbank lending market. The model can be used for stress testing the activities of a commercial bank.

In global banking practice, all attracted resources according to the method of their accumulation are grouped as follows:

Deposits;

Non-deposit raised funds.

Deposit(deposit) is the transfer of funds to the bank under an agreement for a certain period or on demand. Investors are creditors of the bank, the bank has obligations in relation to them; it is obliged to return the deposited amount on time and pay the interest specified in the agreement.

The main part of the attracted resources of commercial banks consists of deposits, i.e. funds deposited into the bank by clients - individuals and legal entities.

The following may act as subjects of deposit operations:

state enterprises and organizations;

government agencies;

cooperatives;

joint stock companies;

mixed enterprises with foreign capital;

party and public organizations and foundations;

financial and insurance companies;

investment and trust companies and funds;

individual individuals and associations of these individuals;

banks and other credit institutions.

The objects of deposit operations are deposits - amounts of money that the subjects of deposit operations deposit into the bank for a certain time, deposited in bank accounts due to the current procedure for carrying out banking operations.

By mobilizing temporarily free funds of legal entities and individuals on the credit market, commercial banks use them to satisfy the economy’s need for additional working capital, facilitate the transformation of money into capital, and meet the population’s needs for consumer credit. In addition, deposit money is the cheapest of the bank's credit resources.

Based on the fact that customer funds in settlement, current and other accounts account for up to 80% of funds attracted by the bank and more than a third of all bank resources, special attention is paid to the analysis of deposits. At the same time, they solve problems

analysis of the dynamics and stability of deposits, their use

assessment of the structure of deposits and their structural changes

assessing the influence of individual factors on changes in the total amount of deposits (deposits) and the average size of the deposit (deposit)

The assessment of the dynamics of deposits (deposits) of the population is carried out using a system of indicators for the analysis of dynamics series: absolute growth, growth rate, growth rate and their average levels, taking into account:

A) turnover on receipt of deposits (P)

B) turnover on the issuance (disposal) of deposits (C)

B) absolute increase in the amount of deposits (P-V = O k - O n)

D) The influx coefficient (Kp) of the deposit is assessed as the ratio of the absolute amount of the influx of deposits (P-V) to the balances of deposits at the beginning of the period, or as the growth rate:

K p = (P-V)/O n = (O k – O n)/O n

E) The level of deposit of funds (subsidence coefficient - K o) received in deposits

K o = (P-V)/P

The average shelf life of a deposited ruble, reflecting the dynamics of the stability of deposits, which is important for assessing deposits as short-term lending resources:

Where – average balance of deposits for the analyzed period

D – number of calendar days in the period

B – turnover on issuance of deposits

An indicator of the use of deposits of attracted funds is the deposit utilization ratio (K id):

K id = C av / P av, where C av is the average loan debt for the period;

R av - average balances for all attracted resources.

A deposit utilization ratio of more than 0.75 indicates an aggressive credit policy of the bank, less than 0.65 indicates a passive one.

An assessment of the structure of deposits is necessary for planning the bank's credit resources, since the presence, for example, of a large share of time deposits allows the bank to use these funds as credit resources or other investments, and to plan investments. To assess the structure of deposits, indicators of the share (share) of a certain group of deposits in their total volume are used, i.e.

Relative structure size (in percent):

Where d i- share i- groups of deposits in their total volume;

N i number (amount of deposit balance) in group i;

N  total number of accounts (sum of deposit balances) of the population.

Analysis of structural changes is carried out based on indicators:

a) average linear deviation

;

b) standard deviation:

c) K.Gatev Index 

d) Salai Index 

Deposit accounts are grouped:

by forms of withdrawal of deposits:

a) on demand (without a specific withdrawal period)

b) urgent (having a certain period of withdrawal)

c) conditional (subject to withdrawal upon the occurrence of pre-agreed conditions)

according to the storage period of funds

from 2 to 7 days
from 8 to 30 days
from 31 to 90 days
from 91 to 180 days
from 181 to 1 year
from 1 year to 3 years
over 3 years.

Changes in the structure of deposits influence changes in the total balance of deposits. The change in the total balance of deposits (W) occurs under the influence of three factors:

1) number of deposits (f);

2) deposit structures (d i);

3) average deposit size (x i)/

The balance (amount) of deposits as of the reporting date (W 1) can be presented as a product:

W 1 = W 0 * I  f * I structural shifts * I constant. Composition

where W 0 is the balance (amount) of deposits as of the base (previous) date;

I  f - change in the total number of deposits.

The absolute increase in the amount of deposits under the influence of changes in the total number of deposits in the bank ( w /  f) is determined by the formula:

 w /  f = W 0 * (I  f - 1),

where I  f =  f 1 /  f 0 .

The influence of the second factor on the change in the total amount of contributions ( w / I structural shifts) is determined by the formula:

 w / str. shifts = W 0 * I  f * (I structural shifts - 1),

where I of structural changes is determined by the formula

I structural shifts =  d 1 x 0 /  d 0 x 0,

The absolute increase in the amount of deposits due to a change in the average deposit size ( w / x) is determined by the formula:

 w /х = W 0 * I  f * I str. Shifts * (I post. Composition - 1)

The sum of factor increases (decrease) gives the total change in the balance of deposits for the analyzed period in absolute terms, i.e.

 w /  f +  w / str. Shifts +  w /х =  w

One of the areas of deposit analysis is the calculation and analysis of the average deposit size based on power and structural averages: median, quartiles, deciles.