Function of borrowed funds of a commercial bank. Bank loans. Other tools to raise funds
Bank borrowings
To quickly increase capital, commercial banks use the possibility of obtaining borrowed funds.
Borrowed funds are the funds of creditors and investors mobilized by banks under certain conditions in the interbank and stock markets (see Appendix 3).
Loans received from other banks, or an interbank loan, occupies a special place in the capital structure of a commercial bank. According to the method of receiving funds, this is an operational source, which is predominantly short-term, but it is compared with other foreign currency sources of the bank's capital. Banks determine the amount of loans, terms and fees for using the loan on their own.
Commercial banks can also receive additional resources from the NBU through credit auctions, by obtaining centralized resources from the NBU. The size, terms and amounts for the use of credit NBU establishes independently.
The total amount of interbank loans and centralized resources received in our country is limited to three times the equity capital of the borrowing bank.
Another source of capital formation is the funds of investors invested in long-term unsecured debt obligations of the bank (bonds and certificates). According to the current legislation, banks can issue bonds only after full payment of the declared statutory fund and in an amount that does not exceed 25% of its size.
Deposit and savings certificates have become widespread in banking practice. A savings certificate is a document that indicates that a certain amount of money has been deposited with a bank with fixed terms and an interest rate. Thus, a certificate of deposit has the features of both a term deposit and a security related to borrowed funds. Deposit certificates are of two types: non-transferable, which are saved with depositors and are submitted to the bank when they expire, and transferable, which are freely sold on the securities market.
Along with deposit and savings certificates, there is a financial bill. A financial bill of a bank is a special payment that is used for settlements between business entities. Promissory notes are used for the bank's passive operations and are sold to customers for money. The Bank daily determines the rates of purchase and sale of these bills and draws up a quotation table for the purchase and sale of bills.
For banks, the use of these bills is beneficial in that the bank resources mobilized through the sale of bills are not subject to mandatory reservation. And for clients, the benefit is that, thus receiving an increased interest, as with time deposits, they receive such a security as a bill in the form of an additional guarantee of a return of funds.
Funds raised consist of deposits, loans and issuers of securities.
The difference between non-deposit sources of banking resources and deposit sources is that:
1) non-deposit sources are non-personal. These funds are acquired on the money market, on a competitive basis and through intermediaries;
2) the initiative to raise funds is necessary for the bank, while in cases with deposit funds, the initiative is necessary for depositors, and since the relationship between the bank and the depositor is built on an individual basis, they are classified as retail operations;
3) non-deposit funds are purchased for large amounts and are considered wholesale.
This division is accepted in most developed countries(USA, Japan, England, etc.). Activities related to attracting funds from depositors, as well as other creditors, constitute liability management. In a narrower sense, liability management refers to activities aimed at meeting liquidity needs by actively seeking borrowed funds as needed.
Receiving funds from depositors (the population) is the main method of passive operations of commercial banks and they are divided into deposits from customers, from banks. And for banks that specialize in servicing other banks, a significant share falls on bank deposits. However, funds for deposits are cheaper for banks, so they make up a significant share of the liabilities of a commercial bank. Many deposits allow the bank to create its own capital, which the bank can place on favorable terms.
The difference in interest on repaid loans and those received on a loan is the bank's profit (Margin). The desire to increase the amount of margin gives rise to the desire of the bank to increase its resource base, and very often banks do this by creating imaginary deposits, the ground for which are demand deposits. Deposits can be very diverse. The criteria may be:
2) terms of the deposit until the moment of withdrawal: urgent; poste restante; savings.
Demand deposits(termless deposits) are deposits that can be withdrawn at any time without prior notice. These are funds on current, settlement, budget and other accounts. The movement on these accounts can be made out in cash, checks, transfers and other expense documents. Demand deposits include: checking account; overdraft; correspondent accounts of banks ("Loro", "Nostro").
When establishing correspondent accounts, it is possible to establish an overdraft on these accounts.
There are 2 types of demand deposits:
- interest-free deposits;
- accounts on which interest is paid (checking accounts).
Interest-free current accounts make up a large share. Commercial banks began to pay interest on current accounts due to increased competition in attracting deposits.
To effectively manage the temporarily free cash of customers, banks use methods that allow minimizing the amount of money that is stored in interest-free current accounts. For this purpose, from demand deposits (in the US they are called accounts with automated clearing), the bank carries out current operations, transfers an amount exceeding the minimum agreed with the client to accounts that generate interest income. This operation is carried out daily at the end of the day.
In Russian commercial banks, demand deposits are predominant for the following reasons: high inflation; other types of bank deposits are undeveloped.
Term deposits- deposits attracted by banks for a certain period, on which interest is paid. Distinguish:
1) Own term deposits – transfer of funds to the full disposal of the bank for the term and conditions under the contract. This deposit can be withdrawn only after a certain period, and the size of the rate depends on the size and terms of the deposit.
2) Term deposits with advance notice – when the client must give advance notice of withdrawal of the loan under the agreement.
The amount of the term deposit must remain unchanged throughout the term. The exception is term deposits with an additional installment. Term deposits cannot be withdrawn by cheque. Banks can attract all amounts, with all characteristics.
In Russia, since 1991, special types of term deposits have been used, which are issued as certificate of deposit- a written certificate of the issuing bank on the deposit of funds, certifying the rights of the depositor to receive after a certain period the amount of deposits and interest on it.
A certificate of deposit in Russia is issued only to legal entities and can be transferred to another legal entity. The assignment of a claim is called cession, which is drawn up on the reverse side of the certificate by a bilateral agreement between the person assigning his rights (assignor) and the person acquiring these rights (assignee). The agreement is sealed. Each contract is numbered by an assignor. But the most widespread certificates of deposit are in the USA, where 2 types are used:
— term deposits of small size (less than $100,000);
- certificates of deposit of a large size, the owner of which can sell it before maturity (over $ 100 thousand), they have a secondary market.
In Russia, deposits that are allocated to individuals have become widespread.
In addition to dividing certificates into deposit and savings certificates, they can be classified depending on the category of the borrower or depending on the form of issue: they can be issued either on a one-time basis or in a serial order.
I. According to the method of registration: nominal, bearer.
II. By terms of circulation: urgent, on demand.
III. According to the method of paying interest: with a regularly paid interest rate until the expiration of a certain settlement period; with interest paid on the maturity date.
Redemption of certificates of deposit can also be carried out in different ways:
1) new issue certificates;
2) non-cash transfer or cash (for individuals).
Savings certificates– income-generating non-checkable deposits that can be withdrawn immediately. There are the following types of savings deposits:
1. Accounts on passbooks;
2. Accounts with a statement of the state of savings deposits;
3. Deposit accounts money market, according to which interest rates are adjusted weekly by each bank independently in accordance with changes in the market.
Target deposits are a type of savings deposits. Traditionally, operations with savings deposits are carried out by savings banks, but recently commercial banks have also begun to actively use this capital market.
There is no even division between types of deposits. Banks began to use such a form of deposits, in which the regime of accounts on demand with the regime of time deposits is applied. Having made such a deposit, the depositor can, at the expense of the stored funds, instruct the bank to transfer money to a third party. In American banks, such accounts are called t transactional or checking accounts.
nau-account- deposit accounts, to which you can issue settlement drafts, similar to checks. The basic principle is to combine liquidity with income in the form of interest. A nau-account is a negotiable withdrawal order, or it may be a bill of draft that can be used to make payments to a third party. Features of sci-accounts:
1) interest is paid on the account at the market rate;
2) the owner has the right to issue urgent drafts to the bearer, which are accepted for payment, similar to a check;
3) these accounts are opened to individuals and non-profit corporations;
4) the owner is not required to keep a minimum balance on the account.
Exist super-naw-accounts, for which there is no upper limit to interest, in addition, the owners of these accounts have the right to issue drafts 6 times a month.
Transaction accounts include bank certified check accounts. Certifying checks - checks on which the bank makes a special note about the availability of funds for its payment. In addition, US commercial banks have introduced accounts with automatic transfer of funds(SAPS). These accounts allow you to freely transfer funds from a savings account to a current account in order to maintain a minimum current account balance to make payments and cover an overdraft.
The development of deposits plays an important role. The multiplication theory proves a significant increase in the amount of money deposited in customer accounts. Loans issued by banks to their client and credited to his current account, and settled in the form of a deposit, create an opportunity to increase credit resources from other banks. However, multiplication is limited by a number of factors:
1) economic need to increase credit;
2) the amount of other attracted credit resources;
3) the required reserve ratio.
To non-deposit sources include: interbank loans; securities sold under repurchase agreements; loans on the Eurocurrency market, etc.
All of the above is called managed liabilities, which give banks the opportunity to make up for deposit losses.
Between Bank operations generally show the degree of development of correspondent relations between banks, since banks can receive from other banks short-term, medium-term, long-term loans. This gives them the opportunity to operate with fairly large funds and maintain an optimal balance on correspondent accounts.
In the early 1990s, Russia developed credit platforms, where interbank transactions were concluded, and banks mastered the market for "short" money (transactions for 1-2 days, a week), and taking into account the one-day money market rate.
Commercial banks can receive Central Bank reserve fund loan. These funds are deposit balances held in the accounts of central reserve banks.
Unexpected inflows of deposits or reduced lending by commercial banks can create excess reserves that do not generate income. These reserves are placed at the disposal of commercial banks for a short time. Reserve accounts differ from others in that they are funds that are in the accounts of the Central Bank, and the drafts issued to these accounts are immediately paid.
Getting a loan from the Central Bank is a traditional passive operation of a commercial bank. Loans are provided:
1) under the accounting of bills, under the re-pledge of bills;
2) in the order of refinancing;
3) in the form of a pawnshop loan.
The distribution of credit resources of the Central Bank is carried out at an auction, where each of their intermediaries sets its own rules for bidding. The Central Bank allows various ways of organizing auction sales. There are two of them in Russia: the American way; Dutch way.
One of the sources of formation financial resources are repurchase agreements (REPO). Such an agreement may be entered into between a bank, a firm or a government securities dealer, i.e. The bank sells securities to the firm with the obligation to buy them back after a certain period of time at a higher price. The difference between these prices is the actual fee for the loan provided by the bank. This operation is secured by government securities. REPO transactions have high liquidity, they have a low risk, because backed by government securities. These agreements do not impose reserve requirements.
Eurocurrency loans– financial management tools passive operations arising on the basis of deposits that are denominated in foreign currency and are kept in a commercial bank and which a commercial bank uses for lending operations.
One of the sources of formation of non-deposit resources is issuance of bonds by a commercial bank. For such an issue, an issue prospectus is prepared, which specifies the terms of the loan, its term, and the level of interest. A bond loan can be issued for an amount not exceeding 25% of the charter capital after full payment of all previously paid shares. Bonds can be registered and bearer. The source of repayment is net income. With a lack of profit - reserve funds, all issues are registered with the Central Bank. They can be repaid either at a time, or the repayment of the debt can be carried out in shares.
The terms of bank bond loans should take into account the interests of customers. These conditions include the following:
— guaranteed interest payments on loans to other banks;
- granting the right to unite in a meeting by a deliberative vote;
Clients can claim mortgage coverage of the bond.
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The specifics of the bank's activity is that its resources in the vast majority are formed not at the expense of its own, but at the expense of borrowed funds. The bank's ability to raise funds is regulated by the CBR and depends on the size of the bank's equity capital and its organizational and legal form.
In the context of the transition to a market economy, the problem of resource formation has acquired exceptional relevance for banks. The current situation is characterized by the fact that the national fund of banking resources has sharply narrowed. Therefore, banks in the conditions of commercial independence and competition devote a lot of time and effort to the formation of their own capital and attraction of resources. The resources of a commercial bank are usually defined as the totality of own and borrowed funds available to the bank and used by it to carry out active operations.
The composition of own funds includes: funds - statutory, reserve, special, economic incentives; reserves to cover credit risks and depreciation of securities; funds for production and social development; profit of the current year and retained earnings of previous years.
The statutory fund is the guarantor of the bank's economic stability.
Own funds represent the state of shareholders in a commercial bank, i.e. net worth jar. Therefore, their movement is the subject of a special report in the complex financial reporting drawn up according to international rules.
In Russian practice, passive operations of commercial banks include:
— accepting deposits (deposits) in Russian and foreign currencies;
— opening and maintenance of customer accounts, including LORO accounts of correspondent banks in Russian and foreign currencies;
— issuance of own securities (shares and bonds), as well as the issuance of securities as financial instruments (bills, deposit and savings certificates) in Russian and foreign currencies;
— receipt of interbank loans, including centralized ones, purchased at auctions, or received from the Central Bank of the Russian Federation, in addition, loans received from the Central Bank of the Russian Federation.
Term deposits are credited to deposit accounts for a specified period and interest is paid on them. The owner of the deposit receives a certificate of deposit, which indicates the deposited amount, interest rate, maturity and other terms of the agreement. Interest rates depend on the size and term of the deposit. Savings deposits are interest-bearing deposits of individuals that can be withdrawn immediately.
Other sources of bank resources are cash funds that the bank raises on its own in order to ensure its liquidity. Among them - loans received from other banks; securities sold under repurchase agreements. They are called managed liabilities. These liabilities give banks the opportunity to compensate for deposit losses, to be prepared for unforeseen circumstances (for example, for an unexpected outflow of deposits, for unexpected loan applications).
Obtaining a loan from the central reserve bank is a traditional passive operation of commercial banks associated with the provision of assistance to them by the Central Bank in case of a temporary shortage of reserves.
Repurchase agreements emerged as new sources of resources for commercial banks. Such an agreement may be between a bank and a firm (or government securities dealers). When a firm wants to invest a large amount of cash for a very short period of time, it puts it into a buyback agreement because it is highly liquid. The firm can return the funds the next day and receive only slightly lower interest on them than on certificates of deposit. These agreements have become an important channel for the placement of temporarily free funds.
The structure of banking resources of individual commercial banks depends on the level of their specialization or universalization, the characteristics of their activities (see Fig. 2).
Not the entire set of funds mobilized in the bank is free to carry out active operations of the bank, but only its credit potential. The credit potential of a commercial bank is the amount of funds mobilized in the bank minus the liquidity reserve.
Taking into account the principle of liquidity, all funds of the credit potential of a commercial bank can be divided according to the degree of their stability: absolutely stable, stable and unstable funds.
The composition of absolutely stable funds includes: own funds of the bank; funds deposited for a certain period; funds received from other banks.
Stable funds are all deposited funds at the presentation of the bank's principals, whose dynamics have been studied by the bank; at the same time, the average amount of funds that the bank can have at any time for their direction in certain assets is established. Volatile funds create escrow funds that appear periodically and whose dynamics are difficult to predict.
Fig.2. The structure of attracted and borrowed funds of a commercial bank
These patterns must be used to develop the right policy in the field of distribution of funds credit potential and bank liquidity.
One of the main objectives of the banking policy in the distribution of credit potential funds is to ensure that the structure of sources of funds is consistent with the structure of the bank's assets.
In the event that a bank lends funds on average for longer periods than the maturity of the funds of the credit potential, it can carry out an urgent transformation of funds. The possibility of transformation is due to the fact that the funds of sight deposits are concentrated in the bank from different depositors who use them with different dynamics. The degree of transformation should correspond to the level of liquidity at the time of the transformation of funds.
Overseas experience indicates that the transformation of the means of credit potential is one of the main reasons for the aggravation of the problem of bank liquidity. To assess the degree of risk of urgent transformation, it is advisable to regulate the reflection in accounting of the terms of active and passive operations.
The composition and structure of the banking resources of individual commercial banks depend on the size of banks, on the level of their specialization or universalization, the characteristics of their activities, the region and the market in which they operate.
Only its credit potential, which is defined as the amount of mobilized to bank funds less liquidity reserve.
Taking into account the principle of liquidity, all attracted funds of a commercial bank are divided according to the degree of their stability into absolutely stable, stable and unstable funds. It is the ratio of stable and unstable resources that determines the active policy of banks. Foreign experience shows that the transformation of credit potential is one of the main reasons for the aggravation of the problem of bank liquidity. The qualitative and quantitative balance of the inflow and outflow of credit potential is an important factor in the practice of maintaining the bank's liquidity.
In the total amount of banking resources, attracted resources occupy a predominant place. Their share in different banks ranges from 75% and above. The attracted funds of banks cover over 90% of the total need for financial resources for the implementation of active operations, primarily credit. Mobilizing temporarily free funds of legal entities and individuals in the market of credit resources, commercial banks with their help satisfy the needs of the national economy for additional working capital, contribute to the transformation of money into capital, and provide the population with consumer credit.
For the most complete disclosure of the concept of attracted bank resources, it is advisable to characterize such a concept as "bank resources". “The resources of a commercial bank are its own capital and the funds of legal entities and individuals attracted on a repayable basis, formed by the bank as a result of passive operations, which in aggregate are used by it to carry out active operations.” Starting from this definition, the concept of attracted resources is interpreted by different authors in different ways, but their essence is generally the same. So, according to Professor G. G. Korobova: “Operations related to the mobilization of bank resources are passive operations. As a result of passive operations, commercial banks receive the necessary funds raised to finance active operations. The final results of these operations are reflected in the liabilities side of the bank's balance sheet, where they act as sources for the formation of its resources.
According to the opinion of Professor O. I. Lavrushin: “Attracted funds are customer funds received for a certain period or on demand.”
Professor E. P. Zharkovskaya reveals the essence of the concept of attracted resources of a bank in the following: “The main volumes of the resource base of commercial banks are attracted and borrowed funds, which are formed as a result of the execution by the bank of operations that form its liabilities.”
The authors G. N. Beloglazova, L. P. Krolivetskaya formed the concept of attracted bank resources in the following way: “Passive operations are operations to form the resources of commercial banks. Attracted funds form the predominant part of banking resources. Their size and structure depend on the client and product specialization of the bank, banking market conditions, the macroeconomic situation, the policy of the Bank of Russia and other factors.”
The main ways of attracting resources by banks are:
· opening and maintenance of current and settlement accounts of enterprises, organizations and citizens, as well as correspondent accounts of correspondent banks;
· attracting funds from individuals and legal entities into deposits;
issue of own debt obligations;
· attraction of credits and loans from other banks, including from the Bank of Russia.
In world banking practice, all the attracted resources of the bank according to the method of their accumulation are grouped as follows:
1) deposits;
2) non-deposit attracted funds.
The main part of the attracted resources of commercial banks are deposits - funds deposited in the bank by customers - individuals and legal entities and used by them in accordance with the account regime and banking legislation.
The group of deposit operations of commercial banks includes:
demand deposits;
term deposits;
conditional deposits;
savings (deposit) certificate;
· bonds;
bank bill.
The bank receives non-deposit attracted funds in the form of loans or by selling its own debt obligations in the money market. Non-deposit sources of banking resources differ from deposit sources in that they are, firstly, not associated with a specific bank client, but are acquired on the market on a specific basis; secondly, the initiative to attract these funds belongs to the bank itself.
The main non-deposit sources of attracting resources are:
· loans in the financial and interbank markets;
Bank of Russia loans.
Analyzing the concept of attracted resources of commercial banks, given by leading experts in the field of economics, we can conclude that the attracted resources of a bank are passive operations, namely deposits and interbank loans, including those from the Bank of Russia, aimed at increasing its resource base, aimed at stable existence and uninterrupted fulfillment of the bank's obligations.
Operations of commercial banks for the formation of resources
The specificity of the resource base of commercial banks lies in the fact that its main part is made up of borrowed funds. Of these, the main share is formed by deposits, and a smaller share - by other attracted funds (borrowed funds).
Deposits mean all term and termless deposits of the bank's customers, except for savings deposits. The sources of funds placed on deposits are very diverse. These are funds on the accounts of enterprises, accounts of wages of workers and employees, accounts of state institutions and enterprises that are temporarily not used. From the point of view of banking technology, deposits can be divided into two groups: demand deposits and term deposits.
Demand deposits are funds that can be called upon at any time. These deposits pay relatively low interest. Demand deposits are intended primarily for current settlements. Term deposits are of two types: term deposits proper and deposits with advance notice of withdrawal. Actually time deposits are returned to the owner on a predetermined day, until that moment they are “blocked” and the bank can dispose of them. If the amount initially invested as a term deposit is not withdrawn by the owner on the set date, then in the future he can dispose of it in the same way as a current account. Typical of savings deposits is their slow growth and the fact that the use of funds often occurs after several years. A distinctive feature of a savings deposit is that its owner is issued a certificate of the existence of the deposit (most often a savings book).
The value of savings deposits for the bank, and indeed the entire credit system, is determined primarily by the possibility of their use as resources for lending. Due to the attraction of funds from the population for a long period, savings deposits also act as an important factor in reducing the issuance of banknotes, and thus in the overall financial recovery of the economy.
Demand deposits are the most liquid. Their owners can at any time use the money on demand accounts.
The structure of bank deposits is flexible and depends on the money market conditions. This source of formation of banking resources has some disadvantages. We are talking about the significant material and monetary costs of the bank when attracting funds to deposits, the limited availability of funds within a particular region. In addition, the mobilization of funds into deposits (deposits) depends to a large extent on customers (depositors), and not on the bank itself. And, nevertheless, the competition between banks forces them to take measures to develop services that help attract deposits.
Russian banks from non-deposit sources, they mainly use interbank loans and loans from the Bank of Russia. On the market of interbank loans, funds are sold and bought on correspondent accounts with the Bank of Russia. Loans from the Central Bank of the Russian Federation are currently mainly provided to commercial banks in the form of refinancing, i.e. in fact, they are distributed, on a competitive basis, as well as in the form of pawnshop loans. Each bank can purchase no more than 25% of the loans put up for auction. But the interbank loan is the main source of borrowed resources of commercial banks, a source of funds to maintain the solvency of the balance sheet and ensure the uninterrupted fulfillment of obligations.
One of the directions of attracting funds by commercial banks is the issue of their own securities in the form of debt obligations: certificates, bills of exchange, bonds. In comparison with other types of attracted resources of the bank, securities occupy the last place.
A certificate is a written certificate of the issuing bank on the deposit of funds, certifying the right of the depositor or his successor to receive the amount of the deposit and interest on it after the expiration of the established period. A savings certificate is a bearer security issued in series. The issue of savings certificates can only be carried out by banking institutions.
Certificate forms consist of two parts: a certificate and a spine. The same series and number are printed on the certificate and the spine, as well as the amount of the deposit made to the Bank, certified by the certificate.
Savings certificates are issued in the currency Russian Federation. The savings certificate is urgent.
Interest rates on savings certificates are set by the Board of the Bank. Interest at the rate originally set when issuing a savings certificate, due to the owner after the expiration of the circulation period, is paid by the Bank regardless of the time of its purchase.
If the term for receipt of the deposit under the certificate is overdue, the Bank is obliged to pay the amounts of deposit and interest specified in the certificate at the first request of its owner. No interest shall be paid for the period from the date of claiming amounts under the savings certificate to the date of actual presentation of the certificate for payment. The Bank cannot unilaterally change (reduce or increase) the interest rate stipulated in the savings certificate, which was established when the certificate was issued. Payment of interest on a savings certificate is carried out by the Bank simultaneously with the redemption of the certificate upon its presentation.
To attract resources from the financial market, joint-stock commercial banks issue their own bonds. Bonds of commercial banks are securities that certify the loan relationship between the owner of the bond (creditor) and the bank (borrower) that issued them, and bring income to the owner. Banks can issue bonds of various types: registered and bearer; secured and unsecured; mortgage-backed, interest and discount; convertible and non-convertible into other securities; with a one-time repayment and repayment by series at a certain time.
The procedure for issuing bank bonds is much more complicated and lengthy than for issuing certificates. Only after full payment authorized capital the bank may start issuing bonds. Bank bonds may be placed by selling them for the currency of the Russian Federation, as well as by replacing them with previously issued convertible bonds and other securities.
Interbank credits (loans) allow banks to redistribute resources among themselves. By attracting these loans, both the planned shortage of resources and the unforeseen gap between them are covered.
In market conditions, bank bills are distributed. A bill of exchange is a bank security certifying an unconditional monetary debt obligation of the drawer (bank) to pay a certain amount of money to the bill holder (owner of the bill) upon maturity.
Commercial banks perform the following main operations with bills of exchange:
1) credit operations using bills of exchange: accounting of bills; lending secured by bills; bill lending;
2) operations for servicing bill circulation: collection of bills; guarantee operations on bills of exchange;
3) rediscount of bills in the Bank of Russia.
Accounting (discounting) of bills means the purchase of bills by the bank before the expiration of their maturity. The holder of the bill transfers (sells) the bill of exchange to the bank by endorsement before the maturity date and receives for this the bill amount minus (for early receipt) a certain percentage of this amount, i.e. discount rate or discount. Discount - the difference between the amount indicated on the bill and the amount paid to the holder of the bill. Given the bill, the bank becomes its owner.
In turn, the bank, if he began to experience difficulties in funds, he can rediscount the bills in the Bank of Russia. The rediscount of bills is one of the tools for refinancing commercial banks in the Bank of Russia and is used to regulate the liquidity of banks.
A bill of exchange is a strictly formal document. It contains a list of required details. The absence of at least one of them deprives the bill of legal force.
Legal and regulatory framework governing the activities of commercial banks related to raising funds
When carrying out operations for the formation and use of attracted borrowed resources, commercial banks use the following legislative and regulatory documents:
1) Civil Code of the Russian Federation (Part One) dated November 30, 1994 No. 51-FZ (adopted by the State Duma of the Federal Assembly of the Russian Federation on October 21, 1994), (as amended on July 27, 2010);
2) Civil Code of the Russian Federation (Part Two) No. 14-FZ of January 26, 1996 (adopted by the State Duma of the Federal Assembly of the Russian Federation on December 22, 1995), (as amended on May 8, 2010);
3) tax code RF (part one) dated 07/31/1998 No. 146-FZ (adopted by the State Duma of the Federal Assembly of the Russian Federation on 07/16/1998), (as amended on 11/29/2010);
4) Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” No. 86-FZ dated July 10, 2002
5) Federal Law “On Banks and Banking Activities” dated 02.12.1990 No. No. 395 -1 (as amended on 03.11.2010).
6) Regulation of the Central Bank of the Russian Federation “On non-cash payments in the Russian Federation” No. 2-P dated October 3, 2002 (as amended on June 11, 2008 No. 1442-U).
7) Letter of the Central Bank of the Russian Federation "On deposit and savings certificates of banks" dated February 10, 1992 No. 14-3-20, as amended. Letters of the Central Bank of the Russian Federation of 12/18/92 N 23, of 06/24/93 N 40, Instructions of the Central Bank of the Russian Federation of 08/31/98 N 333-U, of 11/29/2000 N 857-U.
In accordance with Art. 1 of the Federal Law “On Banks and Banking Activities”, a bank is a credit institution that has the exclusive right to carry out the following banking operations in aggregate: attraction of funds from individuals and legal entities to deposits, placement of these funds on its own behalf and at its own expense on the terms of repayment, payment , urgency, opening and maintaining bank accounts of individuals and legal entities.
Art. 64. The Civil Code of the Russian Federation states that in the event of liquidation of banks that attract funds from individuals, the claims of individuals who are creditors of banks under bank deposit agreements and (or) bank account agreements concluded with them are satisfied first of all (with the exception of claims of individuals for damages in the form of lost profits and on payment of the amounts of financial sanctions and claims of individuals engaged in entrepreneurial activities without forming a legal entity, or claims of lawyers, notaries, if such accounts are opened for the implementation of the business or professional activities of these persons provided for by law), the requirements of the organization performing the functions on compulsory insurance deposits, in connection with the payment of compensation on deposits in accordance with the law on insurance of deposits of individuals in banks and the Bank of Russia in connection with the implementation of payments on deposits of individuals in banks in accordance with the law.
According to Art. 835 of the Civil Code of the Russian Federation, banks that have been granted such a right in accordance with a permit (license) issued in accordance with the procedure established in accordance with the law have the right to raise funds in deposits. If a deposit is accepted from a citizen by a person who does not have the right to do so, or in violation of the procedure established by law or banking rules adopted in accordance with it, the depositor may demand the immediate return of the deposit amount, as well as the payment of interest on it and compensation in excess of the amount of interest of all losses caused to the investor.
If such a person accepts, under the terms of a bank deposit agreement, the funds of a legal entity, such an agreement is invalid (Article 168).
In accordance with Art. 214.2. Tax Code of the Russian Federation in respect of income in the form of interest received on deposits in banks, the tax base is defined as the excess of the amount of interest accrued in accordance with the terms of the agreement over the amount of interest calculated on ruble deposits based on the refinancing rate of the Central Bank of the Russian Federation, increased by five percentage points, effective during the period for which the specified interest is accrued, and on deposits in foreign currency based on 9 percent per annum.
In Art. 46. Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" The Bank of Russia has the right to carry out the following banking operations and transactions with Russian and foreign credit organizations, the Government of the Russian Federation to achieve the goals provided for by this Federal Law:
1) buy, store, sell precious metals and other types of currency values;
2) carry out settlement, cash and deposit operations accept securities and other assets for storage and management;
3) issue guarantees and bank guarantees;
4) carry out operations with financial instruments used to manage financial risks;
5) issue checks and bills in any currency;
6) other operations in accordance with the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
The Bank of Russia is also entitled to carry out banking operations and other transactions with international organizations, foreign central (national) banks and other foreign legal entities in the course of managing Bank of Russia assets in foreign currency and precious metals, including gold and foreign exchange reserves of the Bank of Russia.
The presented regulatory legal acts are the main list of legislative documents that regulate the activities of banks in attracting funds.
In the first chapter, the essence of the attracted resources of commercial banks is considered, the definitions of the attracted funds of leading economic specialists are given, on the basis of which their own understanding of the attracted funds of the bank was formed. The main operations that form the resource base of a commercial bank are presented. Of these, the main share is formed by deposits, and a smaller share - by non-deposit attracted funds.
Banking. Cribs Kanovskaya Maria Borisovna
43. Raised and borrowed funds
Bank equity - this is just the starting point for the organization of banking. Currently, banking operations are based on attracted and borrowed credit resources.
Involved funds consist of customer deposits, temporarily free funds on settlement transactions, accounts payable clients. The main element is deposits - money deposited in the bank by customers, kept on accounts and used in accordance with the account regime and banking legislation.
Borrowed (non-deposit) funds include interbank loans, interbank temporary financial assistance and debt securities sold.
The difference between non-deposit sources of banking resources and deposits is that the initiative to attract these funds belongs to the bank itself, while in the case of deposits, the active party is the depositor.
In aggregate, attracted and borrowed funds determine the amount of the bank's balance sheet liabilities. Bank obligations- these are funds that do not belong to the bank, but are temporarily involved in the circulation of bank funds as a source of its active operations.
Bank liabilities are divided into current and other. AT current liabilities banks distinguish: liabilities to banks, liabilities to clients and savings deposits, unpaid dividends, unpaid taxes, etc. other liabilities includes liabilities that are not of a current nature, such as pension and insurance funds, reserves for bad debts, other reserves, with the exception of those that are included in the bank's own funds. Overall, other liabilities are viewed as relatively stable. Their share in the volume of banking resources, as a rule, is small.
For commercial banks, deposits are the main type of liabilities, and therefore, a resource of the same importance for conducting active lending operations as their own funds. Moreover, the types of loan operations depend on the nature of the deposits, and, accordingly, the size of the bank's income.
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Bank borrowings
Borrowed funds (borrowed capital) of the bank is the last type of source of total capital that the bank uses in its market activities. Before that, the bank's own funds and its deposits were considered, that is, the money of market participants, which are stored in a special way in the bank - do not belong to him, but he can use them in the same way as if it were his own money.
Borrowed funds of a bank are funds of other market participants that are transferred to the bank on loan terms, that is, in ownership, but with a return after some time and with the payment of interest income. In the case of borrowed capital, receiving money from other market participants is not accompanied by the opening of any bank accounts, because the presence of a bank account is a sign of ownership of the money in this account.
In the case of a loan, the bank becomes a debtor in the market, while its economic purpose is to be a general creditor in the market. Therefore, to market loans The bank resorts only in certain cases. Under normal circumstances, the share of borrowed funds in the total capital of the bank is usually very small.
If we do not take into account adverse factors of an internal or external nature that may affect the work of the bank and require the attraction of borrowed capital, then there are always certain objective reasons why the bank may temporarily need borrowed resources.
These objective economic reasons include:
The discrepancy between the receipts of funds to the bank and its needs for payments in terms of size and timing. The fact is that a bank is a clearing house between certain groups of market participants who make regular payments to each other. This process is chaotic and unpredictable, and therefore often there are situations when money from some clients has not yet been received by the bank, and other clients are already required to make the necessary payments. This situation is called a "cash gap", and the main way to eliminate it is to take a short-term loan from a bank that currently has the opposite situation, that is, there is a free balance of money in the account;
The need for more or less long-term resources, for example, for the implementation of some relatively long-term investment project or in order to withstand the lengthy process of repayment (collection) of some loans that were not returned in a timely manner. In other words, the main reasons for the emergence of the need for borrowed funds from the bank itself are related to the peculiarities of the banking activity itself. On the one hand, these are the features of the calculations that the bank makes for its customers, on the other hand, the features of the bank's resource base, which is predominantly short-term.
Short term loans. This is borrowed capital, which the bank attracts for short periods, usually up to one year, in order to eliminate emerging cash gaps. These resources include interbank loans and credits from the Central Bank.
Long-term loans. This is borrowed capital, which the bank attracts for a sufficiently long period, usually exceeding one year. Such resources usually include the issuance of bank bonds for periods measured in years.
Bank activity analysis
In the total amount of banking resources, attracted resources occupy a predominant place. In world banking practice, all attracted resources are grouped according to the method of their accumulation as follows: Deposits ...
Analysis of the activities of commercial banks
Own funds of a commercial bank consist of the funds formed by it and the profit received by the bank as a result of its activities in the current year and over past years. The bank's funds form the basis of its own funds...
Organization of work of CJSC "Agroprombank"
Banking resources are formed as a result of banks' passive operations and are reflected in the liabilities side of the bank's balance sheet. Bank resources include the bank's own funds ...
Features of the formation of the resource base of the bank in modern conditions
The bank's own funds are the basis of its commercial activities, provide financial stability bank and its solvency, serve as a source of coverage for unforeseen expenses ...
Features of the formation of the resource base of the bank
Posted at http://www.allbest.ru/ “The majority of bank resources are borrowed funds. The funds raised are formed through the following banking operations: - opening and maintaining accounts of legal entities...
Features of the formation of the resource base of a commercial bank in modern conditions
The prevailing part of bank resources is made up of borrowed funds. The funds raised are formed through the following banking operations: - opening and maintaining accounts of legal entities...
Passive operations of commercial banks
The attracted funds of commercial banks cover, according to various estimates, from 70% to 90% of the total need for financial resources for active operations, primarily credit. Their role is exceptionally great ...
The bank's own funds represent a set of balances on passive accounts that do not have the nature of obligations. Depending on the source of formation, they are divided into three groups: - authorized capital ...
Ways of using the resources of commercial banks on the example of JSC "ASB Belarusbank"
As of 01.07.2011 As of 01.07.2010 Statutory fund 3,287,552.6 2,287,552.6 Reserve fund 368,263.0 266,156.6 Fund for revaluation of balance sheet items 386,973.9 342,023.2 Accumulated profit 1,207,964.0 834,278...
Ways of using the resources of commercial banks on the example of JSC "ASB Belarusbank"
The borrowed funds of the bank are its obligations, which have a returnable, paid basis. They are classified mainly depending on the counterparty and the type of attraction ...
Resources of commercial banks
Commercial banks can replenish credit resources by attracting temporarily free funds from other banks, i.e. at the expense of interbank credit (IBK). Interbank credit occupies a special place in the structure of banks' resources...
The attracted capital of a bank is often called one short economic term "deposit", however, legally, the concept of a deposit is equated to the concept of only a "bank deposit" in a bank deposit agreement...
Structure banking system RF
Borrowed funds (borrowed capital) of the bank is the last type of source of total capital that the bank uses in its market activities. Before that, the bank's own funds and its deposits were considered, i.e. ...
Management of passive operations of a commercial bank
In the total amount of banking resources, attracted resources occupy a predominant place. Their share in various banks ranges from 75% and above. With the development of market relations, the structure of attracted resources has undergone significant changes...
Bank property accounting
In accordance with the Regulation of the Central Bank No. 302-P, fixed assets are understood as a part of property with a useful life of more than months, used as means of labor for the provision of services, management of a credit institution ...
