Banking. Deposit operations of commercial banks (most important)

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Banking. Deposit operations of commercial banks (most important)

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Topic 82. Deposit operations of commercial banks

Deposit operations - these are the operations of banks to attract funds to deposits and their placement. There are passive and active deposit operations.

PASSIVE deposit operations consist in attracting funds from enterprises, institutions, banks and the public in term and demand deposits. The share of deposit operations usually accounts for up to 95% of liabilities.

According to the economic content, deposits are divided into 3 groups:

1. Term deposits (with a variety - certificates of deposit) are classified by terms: deposits with a term of up to 3 months; from 3 to 6; from 6 to 9; from 9 to 12; over 12.

The disadvantages of term deposits for clients are their low liquidity and the impossibility of using these funds for settlements and payments, as well as for receiving cash. For the bank, the disadvantage is the need to pay increased interest on deposits and thus reduce the margin (the difference between the interest on active and passive operations).

2. Demand deposits are classified depending on the nature and ownership of the funds held in the accounts:

a) funds on the settlement, current, budget accounts of enterprises and organizations;

b) funds on special accounts for the storage of funds of various intended economic purposes (own funds of enterprises intended for capital investments; funds of enterprises in settlements; funds on correspondent accounts for settlements with other banks; funds of local budgets).

Demand deposits are the most liquid, since their owners can use their money at any time, but for them the bank is obliged to reserve 16% in the Central Bank (while for time deposits over 12 months - 10%).

3. Savings deposits of the population are divided depending on the features of their storage into fixed-term, fixed-term with additional contributions, youth-premium, bearer, savings certificates, plastic cards, etc..

Beneficial to banks - are long-term and can be used for long-term investments. The disadvantage is that they are subject to political, psychological and economic factors, which increases the threat of a rapid outflow of funds from these deposits and loss of bank liquidity.

4. Correspondent accounts. Funds on the accounts of other banks opened with this bank are, in fact, deposits and they can be considered as attracted resources accounted for on the Loro account.

2 types of correspondent accounts:

1) foreign exchange - opened by foreign banks in other banks and intended for storing currency and making payments for import-export transactions;

2) rubles - help speed up payments between regions (payments take place in 1-3 days) and are easier to use than payments through the RCC (payments take 3-5 days for telegraphic transfers, and 10-18 days for postal transfers).

ACTIVE deposit operations are associated with the placement of temporarily free resources of some banks in other credit institutions: in commercial banks on a Nostro account or in the Central Bank. For balances on a correspondent account in foreign currency, interest is accrued in favor of the correspondent, and for balances on a correspondent account in Russian banks, the issue of accrual or non-accrual of funds is decided by agreement between the banks. Funds in an account with the Central Bank do not generate income, but funds on cash account in other banks and investments in state bonds bring income to the bank.

Authors: Shevchuk D.A., Shevchuk V.A.

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