Money. Credit. Banks. The essence and functions of commercial banks (lecture notes)

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Money. Credit. Banks. The essence and functions of commercial banks (lecture notes)

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Essence and functions of commercial banks

In the market at any given time there are economic units that have free funds, i.e. with a balance sheet surplus (EBSP). There are also economic units with a balance sheet deficit (EEDB). Redistribution of funds between issuers of obligations and their holders can be carried out using direct (sale of obligations directly to the holder) and indirect financing (through a commercial bank). Banks perform the function of intermediation + minimizing information costs. Economic essence of banking activity:

a) transformation of risks (confidence in solvency);

b) transformation of deadlines;

c) transformation of the values of the credit transaction.

A commercial bank is an enterprise of a special kind, the main activity of which is the mobilization of temporarily free funds of individual economic entities in order to lend them. Banking operations: - attraction of funds in deposits; - placement of attracted funds on its own behalf and at its own expense; - opening and maintaining bank accounts; - making settlements on behalf of individuals and legal entities; - cash collection and cash services; - purchase and sale of foreign currency; - attracting deposits and placement of precious metals; - issuance of bank guarantees; - making transfers without opening bank accounts.

Functions of banks: a) accumulation of funds;

b) creation of non-cash money;

c) mediation in settlements.

Credit organization - legal entity. a person who, in order to make a profit as the main goal of his activity, on the basis of a special permit from the Central Bank of the Russian Federation, has the right to carry out banking operations. Non-bank credit organizations (NPOs) are organizations that have the right to carry out certain banking operations provided for by law. Banking system (BS) - a set of credit institutions headed by a central bank of issue + a system of relations and relationships between them. Systems are: one-level (the predominance of horizontal connections between banks, i.e. the universalization of their operations and functions) and two-level (both horizontal and vertical connections; vertical - subordination relations between the central bank of issue as the governing center). The central bank of issue is assigned the function of control over the banking system. All banks except the central bank are considered commercial. Commercial ones include:

a) private commercial banks;

b) savings banks;

c) cooperative banks. Specialized banks are those that carry out individual banking operations or serve specific client groups.

Modern remote banking service

Remote (online) banking is a range of banking services provided using various technologies for remote customer service. Advantages: ease of use of the system; functionality (operations available to clients); system security. Shapes:

1) telephone banking (using a touch-tone telephone);

2) PS banking (via a direct modem connection of a personal computer to the banking network;

3) Video banking - through communication with staff, video conference;

4) Internet banking - via PC and Internet;

5) mobile banking - through a mobile phone and a simplified data exchange protocol on the Internet;

6) interactive (digital) television banking - using a TV turned into a multimedia telecommunications center.

The Internet-Bank-Client system allows you to work with all the main banking documents (form, sign and send to the bank):

payment order, payment request, collection order, register of payment documents, statement of refusal of acceptance, letter of credit, application for currency transfer, order for the sale of currency, transaction passport, information message).

For remote management of bank accounts (receiving statements, generating and sending payments, receiving and sending text messages of an arbitrary nature to the bank), along with the traditionally used Client-Bank systems, more modern systems of remote account management via the Internet are now being used very actively.

The concept underlying the "Internet banking" system is based on the use of the so-called. the principle of "thin client", the essence of which is that there is no (unlike traditional "Client-Bank" systems) the need to install any software on the client's PC.

This software (Java applet software module) is downloaded to the client's computer from the bank's server only for the duration of the communication session with the bank. This technical solution has a number of obvious advantages over the traditional "thick client" technology implemented in conventional "Client-Bank" systems.

The ideology of information security of the "Internet banking" system is based on the correct decision on the independent generation of the secret key of the electronic digital signature by the client (in most remote account management systems, including the traditional "Client-Bank" system, these keys are generated by the system developer, which significantly reduces the information security of such systems). Availability and ease of installation. To install the system, a bank employee does not need to visit the client's office. All operations for installing the system are so simple that they can be performed by employees of the client's organization on their own. To do this, the client must: have an open account with the Bank and a computer with the required characteristics.

If, for some reason, the client's office does not have the ability to connect to the Internet, but has a computer, telephone and modem, he can easily use the traditional "Client-Bank" service.

The system has a standard set of functions - receiving ruble and currency statements, typing in the system and sending payments, receiving and sending arbitrary text messages to the bank, etc. The distribution kit of the program and detailed instructions for installation and operation can be downloaded from the Internet or when contacting an additional office (business center, bank branch). The Internet-Bank-Client system provides the highest degree of mobility in managing the organization's financial flows. The head of the company, being anywhere in the world, has the ability to carry out transactions in the interests of his company.

Author: Shevchuk D.A.

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