In the article, we consider banking operations and transactions of a credit institution. Banks are involved in solving certain financial issues that arise in various categories of citizens, and this is to some extent determined by the need to save money. The accumulation, investment and placement of money is carried out through banking operations and other transactions of credit organizations. They differ from each other in their practical and legal nuances.
Banks and NGOs
There are two types of credit organizations: credit non-banking organizations and banks. The former have the right to carry out certain operations, which are provided for at the legislative level in accordance with the license granted to them. Currently, there are two types of NPOs: collection and settlement.
There are also representative offices and branches of foreign banks in the country's banking system. A special place is given to banks with state participation in it. Their authorized capital partially contains the capital of the state, municipality and constituent entity of the Russian Federation. Such banks include the following: Sberbank of the Russian Federation, Vnesheconombank, Vneshtorbank, Russian Agricultural Bank, Roseximbank. There is no special legislation that would regulate the creation and functioning of such banks. Their activities are determined by federal laws separate for any bank.
Let us consider in more detail what banking operations and transactions are.
List of Bank Operations
The credit institution has the authority to perform only banking operations, determined by the license. To date, the fifth article of the Banking Law provides an exhaustive list of banking operations, which include:
- attracting financial resources of clients for a certain period and on demand in deposits;
- placement at own expense, as well as on their own behalf of raised funds;
- maintaining and opening accounts;
- settlements on behalf of the respective categories of persons in their bank accounts, including also correspondent banks;
- collection of financial assets, settlement and payment documents, bills and cash services of relevant categories of persons;
- attraction of deposits and further placement of precious metals;
- purchase and sale of non-cash and cash foreign currency;
- issuing bank guarantees;
- money transfers on behalf of individuals, without opening a bank account.
This is not limited to banking operations and other transactions.
Additional competencies of a credit institution
In addition to the operations described above in banks, a credit institution also has the right to carry out the following transactions:
- issues guarantees for third parties that provide for a monetary form of fulfillment of obligations;
- obtaining the right to demand fulfillment of obligations from third parties in the form of cash;
- procedures with precious stones and metals in accordance with Russian law;
- trust management of financial assets and other property by agreement with legal entities and individuals;
- providing legal entities and individuals with safes or special rooms for rent to store valuables and documentation;
- leasing operations;
- information and consulting services;
- other transactions in accordance with Russian law.
A credit institution does not have the right to engage in insurance, trade, and production activities.
Varieties of banking operations
A complete list of all banking transactions and operations can be combined into the following groups: active, commission-intermediary and passive. Consider each group in detail.
Active operations
The purpose of active operations in commercial banks is the allocation of resources. Own and marked funds are used to conduct business activities and lending to customers.
All types of banking operations and transactions are made in rubles. If there is a special license of the Bank of Russia, then also in foreign currency. Operations are performed according to the rules, including also the rules of their technical and material support. What banking operations and deals are, not everyone knows.
Passive operations
Passive operations are designed to attract resources. In a commercial bank, these are:
- formation of own bank capital;
- acceptance of deposits (deposits);
- opening and further maintenance of client accounts, including correspondent banks;
- issue of securities, such as bills, bonds, savings and certificates of deposit;
- obtaining interbank loans, including also centralized resources;
- Eurocurrency loans.
The difference between banking operations and transactions
The separate terms describing the activities of banks have a similar meaning. However, they do not always need to be identified. We are talking about two basic concepts that characterize the functions of a credit institution. The main difference between a transaction and a transaction is a different degree of participation in them.
Operations are carried out only by credit and financial organizations without attracting a client; only supporting documents are provided to him: check, receipt, statement. For their implementation, the prior consent of the person or representative of the legal entity is necessary. The transaction is a mutually beneficial cooperation of the commercial structure with the client, which involves pre-agreed clauses of the contract regarding the activities of the parties and mutual agreement with them.
The ratio of banking operations to banking transactions is in favor of the former.
Commission and intermediary operations
Commission and intermediary operations are performed by the bank on behalf of its customers for a fee. The main ones are:
- cash and settlement operations;
- operations of brokers with securities;
- trust operations;
- Warranty
- consulting and information;
- underwriting;
- deposit operations.
An important place belongs to cash management services due to banking operations and transactions in foreign currency and in rubles.
Features of licenses obtained by commercial banks from the Central Bank of the Russian Federation
A commercial bank can be formed in any legal form provided for at the legislative level, but most often it is an LLC or JSC. The control scheme in all cases is the same. The supreme management body is the general meeting of participants or shareholders convened every year.
In general, the management of activities is carried out by the Supervisory Board (Board of Directors), which fulfills the instructions of the shareholders meeting and is responsible for the results of banking activities. The functioning of the Board of Directors is headed by the chairman. Current banking activities are managed either by the sole executive body, that is, the director, or both the collegial and sole executive bodies (directorate and board of the bank).
The principles of functioning of commercial banks:
- activities within the available resources (here it is understood that settlement and cash operations and the provision of credit by the available resources of the bank);
- a commercial bank is fully responsible (in economic terms) for the results of its own activities (the risk of banking operations rests entirely with the bank, which has complete freedom in raising funds and allocating mobilized resources);
- market relations with customers (when choosing a customer service, the bank relies on the criteria of risk and profitability);
- regulation of the activities of a bank of the Central Bank of the Russian Federation can be possible only through economic methods of an indirect nature (not direct administrative); continuous supervision of the functioning of commercial organizations by the Central Bank of the Russian Federation is carried out through a combination of economic standards and other norms.
Banking operations and transactions of the Bank of Russia, corresponding to the law, can be made exclusively on the basis of a license issued by the Central Bank of the Russian Federation.
Varieties of licenses
The following types of licenses may be issued to a formed bank:
- for banking operations with financial assets in the form of rubles;
- for banking operations with financial assets in the form of foreign currency;
- on the distribution of precious metals, as well as attracting deposits.
A bank, which has already been registered for at least two years, may be issued with such licenses as:
- to attract financial resources to deposits of legal entities and individuals;
- to raise funds in the appropriate categories of persons, both in rubles and in foreign currency;
- general license, the issuance of which is possible by a bank that has a license to carry out all banking operations with resources in foreign currency and rubles, and fulfills the requirements for the amount of capital established by the Central Bank of the Russian Federation (five million euros). If the bank has such a license, then it has the right to create foreign branches and / or to acquire shares in the authorized capital of credit organizations-non-residents.
Thus, in this article we examined the basic banking operations and transactions.