The activities of banks is to conduct certain procedures in relation to monetary units, securities and property. The common name for these actions is banking. Some of them are carried out at the initiative of the banks themselves, and some at the request of their customers. Procedures carried out at the initiative of banks are usually aimed at making a profit, and in some cases, at ensuring their own activities.
Procedures performed at the initiative of clients pursue goals determined by the clients themselves (banks can also make a profit when they are carried out). They can be aimed at protecting savings from depreciation, making a profit or receiving money for temporary use. The most common procedures for monetary units or securities are divided into several main categories:
- Money transfers.
- Currency operations.
- Card service.
- Account service (CSC).
- Credit operations.
- Collection.
- Deposit operations.
- Leasing.
- Exchange operations.
Money transfers
These operations are carried out on behalf of ordinary citizens (individuals). They are not accompanied by opening an account and do not require the sender to have it. Actions can be carried out in relation to other citizens, as well as legal entities. In some cases, such operations fall under certain restrictions. Mostly they relate to the use of foreign currency by residents (citizens) of the Russian Federation.
Technically, such banking operations are one of the simplest. The client confirms the identity and transfers the money to the bank, which transfers them to the recipient. The transfer, accompanied by the opening of an account, is a more complex action. But this gives the client significantly greater opportunities: for example, making regular or one-time payments and using the Internet for these purposes.
Currency operations
These are procedures related to the acquisition or sale of foreign currency units. Usually they are aimed directly at the purchase or sale (exchange) of currency. In some cases, these actions are intermediate: for example, payment of bills issued in foreign currency. In order to produce it, you must first purchase the right amount of the indicated monetary units.
Almost all types of banking operations related to working with foreign currencies are subject to certain restrictions. They are imposed in accordance with the currency regulation carried out by the state. It is aimed at establishing a compromise between the current needs of individual citizens and the need to control the national currency of Russia. Considered restrictions apply only to residents of the Russian Federation.
Card service
All types of banking operations fall into this category, the conduct of which is confirmed only by the presence of the card itself and knowledge of a special code. The ATM or payment terminal reads the information stored in the card, checks the code entered by the holder and performs the required actions: most often, payment for goods or services, as well as transferring funds from one card to another.
Such procedures are very convenient, they require a minimum of effort from the client, they are carried out very quickly. But such simplicity somewhat reduces security. In order to compensate for this, operations with a bank card have certain limits. In particular, some actions cannot be confirmed only by a card, for their execution it is necessary to contact a bank branch or office.
Account Services (CSC)
These are any banking operations of credit organizations (or the banks themselves) carried out in respect of all types of client accounts: transferring funds from one account to another, making cash and non-cash payments and settlements, crediting or withdrawing funds. This also includes the execution of payment orders, the provision of statements and other documents at the request of the client. The complex of these services is usually called cash settlement services; a commission or a fixed fee may be provided for their provision in accordance with established tariffs.
In relation to such procedures, certain limits may apply. For example, if they are initiated via the Internet. When a client addresses a branch or office, operations of any scale are possible. This service option is more secure than card service. But it requires the physical presence of the client with confirmation of his identity in order to ensure the safety of funds. In some cases, it is sufficient to have the appropriate document - a payment order (in the absence of the client himself).
Credit operations
Credit banking operations are all the actions performed during the lending process: providing a credit limit, crediting credit funds to an account or issuing cash. This also includes payments made by the client in the process of repaying the loan and the application of penalties for late payments. Getting a loan by a client is also a credit procedure.
The organization of banking operations in this category is similar to attracting and placing deposits. Lending to customers, from the point of view of the bank, is exactly the same placement of own funds at interest. The Bank invests its funds in customers, counting on their return on time with interest. Only the percentages themselves differ: they are significantly lower on deposits. Therefore, deposit procedures are often referred to as credit, calling them passive credit operations.
Collection
Collection services are provided by banks. And banking operations of this type involve the receipt by the bank employees of the client’s cash and their subsequent transfer to his bank account. Upon receipt, an appropriate document is drawn up. The document enrollment procedure is not accompanied by, but is displayed in the reports as the corresponding receipt transaction.
Such services are used by almost all commercial organizations that receive cash from customers as payment for goods or services. This significantly increases the safety of customer funds. He does not have to store large amounts and ensure their safety. The bank also takes over the transportation of cash, carrying it out on prepared transport, accompanied by armed guards.
Deposit operations
Deposit banking operations are a set of measures to attract customers' funds in deposits: depositing, servicing necessary accounts, calculating and calculating interest and returning funds on time. Sometimes this category also includes ongoing advertising campaigns as a process of attraction.
The bank’s advantage when placing a deposit consists in the possibility of reinvesting client funds until the moment at which they are to be returned. The benefit of the client is to stop the depreciation of funds caused by various factors. To achieve this goal, customers can open deposits in the national currency of another state (or several). There are also deposits in precious metals (the most common option is gold).
Leasing
The implementation of banking operations may be associated with the acquisition by the bank of a certain property at its own expense, for the long-term lease of such a client. In simple words - the bank buys what the client wants, and leases it to him for a fee corresponding to the tariff.In the future, the client has the right to both purchase this property and return it, accompanied by the termination of the lease. This procedure is called leasing.
This service can be an excellent solution in situations requiring an individual or legal entity to purchase expensive property in the absence of the required funds. Ultimately, such a procedure will cost the lessee more than just a purchase. But he will not be required to pay all the cost at a time. It will also be possible to return the equipment to the lessor if there is not enough money to buy back.
Exchange operations
This definition includes banking operations aimed at the purchase or sale of securities. These procedures can be performed on behalf of an individual or legal entity. In some cases, they are carried out at the initiative of the bank during reinvestment. The ultimate goals of these actions may be different: making a profit from owning securities, managing risk or income from speculative activities.
Exchange procedures also include servicing accounts of persons engaged in speculative activities in the foreign exchange market: buying or selling foreign currency on behalf of these persons. The provision of such services by banks is quite widespread.
Other banking activities
There are other types of procedures conducted by banks on their own initiative or on behalf of individuals or legal entities. A bank can act not only as a creditor or borrower, but also as a guarantor, guarantor or intermediary. For the implementation of all types of its activities requires an appropriate license. Its receipt may be necessary for other financial organizations if their activities require the implementation of procedures related to banking.
