Banking is a big profit, but few can do business in this segment. You need to have a great investment and good work experience. Given the peculiarities of Russian legislation, it is easier today to buy a ready-made bank than to open a new one. But even in this case, you need to have a business plan for a commercial bank and have a good knowledge of internal processes.
Open a bank in the Russian Federation
Sometimes, opening a bank is simply necessary to service the main enterprise. Then shareholders have to look for large investors to form the capital of a commercial bank, develop a detailed business plan and collect a package of documents for registration. Is it worth it?
The competition in the market is great. Russians are more likely to experience an oversupply of credit institutions. At the same time, there are several types of banks. Investment financial institutions work only with entrepreneurs, and universal commercial banks cooperate with individuals. The services offered by the bank also largely depend on the chosen development strategy. Investment banks offer interesting rates for servicing deposits, but charge a large commission for cash settlement services. Universal financial institutions provide a full range of services at reasonable rates.
The central link of the system is the Bank of Russia, which regulates the activities of commercial banks. The latter are conditionally divided into two categories. Universal banks work in all directions, while investment banks invest in promising central banks.
Formation of a commercial bank
To carry out activities in this segment you need to get a license. It contains a list of permitted operations. The document is valid for two years. This time is enough to choose a specific direction of work in the market.
First you need to register a legal entity. Usually banks open in the form of AO. Next, you need to send information about the financial institution to the territorial office of the regulator. At this stage, shareholders should already have formed capital. GTU will check the availability of the minimum amount for registration of the bank, the financial history of the organization and all shareholders. If part of the information is hidden, then you can no longer count on obtaining a license.
At the next stages, documents are checked by the Bank of Russia and the Supervisory Committee. If a positive decision is made, then the data on the new bank are transferred to the Federal Tax Service. From this moment, the founders have 30 days to deposit capital into the account.
Documents
To register a bank, you must provide:
- Statement.
- Business plan of a commercial bank.
- Minutes of the meeting of shareholders.
- State duty receipt.
- Profiles of persons who will occupy the positions of manager, accountant and deputies.
- Auditors' opinion on the reliability of reporting (for entrepreneurs); evidence of sources of origin of funds (for individuals).
- Documents confirming the bank's compliance with the requirements for cash transactions.
- A copy of the permission from the federal antimonopoly authority on consent to the creation of a financial organization.
- A package of documents for the initial issue of securities, if the bank is created in the form of AO.
- Full list of shareholders.
The routine work of collecting and processing documents can be entrusted to intermediaries. But besides the additional costs of registration, this will not work, since no one can guarantee a license.The intermediary will help to draw up a business plan, draw up documents and, possibly, slightly speed up the process of their consideration. But not more.
Bank structure
A credit institution has a certain structure. The main governing body is the board of shareholders, which appoints the board of directors to make operational decisions. All responsibility lies with the chairman, who is elected by secret ballot.
Depending on the types of services provided, banks create the following departments:
- depositary;
- credit department;
- economic department;
- Central Bank Management Service;
- FEA;
- operations department, etc.
The internal processes of the bank involve the administration, human resources department, accounting, audit department, IT and the economic support department. This is the structure of commercial banks.
Functions of Commercial Banks
Modern credit institutions are the main link in the system. Their relationship is commercial in nature and is aimed at making a profit. To achieve this goal, a modern commercial bank performs the following functions:
- intermediary function in making payments;
- provision of loans;
- intermediation in making payments and creating means of payment;
- issue of securities.
What other role do commercial banks play? The functions of commercial banks also include advising on all economic issues.
Initially, banks used only their own finances for work, but they were not enough to carry out all the tasks. Therefore, institutions began to raise funds from the public and entrepreneurs. As a result, the share of borrowed funds in the capital of banks increased to 80%. To redistribute it, money is invested in various sectors of the economy. For example, they provide loans, acting as an intermediary between persons who have free funds and those who need them. With the help of loans, enterprises can expand production, increase stocks and demand for their goods.
The intermediary function is also to transfer funds worldwide. The effectiveness of the use of new payment instruments is evidenced by a reduction in cash turnover in Russia to 46%. To carry out this function, banks open accounts and carry out clearing settlements.
For industrial enterprises, one way to attract borrowed funds is to issue their own securities. Banks here also help organizations by carrying out the initial issue and sale of shares on the market. The expansion of this function has led to the fact that since the beginning of the XX century. financial institutions began to compete with stock exchanges.
Principles
A business plan is the result of studies of specific activities in the market under the current conditions. The business plan of a commercial bank is the basis for determining a development strategy.
The preparation of the document is carried out according to the following principles:
- Planning is carried out only with a positive financial result. If there is a loss, then you need to provide a plan for the rehabilitation of the institution.
- The change in liabilities is accompanied by a change in assets.
- When drawing up a plan, one should strive to increase the differences between the weighted average rates and borrowings by optimizing capital.
Business plan structure
The first section of the plan provides general information about the bank: name, data on licenses for all types of activities, location of the main office and network of branches. Information on the amount of equity and the share of each shareholder is indicated. It also provides principles for accounting for assets and liabilities in a business unit. A brief description of the services provided.
The second section analyzes the external and internal environment of the bank, the level of competition and the economic situation in the region.There is a study of the strengths and weaknesses of the financial institution, as well as potential resources that can be used in the implementation of business processes.
The analysis of the external environment is carried out on the basis of statistical data from the Bank of Russia. Separately, the financial condition of the largest players in the market is examined by such parameters as capital volume, return on assets and liquidity level. Market participants are ranked according to the presented rating methodology. This is necessary in order to identify key market players based on regulatory financial indicators. The structure of a commercial bank necessarily includes a board of directors, a board and an audit committee. The functions and tasks assigned to these units are described in detail in the second section of the plan. Responsible departments for each area of activity are also appointed here: foreign trade activities, credit operations, cash transactions, the Treasury, depository, IT, processing center, etc.
In the third section, the bank’s development strategy is presented, and in the fourth, the planned financial indicators.
Strategy formation
The business plan of a commercial bank is developed based on the results of studies, the formation of internal, external tasks of the bank for the current year and specific development indicators.
Internal tasks include:
- maintaining a position in the services market;
- achieving a specific volume of operations and improving their quality;
- formation of competitive services;
- desire for leadership, association with a reliable financial partner.
Task Inside:
- achievement of benchmarks for the financial activities of the bank;
- maintaining a given level of liquidity;
- restructuring of the balance sheet;
- formation of internal resources.
Specific financial indicators should include a business plan. Example:
- increase in the share in the RKO segment for individual entrepreneurs to 2.5%;
- increase in operations at the securities market up to 4%;
- expanding the customer base to 250 thousand customers, etc.
Financial performance
Based on the structure of a commercial bank, planning may include:
- attraction of currency resources;
- settlement balance;
- directions of profit distribution;
- directions of staff development;
- expanding the network of branches and ATM;
- software revision.
For each type of service, the planned values of profit, profitability and liquidity should be detailed.
Applications
The balance sheet for one, two and three years is reflected in the appendices. Here are detailed tariffs for all operations that contain a business plan. Example:
- tariffs for operations with debit / credit cards;
- rates on operations with foreign currency;
- RKO tariffs in rubles, etc.
This is an approximate development plan structure. It can be supplemented by the “Financial Recovery Plan”. A note is attached to the document, which contains a generalized assessment of the situation in the region and the position of the bank. It summarizes the research in the following areas:
- market development dynamics in terms of lending priorities and resource mobilization;
- achieved positions of the bank in different market segments;
- the availability of internal resources.
Material and technical base
When developing the plan, the regulatory documents of the commercial bank approved by the Board are used. Their presence is fixed by the Central Bank in Regulation No. 509 “On the Organization of Internal Control”. Each financial institution should have development programs, strategy, current and future directions of activity. All of these elements are part of a business plan.
At the legislative level, the plan has the following requirements:
- it is approved by the owners of the financial institution;
- The document reflects current and future directions of development;
- the plan contains specific (digital) benchmarks and means to achieve them;
- the plan is evaluated by the internal control service for compliance with the optimal level of risks and standards prescribed in the legislative acts of the Central Bank, the reality of achieving indicators.
Final work
Registering a bank is a rather complicated and painstaking procedure. If it is not possible to provide a complete package of documents, then it is better not to even begin this process. Moreover, the purchase of a finished bank can be cheaper than creating a new one.
The capital and reserves of commercial banks are clearly regulated at the legislative level. To open a bank, you need to provide 300 million rubles. at the time of filing. This is the most minimal level. In practice, the founders have to immediately invest about 1 billion rubles. Otherwise, it will not work to open offices in at least several cities, conduct a marketing campaign, rent premises, purchase equipment and hire specialists. From the moment all documents are completed until the start of work, at least one year passes.
Conclusion
Bank registration is a lengthy procedure during which the market regulator and all supervisory authorities examine shareholders in detail, the submitted development plan of the credit institution and make a final decision. To prove the feasibility of creating a new institution, shareholders must provide a detailed development plan.
The business plan of a commercial bank is formed on the objective use of a system of laws, experience and practical skills in achieving planned targets. Simplified planning comes down to determining the place that the bank occupies in the market today, and the position to which it seeks. To achieve this goal, a list of tasks on all aspects of banking is formed.
After passing the registration procedure, preparatory work begins: from the rental of premises to staff training. It may take several months from the moment of obtaining permission to the start of work.