Placement (distribution) by way of intermediation of securities on primary market reflected in the accounting as follows:

1. posting of received securities:

Receipt 99620 "Securities received for distribution";

2. when transferring securities under the report to responsible executors for sale:

Expense 99620 "Securities received for distribution",

Receipt 99661 "Securities sent and issued against the report";

3. sale of securities:

D-t 10XX "Cash", buyer's account

Kt 3811 "Settlements on operations with securities";

Expense 99661 "Securities sent and issued under the report"

or (if securities under the report were not issued)

Expenditure 99620 "Securities received for distribution";

4. bank settlements with issuers (other obligated persons) for placed securities, as well as further servicing of issues (repurchase, redemption) are carried out in accordance with the requirements established by law and / or an agreement with the issuer (other obligated person).

Purchase and sale of securities through mediation under contracts of commission or commission reflected in the accounting as follows:

1. funds of clients (residents and non-residents) intended for the purchase of securities, as well as funds for sold securities are accumulated on the balance sheet account 3811 "Settlements on transactions with securities" in accordance with the law. If the client is another bank, then balance account 1811 "Settlements on operations with securities" is used;

2. On off-balance account 99633 "Requests for receipt of purchased securities" securities paid for but not received from the seller are recorded. Securities are written off as an expense when they are transferred to the client for whom they were purchased;

3. Off-balance account 99621 "Securities received for sale" records securities received for sale in the secondary market. The sold securities or securities that are paid by the buyer but not transferred to him are written off as expenses;

4. Off-balance account 99623 "Obligations to deliver sold securities" records securities paid for but not transferred to the buyer. Securities are written off as an expense after the fulfillment of obligations to transfer them to the buyer or when they are returned to the seller.

Accounting for securities on off-balance accounts of group 996 "Operations on behalf of other banks and clients" is carried out regardless of whether they are issued in documentary or non-documentary form.

Remuneration for intermediary services is accounted for on the balance sheet account 8140 "Commission income from operations with securities".

Topic 8. Accounting for long-term financial investments, fixed assets

And other property of banks

Accounting for equity participations and investments in subsidiaries

To account for long-term financial investments of the bank in the authorized capital of legal entities, accounts of groups 51 "Shareholdings of the bank" and 52 "Investments in subsidiary legal entities" are used. The main criterion for classifying a bank's investments as one or another group is the share of shares owned by the bank in the authorized capital of the legal entity. In the event that the bank's investments in the authorized capital of a legal entity actually give the investor bank no more than 50% of voting shares (stakes), they are reflected as equity participations in the accounts of group 51 “Bank equity participations”. If the bank owns more than 50% of the authorized capital of a legal entity, it is a subsidiary of the bank. Such investments are reflected in the accounts of group 52 “Investments in subsidiaries”.

Transactions with long-term financial investments are reflected in accounting no later than the day following the day the bank receives documents confirming the transfer (emergence) of ownership of long-term financial investments, or the fulfillment of the terms of the contract that determine the transfer (emergence) of ownership of them.

The implementation by the bank of long-term financial investments in the form of cash, including through the additional acquisition of shares or shares, is reflected in the accounting records as follows:

Transfer of funds:

Transfer (emergence) of ownership of long-term financial investments:

Kt 1801 (3801), 1809 (3809) - accounts for accounting settlements;

In the event that the subscription is declared invalid, or in case of refusal to register the authorized fund:

D-t temporary account for the formation, replenishment of the authorized capital of a legal entity or a current (settlement) account of a legal entity

Kt 1801 (3801), 1809 (3809) - accounts for accounting settlements.

accrual dividends declared by a legal entity on long-term financial investments (including income tax) are reflected in the accounting records as follows:

D-t 6726 "Accrued income from operations with the DCF in the UV legal entity"

Kt 8363 "Dividends";

Receipt bank dividends or their direction to increase long-term financial investments is reflected in accounting as follows:

- when receiving dividends:

Dt of the payer's account

At directing dividends to increase long-term financial investments:

Dt 510X, 520X - accounts for accounting for long-term financial investments

Sale long-term financial investments owned by the bank is reflected in the accounting records as follows:

D-t accounts for cash accounting (Hereinafter - corr, current account, 18XX, 38XX)

Kt 510X, 520X - accounts for accounting for long-term financial investments - for the sale price;

If the sale price does not match the book value of long-term financial investments, the bank does not reflect the financial result from the disposal of assets on account 836X "Income from the disposal of long-term financial investments" or 936X "Expenses on operations with long-term financial investments in the legal entity" in correspondence with accounts for accounting for long-term financial investments 510X, 520X.

Receipt member bank parts of the property of the liquidated legal entity or its cost in the manner prescribed by law, is reflected in accounting as follows:

Receipt of intangible assets and fixed assets:

Dt 5400, 5510, 552X - accounts for accounting for intangible assets and fixed assets

Receiving funds:

D-t of the account for the accounting of funds

Kt 510X, 520X - accounts for accounting for long-term financial investments;

If the funds of the liquidated legal entity are insufficient or absent and if the participating bank takes exhaustive measures to return them:

Dr. 9510 "Debts written off the balance sheet"

Kt 510X, 520X - accounts for long-term financial investments.

Receipt 9999X "Debts written off at a loss".

Accounting for intangible assets

Acting as intermediaries in transactions with securities, commercial banks perform a range of services:

1. raising funds for the development of production, incl. underwriting - subscription, initial placement of shares of issuing companies, and before that, analysis, evaluation and setting the preliminary price of the issued security. If a bank client needs to receive financial resources for a long time (for the reconstruction of an enterprise, or for the development of a new type of business, or for the construction of a new enterprise), he can apply for help from the bank, since it is the banks that are engaged in professional activities in the financial market. In this case, the bank acts as a financial advisor (most corporations maintain contact with only one bank and prefer to negotiate the terms of the sale of their new securities issues only) helping the client to raise financial resources, i.e. decide what is more expedient: the use of credit resources, the creation of venture capital enterprises or the placement of securities.

If the company decides on a public offering of securities for sale, then the bank assists the company in setting the price and in assessing the timing of the exit with the offer of securities for sale. The Bank may make an initial placement of securities on the basis of maximum conditions or on the basis of a guaranteed placement for the issue of securities. With a guaranteed subscription to an issue, the firm actually receives a guarantee of placement of securities, since the bank agrees to buy the entire issue and then sell it in parts to its customers (this transaction is formalized by an underwriting agreement, which can combine commission agreements, guarantees, a consulting service agreement, loan agreement, etc.). This allows the issuer to plan the distribution of capital to be raised without fear that the entire issue of securities will not be sold. Some banks often act as large guarantors of securities placements, while others limit themselves to relatively small amounts.

2. mergers, acquisitions and restructuring of enterprises. Banks can be involved in these operations through:

o participation in the organization of the merger;

o assisting target companies in the development and implementation of defense tactics;

o carrying out a target assessment of the acquired company,

o participation in the financing of the merger.

Target firms that do not want to be bought usually enlist the help of banks and law firms specializing in blocking mergers. Many mergers are funded by the free cash of the acquiring company. Since this is not always possible, there is a need for sources of funds to pay for the target company. The Bank makes financial forecasts and estimates for the company in order to determine the amount of debt that the company is able to service; together with the company, they develop a financing plan (the missing investments are made by the bank), i.e. in this case, the bank works in two directions: a traditional banking operation (credit operation) and analytical work related to investments.

3. formation and management of investment portfolios of clients;

4. work with clients-investors to provide information about the current situation on the market for making a competent investment decision;

5. brokerage and dealer operations. Brokerage is the activity of making transactions with securities as an attorney or commission agent. A broker, on behalf of his clients, buys and sells securities for them. The need for such mediation is due to the fact that the high professionalism of the broker should help achieve the best result for the investor and protect the latter from a number of risks inherent in the market. The broker performs its functions for a fee (commission).

As a rule, the broker provides the following set of services for the client:

· provision of information about the issuer, the situation on the market, consulting;

conclusion of transactions on the basis of client orders;

· Execution of transactions (obtaining certificates of securities for the client, re-registration of rights in the register and depository in the name of the client or buyer, nominee holder).

The dealer carries out transactions with securities on the stock exchange on his own behalf and at his own expense by publicly announcing the prices of buying and/or selling certain securities. The dealer works on the basis of an offer, i.e. an offer addressed to a potentially unlimited circle of persons to conclude a deal on the terms of the offer. Any person, expressing his consent to the offer, thereby concludes a deal, and the dealer is obliged to fulfill it. Refusal to execute the transaction by the dealer on the terms announced by him is not allowed. The proposal (offer) must stipulate the essential terms of the transaction at the discretion of the dealer. As a rule, it includes the purchase and / or sale price, the minimum (maximum) volume of one transaction, the offer validity period, the procedure for transferring securities and payment. The dealer receives income from the spread, i.e. due to the difference between the buying and selling prices. As a rule, in a competitive environment, spreads are set at a fairly small level (fractions of percent), so the opportunity for generating income lies in increasing turnover. Dealer activity helps to increase market liquidity.

6. depositary operations. Depositary - an organization that holds the securities of its clients and services these securities (collection and distribution of interest, dividends, etc.). The depositary activity of the bank plays an important role in servicing the securities market. . It consists in the provision of services for the storage, guardianship, guardianship of clients' securities certificates and / or accounting for the transfer of rights to them. The content of the depositary activity is to ensure the convenience of using and transferring securities, reducing the risks of transactions, simplifying the processing of information about securities, the rights they provide and their owners. Relationships between clients and depositories are based on the transfer (issuance) of instructions to them to perform certain transactions with securities, including on the basis of documents confirming the implementation of purchase and sale transactions. Depositaries receive a fee for their services.

39. An important source/element of a bank’s capital is authorized capital/authorized fund . The authorized capital is formed and replenished, first of all, at the expense of funds, both in national and foreign currencies.

Authorized capital- the value of ordinary and preferred shares issued into circulation. Partially, the authorized capital of a bank can also be formed from a non-monetary part - from tangible assets (buildings, premises, computers, equipment, excluding construction in progress - that is directly related to the activities of the bank). The share of tangible assets at the request of the CBR is not more than 20% of the placement price of shares.

In accordance with the regulation of the CBR No. 135, attracted sources of the founders cannot be used to pay for the authorized capital of the bank being created.

Replenishment of the UK

1) To comply with the requirements of the Central Bank of Russia (for obtaining additional licenses)

2) To strengthen the financial stability of the bank

3) To expand activities

The main ways to replenish the UK:

1) Add. issue of shares, attraction of funds from shareholders in payment for shares

2) Add. (repeated) issue of shares, when they are paid for not by shareholders' funds, but by funds allocated from the bank's property (capitalization of the management company); in case of capitalization, the following sources can be sent to pay for the asset management company:

a. Part of the reserve fund

b. Part of other funds

c. Part of retained earnings remaining at the end of the year

d. Funds from property revaluation

e. Part of share premium

The first method involves attracting external sources, the second - internal, and there is a redistribution of capital sources.

IPO operations are a variation of the first method of increasing the capital stock.

IPO is an initial public offering of shares in international markets.

IPO features:

1) Mobilization of significant resources, as placed at market value

2) Shares are placed publicly among a wide, unlimited circle of people

3) A costly operation, mainly for large banks (reporting, presentations).

Active Operations- operations related to the allocation of resources for profit or other benefits. The results of active operations are reflected in the assets of the bank's balance sheet as specific assets: loans, investments in securities, cash on hand, balances on correspondent accounts, etc.

Warranty

Trusted

· Estimated

Stock

Many of these transactions are accounted for separately from the underlying transactions in the separate balance sheet.

On volume, structure of active operations a particular bank is influenced by various factors of an objective and subjective nature:

· The state of the economy is the external, most striking factor.

· The level of development of the financial market-external

o Currency

o Securities market

Inflation rate-external

Provision of the bank with capital, own sources

The specifics of the resource base

bank specialization

Active operations can be classified according to various criteria:

· According to economic content

o Accounting and loan operations (individuals, legal entities, short-term, long-term, + accounting of bills - buys a bill at a discount to maturity. All credit transactions) 60-70% of each bank is occupied.

o Investment operations (not only long-term investments, but any investment for the purpose of generating income):

§ Investments in securities for various purposes

§ Participation in the capital of other structures

§ Investments in the bank's own fixed assets

o Cash transactions (cash flow - receipt, storage, issuance). They play an important role in regulating the bank's liquidity. They take a small share.

o Deposit operations (can be both passive and active). This is when a bank places funds in other banks, including the CBR - on correspondent accounts, deposit accounts)

§ Investments in foreign currency

§ Factoring

· By income:

o Income-generating active operations (“performing assets”): the bank places its funds and after some time they return to the bank with an accrued value (%, dividends, exchange rate difference, profit from investing in another structure, etc.)

§ Credit operations

§ Investment operations (investment in securities, leasing, equity participation)

§ Factoring (accounting for bills, placement of funds on correspondent accounts, deposits in other banks)

o Non-income-generating, non-performing assets.

§ Cash assets (which do not increase in value like loans, deposits, etc.

§ Investments in fixed assets

§ Placement of funds with the CBR

· Depending on the degree of risk (probability of loss)

o Risk Free Assets

§ Cash assets

§ Funds placed with the CBR

§ Investments in government debt

§ Some types of the most reliable loans (secured by precious metals, with a government guarantee, secured by government securities, etc.)

o Active operations with minimal risk (investments in debt obligations of subjects of the federation, funds on correspondent accounts, loans guaranteed by financially stable banks, etc.)

o High risk assets (the main part of loans, with the exception of those that have already been named, investments, equity participation, factoring, etc.

· By liquidity level. In this case, the assets are considered as a potential means of payment, or as a reserve. In this regard:

o Primary reserves (immediate means of payment) - cash, funds on correspondent accounts with the Central Bank and other banks, etc.

o Secondary reserves - various securities, loans as an exception (mortgage refinancing mainly)

o Loans - all types of loans

o Other reserves - illiquid long-term investments - investments, equity participation, leasing, investments in own fixed assets.

At the beginning of 2014, according to the report on the state of the banking sector in 2013 (as of January 1, 2014), in the structure of active operations of banks:

· Traditionally, as always, credit transactions prevail. They account for 65% of assets. This is traditional in any period (crisis, after the crisis, normal state), and, in the total amount of loans issued, 40% are loans to non-financial organizations.

In terms of specific weight, loans to individuals are in second place - 17.3%

· Loans to banks - about 8% of all loans.

As for investments in securities - their share is 13.6%

· As for other types of assets, they, as before, occupy a small share. So, for example, accounts with the Central Bank - 4% -3.9%; correspondent accounts in other banks - 2.6%

Credit

means funds that are provided to the borrower on the terms of payment, security, target orientation, urgency and return.

The principle of payment means that any funds are provided to the borrower on the condition that a certain percentage is paid for their use. Depending on the terms of the agreement, the interest rate under the loan agreement may be floating or fixed. Fixed - during the entire period, lending does not change, floating - provides for the conditions for revising the size of the interest rate according to the formula specified in the loan agreement.

Collateral - this principle provides for the obligatory provision by the borrower of collateral that will guarantee the return of funds. This security can be all movable or immovable property, the criteria of which meet the requirements of the creditor or the guarantee of a legal or natural person.

In the event that the client fails to fulfill its obligations under the loan agreement, the creditor has the right to sell the subject of security and cover its losses at the expense of the proceeds. Movable property includes vehicles, deposits, securities, goods in circulation, and so on. Real estate can be residential or commercial, the first includes apartments, houses, the second includes offices, buildings of enterprises, workshops of factories, premises where the production activities of legal entities are carried out.

Target orientation - this principle provides for the use of credit funds for specific purposes.

Depending on the target orientation, loans are:

• mortgage - purchase of real estate;
• car loans - buying cars;
• current needs - purchase of household appliances, repairs, treatment, education, etc.;
• for replenishment of working capital - provided to legal entities for the implementation of their activities, for example, payment of wages, payments for fuel, other materials necessary for the implementation of activities, etc.;
• investment - provided to legal entities for the purchase of fixed assets, for example, commercial real estate, cars, equipment;

Urgency - all credit money is issued for a certain period of time. Depending on the period of use of borrowed funds, there are:

• short-term - up to 6 months;
• medium-term - up to 12 months;
• long-term - more than 1 year.

Return - credit funds must be returned to the lender in full. Before concluding a loan agreement, the lender and the borrower agree on a loan repayment schedule. As a rule, the standard repayment schedule provides for monthly repayment of the principal debt on the loan, but also, depending on the loan programs, repayment can be made at the end of the contract term in one amount or quarterly. The terms of repayment are agreed in advance by the parties and are prescribed in the loan agreement.

There are also the following types of loans:

1) Depending on the currency:

• in foreign currency;
• in national currency;

2) depending on the borrower:

• legal entities - lending to enterprises, firms or organizations;
• individuals - lending to the population;

3) depending on the security:

• without collateral (blank);
• secured;

4) depending on the subject of the credit transaction:

• commercial - provides for the establishment by a legal entity that sells products or provides services of a deferred payment for their goods or services. The purpose of this type of lending is to accelerate the turnover of goods. The client takes the product for sale and after the sale pays its cost to the manufacturer. The manufacturer does not stop its production and does not wait until the goods are sold from the warehouse and the proceeds come in, but continues to work on. A feature of commercial credit is its provision in commodity form. The subjects of the transaction can only be legal entities;
• banking - provided by specialized financial institutions in cash to both legal entities and individuals;
• state - one of the parties to the loan agreement is the state represented by executive authorities;
• international - one of the participants in the loan transaction is an international financial organization, for example, the International Monetary Fund, the Paris Club, etc.

44. Measures to overcome risks m can be divided into three groups: 1. risk avoidance. This method is the simplest, however, it means the refusal of some operations - for example, the issuance of loans in certain situations. The limitations of this method are obvious.

2. reduction (regulation) of risk is expressed in a number of methods: - verification of the client's solvency and current control; - use of forms of security (pledge, guarantees, guarantees, etc.); - insurance (hedging) of risk - aimed at the maximum possible limitation of the impact of unforeseen, unpredictable changes, ensuring a minimum deviation of the actual profit from the expected one; - division of risk, its diversification, dispersion of risk; - limiting the risk through the need to comply with the regulations of the Central Bank of the Russian Federation

3. provision for risk in the bank's balance sheet (through sources of loss coverage - reserves for possible losses on loans, for depreciation of securities, a reserve fund, a mandatory reserve fund).

Issuance of own securities by the bank

Investment operations of a commercial bank

Intermediary operations of a commercial bank with securities

1. Issuance of own securities by the bank

According to the Civil Code of the Russian Federation (Article 143), securities include: bonds, bills, checks, deposit and savings certificates, bank savings books to bearer, bills of lading, shares, privatized securities, etc.

The activities of commercial banks in the stock market are regulated by the law "On the Securities Market" and other laws and by-laws.

Commercial banks in the securities market act as issuers of securities, investors and intermediaries in transactions with securities.

Issuing operations of the bank is the activity of the bank issuing its own securities. The current legislation allows commercial banks to issue the following types of securities: shares, bonds, checks, bills of exchange, deposit and savings certificates, derivative securities.

By issuing bonds, commercial banks raise additional borrowed funds. By issuing bills, checks, certificates of deposit and savings, commercial banks fulfill one of their main purposes - the accumulation of money and the creation of means of payment. The purpose of the share issue is to form the authorized capital. Attraction of additional capital by joint-stock banks can be carried out by placing additional shares. The Bank may issue registered and bearer shares. Ordinary and preferred shares may also be issued.

The issue and placement of bank shares are regulated by the Federal Law “On Joint Stock Companies” and Instruction No. 8 of the Central Bank of the Russian Federation of September 17, 1996, according to which all issues of securities, regardless of the size of the issue and the number of investors, are subject to state registration.

1. Investment operations of a commercial bank

Investments - long-term investments in industry, agriculture and other sectors of the economy at home and abroad for profit. Direct investment is a direct investment in production, the acquisition of real assets, portfolio - a form of purchase of securities (security portfolio) or the provision of funds in a long-term loan (loan portfolio).

The bank's investment operations are the investments of the bank's monetary and other reserves in securities, real estate, authorized funds of enterprises and other investment objects, the market value of which is capable of growing and bringing income to the bank in the form of interest, dividends, profit from the sale.

The objectives of the investment policy of the bank:

expansion of influence, incl. outside of purely banking activities,

expansion and diversification of the bank's revenue base,

the presence of the bank in the most dynamic market - the securities market,

lowering the overall risk of the bank by expanding the types of activities,

the expansion of the customer base,

expanding the types of services provided to customers.

The process of making investment decisions by a commercial bank in the securities market is the formation of a securities portfolio (planning, analysis and regulation of the composition of the securities portfolio, portfolio management while maintaining the required level of liquidity, risk and minimizing costs).

Portfolio investment consists of the following stages:

choosing and formulating your own strategy. Types of strategies:

constant cost strategy. In this case, when managing the portfolio, the total value of the portfolio will be maintained at the same level, which is achieved either by withdrawing the profits received or by depositing additional funds in case of losses.

strategy of constant proportions. With this strategy, the same ratios between the individual components of the portfolio are maintained for a certain period of time. The structure of the portfolio, according to which proportions are established, can be determined by the following features: the level of riskiness of securities, types of securities, sectoral or regional affiliation of the issuer of securities, etc. As a result of the movement of market prices for securities included in the portfolio, the established ratio is violated, the bank sells securities, the share of which has increased, and with the proceeds, it buys securities, the share of which has fallen.

floating ratio strategy. It consists in establishing various (but not constant) ratios between the desired proportions of the portfolio.

Based on the degree of acceptable risk, the following types of strategies are distinguished:

aggressive strategy. In this case, high return on investment and high risk are allowed, the object of investment is usually stocks, high-yield bonds of unreliable issuers and other risky assets.

balanced strategy. In this case, a uniform distribution of high-risk and low-risk assets is maintained, i.e. in the event of unforeseen difficulties, their sale on the secondary market is carried out with minimal losses.

a conservative strategy assumes a minimum degree of risk, with special attention to the reliability of securities.

definition of investment policy. Investment policy - a set of measures aimed at implementing a strategy for selecting and managing an investment portfolio, achieving an optimal combination of investment instruments in order to increase the profitability of operations, maintain an acceptable level of their riskiness and liquidity. The bank's choice of investment policy should be based on the following:

• determination of a set of efficient investment portfolios that have the highest expected return for any degree of risk and the lowest level of risk for any expected return;

  selection of the best investment portfolio for this particular bank;

  quick response to the emergence of new instruments on the investment market, active participation in both the exchange and over-the-counter markets;

  compliance of the investment policy of the bank with the economic situation in the country.

comprehensive market analysis. Comprehensive analysis of the financial market consists in the selection of financial instruments that meet the requirements of the investment policy.

formation of a starting portfolio. Having decided on the strategy, the degree of acceptable risk, it is necessary to outline the range of assets that can be included in the investment portfolio. According to the types of included securities, portfolios are divided into stock portfolios (any), ordinary stock portfolios, preferred stock portfolios, bond portfolios (any), municipal bond portfolios, government bond portfolios, mixed portfolios.

portfolio restructuring. Portfolio restructuring is carried out in accordance with the recommendations of the selected model, as well as taking into account the real market conditions and restrictions. In addition, at this stage, if necessary, the portfolio model can be adjusted based on changes in the market and taking into account the current efficiency of portfolio management.

When forming a portfolio, an investor should take into account a large number of risk factors, however, it is important to divide them into two groups: market (this includes all the main risks that can change the overall situation on the market) and portfolio risks (inherent only in financial instruments included in the investor's portfolio) risks . Ways to reduce investment risk are:

1. diversification, i.e. inclusion in the portfolio of the largest number of securities. The more different instruments will be included in the investor's portfolio, the more the dynamics of the portfolio will be similar to the dynamics of the market as a whole. Thus, diversification is the simplest and most reliable way to reduce the specific risks inherent in individual investment portfolios.

2. hedging. Hedging - risk insurance against adverse price changes, carried out by counter purchases (sales) of futures contracts.

In practice, the investor cannot reduce market risks, he can only choose the moment of entering the market when such risks are minimal, or hedge part of the risks through derivative financial instruments. Specific portfolio risks are manageable. So, if an investor seeks to reduce them, then the easiest way to achieve this result is to diversify investments as much as possible.

The criteria for determining the structure of the bank's investment portfolio are the profitability and riskiness of operations, the need to regulate the liquidity of the balance sheet and diversify assets.

After selecting and forming a bank portfolio, a very important stage lies ahead, which consists in the skillful management of a set of different types of securities in order not only to maintain value, but also to obtain a significant income that does not depend on inflation. There are two main ways of managing investment portfolios: active and passive.

Active management is characterized by forecasting the amount of possible income from invested funds, the ability to do this more accurately and quickly than the financial market, i.e. the ability to anticipate and anticipate events. In this case, when the difference in expected returns, due to either a successful or erroneous decision or due to a change in market conditions, disappears, the components of the portfolio or the entire portfolio are replaced by others.

Banks that use active tactics track and acquire the best-performing securities and try to get rid of low-yielding assets as quickly as possible. Such management has an international equivalent of "swap", which means a constant exchange, rotation of securities through the financial market. There are the following main forms of active management:

“net” yield matching is a method where, for example, a bond with a lower yield is sold and a bond with a higher yield is purchased.

the substitution consists in the fact that neither similar, but by no means identical securities are exchanged, having the same yield, but a different period of circulation (bonds).

sector-swap, with this method, bonds are moved from different sectors of the economy, with different duration, income, etc.

discount rate anticipation is about trying to lengthen the life of the portfolio when rates fall and shorten the life of the portfolio when rates rise. At the same time, as the life of the portfolio grows, its price is more subject to changes in discount rates.

Passive control banking investment portfolio is based on the assumption that the stock market is quite effective in choosing securities or accounting for time. With this tactic, well-diversified portfolios are created with a predetermined level of risk and long-term holding of portfolios in an unchanged state. Their advantages include low turnover, minimal levels of overhead costs and investment risk. The reference point for passive management is an index fund, acting in the form of a portfolio created to mirror the movement of the selected index, which characterizes the state of the entire securities market.

4.4. Intermediary (commission, client) operations of banks with securities

Intermediary (commission, client) operations with securities enable the bank to attract temporarily free funds of individuals and legal entities and turn them into capital by investing in the real sector of the economy.

Underwriting─ placement of issuers' securities on the market, which is carried out by managing the issue of securities at their nominal value, i.e. through determining the number of securities to be sold, taking into account the capital structure and reliability of partners. This operation is usually supplemented by an issue guarantee, which means an obligation to purchase the unrealized part of the issue of securities at a fixed price, thus relieving the issuer to some extent from the risk of the issue not being realized.

Organizing work on commission intermediary activities for the issue and placement of securities, the bank assumes the role of an investment company.

In this case, the agreement between the issuer and the bank for the placement of securities may stipulate:

- full ransom ─ the intermediary buys at his own expense the entire issue of securities that become his property; securities that he cannot place will remain in the bank;

- partial redemption (placement with a buyback guarantee) ─ the intermediary first buys out a part of the issue and places it among investors, but guarantees the issuer that he will buy out the not yet placed part of the issue at his own expense;

- ordinary mediation (placement without buyback guarantee) ─ the intermediary accepts the issue for its placement on behalf and at the expense of the issuer and does not undertake the obligation to buy back the unplaced part of the issue.

The placement of securities of an outside issuer among investors can also be carried out in several forms:

- private placement ─ sale of securities for the issued amount among a limited number of previously known persons without public disclosure, advertising campaign, registration of the issue prospectus;

- open sale ─ through open or competitive prepayment for securities. In this case, the bank publishes and registers the issue prospectus, creates a prepayment group, accepts applications from potential investors for the placement of securities at a previously announced rate, or makes a competitive prepayment, during which potential investors have the opportunity to make their proposals regarding the prepayment rate of securities, at on the basis of which the optimal course is developed;

- sale of securities through the stock exchange ─ intermediary banks are also responsible for advancing the issuer until funds are found for sold securities with or without a buyback guarantee or profit from full buyback, which is defined as the difference at which they buy them from the issuer.

Under trust (trust) transactions with securities understand the activities of the bank as a trustee of their clients in the management of securities on their own behalf and at their own discretion with the obligation to preserve and increase the client's capital for a certain, as a rule, percentage remuneration from the increase in the client's assets.

Brokerage for securities is:

Implementation of civil law agreements regarding securities, which provide for the payment of securities against their delivery to a new owner on the basis of commission or commission agreements at the expense of their clients;

Purchase and sale of securities carried out by a securities trader on its own behalf, on behalf and at the expense of another person.

When organizing work on the stock market with individuals, it is necessary to take into account the peculiarities of psychology and the variety of approaches to conducting investor transactions. Therefore, from the entire set of investors, it is important to single out some groups with common features that need to be guided in the development of service technology. All individuals who conduct transactions in the stock market can be divided into the following groups:

professional speculators;

Professional investors (rentiers);

Investors-owners;

Other or non-professional investors (depositors).

1. Speculators. Basically, these are investors who have funds sufficient to ensure that income from operations with them covers current costs and makes it possible to increase capital.

2. Rentier. These are people who also have experience in financial markets, but now either are not directly connected with them, or do not have the opportunity to allocate enough time for an active speculative game and monitor all market fluctuations in the short term, so they conduct medium-term operations.

3. Investors-owners. Those who belong to this group of investors own the most significant resources, which gives them the opportunity, in addition to carrying out other operations, to acquire significant blocks of securities that can provide them with additional benefits (significant dividends, participation in management, lending, etc.)

4. Contributors. They represent an unorganized part of the market, which, guided by the information received, for example, from advertising, decided to participate in business in the stock market.

Brokerage operations of banks can be carried out on the basis of a commission agreement or a commission agreement. In the first case, the bank acts on its own behalf, in the second - on behalf of the client.

A typical commission agreement provides for the conclusion of two contracts:

Commission ─ between the bank (commission agent) and the client (principal);

Purchase and sale agreements between the commission agent and a third party (counter agreement).

Brokerage on the basis of an order agreement, they provide for an order from the client to the bank to buy or sell securities on his behalf and at his expense.

The bank can carry out these operations in two ways:

Perform the corresponding operation on the exchange;

Buy securities for yourself or sell securities to a client from your own portfolio.

It is conditionally possible to distinguish three stages of brokerage operations:

Previous;

Current;

Finite.

Fig.8. Stages of the bank's brokerage operations in the securities market

When carrying out commission transactions with securities, it is important to take into account all types of risks that fall on both the bank and the client in order to minimize them. Brokerage operations are carried out on behalf of and at the expense of the committent, and are also displayed on the off-balance sheet accounts of the bank (they do not change the balance sheet), this indicates that all the risks of securities fall on the client.

These risks include:

- prepayment risk consists in the fact that issuers reserve the right to redeem securities before the end of the circulation period;

- interest rate risk ─ the likelihood of changes in market rates. An increase in interest rates leads to a decrease in the market price of previously issued securities, a decrease ─ to an increase in their price;

- credit risk ─ it is the probability of default by the issuer of its obligations regarding the payment of principal or interest;

- inflation risk associated with the likelihood of depreciation of both interest income and the face value of the security due to rising prices for goods and services;

- industry risk ─ risk associated with the specifics of individual industries. Industries can be like those that are “dying”, working stably, young industries that are growing rapidly, based on progressive technologies. Industry risks are manifested in changes in the investment quality and market value of securities and the corresponding costs of investors, depending on whether the industry belongs to one or another type;

- liquidity risk ─ the risk associated with the possibility of losses in the sale of a security due to its investment quality;

- systematic risk ─ the risk associated with a sharp deterioration in the situation on the securities market as a whole, i.e. unrelated to a specific security. It cannot be minimized or reduced through differentiation.

Active banking operations

Passive banking operations and their types

1 Banking activities are carried out through banking operations.

Banking operations are classified according to various criteria. The main criterion is the economic content. In accordance with it, banking operations are divided into basic and other banking operations. To perform all banking operations, their inclusion in the banking license is mandatory.

The basic banking operations performed in the aggregate serve as the basis for determining the legal entity. If it has the right to carry out only some of the basic banking operations, a legal entity cannot be considered a bank, but is considered as a non-bank financial institution. Other banking operations are carried out both by banks and non-bank financial institutions in accordance with the list contained in the banking license.

TO basic banking operations relate:

Attraction of funds of individuals and (or) legal entities in contributions (deposits);

Placement of attracted funds on its own behalf and at its own expense on the terms of repayment, payment and urgency;

Opening and maintaining bank accounts of individuals and legal entities.

Other banking operations include:

Settlement and cash services for individuals and legal entities, correspondent banks;

Opening and maintenance of accounts in precious metals;

Currency exchange operations;

Issuance of bank guarantees;

Trust management of funds;

Issuance of bank plastic cards;

Issuance of securities confirming the attraction of funds in deposits (deposits) and their placement on accounts;

Factoring;

Transportation of cash, currency and other valuables;

Provision of special rooms or safes for storing documents and valuables.

The National Bank of the Republic of Belarus establishes the rules and procedures for conducting banking operations and issues a license for their implementation.

Banks are also entitled to perform other operations that are not considered as purely banking and do not require inclusion in the license of the National Bank of the Republic of Belarus, if necessary, are permitted in another way. Such non-banking transactions include:

Issue, sale, purchase and other operations with securities;

Operations with the use of bank plastic cards;

Consulting and information services.

Banks do not have the right to engage in insurance activities as insurers, as well as production and trade activities, except when such activities are carried out for their own needs.

According to legal regulation distinguish between bank operations, for which a license, permit, approval is required. For example, a banking license is required to conduct banking operations, and a license of a body regulating work with securities is required to conduct a number of operations with securities. A number of foreign exchange transactions, transactions of an investment nature require permission or approval from the NB. For example, participation of a bank in the authorized capital of another bank is possible only after the consent of the NB.

In relation to the bank's balance sheet operations can be active, passive and off-balance sheet. Passive Operations aimed at raising funds, form the obligations of the bank, active- to provide these funds, reflect the requirements of the bank. Off-balance sheet operations are related to taking into account the obligations and claims of the bank that are not reflected in the balance sheets, since the risks on them have not materialized (claims and obligations under guarantees, operations with securities, foreign currency, storage of valuables).

The nature of customer relationships operations are divided into direct and intermediary. Direct Operations reflect bilateral relations between the bank and its client or partner in accordance with the concluded agreement (loan or deposit agreement). Intermediary operations are made between different clients of the bank with its assistance in the process of banking activities (settlement operations, trust operations).

2 In a market economy, all operations (services) of a bank can be classified as follows (Fig. 1).