Commercial banks' own resources include: Own resources of commercial banks

1. Characteristics of commercial bank resources.

2. Purpose, functions and sources of the bank's own capital.

3. Capital adequacy requirements.

4. Raised and borrowed funds from a commercial bank.

5. Commercial bank resource management.

4.1. Characteristics of commercial bank resources.

Commercial banks must have funds to conduct commercial and economic activities, i.e. resources. In modern conditions, the problem of resource formation is of paramount importance. The resources of commercial banks, or banking resources, are the totality of funds available to banks and used to carry out active operations.

According to the method of formation, the resources of a commercial bank are divided into own and attracted (obligations to clients and credit institutions) funds.

Own funds are funds received from shareholders (participants) of the bank during its creation and formed in the course of its activities. They are at the disposal of the bank without any time limit.

Raised funds are customer funds received for a certain period or on demand. Borrowed funds include funds received from credit institutions.

The main source of resources for a commercial bank is borrowed funds (70-80% of all bank resources). Based on the nature of their formation, they are divided into funds received from bank clients and borrowed from the banking sector. The share of the bank's own funds accounts for 22-30%, which generally corresponds to the current global banking practice.

4.2. Purpose, functions and sources of the bank's own capital.

Equity forms the basis of the activities of a commercial bank. It is formed at the time of its creation and initially consists of amounts received from the founders as their contribution to the authorized capital of the bank. Contributions can be made directly if the bank is established in the form of an LLC, and through the purchase of shares if the bank is established in the form of a joint stock company. Own capital also includes all savings received by the bank in the course of its operation, which were not distributed among shareholders (participants) in the form of dividends or spent for other purposes, as well as the increase in the value of the bank’s assets. The equity capital of an operating bank represents the amount of funds that will be distributed among the shareholders (participants) of the bank in the event of its closure. In other words, if you sell all the bank’s assets: its securities, buildings, equipment, etc., and claim all the loans issued by it, and use the proceeds to pay off the bank’s obligations to third parties (depositors, creditors), then the remaining This amount will be the actual equity capital that shareholders (participants) can claim.

Equity capital provides the bank with economic independence and stability of operation; it is the reserve of resources that allows the bank to maintain its solvency even if it loses part of its assets. Equity capital performs a number of important functions in ensuring the management and functioning of a commercial bank.

Protective function manifests itself in the fact that capital serves as a kind of buffer, absorbing damage from current losses until the bank’s management resolves emerging problems, ensuring the continuation of activities regardless of the presence of losses. Thanks to the presence of its own capital, a commercial bank can carry out risky operations, since losses arising as a result of their implementation are covered by its own capital, without affecting the attracted funds of depositors. At the same time, the possibility of loss of equity capital encourages shareholders to ensure that the bank is managed reliably and wisely. In the event of a bank's bankruptcy, equity capital becomes the source of compensation to creditors and depositors.

Carrying out regulatory function capital acts as a regulator of the bank’s activities, through which government authorities set it standards of economic behavior that warn against excessive risks. According to current legislation, economic standards established by the Bank of Russia and regulating the activities of commercial banks are mainly based on the amount of the bank’s own funds. The size of the bank's own funds determines the scale of its activities. The ability of commercial banks to expand active operations is determined by the size of their actual equity capital. In accordance with Bank of Russia Instruction No. 110, the ratio between equity capital and the total volume of risk-weighted assets for banks whose equity capital exceeds 300 million rubles is set at 10%, for banks with equity capital up to 300 million rubles . - eleven%. The size of the bank's actual equity capital also determines the maximum amount of risk per borrower. As the banking supervision system develops, the importance of the regulatory function of equity capital increases.

Operational function equity capital is that it is a source of creation of material assets and development of the bank’s material base. In terms of the authorized capital contributed by the founders of the bank, it acts at the initial stage as start-up funds necessary for the construction or rental of premises, installation of equipment, hiring staff and other expenses, without which the bank cannot begin its activities. During a period of growth, the bank feels the need for additional funds to create new capacities related to expanding the range of services provided and introducing advanced banking technologies, the source of which is its own capital.

Equity strengthens customer confidence in a bank, reassuring risk-averse investors of its financial strength and borrowers of its ability to meet demand for commercial and consumer loans. For joint-stock banks, the amount of equity capital serves as a factor determining the price of its shares. When assessing the value of a bank, they proceed from the size of its net assets, i.e. actual equity capital, which allows us to talk about its pricing function.

The sources of the bank's equity capital are the authorized capital, additional capital, reserve fund, and retained earnings of previous years.

Authorized capital a credit organization is formed from the amount of deposits of its participants and determines the minimum amount of property that guarantees the interests of its creditors. For joint-stock banks, it is made up of the nominal value of shares acquired by the founders of the credit organization, and for banks in the form of LLCs and ODOs - from the nominal value of the shares of its founders. The amount of the authorized capital is determined in the founding agreement on the establishment of the bank and its charter. To increase the stability of the banking system, the Bank of Russia established that the amount of authorized capital required to create a bank must be at least 300 million rubles. According to data from the Bank of Russia as of September 1, 2013number of operating credit institutions (commercial banks) in Russia is 947, and only 414 banks have the amount of authorized capital that meets the requirements of the law and ranges from 300.0 million rubles. and higher. There are only 23 banks in Russia with the largest authorized capital (from 10 billion rubles and above) and their share of the total is only 2.04%.

Contributions to the bank's authorized capital can be made in the form of cash and tangible assets, and valuable papers a certain type. The bank's authorized capital can only be formed at the expense of shareholders' (participants') own funds; raised funds cannot be used for its formation. Cash deposits into the authorized capital of a credit institution in Russian currency must be transferred from the current accounts of the shareholders' (participants') enterprises. The founders of banks have the right to pay the authorized capital and in foreign currency, but the authorized capital must be reflected in rubles in the balance sheet.

As tangible asset, contributed in payment of the authorized capital, can only be the bank building (premises) in which the bank is located, with the exception of unfinished construction. In addition, if there is permission from the Board of Directors of the Bank of Russia, participants in an operating bank may pay for its authorized capital with other assets belonging to them that are not cash and a bank building. The maximum share of such assets in the authorized capital is established by the Board of Directors of the Bank of Russia. The maximum size (standard) of the non-monetary part of the authorized capital of the created bank should not exceed 20%. The founders of the bank must fully pay the authorized capital of the bank they created within one month after its registration.

Extra capital includes: increase in the value of property during its revaluation, positive revaluation of securities acquired by the bank and intended for sale, as well as share premium, i.e. the difference between the placement price of shares at issue and their par value. The increase in the value of the bank's property during revaluation and the positive result of the revaluation of securities mean an increase in the value of its net assets and therefore are a source of its own capital.

Reserve fund intended to cover losses and damages arising from the activities of the bank. The minimum size of this fund is determined by the bank's charter. Deductions to the reserve fund are made from the profit of the reporting year remaining at the disposal of the bank after paying taxes and other obligatory payments, i.e. from net profit. In this case, the amount of annual contributions to the reserve fund must be at least 5% of net profit until it reaches the minimum value established by the charter. By decision of the bank's board of directors, this fund can be used to cover the bank's losses at the end of the reporting year.

retained earnings – This is the profit of previous years remaining at the disposal of the bank after paying taxes and paying dividends to shareholders. It can be used at the discretion of the bank for various purposes, including covering unforeseen expenses and losses from core activities.

Each commercial bank independently determines the amount of its own funds and their structure, based on its adopted development strategy. In practice, there are two ways to increase equity capital: accumulating profits and attracting additional capital in the financial market.

Profit accumulation can occur through the accelerated creation of reserve and other bank funds with their subsequent capitalization or through the accumulation of retained earnings from previous years. The last way to increase capital is the cheapest and does not affect the existing management structure of the bank. However, using a significant part of the profit received to increase equity capital means a reduction in current dividends to shareholders and may lead to a fall in the market value of shares of banks created in the form of OJSC.

Raising additional capital by a bank created in the form of an LLC, can occur on the basis of additional contributions to the authorized capital of both its participants and third parties, who thereby become participants of this bank (unless this is prohibited by its charter). Attraction of additional capital by joint-stock banks can be carried out by placing additional shares.

4.3. Capital adequacy requirements.

For effective management of equity capital and use as the most important regulator of the bank’s activities, it is necessary to adequately assess its actual availability. The equity capital that a bank has is rarely equal to the sum of its sources reflected in the balance sheet, since due to changes in the internal and external conditions in which the bank operates, the market value of assets and liabilities deviates from their book value. The bank's equity capital, calculated based on accounting estimates of assets and liabilities, is called accounting capital.

Capital calculated on the basis of real risks taken by the bank is called in banking management practice economic (risk) capital. As a rule, it does not represent the real amount of capital that the bank has, but its estimated value, which, on the one hand, provides sufficient guarantees of reliability, and on the other hand, allows for the maximum use of reserves for expanding active operations.

Along with the concept of economic capital, there is the concept of regulatory capital, which is widely used by supervisory and regulatory authorities. Regulatory capital – This is the capital that a bank must have available to carry out its operations when required by the regulator. Currently, to calculate the regulatory capital of banks, a methodology is used based on the concept of its two-level structure (put forward by the Basel Committee on Banking Supervision and enshrined in the International Agreement on Capital Measurement and Requirements adopted in 1988). Following this concept, the capital of banks began to be divided into first-tier capital, or core capital, and second-tier capital, or additional capital. The criterion for dividing capital into two levels is the ability of its individual elements to act as an insurance fund in the event of unexpected losses (i.e., the ability to “absorb” losses).

First order capital (core capital – heart-shaped, basic, or main):

› paid-up part of the authorized capital / ordinary shares;

› open reserves (share premium, retained earnings, general funds)

Second-tier capital (supplementary capital – additional capital):

› hidden reserves;

› asset revaluation reserves;

› general reserves/reserves for loan losses;

› hybrid capital instruments (debt/equity);

› urgent subordinated debt.

Minimum capital adequacy requirements, which are that the ratio of equity capital to on-balance sheet and off-balance sheet risk-weighted assets must be at the level of 8%, provided that additional capital (tier two capital) can not exceed 100% of capital first level.

Own funds adequacy ratio (capital) of the bank limits the risk of its insolvency and determines the requirements for the minimum amount of equity capital necessary to cover credit and market risks. This standard is defined as the ratio of the size of the bank's own funds (capital) and the amount of its assets, weighted by risk level. The calculation of the capital adequacy ratio includes the values of credit risk for assets reflected in the balance sheet accounts (assets minus created reserves for possible losses and reserves for possible losses on loans, loans and equivalent debt, weighted by risk level), contingent liabilities credit nature, forward transactions, as well as the amount of market risk.

4.4. Attracted and borrowed funds from a commercial bank.

In addition to its own financial resources, a commercial bank also has attracted resources. Raised funds from banks cover over 90% of the total need for monetary resources to carry out active operations, primarily credit. Their role is extremely great. By mobilizing temporarily available funds of legal entities and individuals on the credit market, commercial banks use them to satisfy the national economy’s need for additional working capital, facilitate the conversion of money into capital, and meet the population’s needs for consumer credit.

Operations related to the mobilization of bank resources are passive operations. As a result of passive operations, commercial banks receive the necessary funds raised to finance active operations. The final results of these operations are reflected in the liability side of the bank’s balance sheet, where they act as sources of formation of its resources.

The structure of passive operations of a commercial bank is presented in Figure 1

Deposits mean all time and fixed-term deposits of bank clients, except savings deposits. The sources of funds placed on deposits are very diverse. These are funds in the accounts of enterprises, wage accounts of workers and employees, accounts of government agencies and enterprises that are temporarily not used. From the point of view of banking technology, deposits can be divided into two groups: demand deposits and time deposits.

Demand deposits are funds that can be called at any time. Such deposits pay a fairly low interest rate. Demand deposits are intended primarily for current settlements. There are two types of time deposits: actual time deposits and deposits with advance notice of withdrawal. Actually, time deposits are returned to the owner on a predetermined day; until then they are “blocked” and the bank can dispose of them. If the amount initially invested as a time deposit is not withdrawn by the owner on the appointed day, then in the future he can dispose of it in the same way as a current account. Savings deposits typically grow slowly and are often drawn down over several years. A distinctive feature of a savings deposit is that its owner is issued a certificate of the existence of a deposit (most often a savings book).

In practice, there are also non-deposit sources of attracting resources to banks, which include: obtaining loans on the interbank market; agreement on the sale of securities with repurchase, accounting of bills and obtaining loans from the Central Bank of the Russian Federation; sale of bankers' acceptances; issue of commercial paper.

Russian banks mainly use interbank loans and loans from the Central Bank of the Russian Federation from these sources. In the interbank loan market, funds held in correspondent accounts with the Central Bank of the Russian Federation are sold and purchased. Loans from the Central Bank of the Russian Federation are currently mainly provided to commercial banks in the form of refinancing, i.e. in fact, they are distributed on a competitive basis, as well as in the form of pawn loans. However, only 10% of centralized loans are sold to banks on a competitive basis. Each bank can purchase no more than 25% of the loans put up for auction. But interbank credit is the main source of borrowed resources of commercial banks, a source of funds to maintain the solvency of the balance sheet and ensure the uninterrupted fulfillment of obligations.

One of the ways commercial banks raise funds is to issue their own securities in the form of debt obligations: certificates, bills, bonds. Compared to other types of bank resources attracted, securities occupy last place.

4.5.Resource management of a commercial bank.

Banking resource management is an activity related to attracting funds from depositors and other creditors, determining the size and appropriate structure of sources of funds, in close connection with their placement. Managing the financial resources of a commercial bank refers, first of all, to regulating the level of risk when interest rates rise or fall.

High level of requirements for banks, users of banking services;

The need to coordinate the approach to the provision of banking services within the overall framework of risk management.

Currently, management of attracted resources is becoming of great importance in the management of a bank's financial resources.

The main goal of managing the composition of attracted resources is to achieve a situation where the net profit derived from their use will be maximum. Usually, it is not difficult for banks to simply attract funds in the amount allowed by regulations, but it is important to constantly ensure that, on the one hand, the real volume of “working” funds is not greatly reduced due to contributions to the Central Bank and, on the other hand, the amount extracted from their use profits were not greatly reduced by interest costs.

Banking resources. Own funds of a commercial bank. Bank capital formation

Banking and securities market

Formation of bank capital. Own funds of a commercial bank Banking resources include banks' own funds, borrowed and attracted. Banking resources are generated as a result of banks conducting passive operations and are reflected in the liability side of the bank’s balance sheet.

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ANSWERS TO THE SOFTWARE TEST BANKING

TEST OPTION 1

1. What form of ownership does Sberbank of Russia have:
a) state
b) LLC
3) JSC
d) CJSC
Correct answer: g

2. Open market operations of the Central Bank of the Russian Federation are:
a) transactions with foreign currency
b) operations with plastic cards
b) transactions with government securities
d) transactions with bills
Correct answer: in

3. The credit system of modern Russia consists of:
a) The Central Bank, commercial banks and specialized non-banking institutions
b) State Bank, Gosstrakh
c) savings banks, state banks, insurance companies
Correct answer: a

4. Banks’ own resources include:
a) time deposits of the population
b) authorized capital
c) interbank loans
Correct answer: b

5. Determine the type of professional activity of a credit organization with securities in the following case; The bank purchased securities on the stock exchange for the client at his expense:
a) dealer
b) clearing
c) brokerage
Correct answer: in

6. Which form of non-cash payments guarantees the supplier receipt of payment:
a) collection form
b) check form
c) settlements by payment orders
d) letter of credit form
Correct answer: g

7. Active operations of a commercial bank include:
a) issue of bonds
b) lending to enterprises
c) attracting deposits from the population
Correct answer: b

8. Which banking operation is the most risky:
a) interbank lending
b) long-term loan

Correct answer: b

9. The issue of shares by a bank is:
a) active operations
b) passive operation

Correct answer: b

10. The principles of lending are not:
a) security
b) repayment
c) differentiation
d) objectivity
Correct answer: g

11. Credit memorandum is:
a) the bank’s written credit policy
b) requirements for the borrower to repay the overdue loan
c) list of bank borrowers
Correct answer: a

12. Which of the documents are not drawn up when granting a loan:
a) loan agreement
b) pledge agreement
c) bank guarantee agreement
Correct answer: in

13. Loan secured by real estate:
a) factoring
b) leasing
c) overdraft
d) mortgage
Correct answer: g

14. What inscription on the bill reduces the credit risk when purchasing it:
a) allonge
b) acceptance
c) aval
d) advice note
Correct answer: in

15. The bank’s deposit resources include:

b) interbank loan

d) opening a deposit in another commercial bank
Correct answer: in

16. Types of banking supervision:
a) centralized and decentralized
b) direct and protective regulation
c) direct and indirect
d) public and private
Correct answer: g

17. A passive account opened in bank A by bank B to serve its clients is called:
a) loro account
b) nostro account
c) deposit account
Correct answer: a

18. Consolidated final document reflecting generalizing articles of active and passive
transactions on a specific date are:
a) bank operating report
b) financial plan
c) bank balance
Correct answer: in

19. Main types of marketing strategy:
a) individual, differentiated and mass marketing

c) concentrated, differentiated and mass marketing
Correct answer: in

20. The bank issued a loan of 400 rubles. for 2 years at a compound rate of 20% per annum with repayment in a lump sum. Determine the amount to be repaid:
a) 576 rub.
b) 632 rub.
c) 468 rub.
Correct answer: a

TEST OPTION 2

1. What is the specialization of OJSC Rosselkhozbank?
a) functional
b) industry
c) client
Correct answer: b

2. Licensing refers to
a) protective regulation
b) direct supervision
c) current control
d) direct control
Correct answer: b

3. Which of the following characteristics reflects the essence of banking activity:
a) credit intermediation
b) creation of credit circulation
c) accumulation of funds with the aim of converting them into loan capital that generates interest
Correct answer: in

4. Cash generated through deductions from profits and intended to cover possible losses on bank operations is:
a) added capital
b) special purpose funds
c) consumption fund
d) reserve fund
Correct answer: g

5. Funds transferred by legal entities and individuals for storage to the bank under certain conditions:
a) leasing
b) deposit
pledge
d) factoring
Correct answer: b

6. Which forms do not belong to modern forms of non-cash payments?
a) collection form
b) letter of credit form
c) settlements with payment requests-orders
d) settlements by payment orders
Correct answer: in

7. The bank's leasing operation is
a) passive operation
b) active operations
c) active-passive operation
d) is not a banking transaction
Correct answer: g

8. Which banking operation is considered the least risky?
a) interbank lending
b) short-term loan
c) purchase of government securities
d) accounting of bills of exchange of the enterprise
Correct answer: g

9. An operation to attract funds to a bank is
a) active operation of the bank
b) passive operation of the bank

Correct answer: a
10. Document confirming the loan transaction
a) pledge agreement
b) surety agreement
c) loan agreement
d) loan obligation
Correct answer: in

11. A line of credit is
a) the bank’s position in the field of lending
b) choice of lending clients
c) providing a loan in installments within the limit
d) loan interest rate
Correct answer: in
12. A mechanism for direct settlements between banks, based on the offset of mutual claims and obligations.
a) MFO
b) correspondent accounts "Loro" - "Nostro"
c) clearing
Correct answer: in

13. Type of loan in which the bank debits from the client’s current account an amount exceeding the balance in the account:
a) overdraft
b) call loan
c) bill credit
d) term loan
Correct answer: a

14. Which type of activity cannot be classified as financial management in a bank?
a) revenue management
b) capital management
c) personnel management
Correct answer: in

15. What factors influence the interest rate of a commercial bank:
a) the term of the loan issued
b) the amount of the loan issued
c) inflation rate
d) level of tax rates
d) a), b), c)
Correct answer: d

16. A relative indicator characterizing the bank’s activities from the point of view of its stability in the event of various risks arising from active operations is called
a) capital adequacy ratio
b) liquidity ratio
c) risk standard
Correct answer: b

17. When issuing guarantees, the bank issues a special inscription on the bill of exchange
a) acceptance
b) aval
c) advice note
Correct answer: a

18. The bank’s deposit resources do not include:
a) funds received from the issue and sale of bills
b) demand deposit
c) time deposit of an individual
d) opening a deposit by another commercial bank
Correct answer: a

19. The active operation of the bank is
a) issue of bonds
b) receiving a loan from the Central Bank of the Russian Federation
c) providing a loan to an enterprise
Correct answer: in

20. Determine the amount that must be entered on the bill of exchange, provided that the bill is issued for 3 months. The discount rate is 20%. 800 rubles are issued against the bill.
a) 920 RUR
b) 764r
c) 842r
Correct answer: in

TEST OPTION 3

1. What forms of ownership are possible for Russian commercial banks:
a) joint stock
b) share
c) state
d) a, b
Correct answer: a

2. The interest rate at which the Central Bank of the Russian Federation provides loans to commercial banks
a) financing rate
b) standard rate
c) refinancing rate
d) discount rate
Correct answer: in

3. Which of the functions does not belong to the functions of commercial banks
a) credit intermediation
b) intermediation in payments
c) creation of credit means of circulation
d) currency regulation
Correct answer: g

4. The bank’s own capital does not include
a) authorized capital
b) funds received from issuing own bills
c) profit
d) reserve fund
Correct answer: in

5.A bank savings certificate is intended
a) for individuals
b) for legal entities
c) for individuals and legal entities
d) for government authorities
Correct answer: a

6. Essential current account of the organization
a) is not a bank deposit
b) is a time deposit
c) is a demand deposit
Correct answer: a

7.The sale of securities by the bank is
a) passive operation
b) active operation
c) active-passive operation
d) is not a banking transaction
Correct answer: b

8. Which method is not a way to reduce credit risk?
a) restriction of loans to individuals
b) preliminary assessment of the borrower’s creditworthiness
c) limiting large loans
Correct answer: a

9. Placing monetary resources in a bank for the purpose of making a profit is
a) passive operation of the bank
b) active operation of the bank
c) active-passive operation of the bank
Correct answer: b

10. Requirements for fulfilling mandatory magic standards apply to
a) licensing
b) ongoing supervision
c) protective regulation
Correct answer: a

11. Determining the main directions of the bank’s lending activities and developing lending procedures that ensure risk reduction are:
a) factoring
b) credit monitoring
c) credit policy
Correct answer: in

12. Select the type of bank settlement service to clients, which includes formalizing payment consent to debit funds from their account:
a) assignment of claims
b) aval
c) acceptance
Correct answer: in

13. A type of bank loan in which the lender has the right to demand repayment of the loan ahead of schedule, that is, a demand loan.
a) call loan
b) current credit
c) factoring
Correct answer: a

14.The main types of banking management are
a) strategic and tactical
b) financial, customer and personnel
c) strategic, financial and personnel management
Correct answer: in

15. Do I need a separate license to conduct foreign exchange transactions?
a) yes
b) no
Correct answer: a

16. A consolidated final document reflecting the generalizing articles of active and passive operations of an uncertain date is
a) bank operating report
b) financial plan
c) bank balance
Correct answer: in

17. An urgent debt obligation of the buyer to pay the supplier or, at his order, to third parties, a certain amount of money within a specified period of time is called
a) by check
b) bank certificate
c) an option
d) bill of exchange
Correct answer: g

18.Main types of marketing strategy:
a) concentrated, differentiated and mass marketing
b) concentrated and differentiated marketing
c) individual, differentiated mass marketing
Correct answer: a

19.Accounting for bills of exchange is
a) active operation
b) passive operation
c) active-passive operation
d) is not a banking transaction
Correct answer: a

20. A bill of exchange in the amount of 1000 rubles with a maturity date of three months is presented to the bank for payment 25 days before the maturity date. The bank discounted the bill at a discount rate of 20% per annum. Determine the amount paid to the owner of the note.
a) 972 rub.
b) 986 p.
c) 994 rub.

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University of Economics and Management

Department of Banking

Essay

On the topic of: "Resources of a commercial bank"

Performed:

WITHstudent 3 1 7f groups

Valeeva Daria

Simferopol

1. General characteristics of the resources of commercial banks

In the context of the transition of our country's economy to market relations, the development of improvement of the activities of commercial banks, the formation and use of banking resources is of decisive importance.

Banking resources are the totality of funds that are at the disposal of banks and are used to carry out active and other operations.

Depending on the various factors that contributed to the formation of banking resources, their classification is very diverse.

Rice. 1 Classification of banking resources.

Own

The bank's own resources include its own capital, which is especially important at the stage of formation of a banking institution.

Rice. 2 Structure of equity capital of a commercial bank.

Equity - these are funds that were contributed by shareholders, as well as those generated in the process of further activities. In comparison with other areas of activity, the own capital of a commercial bank occupies a small part in the volume of all banking resources, about 8% 10%, which is due to the specifics of the activities of a commercial bank as an institution that mobilizes temporarily free funds.

Equity capital performs protective, operational and regulatory functions.

Protective- deposit insurance, coverage of current losses from banking activities.

Operational- is especially important during the period when the bank begins to operate, which makes it possible to use its own capital to finance the acquisition of fixed assets, rental or construction of premises, and the start of financial activities.

Regulatory- the amount of equity capital is an important factor in ensuring the reliability of the bank’s operation and is therefore strictly regulated by the NBU.

Depending on the sources and order of formation, equity capital has the following structure.

Charter capital is created by selling two types of shares - common and preferred. Owners simple shares take part in the management of the bank and share its income, losses and risks with it. They are not guaranteed anything if the bank is liquidated. Common shares are freely traded and purchased on the secondary securities market. Privileged shares give their owners the right to receive a fixed amount of dividends, which does not depend on the profit received, but do not give the right to participate in the management of the bank.

The issue of common and preferred shares is carried out in accordance with the Law of Ukraine “On Banks and Banking Activities”.

Reserve fund is formed in the process of further activities of a commercial bank. It is intended to cover possible losses from banking activities when there is insufficient profit to cover this. The presence of funds in the reserve fund ensures the stability of a commercial bank and reduces the likelihood of its bankruptcy. The size of the reserve fund is set as a rule at 50% of the size of the authorized capital and is formed through annual deductions from profits, which are at least 5%.

retained earnings represents the balance of funds after payment of dividends, taxes, and contributions to various funds. It is intended to expand the banking business.

Special funds intended to cover losses from active operations and for the social development of a banking institution. Their formation is carried out at the expense of profit.

Borrowed.

Borrowed funds include interbank loans, refinancing of commercial banks, as well as funds raised through the issuance of debt securities.

Rice. 3 Debt structure

Interbank loan - borrowed capital of a commercial bank, which is transferred to another bank for temporary use on the terms of payment and repayment.

Commercial banks attract interbank loans for:

1. Expanding its lending activities;

2. Making a profit from the purchase and sale of resources;

3. Regulation of bank liquidity.

Interbank loans are usually short-term in nature from 1 day (overnight) to 3-6 months. The total amount of interbank credit received by commercial banks is limited by the size of the bank's own capital.

Refinancing - attraction by banks of cheap, short-term interbank loans to provide them to their clients.

Refinancing of commercial banks is carried out by the NBU in the form of stabilization loans or the purchase and sale of government securities.

The provision of loans on the basis of refinancing is of a short-term and medium-term nature and is carried out only backed by government securities and bills of exchange of business entities. Short-term refinancing is carried out for a period of up to 14 days, medium-term - up to 6 months.

One of the refinancing methods is operations repo- a transaction with securities, which consists of two parts and in which one general agreement is concluded between market participants on the sale - purchase of securities for a certain period with the obligation to resell - purchase within a certain period at the request of one of the parties at a pre-agreed price.

Pawn loan- a short-term loan provided on the security of easily realizable movable property or government securities. It is one of the forms of refinancing. A pawn loan is provided for a period of up to 30 days.

Release debt securities . BondsI - a debt security that is issued by a bank to raise funds and indicates that the owner has deposited funds. A commercial bank can issue bonds only if all shares issued by it are sold. Bank bill - a debt security designed to attract available funds from individuals and legal entities. A bank bill has the nature of a deposit, but unlike a certificate of deposit, it can be used as a means of payment for goods and services and can be transferred to a third party by endorsement.

Attracted.

Raised funds include funds in current, deposit and other customer accounts.

Contribution - funds, in cash or non-cash form, in national or foreign currency, transferred to the bank from the owner or a third party for storage under certain conditions. Operations related to attracting funds to deposits are the main source of formation of banking resources and are called deposit.

Rice.4 Classification of deposits.

Demand deposits are placed on the client’s current accounts and can be partially or fully replenished or used at any time. For the use of funds in clients' current accounts, banks charge interest at low rates or do not pay it at all. In order to attract more clients and stimulate the influx of current investments, banks provide them with additional services and improve the quality of service.

Time deposits - funds that are deposited in the bank for a certain period of time, at least 1 month, and can be withdrawn after the end of this period or after prior notice. Time deposits are formalized by a deposit agreement, which contains the basic conditions for saving and issuing a time deposit. Interest is calculated monthly, no later than the last working day. Their value depends on the term and size of the deposit. If the deposit amount is returned to its owner before the maturity date specified in the agreement, interest is paid in accordance with the amount of interest on the demand deposit.

Savings deposits intended for accumulation or placement of cash savings. A distinctive feature of such deposits is the ability to replenish them at any time. Users of such deposits are mainly individuals. Their owners are issued a written certificate of the presence of a deposit in the form of a savings book. The issuance of a savings deposit, as a rule, must be carried out after prior notification to the bank.

Permanent

Constant funds include funds whose dynamics and turnover can be predicted and a certain part of them is used to carry out active operations.

Temporary

Temporary funds include funds generated periodically as a result of certain banking operations and the dynamics of which are difficult to predict.

Thus, banking resources are the basis of the activities of any bank, since the processes of resource formation and the provision of loans are closely interrelated. Therefore, understanding the economic content of banking resources, the significance of the problems associated with their effective formation and appropriate use is extremely important, especially for Ukrainian commercial banks.

Commercial banks' own resources include: Own resources of commercial banks

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