Asset management consists of the most rational placement of the bank's own and borrowed funds into various types of assets. When managing assets, the bank determines ways to invest its own and borrowed funds in such a way as to obtain the maximum possible income with minimal risk, while remaining liquid.

Asset management is carried out by the following main methods: general fund of funds, asset distribution (or asset conversion), scientific management.

The simplest method in terms of application is called the general fund method. Many banks widely use this method, especially during periods of excess cash resources. The use of the second method is associated with the desire to overcome some of the shortcomings of the first. The use of the third approach is due to the need to apply modern scientific methods of marketing management and analysis, usually using a computer.

The general fund method is one of the simplest to apply in practice. The funds for which a commercial bank is responsible come from a variety of sources, including demand deposits, savings deposits, time deposits, and the bank's own capital. This method is based on the idea of ​​combining all resources. The total funds are then distributed among those types of assets (loans, government securities, cash on hand, etc.) that are considered most suitable. In the general fund model for a specific active transaction, it does not matter from what source the funds came as long as their placement contributes to the achievement of the bank's goals. This method requires the bank to equally comply with the principles of liquidity and profitability. Therefore, funds are placed in such types of active operations that most fully comply with these principles. The placement of funds is carried out in accordance with certain priorities, the purpose of which is to help employees of the operational departments of the bank solve the problem of combining liquidity and profitability. These priorities show what part of each ruble of the funds available to the bank should be placed in first or second priority reserves, used for loans and the purchase of securities in order for this to generate the expected income. Issues of investing funds in land, buildings and other real estate are considered separately.

The number one task in determining the structure of allocation of funds is to establish their share allocated as the primary reserve. This category of assets is functional in nature and does not appear on the balance sheets of commercial banks. However, great importance is attached to it. Primary reserves include those assets that can be immediately used to repay withdrawn deposits and satisfy loan applications. This is the main source of liquidity of a commercial bank. In most cases, the role of primary reserves includes assets included in the article “Cash and debt of other banks”, which includes funds in accounts with the Central Bank of the Russian Federation, in correspondent accounts in other commercial banks, cash in a safe and checks, as well as other payment documents in the collection process. It should be noted that first-priority reserves include both mandatory reserves that serve as security for deposit obligations and cash balances that, in the opinion of bank management, are sufficient for day-to-day settlements. In practice, the amount of funds included in primary reserves is usually determined on the basis of the average ratio for all approximately identical banks of cash assets to the amount of deposits, or to the sum of all assets. For a normally functioning commercial bank, it can be assumed that approximately 15% of incoming funds should be set aside in the form of cash on hand to solve the problem of first-line reserves.

Task number two when placing funds will be the creation of “non-cash” liquid assets, which also generate a certain income. These secondary reserves include highly liquid income-earning assets that can be converted into cash with minimal delay and little risk of loss. The main purpose of second-stage reserves is to serve as a source of replenishment of primary reserves. Both types of reserves are more of an economic category than an accounting one. It also does not appear on the bank balance sheet. The second priority reserve includes assets that usually make up a portfolio of securities, and in some cases, funds in loan accounts.

The volume of secondary reserves is determined indirectly, by the same factors under the influence of which deposits and loans change. A bank whose amount of deposits and demand for credit fluctuates greatly requires an increased reserve of the second priority, in comparison with a bank with a stable volume of deposits and loans. As with first-priority reserves, secondary reserves are also set at a certain percentage of the total funds. A common indicator for all banks in the country can be a starting point, although this may not always meet the needs of an individual bank. As a rough indicator of the liquidity of the banking system as a whole, a ratio is sometimes used that shows the ratio of the amount of cash and government securities to the total amount of deposits in all commercial banks. To determine the share of funds placed in secondary reserves, the management of a particular bank may take the ratio of the value of government securities to the total amount of assets.

The third stage of placing funds using the general fund method is the formation of a loan portfolio. Once the bank has determined the size of its primary and secondary reserves, it is able to provide loans to its customers. This is the main type of banking activity that generates income. Loans are the most important part of a bank's assets, and income from loans is the largest component of bank profits. Loan operations are at the same time the riskiest type of banking activity. Finally, the composition of the securities portfolio is determined last when placing funds. The funds remaining after satisfying the legitimate credit needs of clients can be placed in relatively long-term, first-class securities. The purpose of the investment portfolio is to generate income for the bank and to supplement the second-priority reserve as the maturity date of long-term securities approaches.

Using the general fund method in asset management opens up wide opportunities for the bank to select categories of active operations. This method sets priorities that are formed in a fairly general way. This method does not contain clear criteria for the distribution of funds among assets and does not provide a final solution to the “liquidity-profitability” dilemma, since everything depends on the intuition and experience of bank management.

In this regard, the asset allocation method is used. When approaching the allocation of funds from the perspective of a fund of funds, much attention is paid to liquidity and does not take into account the differences in liquidity requirements in relation to demand deposits, savings deposits, time deposits and fixed capital. The asset allocation method, also known as the fund conversion method, overcomes the limitations of the pool of funds method. The asset allocation model establishes that the amount of liquid funds required by a bank depends on the sources of funds. Using this method, an attempt is made to distinguish between the sources of funds in accordance with the norms of required reserves and the speed of their circulation or turnover. For example, demand deposits require a higher reserve requirement ratio than savings and time deposits, and their turnover rate is also generally higher than that of other types of deposits. Therefore, a larger proportion of each monetary unit of demand deposit should be placed in primary and secondary reserves and a smaller proportion in investments such as home or long-term mortgage loans; municipal bonds. The model defines several “liquidity-profitability centers” within the bank itself, used to place funds raised by the bank from various sources. These centers are called “banks within a bank” because the allocation of funds from each center is carried out independently of the allocation of funds from other centers. In other words, in a bank there are: a bank of demand deposits, a bank of savings deposits, a bank of time deposits and a bank of fixed capital.

Having determined the belonging of funds to various centers in terms of their liquidity and profitability, bank managers determine the order of their placement from each center. Demand deposits require the highest coverage by mandatory reserves and have the highest circulation speed, sometimes reaching 30 and even 50 turnover per year. Consequently, a significant part of the funds from the center of demand deposits will be directed to first-priority reserves (for example, one percent more than established by the norm of required reserves), the remaining part of demand deposits will be placed mainly in secondary reserves by investing them in short-term government securities , and only very small amounts will be earmarked for lending (most likely in the form of short-term commercial loans).

Liquidity requirements for savings and time deposit centers are somewhat lower, so these funds will be placed mostly in loans and investments. Fixed capital requires almost no liquidity coverage by assets and is used to invest in buildings and equipment, land, and the remaining funds are intended for long-term loans and less liquid securities, in other words, used to increase the bank's income.

The main advantage of the method under consideration is the reduction of the share of liquid assets and the investment of additional funds in loans and investments, which leads to an increase in the rate of profit. Proponents of the asset allocation method believe that an increase in the rate of return is achieved by eliminating the excess of liquid assets opposed to savings and time deposits and fixed capital.

However, this method also has a drawback. Although the basis for identifying different “liquidity-profitability centers” is the circulation speed of various types of deposits, in reality there may not be a close connection between the circulation speed of deposits of a particular group and fluctuations in the total amount of deposits of this group. As our practice shows, part of the funds deposited on demand deposits will not be withdrawn for a long time or even never and can rightfully be invested in long-term high-yield securities. Another disadvantage of this method is that it assumes the independence of sources of funds from the ways of their use. In reality this is far from the case. For example, practical bankers tend to attract more deposits from commercial firms because they tend to borrow money from the same bank where they have accounts. Consequently, attracting new deposits simultaneously means the bank’s obligation to satisfy part of the loan applications from new depositors. This means that part of the new deposits should be directed to lending to the owners of these deposits.

The considered methods should be assessed not as a set of specific recommendations that provide a basis for decision-making, but as a general scheme within which bank management is able to more accurately determine an approach to solving the problem of asset management, taking into account market requirements and consumer interests. The use of any of these methods presupposes the ability of a group of competent managers to explore the entire complex of relationships and introduce those complications into analysis and decision-making that correspond to the specific situation of a given bank.

A more complex technique involves an in-depth approach to solving management problems using modern mathematical methods and computers to study the interaction of different elements in complex models. This approach requires precise definition of goals, establishing connections between various elements of the problem, identifying variables that are and are not under the control of bank management, assessing the possible behavior of uncontrollable variables, and identifying those internal and external constraints that govern marketing actions.

One of the methods used is linear programming. It is used, in particular, to develop constructive solutions when managing the assets of a commercial bank. This method allows us to link the problem of asset management with the problem of liability management, taking into account restrictions in relation to both the profitability of operations and liquidity.

The use of marketing management of bank assets provides noticeable advantages to those who do it, but does not replace the own experience of bank management. Using a sufficiently developed linear programming model will allow bank specialists to evaluate the consequences of some of their decisions. The model can be used to test the sensitivity of these decisions to changes in economic conditions or to errors in forecasts. It is useful because it allows you to take advantage of the fast processing of data on computers to summarize the complex interactions of the large number of variables that managers must deal with when allocating funds to various assets.

However, at the final stage of the analysis, bank management is called upon to assume full responsibility for the formulation of the model and for the decisions that are based on the information obtained from it. One of the main benefits that bank management receives from formulating a model is that it encourages them to carefully define goals and explicitly express various constraints. Moreover, this process forces bank management to study the portfolio of loans and investments in more depth to identify the volumes of various types of investments, possible income and costs for them.

The liquidity of a bank's balance sheet is affected by the structure of its assets: the greater the share of first-class liquid funds in total assets, the higher the bank's liquidity. Bank assets can be divided into three groups according to the degree of liquidity: highly liquid assets; liquid assets; long-term liquidity assets.

Instant liquidity (highly liquid) assets include:

cash and equivalent funds;

funds in accounts with the Central Bank;

government bonds, etc.

These funds are classified as liquid, as they are subject to withdrawal from the bank’s circulation if necessary.

Liquid assets include, in addition to the listed highly liquid assets, all loans issued by a credit institution in rubles and foreign currency with a maturity date within the next 30 days, as well as other payments in favor of the credit institution subject to transfer within the next 30 days.

Long-term liquidity assets include all loans issued by a credit institution in rubles and foreign currency with a remaining maturity of over a year, as well as 50% of guarantees and guarantees issued by a bank with a validity period of over a year, overdue loans minus loans guaranteed by the Government, under pledge of securities, pledge of precious metals.

By establishing a rational asset structure, the bank must meet liquidity requirements, and, therefore, have a sufficient amount of highly liquid, liquid and long-term liquid funds in relation to liabilities, taking into account their terms, amounts and types, and comply with instant, current and long-term liquidity standards.

The instant liquidity ratio is calculated as the ratio of the amount of the bank's highly liquid assets to the amount of its liabilities on demand accounts.

The current liquidity ratio is the ratio of the amount of liquid assets of a credit institution to the amount of its liabilities on demand accounts and for a period of up to 30 days.

The long-term liquidity ratio is defined as the ratio of loans issued by a bank with a maturity of over a year to the capital of a credit institution and liabilities over a year. The above standards are applied in the asset management process.

Bank assets can also be grouped by risk level.

The first group includes assets that have a zero degree of risk: cash on hand, balances in correspondent and reserve accounts with the Central Bank, government securities.

The second group includes assets with a 10% risk level. It includes balances on correspondent accounts in foreign banks.

For the third group of assets, the probability of risk occurrence is 20%. They cover banks' investments in local government securities.

The fourth group includes assets with 50% risk. This group includes: balances of funds in correspondent accounts of commercial banks, guarantees and sureties issued by the bank.

For the fifth group, the risk is 100%. It includes short-term, long-term and overdue loans, and all other investments of the bank.

In terms of profitability, there are two groups of assets:

income-generating;

not generating income.

The assets that generate income for the bank include: loans, a significant share of investment operations, part of deposit operations and other operations.

Non-income-generating assets include: cash on hand, balances in correspondent and reserve accounts of the Central Bank, investments in the bank's fixed assets. The higher the share of assets that generate income for the bank in the total amount of assets, the more efficiently they are allocated.

Commercial banks form the basis of the modern banking system, which, according to current legislation, includes such elements as: the Bank of Russia, credit organizations, branches and representative offices of foreign banks.

A credit organization is a legal entity that, in order to make a profit as the main goal of its activities, uses a special permit (license) from the Central Bank of the Russian Federation and has the right to carry out banking operations that are provided for by current legislation. In accordance with the Law “On Banks and Banking Activities” in our state, it is possible to form two types of credit organizations: banks and non-bank credit organizations.

According to modern legislation of the Russian Federation, a commercial bank is a credit organization that has the exclusive right to collectively carry out a number of the following operations:

Involve both individuals and legal entities in depositing funds;

Place these funds at your own expense and on your own behalf under certain conditions (repayment, payment and urgency);

Open and maintain bank accounts for individuals and legal entities.

According to official data from the Central Bank of the Russian Federation, as of January 1, 2017, the number of commercial banks that have the right to carry out various banking operations is 575. Thus, having analyzed the statistics over the past five years, we observe a pronounced negative trend regarding number of commercial banks - -35% (897 commercial banks as of January 1, 2013).

In the course of their activities, commercial banks carry out certain operations and transactions that are aimed at satisfying the needs of their clients for banking services and ensuring their work as a business entity. As we noted earlier, one of the types of operations carried out by commercial banks are credit operations, which in turn are divided into passive and active. As part of our research, we will consider the active operations of a commercial bank and determine what connection they have directly with its assets.

Thus, under the active operations of a commercial bank, according to Kurilova A.A. and Kovalenko A.G., should mean operations related to the placement of own and borrowed funds in order to generate income, maintain liquidity and ensure the operation of the bank. It is important to note that it is as a result of active operations carried out by a commercial bank that it receives the bulk of its income.

The development of active operations of commercial banks based on considerations of liquidity, profitability and acceptable risk distribution should occur in strict compliance with existing legislative acts that regulate the relevant aspects of banking activities that directly or indirectly affect the ability of commercial banks to invest in various types of active operations.

The main types of active operations of a commercial bank include the following:

Credit (loan) operations;

Settlement (settlement and payment) operations;

Stock transactions; guarantee and commission transactions;

Investment operations where a commercial bank invests its funds in shares and shares.

The scientific literature on banking identifies a number of criteria according to which the assets of a commercial bank can be classified (Figure 1).

Figure 1. Criteria for classifying commercial bank assets

Table 1 presents the main types of assets of a commercial bank in accordance with the above criteria for their classification.

Table 1.

Main types of commercial bank assets

COMMERCIAL BANK ASSETS	Criteria for classifying CB assets	Types of commercial bank assets
	Purpose	1) cash assets that provide the bank’s liquidity;
		2) working assets that bring current income to the bank;
		3) investment assets that are intended to generate future income and achieve other strategic goals by banks;
		4) capitalized (non-current) assets, which are intended to ensure the economic activities of the bank;
		5) other assets.
	Liquidity	1) highly liquid assets that are in immediate readiness, or first-class liquid funds;
		2) liquid assets that are at the disposal of a commercial bank and can be transformed into cash - current assets or second-priority reserves;
		3) long-term liquidity assets;
		4) low-liquid assets.
	Risk level	1) group 1 – risk level 0%;
		2) group 2 – risk level 10%;
		3) group 3 – risk level 20%;
		4) group 4 – risk level 50%;
		5) Group 5 – risk level 100%.
	Terms of placement	1) perpetual assets;
		2) assets that are placed for the following periods: on demand; up to 30 days; from 31 to 90 days; from 91 to 180 days; from 181 to 360 days; from 1 to 3 years; over 3 years.
	Subjects	1) assets that are used directly by the commercial bank itself;
		2) assets that are provided to other entities for temporary use: to the state; non-state legal entities; individuals; non-residents.

Today, the structure of the balance sheets of domestic commercial banks contains such aggregated asset items as: 1) cash and accounts with the Central Bank of the Russian Federation; 2) government debt obligations; 3) funds in credit institutions; 4) net investments in securities for resale (securities for resale at book value less provisions for impairment of securities); 5) net loan and equivalent debt (loan and equivalent debt minus provisions for possible loan losses); 6) accrued interest (including overdue); 7) funds that were leased; 8) fixed assets, intangible assets and inventories; 9) net long-term investments in securities and shares; 10) deferred expenses for other operations; 11) other assets.

The implementation of competent management influence of a commercial bank on the implementation of internal banking processes and the economy as a whole in order to most effectively achieve its goals is an important factor that determines the stability of commercial banks, as well as the success of their functioning.

Managing the active operations of a commercial bank is to implement the appropriate placement of both own and borrowed funds of a commercial bank in order to obtain the highest profitability. It is the quality management of active operations that can have a direct impact on the values ​​of profitability, liquidity, financial reliability and, in general, the stability of a commercial bank.

Asset management, according to Umarov K.A. and Idirisov A.T., represents the procedure and ways of placing own and borrowed funds. For commercial banks, this process involves the distribution of funds into cash, loans, investments, and other assets. Thus, when allocating resources, special attention is paid to lending operations and investments in securities, in particular, the composition of outstanding loans and securities portfolios.

The obvious solution to the problem of efficient allocation of funds is to “purchase” those assets (providing investments and loans) that can bring the highest possible return for the level of risk that the management of a commercial bank is willing to accept.

The asset management processes of a commercial bank consist of establishing a balance in a given bank between attracting (forming sources) and the ability to allocate financial resources based on the structure.

Therefore, it is advisable to consider the following as the main components of the asset management processes of a commercial bank:

• assessment of raised funds in order to calculate the level of sustainability of the resource base, which consists of identifying the likelihood of raised funds being in client accounts in accordance with all the terms of concluded agreements (presence of deposit risk);
• assessment of the level of creditworthiness of the borrower and the effect of providing him with loan debt (presence of credit risk);
• determination of the most effective interest rates for resource allocation based on the interest rates on attracted resources (presence of interest rate risk).

In the scientific literature on economics, the following theories of asset management for a commercial bank are distinguished:

1. The theory of commercial loans - proponents of this theory adhere to the point of view that a commercial bank maintains its liquidity until its assets are placed in short-term loans, which are repaid in a timely manner in the event of a normal state of business activity.

2. Transfer Theory – Proponents of this theory argue that a commercial bank can be considered liquid if its assets can be moved or sold to other investors or creditors for cash.

3. The theory of expected income - according to this theory, it is possible to plan banking liquidity if the borrower's future income is taken as the basis for the payment schedule for loan repayments. This theory does not deny the previously presented theories, but emphasizes that linking the borrower’s income with loan repayment is preferable to securing the loan. The theory considers the possibility of influencing bank liquidity by changing the structure of loan and investment repayment periods.

Commercial banks must effectively distribute raised funds into various types of active operations and at the same time try not to reduce the importance of profitability and liquidity. In their work, commercial banks can use the following asset management methods:

1. General fund method. The funds for which a commercial bank manager is responsible come from a variety of sources, including demand deposits, savings deposits, time deposits, and the bank's own capital.

The method under consideration is based on the idea of ​​combining all resources. The total funds are then distributed among those types of assets (loans, government securities, cash on hand, etc.) that are considered suitable. In the general fund model, for a specific active operation, it does not matter from what source the funds came, as long as their placement contributes to the achievement of the bank's goals. This method is presented schematically in Figure 2.

2. Asset distribution method. When approaching the allocation of funds from the standpoint of the general fund of funds, too much attention is paid to liquidity and the differences in liquidity requirements in relation to demand deposits, savings deposits, time deposits and fixed capital are not taken into account. According to many banking officials, this shortcoming is the reason for the increasing decline in profit margins. Over time, time and savings deposits, which require less liquidity than demand deposits, grow at a higher rate.

Figure 2. Method of asset management for a commercial bank “General Fund of Funds”

The asset allocation method, also known as the fund conversion method, overcomes the limitations of the pool of funds method. This method attempts to distinguish between sources of funds in accordance with the norms of required reserves and the speed of their circulation or turnover.

The asset allocation model establishes that the amount of liquid funds required by a bank depends on the sources of funds. It is shown schematically in Figure 3.

After conducting a detailed analysis of the economic literature on the research topic, we came to the conclusion that the above methods for managing the assets of a commercial bank are somewhat simplified. Thus, it is advisable to consider it not as a specific set of regulatory guidelines that provides the basis for making effective decisions, but as a general scheme within which the top management of a commercial bank will be able to rationally determine an approach to solving emerging problems in processes related to asset management .

Figure 3. Asset management method for a commercial bank “Asset Allocation”

The practical use of any of the studied methods presupposes that the bank's top management has the ability to conduct research into the entire complex of relationships and, based on its results, introduce those complications into analysis and decision-making that correspond to the specific situation of a given commercial bank.

Bibliography:

1. Banking: textbook / ed. Doctor of Economics sciences, prof. G.G. Korobova. – 2nd ed., revised. and additional – M.: Master: INFRA-M, 2015. – 592 p.
2. Banking: textbook / O.I. Lavrushin, N.I. Valentseva [and others]; edited by O.I. Lavrushin. – 12th ed., erased. – M.: KNORUS, 2016. – 800 p.
3. Garasyuk O.A., Eliseeva A.N. Strategy for managing assets and liabilities of a commercial bank // Economics and Finance. 2014. No. 4. P. 48-54.
4. Ermakov S.L. Fundamentals of organizing the activities of a commercial bank: textbook / S.L. Ermakov, Yu.N. Yudenkov. – M.: KNORUS, 2017. – 646 p.
5. Zudina L.V., Danilovskikh T.E. Problems of managing assets and liabilities of a commercial bank / Economics and management: analysis of trends and development prospects. 2014. No. 16. P. 124-127.
6. Information on registration and licensing of credit organizations. Official website of the Central Bank of the Russian Federation [Electronic resource]. – Access mode: http://www.cbr.ru/statistics/?PrtId=lic (date of access: 09.21.17).
7. Kurilova A.A., Kovalenko O.G. Theoretical foundations of asset management of a commercial bank // Bulletin of NGIEI. 2015. No. 5 (48). pp. 74-78.
8. Umarova K.A., Idirisova A.T. Management of assets and liabilities in a commercial bank // Innovative science. 2015. T.1. No. 5 (5). pp. 110-113.

Under asset management understand the ways and procedures for placing their own and borrowed funds in order to generate income and ensure liquidity of a commercial bank.

Bank assets consist of capital and current items. Capital items of assets - land, buildings owned by the bank; current – ​​bank cash, discounted bills and other short-term credits, loans and investments. Up to 80% of banking assets are accounted for by operations such as accounting, lending, credit and securities transactions.

The stability of the bank as a whole consists of such indicators of its performance as liquidity, profitabilityAndreliability. In many ways, these indicators depend on the management of the bank’s assets.

Asset liquidity- this is the ability of assets to be transformed into cash through their sale or repayment of obligations by the debtor (borrower). The degree of liquidity of assets depends on their purpose. In this regard, according to the degree of liquidity, the bank’s assets are divided into:

First-class liquid assets - directly the bank’s funds located in its cash desk or on correspondent accounts; government securities in the bank's portfolio, to the sale of which it can resort in the event of insufficient cash to repay obligations to creditors.

The second group of assets in terms of liquidity consists of short-term loans to legal entities and individuals, interbank loans, factoring operations, and commercial securities of joint-stock companies. They have a longer period of conversion into cash.

The third group of assets covers the bank's long-term investments and investments, including long-term loans, leasing operations, and investment securities.

And the fourth group of assets, which includes illiquid assets in the form of overdue loans, some types of securities, buildings and structures.

Bank assets are considered liquid if they can easily be converted into cash with a minimal decrease in their value. But at the same time, liquid assets have a lower potential profit compared to assets diverted for a long time. This discrepancy forces bank management to design the asset structure in such a way that an optimal combination of profitability and liquidity is achieved.

Optimalasset structure could be next:

the amount of issued bank loans must be greater than the sum of all bank liabilities (since loans are supposedly the least liquid assets, and deposits are their main source, and their unexpected outflow can cause a shortage of funds at the bank);

liquid assets together with the bank’s own capital must cover the bank’s total liabilities by at least 20%;

the ratio of highly liquid assets and profit-generating assets should be approximately equal so that the lack of liquidity is compensated by the profitability of assets.

Loan operations form the basis for the bank’s active activities in the deployment of its resource base. They bring banks a significant portion of their income. But these same operations bring banks a significant part of their losses. Therefore, many banks prefer to invest most of their resources in government securities or foreign exchange transactions rather than in lending to the real sector of the economy.

Recently, banks have been increasing their income by increasingly carrying out uncharacteristic transactions, including securities transactions, leasing, factoring, consulting, and trust.

Another factor influencing the liquidity of a bank is the quality of its assets. The quality of assets is determined based on 4 criteria: liquidity, riskiness, profitability and diversification.

Riskiness as a criterion for the quality of assets means the potential for losses when they are converted into monetary form. The degree of risk of assets depends on many factors specific to their particular type.

According to the degree of risk, the bank's assets are also divided into several groups. The classification of assets by risk level and the risk level of each group of assets are ambiguous in different countries and for different purposes. The higher the total risk of a bank's assets, the lower the bank's liquidity.

The profitability of assets as a criterion of their quality reflects the performance and efficiency of assets, i.e. the ability to earn income and thus create a source for the development of the bank and strengthening its capital base.

According to the degree of profitability, assets are divided into 2 groups: income-generating and non-income-generating. The higher the share of income-generating assets, the more income (profit) the bank has, other things being equal, and, consequently, the greater the opportunity to strengthen its capital base. This means that the bank can better withstand the risks it has taken on.

At the same time, reasonableness should be observed in regulating the structure of assets according to the degree of profitability, since the unbridled desire for profit can result in the loss of assets and loss of liquidity.

A criterion for the quality of assets can also be their diversification, which shows the degree to which the bank’s resources are distributed across different areas of placement. The more diversified the assets, the higher the bank's liquidity.

The main goal of bank asset management is the most effective placement and use of the bank's own and borrowed funds to obtain the highest profit.

The basic principles of banking management in asset management include the following:

• asset return management;
• maintaining a rational asset structure;
• risk analysis and creation of reserves.

The assets of a commercial bank are divided as follows.

By purpose:

• working (current) workers that bring current income to the bank;
• cash, providing bank liquidity;
• investment, intended to generate income in the future and achieve other strategic goals;
• non-current, intended to support the bank’s economic activities;
• others.

By degree of liquidity:

• highly liquid (cash, precious metals, funds in the Bank of Russia, funds in non-resident banks from developed countries, funds in banks for payments by plastic cards, etc.);
• liquid (loans and payments to the bank with a maturity period of up to 30 days, easily marketable securities quoted on the stock exchange, other quickly realizable assets);
• long-term liquidity (loans issued and deposits placed, including in precious metals, with a remaining maturity of more than a year);
• low-liquidity (long-term investments, capitalized assets, overdue debt, unquoted securities, bad debts).

According to the requirements of the Bank of Russia, the share of the first two groups of assets must be at least 20% of all assets minus required reserves. In international practice, the share of highly liquid assets should be in the range from 12 to 15%.

By placement period:

• a) unlimited;
• b) placed for a period (on demand, up to 30 days, from 31 to 90 days, from 91 to 180 days, from 181 to 360 days, from 1 year to 3 years, over 3 years).

Currently, the structure of fixed-term assets of Russian banks is dominated by assets placed for a period of 91 to 180 days.

By risk level Commercial bank assets are divided into five groups, each of which has its own coefficient for the possibility of loss of value.

Depending on whose use the bank’s assets are, i.e. By subjects , assets are divided as follows:

• a) in the use of the bank itself;
• b) provided for temporary use to other entities (state, legal entities, non-resident individuals).

It is important to note that the structure of assets by entity shows how diversified its investments are and in which sectors and sectors of the economy the bank directs its resources.

Asset quality is how much they contribute to achieving the main goal of a commercial bank - its profitable and stable operation. Factors determining the quality of bank assets are:

• return on assets;
• correspondence of the structure of assets to the structure of liabilities in terms of terms;
• asset liquidity;
• diversification of active operations;
• volume and share of risky and inferior assets.

Based on quality, commercial bank assets are divided into:

• to full-fledged;
• inferior.

An asset is considered defective if the bank cannot convert it into cash at its current book value upon the expiration of its maturity date.

Defective assets include: overdue loan debt; bills and other debt obligations not paid on time; illiquid and depreciated securities; accounts receivable for a period exceeding 30 days; unrealized real estate, funds in correspondent accounts in bankrupt banks; and etc.

Currently, three main types are used in banking practice: asset management method :

• method of general distribution of funds or common fund of funds;
• method of asset distribution or conversion of funds;
• scientific method of asset management.

General fund distribution method (general fund of funds) is that all borrowed funds of the bank are considered as a single fund, i.e. the total amount of banking resources. Funds from this fund are distributed in the following order:

• 1) primary reserves are replenished (cash and correspondent account with the Bank of Russia);
• 2) secondary reserves are formed from a number of short-term highly liquid securities (with this approach, secondary reserves are the main means of ensuring liquidity for the bank);
• 3) the funds of the fund are used to finance all valid applications for loans, and the loan portfolio is not considered a means of ensuring liquidity;
• 4) after all applications for loans are satisfied, the remaining funds are directed to the purchase of chain securities, primarily government securities, which are a source of income and, in addition, replenish secondary reserves as their maturity approaches.

The use of the general distribution method has a number of disadvantages. Firstly, it focuses on maximizing highly liquid funds, which do not provide the required level of profitability, which in the future will negatively affect the financial stability of the bank. Secondly, the urgency of deposits of different types is not taken into account: demand deposits are intended for settlements, and savings and time deposits are placed to generate income and have certain storage periods.

The general method of depositing funds is considered risky. It is used mainly by large banks that have significant resources and financial stability and, based on this, may not comply with the maturity of deposits.

Asset Allocation (Fund Conversion) Method is based on the fact that the amount of liquid funds required by the bank depends on the sources of raising funds and the timing. The application of this method uses the delimitation of sources of funds in coordination with the norms of required reserves and the speed of their circulation.

For example, demand deposits require a higher required reserve ratio compared to savings and time deposits. At the same time, their turnover rate is also higher. Therefore, funds from demand deposits should be placed primarily in primary and secondary reserves, and less often in investments.

The asset distribution method will create several “liquidity-profitability centers” within the bank itself, which are used to allocate funds attracted by the bank from various sources. In banking practice, such centers are called “banks within a bank.” In a bank there are, as it were, a “savings deposit bank”, a “fixed capital bank”, and a “demand deposit bank”. Having determined which funds, in terms of their profitability and liquidity, belong to the corresponding “banks,” the management of a given commercial bank establishes the procedure for their placement. It is important that the placement of funds from a certain “bank” occurs independently of the other “banks” (Fig. 16.1).

The advantages of this method include the fact that when it is used, there is coordination of the timing between deposits and their investments in assets, and also increases

Rice. 16.1.

additional investment in loans and investments, leading to higher profits. The method allows you to eliminate the excess of liquid assets that oppose savings and time deposits, as well as fixed capital.

Along with this, this method also has some disadvantages. Firstly, there is no close connection between individual groups of deposits and the total amount of deposits. Secondly, there is independence of sources of funds from the ways of their use, since the same clients invest and borrow from the bank, if banks strive for this. In addition, when using this method, banks proceed from the average rather than the maximum level of liquidity.

In banking practice it is also used scientific method of asset management , which is based on the use of the so-called objective function. The Bank calculates the investment of its resources using the following formula:

Where R - profit; x - xb - investment amounts for government short-term bonds, government long-term bonds, commercial loans, term loans, consumer loans, mortgage loans; 2, 3, 5, 6, 8, 9 - percentages corresponding to these types of investment.

The use of this method is aimed at maximizing profits. The scientific method is based on the assumption that for any level of risk that is not associated with investment, the bank invests funds based on the maximum interest rates in a certain period (in this case, 8 and 9%). However, the bank must comply with regulations from the central bank, take into account the requirements of risk management and the requests of other clients.

In this regard, the bank does not invest all its funds in assets where the highest income (interest) is potentially possible, but distributes them in several directions. But he will place a significant part of his resources in places where there is an opportunity to receive higher incomes. Such actions should provide him with sufficient profit while maintaining liquidity at the required level.

Currently, all three methods of asset management are used in global banking practice. The use of each method is determined by the economic situation and the bank’s position in the market. At the same time, we note that the most effective method is asset management based on the objective function.

Bank liability management. Liability management (passive operations) is the most important area of ​​banking management. It is focused on managing the mobilization of credit resources, managing the bank's issuing activities, and maintaining the bank's liquidity. It should be noted that passive operations are primary in relation to active ones, since before you mix resources, you first need to form them.

Commercial bank resources are divided into two groups:

• a) own capital (own funds);
• b) raised funds.

Equity capital represents funds owned directly by a commercial bank. Using their own capital, banks form 12-20% of the total need for resources to support their activities.

Bank capital management involves maintaining its sufficiency and choosing the most effective way to increase it. Sources of capital growth for a commercial bank are divided into internal and external.

Internal sources include the bank's retained earnings and the revaluation of its funds. External sources include: issue of shares; issue of subordinated obligations; raising funds from bike shareholders.

A low share of a joint-stock bank's profit directed toward increasing its own capital leads, accordingly, to a slow growth of the bank's own capital, restraining the growth of assets and income, while a high share leads to a decrease in dividends paid. At the same time, high and stable dividends lead to an increase in the market value of the bank's shares, which makes it easier to increase capital from external sources. When pursuing a dividend policy and choosing a source of capital increase, bank management must comprehensively take into account the trends in the general economic and banking environment, the combination of various factors and trends.

The main volume of banking resources is formed from borrowed funds that the bank accumulates in the process of deposit and non-deposit operations.

Deposit operations provide the bulk of attracted resources of commercial banks. Carrying out deposit operations requires each credit institution to develop its own deposit policy. It should be understood as a set of activities aimed at determining the forms, tasks, and content of activities for the formation of banking resources, their planning and regulation.

In bank liability management, there are concepts of deposit expansion and reduction of deposits. The volume of deposits in commercial banks depends mainly on the amount of loans provided by banks and investments.

Non-deposit operations are associated with obtaining loans from the Bank of Russia from correspondent banks, i.e. interbank loans, which are usually provided for a short period. Large Russian banks also attract eurocurrency loans - loans received in eurodollars. Non-deposit passive operations also include raising funds by commercial banks through the issue of securities - bonds and bills.

The conclusion is this: the defining goal of managing the liabilities of a commercial bank is to form and increase the volume of its resources, subject to minimizing the bank’s expenses and maintaining the required level of liquidity, taking into account risks of all types.

Bank personnel management. Bank personnel management (personnel management) includes the development and implementation of personnel policies, management of remuneration and labor incentives, and management of relationships within the bank team.

There are three main groups of personnel management methods:

• 1) economic methods, including the development of systems of remuneration and material incentives, planning and personnel management;
• 2) administrative or organizational and administrative methods;
• 3) socio-psychological methods - moral stimulation of work, methods of social protection of bank employees, the system of relationships in the team, socio-psychological climate, etc.

The most important tasks of bike personnel management (personnel policy) are:

• regulatory and legal support for the personnel management system;
• selection and distribution of personnel;
• terms of employment and dismissal;
• training and professional development;
• assessment of personnel and their activities.

Regulatory and legal support for personnel management

includes:

• legislative acts and other regulatory documents on labor and personnel issues (the Labor Code of the Russian Federation, the Civil Code of the Russian Federation, regulations, instructions, guidelines and rules of ministries, departments, and other government bodies);
• orders, regulations, rules and other documents issued by the bank’s management on labor issues, headcount, remuneration, composition of divisions, etc. (for example, internal labor regulations, regulations on a bank division, staffing schedule, job descriptions).

The main stages of personnel selection and distribution are:

• determining staffing needs;
• recruitment;
• selection and placement of personnel.

Determining the need for personnel is one of the priority tasks of personnel management, which makes it possible to establish the quantitative and qualitative composition of personnel for a certain period.

In quantitative terms, the number of employees of a commercial bank is determined, first of all, by the volume of banking operations performed and the productivity of employees, the organizational structure of the bank and other factors.

Qualitative characteristics of personnel include: level of education, qualifications, practical professional skills, motivation (professional and personal interests, etc.); personal characteristics (hard work, communication skills).

Determining personnel needs involves:

• 1) assessment of existing personnel for a given period (taking into account the existing outflow of personnel for various reasons);
• 2) determining future personnel needs in accordance with the current and future objectives of the bank;
• 3) drawing up a program for fulfilling the bank’s personnel needs, which takes into account directions for achieving quantitative and qualitative correspondence between the future need for personnel and its availability at the moment.

Internal sources of covering the need for personnel are the release, retraining and movement of personnel within the bank. External sources: admission of graduates of relevant educational institutions, specialists from other banks.

The selection and placement of personnel is carried out on the basis of certain principles, which provide for the development of specific requirements for the bank’s personnel, taking into account the volume of its activities, the level of competitiveness, as well as the existing plan for the effective placement of personnel between the bank’s structural divisions (divisions, divisions, divisions and branches).

Persons nominated for the positions of manager and chief accountant of the bank must meet the requirements established by the Banking Law. Candidates for the position of heads of main functional divisions must have a higher legal or economic education and, as a rule, at least one year of experience in managing a department or other division of a credit institution related to banking operations.

In addition to assessing candidates for vacant positions, a bank must carry out ongoing and periodic assessment of all employees - certification, which involves determining the qualifications and level of knowledge of the employee, as well as forming an idea of ​​his business and other qualities. The main purpose of certification is to establish the professional suitability of each bank employee for the position held. Based on the results of the certification, certain decisions are made - changes in wages, transfer of an employee to another position (demotion or promotion), dismissal, etc.

An obligatory task of human resources management is the development of bank personnel.

The main goals of personnel development are as follows:

• increasing labor efficiency;
• staff development;
• training of necessary management personnel;
• reduction in staff turnover;
• education of young promising employees;
• improving the psychological climate in the team.

The main factors of personnel development include, first of all:

• motivation (high level of wages, prestige of work, correspondence of remuneration to results, availability of a social package);
• professional growth (compulsory special education, openness of information about prospects for professional growth, provision of growth opportunities);
• leadership style (fairness of requirements and friendly microclimate in the team).

Training and advanced training is focused on the continuous training of bank personnel at all levels, either within the bank itself or in special training centers at higher educational institutions (universities, institutes, colleges). The need for training for the purpose of advanced training is primarily determined by the requirements and conditions

banking market, growing competition and high level of scientific and technological progress in the field of banking technologies.

In bank personnel management, it is important to ensure the motivation of bank personnel based on material and moral incentives.

Material incentives include:

• material remuneration for work (wages, bonuses, benefits);
• working conditions.

Salaries in a commercial bank are usually determined by the staffing table. In commercial banks, bonuses are usually established to the basic salary (personal, for length of service, academic degree, knowledge of a foreign language, etc.). The official salary of an employee according to the staff schedule is a permanent part of the remuneration. The second part of the wage fund - the variable - is directly dependent on the financial results of the bank as a whole or its divisions.

The remuneration system involves the payment of monthly, quarterly and annual bonuses. The bonus is paid for effective work, proposals for improving customer service, mastering new banking technologies, etc. At the same time, the bonus should have not only material, but also moral significance for bank staff. In Western countries, a number of banks practice issuing their shares to staff as an incentive system, which is considered the highest level of remuneration.

In the remuneration system, a special place is occupied by benefits, the so-called social package, provided to bank staff, increasing their total income. Such benefits may include: payment for travel and food at work, medical treatment, maintenance in child care institutions, education and recreation for children; the possibility of obtaining loans using preferential interest rates; payment of one-time benefits to pay for treatment and rest; life insurance at the expense of the bank, etc. Benefits provided to employees depending on specific work results are an important means of increasing the productivity of banking personnel.

Bank assets are operations for placing the bank's own and borrowed funds to make a profit. Liquidity, profitability, and, consequently, the financial reliability and stability of the bank as a whole depend on the quality implementation of the bank’s active operations. The main sources of funds for the formation of assets are: the bank's own capital and depositors' funds, interbank loans, and the issue of bank bonds. The increase in the bank's assets occurs due to active operations: lending, investment operations, and other bank operations to place its own and borrowed funds. An important quality of a bank's assets is the generation of profit.

There are different points of view on the composition of the assets of a commercial bank. Conventionally, all assets of a commercial bank can be divided into 4 main groups (Figure 2.1).

Rice. 2.1 Commercial bank assets

Cash represents cash balances at the bank and balances on correspondent accounts with the Central Bank, as well as other commercial banks. Maintaining a sufficient level of cash balance in the form of banknotes and coins is necessary to ensure that the bank fulfills current obligations and payments in cash, mainly for settlements with individuals (changing money, returning deposits, issuing loans in cash). It is formed through the collection of proceeds from trade operations, accepted by the bank in cash. As a rule, banks set strict restrictions on the size of the cash balance and strive to reasonably minimize it, since the cash balance not only does not generate income, but also requires significant expenses (storage, recounting, and security measures). Excess cash balance is reduced by transferring part of the cash to the Central Bank for subsequent crediting of the transferred amount to the correspondent account of a commercial bank. If there is a lack of cash, a commercial bank can receive the required amount from the Central Bank.

Balances on correspondent accounts with the Central Bank and commercial banks are formed by receipts from the bank's counterparties and also serve to make current payments. Like the cash balance, the balance on the correspondent account is subject to reasonable minimization as not generating income or generating minimal income if interest is paid on the balance on it.

At the same time, these funds form the so-called primary reserves, which at any time, without any restrictions or additional costs, can be used to fulfill the bank’s obligations.

Investment securities. This includes bonds, bills, shares and other securities held by the bank, primarily with the expectation of income, the amount of which will depend on its rate. They are often divided into taxable securities and tax-exempt securities. The latter provide interest income that is exempt from income tax. Investments in investment securities may be reflected in the bank's financial statements at their original cost, market value, or at a value below par or market value. Almost all banks record purchased securities and other assets and liabilities with an indication of their original cost, unless regulatory authorities have established a mandatory procedure for their revaluation. Naturally, if interest rates increase after the purchase of securities, their market value will be lower than the original (book) value. Therefore, banks that list securities at their original cost often indicate their current market value. In Russian practice, investment securities usually include federal government bonds with a variable coupon and constant income (OFZ-PK and OFZ-PD), domestic government foreign currency loan bonds (OVGVZ), bills issued by the Ministry of Finance of the Russian Federation, municipal and regional securities , bills of banks and corporate issuers, as well as shares of joint stock companies.

Loans. The main type of bank assets are loans, which usually account for half to three-quarters of the total value of all assets. Gross loans include all loans originated (consumer, real estate, commercial and other enterprises) plus all extended loans made to securities dealers and other financial institutions. To determine the value of net loans, current and expected loan losses should be subtracted from the gross loans.

Fixed assets and intangible assets. Bank assets also include the residual value (adjusted for depreciation) of buildings and equipment, investments in subsidiaries and other relatively minor positions. The cost of tangible assets is also called fixed assets. They are also associated with fixed operating costs in the form of depreciation charges and property taxes. These costs serve as a lever for the bank, which allows it to increase operating income, however, if it is able to increase its sales volume to a sufficiently high level and earn more from the use of fixed assets than they themselves cost.

The activities of a commercial bank occur through the implementation of active and passive operations. Passive operations are carried out with the aim of generating resources for a commercial bank to carry out its activities. Active operations include operations to allocate resources available to banks to generate profit and ensure liquidity. Profit and liquidity are two fundamental principles that reflect the essence of active operations inherent in a bank as a commercial enterprise that uses mainly attracted resources.

There are different points of view regarding the classification of active operations, as well as the structure of assets. According to Bukato V.I., Lvov Yu.I. The main active operations are:

credit operations, as a result of which the bank’s loan portfolio is formed;

investment operations that create the basis for the formation of an investment portfolio;

cash and settlement operations, which are one of the main types of services provided by the bank to its clients;

other active operations related to the creation of appropriate infrastructure to ensure the successful execution of all banking operations.

Lavrushin believes that the most common active operations of banks are:

lending operations, as a rule, bring banks the bulk of their income. On a macroeconomic scale, the significance of these operations is that through them banks transform temporarily inactive monetary funds into active ones, stimulating the processes of production, circulation and consumption;

investment transactions, in the process of their implementation, the bank acts as an investor, investing resources in securities or acquiring rights to joint economic activities;

deposit operations, the purpose of active deposit operations of banks is to create current and long-term reserves of means of payment in accounts with the Central Bank (correspondent account and reserve account) and other commercial banks;

other active operations, varied in form, bring significant income to banks abroad. Other active operations include: operations with foreign currency and precious metals, trust, agency, commodity, etc.

Antonov P.G., Pessel M. highlight the same operations as Bukato V.I. and Lvov Y.I., i.e.: cash, credit, investment and other operations.

Based on the above, we can conclude that the main active operations of commercial banks are:

credit transactions;

investment operations;

cash transactions;

other active operations.

The need to manage the asset structure of a commercial bank is determined by the fact that the bank must ensure such a rational structure of its assets that would allow it to meet its obligations on a daily basis. To do this, the bank must effectively manage the composition and structure of its assets, i.e. make decisions on the most appropriate directions and methods of investing own and borrowed funds.

Active operations ensure the profitability and liquidity of the bank, i.e. allow you to solve two main goals of the activities of commercial banks. Active operations are also of great economic importance. It is with their help that banks can direct the funds released in the process of economic activity to those participants in economic turnover who need capital, ensuring the flow of capital into the most promising sectors of the economy, promoting the growth of industrial investments, the introduction of innovations, restructuring and stable growth of industrial production, expansion housing construction. Bank loans to the population are of great social importance.