Distinctive features, features, organization of finance of Russian credit institutions

The credit sphere of monetary relations has distinctive features on the nature of functioning. The subject of transactions is the right to use funds. In simple terms, for a certain period of time the owner of money changes. Therefore, the organization of finance of credit institutions has its own characteristics.

Duality

Finance of credit institutions, on the one hand, is used to generate profits, and on the other hand they are of macroeconomic importance. The activities of such institutions are connected with the circulation of funds in the economy, ensuring the stability of business entities. This duality generates some features of finance for credit institutions.

Legal basis

Finance of Russian credit institutions is formed on the basis of the Federal Law "On Banks and Banking Activity". A credit institution is a legal entity that, for profit, carries out a number of operations under the license of the Central Bank. The form of ownership of the organization can be any.

The law provides for the creation of two types of organizations: banks and non-banking institutions. The Bank has the exclusive right to attract deposits from the public and legal entities, place funds on terms of pay and repayment, keep accounts, perform transactions on sale and purchase of the Central Bank, etc. A non-bank organization has the right to carry out only a part of these operations.

State regulation

The law prescribes the minimum amount of the authorized capital of the bank on the day the application for registration is filed. It is 300 million rubles. The Bank of Russia also regulates the maximum amount of non-cash deposits and a list of assets that can be contributed to the authorized capital. In particular, the bank's capital can not be formed at the expense of loans from other institutions. The composition of shareholders should remain unchanged during the first three years of operation. Also, the Central Bank developed a number of standards that are binding for all market participants. They regulate the minimum amount of own funds, the level of solvency and liquidity.

Resource Allocation

Finance of a financial institution is involved in the redistribution of resources at macro and micro levels. Banks attract funds from individuals and business entities, and then use them to perform transactions in the financial market.

Formation of reserves

Banks keep funds of legal entities and the state. In times of crisis, even the financial system may suffer. Therefore, banks form reserves for loans, under collateral in operations with the Central Bank, transferred to the regulator.

Attributes of finance of credit institutions

• Free disposal of funds in the framework of legislation.
• Urgency and repayment - funds are provided for temporary use for a certain period of time.
• Pay - for the use of capital you need to pay interest.
• Riskiness - preferable operations are those with a minimum level of risk that can bring results in the long term.
• Obligatory observance of the developed standards regulating the stability of credit institutions.

Given the distinctive features of finance of credit institutions, monetary relations can be divided into two groups. The first is related to the conduct of business by commercial organizations (provision of banking services), and the second - to the specificity of the system as a whole. Banks hold money, they act as intermediaries between the state and the population, and also participate in the securities market.

Organization of the system

In Russia there is a two-tier banking system. Finance of credit institutions is decentralized. This is due to the nature of market relations. Freedom of enterprise provides for the allocation of resources through credit institutions. And this process should be under control, as banks use not only their own, but also attracted funds, including from authorities. Central banks of all countries of the world can be regarded as intermediaries between the state and the economy. They combine the features of credit organizations and government departments.

Principles of the Bank of Russia

The legal status of the Central Bank is prescribed in the Constitution and the federal law of the same name. At the constitutional level, the main task of the regulator is to ensure the stability of the national currency. The federal law prescribes that the activities of the regulator are non-commercial, since making a profit is not the ultimate goal.

The powers of the regulator also fall into two groups. The first is related to the performance of public functions (regulation of monetary policy), and the second - with the implementation of banking operations. The first is free of charge, and the second - at a set tariff.

Capital and all assets of the Bank of Russia are part of the federal property, but the organization itself is considered legally and financially independent. The first condition is necessary for the management of monetary policy. Financial independence consists in the fact that the Bank of Russia is not responsible for the obligations of the state and finances all its operations independently.

After approval of the annual accounts, half of the bank's profit is transferred to the federal budget. The remaining part is directed to the formation of reserves and funds. Taxation of transactions is carried out in accordance with the Tax Code, except for those related to state regulation.

Organization of Finance of Credit Institutions

The transition to a market economy has changed the capital structure of financial institutions. Today, the main source of the formation of funds is the share capital, attracted from the financial market. In the administrative-command economy, the capital of banks was formed at the expense of state resources. Over time, the range of products offered has expanded. Banks began to receive incomes also from RZB, from operations with metals, currency, leasing, factoring, forfeiting transactions.

Organization of finance of credit organizations consists in attracting temporarily available funds and at the same time satisfying the needs for the resources of the population and business entities. Therefore, in the structure of the resources of banks can be identified:

• Own funds: authorized capital, reserves, special funds and profit;
• Liabilities are funds raised from passive operations (customer deposits) for active operations (lending).

Profit of the bank

The size of the organization's resources affects the volume of operations. With the transition to a market economy, the quality of capital has changed. Organization of finance of credit institutions is such that profit is now not only the ultimate goal, but also an important social indicator. Its availability and size are related to the interests of different groups of consumers:

• For shareholders, profit is the main indicator of profitability;
• For employees of the organization - an opportunity to receive a reward for a quality work done;
• For borrowers, the growth of profits means an expansion of the resource base and the possibility of obtaining a loan on more favorable terms.

The profit of the bank is calculated as the difference between income from operations and expenditures for their implementation, the contents of the management apparatus. Revenues include, in particular, interest on loans, payment for RKO, income from transactions with the Central Bank, currency, precious metals, guarantee operations, trust management, leasing, consulting services, etc.

Expenditures include expenses for payment of taxes to the budget, interest on deposits raised, commission on interbank loans, payment for correspondents, costs for transactions with securities, currency, precious metals, provisioning, maintenance of the management apparatus.

Management

In financial institutions, there are two forms of resource use. Targeted financing (funding) allows shareholders to exercise control over the movement of funds. Due to non-stock resources banks can expand the network of branches, acquire OS, stimulate employees, engage in charity.

Increasing the volume of resources of any commercial organization is achieved by increasing sales revenue and reducing costs. This principle is not applicable to banks whose main activity is the issue and repayment of loans. The volume of its profit depends on the size of the funds provided and the interest rate on them. Therefore, the main work in the management of financial resources is to increase the amount of own funds.

The simplest way to this goal is to increase the amount of the statutory fund. Expansion of capital will increase the limit of the loan per borrower and focus on long-term investments.