Financial literacy: credit operations of commercial banks

With the transition of Russia to the market system, huge changes have occurred in the banking sector. If earlier financing was budgetary and carried out by the state, then with the advent of enterprises, the form of ownership of which may be both private and public, new financial resources were needed. This has provoked an increase in the number of commercial financial institutions.

One of the main business items are credit operations of commercial banks. They are the source of profit. All income is divided into two parts: one of them goes to the reserve funds, the other - to pay dividends to those who have shares of this institution.

Credit operations of commercial banks are a system of relations between a creditor (represented by a financial institution) and a borrower (in other words, a debtor). The basis of this operation is the provision by the bank of a certain amount of financial resources to both a legal entity and an individual. The following conditions must be preserved:

1. Pay. The right amount (credit) is not given for free. The borrower is required to pay a certain percentage to the bank. Therefore, repaying the loan, you will give the amount much more than the one that was borrowed from the financial institution.
2. Urgency. All lending operations of commercial banks have their terms. If they are violated, penalties will be applied to you .
3. Returnability. Nobody gives presents today. Therefore, you will have to return the funds received for a period of time after a certain period of time.

Types of credit operations of commercial banks

All credit operations of commercial banks have their own classification. The main one is the division of activities depending on the subject of lending:

• It can be active operations - such a system of actions, in which the lender acts as a bank. It is realized most often in the form of loans and loans;
• Passive operations - is a system of attracting money from customers or other banks. The financial institution in this case will already be a borrower. The bank accepts funds for all the same conditions of repayment (you will receive your funds back), urgency (the time at which you opened a deposit) and pay. That is, with this approach not you, and the bank will pay you interest.

In the form of implementation, all credit manipulations are divided into:

• Loans;
• Deposits.

There are two more types of financial relations with the bank. Crediting can be:

• Direct. About this form can be said in the event that the client initially enters into an agreement with the bank on the provision of a certain amount.
• Indirect. Recently, commercial type of lending is widespread, when enterprises act as entities. Such relations are formalized in the form of a bill. If there are any misunderstandings, the creditor has the full right to transfer the loan to the bank's department.

Accounting for credit operations of a commercial bank is carried out using special accounts. They are:

• 1 st order - all information about the persons to whom the loan was issued is recorded;
• 2 nd order - fixes all information about the terms of lending.

Such a system of fixation and control allows you to conduct competent financial activities, identify non-payers and apply penalties. Based on these accounts, the borrower's credit history is also built.