What is the deposit operations of the bank?

The banking system in the modern economy should ideally act as a battery and distributor of free money. Of course, in the harsh reality everything is not so good, but nevertheless we will study deposit operations as one of the most important parts of this process. In this article we will pay attention to all aspects. And for this we consider the deposit operations of the bank of Russia, as well as various commercial financial structures.

Terminology

What are deposit operations? This is what the active actions of banks are called to attract funds of individuals and legal entities into deposits for a certain period (or on demand).

Objects in this case are deposits. This is the name of the amount of money that the entities make to their bank account. With this there is no problem. But who can act as subjects? They are understood as individuals, as well as enterprises of any organizational and legal form of ownership.

Conducting deposit operations: preparation

Initially, each credit organization faces the task of creating its own policy in this area. It is necessary to understand the totality of certain activities of the commercial structure, which are aimed at forming, planning and regulating bank resources.

The ultimate goal of working out and subsequently implementing the deposit policy is to increase the volume of the working resource base. At the same time, it is necessary to strive to minimize costs and maintain the required level of liquidity, taking into account all types of risks.

If we take into account that each bank is developing its deposit policy, the main issue will not be whether it is, but about its quality. The organization itself depends on a large number of factors, including the size of the financial institution, the qualifications of the employees who are responsible for making transactions, and many other things. After all, the deposit operations of the bank pass with significant amounts, and to allow them to disappear means to put a stain on their reputation.

Varieties of deposit operations

Types of deposit operations depend on many factors. So, if we proceed from the category of investors, then there are deposits of legal entities (enterprises, organizations, other financial institutions) and individuals. And according to the form of withdrawal, such deposits are distinguished:

1. Poste restante. This means that the client can come at any time and demand his deposit.
2. Urgent. These are valid for a certain period of time. If the client wants to withdraw funds before the end of the contract, it can lose a significant part of the interest (or even all of them).
3. Conditional. These funds can be withdrawn only upon the occurrence of certain, pre-agreed conditions. As an example, we can cite the following: the 18th anniversary.

These are the deposit operations of the bank. But they can share, acquire a more detailed look. About him, we now talk.

Demand Deposits

They include:

1. Funds located on settlement, budget and current accounts of non-state enterprises that are in state ownership.
2. Money owned by individuals.
3. Funds placed on accounts of funds of any purpose.
4. Deposits of the population on demand.
5. Means of correspondent accounts of other banks.
6. Monetary deposits on demand of financial bodies, non-commercial organizations.
7. Funds in the calculations (under them are letters of credit and checks), as well as obligations for individual transactions.

Despite the fact that these deposits have high mobility of money, a minimum balance can be determined, which will not be used before emergencies, in order to obtain a stable credit resource. This, incidentally, carries a hidden potential. As such, one can call credit and deposit operations with an account. They allow convenient and quick access to the necessary financial resources, and there is no need to get a loan from the bank.

Term deposits

A hard-coded storage time is very important to maintain the liquidity balance of commercial banks. Also, their portfolio allows us to talk about the sustainability of the organization. As a rule, term deposits are accepted for a certain period:

• Up to 30 days;
• 31-90 days;
• 91-180 days;
• From 181 days to a year;
• From 1 year to 3 years;
• More than 3 years.

Very often there are situations when individual time deposits are not claimed, then they become such that they have expired term of circulation. Returning your money in this case will be very problematic.

The popularization of this type of deposits was positively affected by the widespread use of plastic cards and payments with their help. In such cases, special accounts are created for which a reduced interest rate is charged, but in case of withdrawal at any time the client does not receive penalties from the bank. To increase the interest of people, the mechanism of complex rates becomes widely used.

Increase the number of resources

To this end, a variety of deposit banking operations are used, which are targeted at different segments of the population depending on their social level, as well as the amounts and terms for which the deposit is opened and transferred.

In this case, banks also take into account the requirements of various categories of people who can open an account. So, systems of interaction with all - from students and pensioners and ending with the middle class and businessmen are envisaged. To make sure of this, it is enough to look at what these financial institutions offer.

There are different contributions: student, pension, investment and so on. According to them, banks offer increased interest or other preferential terms. Important in this case is the simplicity and speed of entering into a contract and opening an account. In most cases, preformed forms are used. Although in some cases an individual contract can be drawn up (this directly depends on the client category).

The struggle between banks for customers

The competition between different financial institutions forces them to conduct analysis of deposit operations in order to choose a form of interaction with people that would put them in a favorable light. This is in the provision of a full range of services, and in improving the quality of service, and in the ability to track your account remotely.

Various bonuses can be given in the form of selling traveler's checks, converting currencies at a favorable rate, processing plastic cards, speeding up the transfer of money, paying for various goods, utility payments, and much more. Creation and development of a wide range of banking services together with deposit insurance qualitatively increases the attractiveness of the financial organization in the eyes of current and potential investors. Thanks to this, the resource base of the structure is rapidly expanding.

Savings and certificates of deposit

They are a kind of term deposits. For the first time they were legislatively resolved in the Russian Federation in 1992. The rules that apply to certificates are the same for all banks. Although the conditions for the release and circulation of each individual type are developed precisely by financial structures.

Certificates can be issued only in rubles. In addition, a significant limitation is that they can not serve as payment or settlement means for services rendered or goods sold. The peculiarity is that the bid rate can not be changed in time unilaterally. If the client has applied for payment after the specified period, the financial institution bears before him the obligation to pay the specified amounts on the first demand.

The organization of deposit operations, which was discussed above, relates to a greater degree to one bank and its interaction with individuals (or enterprises that are not related to the credit sphere). And now let's expand the scope of our acquaintance.

Issue of bonds

As a means of additional income, bonds are used. They are regulated by the same documents as the shares. The bank can issue bonds:

• Registered;
• To the bearer.

They can be secured with or without a deposit, with interest, discount, convertible, with different maturities. In order to raise funds, they can be issued in currency or rubles.

It should be noted that the provision of resources by banks to other financial institutions is of particular importance (if we talk about accounting for deposit operations). This is done through auctions and exchanges, although it is also possible to establish direct contractual relations between organizations. But if there are not very large structures or there is no trust between them, then the auction or the stock exchange is more likely. Not the least role, by the way, is played by the presence of mediators and the need to undergo at least some sort of selection.

Now let's pay attention to our realities and talk about deposit operations of the Bank of Russia.

Loans from the Central Bank of the Russian Federation

The bulk of the money of the Central Bank until 1995 was provided in order to lend to priority sectors of the economy. In this case it was logical. These were considered by certain industrial groups, agriculture and other areas, which are of considerable importance for the functioning of the state.

Since 1994, the Central Bank began to practice resource auctions. Already in 1995 they became the predominant refinancing instrument. Since then, although targeted lending is neither fantastic nor extraordinary, the Central Bank is mainly used as an instrument for financing private banks at a lower rate so that they can support the broad masses of entrepreneurs and ordinary citizens whose demand Can significantly help the domestic economy.

The work of commercial banks

Let's see what the deposit operations of Sberbank can be in cooperation with other financial institutions. There are 4 main directions:

1. Interbank loans received from other financial institutions. They are accompanied by a contract, which stipulates everything needed for such transactions: amount, term, interest rates. Use this resource is very expensive, so they are not particularly active.
2. Carrying out a deposit operation by replenishing the correspondent account. It is that the transfer of money is based on the relevant agreement. At the same time, interest for the use of resources is not paid. As a reward, the balance on the account is provided. This method is usually used by friendly or trust-related banks.
3. Resources from other branches. This method operates only within one bank. Its use is convenient because there is no need to pledge, formalize and exchange arrangements before obtaining a loan. No, of course, certain documents will have to be compiled, but this is after the transaction. The operation is carried out as necessary. For her conduct, it is enough to make a phone call, and as a confirmation is a notification sent by e-mail or fax. Due to this, this tool is considered the most mobile and convenient. It allows you to attract the necessary amounts, while at the same time minimizing costs.
4. Help from the main bank. This type of attraction of resources could be attributed to the first item, if not for the fact that the interest rate is usually a little lower and is set in a directive order.

How it is done in the world

The attraction of funds in the deposit form is carried out at a significant interest rate. Credits are also given out at an even higher percentage. Is it the same everywhere or is there an exception?

The fact is that deposits are popularized as a reliable means of protecting against inflation. Of course, it is worth saying that this is true only in individual cases - often they simply reduce the effect of negative effects. Therefore, the rates directly depend on this indicator. So, for example, in Japan, the USA, Denmark, Switzerland you can observe deposits at 0-0.5% per annum.

Loans in these countries are issued at 1-3%. On the one hand, it is not profitable to place funds with them. But let's look at our financial institutions - here you can see rates on deposits in dollars and euros at 5, 6, 7 and even 10%! Theoretically, we can conclude that it is much more profitable to make deposits in foreign currency on the territory of the Russian Federation. But there are a number of their risks, including the possibility of forcibly converting all deposits into rubles, the disappearance of the bank from the financial services market, and much more. Therefore, high interest is a kind of compensation for the respective risks that the owner of the currency is incurring.

Summarizing

So, deposit operations of banks are certain actions by means of which the formation of bank resources takes place. This process is carried out through the use of a number of tools.

So, the primary source of receiving resources is the attraction of funds from clients (which are individuals and legal entities). Without conducting operations of this type, it will be impossible to form the initial deposit portfolio of the bank, and the financial institution will not have the resources to issue loans and conduct its business. Thus, without this, the modern monetary system would have experienced significant problems.