Cash and credit operations of banks. Types of banking operations

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

A bank as a commercial institution can provide customers with a large number of financial services, but at the same time, 2 main types of operations will be performed - cash and credit. What is the specificity of both? What can be traced to the significance of both types of operations in terms of the development of a credit institution?

Specifics of cash transactions in banks

What are bank cash transactions? These include the acceptance of cash and other valuables from clients of financial institutions, as well as the issuance of the relevant assets to them or other applying citizens. The cash desk of a bank is often regarded as one of the most liquid assets of an institution, but it is classified as a low-income one. The main purpose of the operations in question is the organization of a customer service system for a credit institution. The circulation of funds in this case is regulated by regulations issued mainly by the Central Bank, which has the status of a national emission center.

Cash transactions of Russian banks are among the most important areas of economic activityrelevant institutions. By accepting funds from clients - individuals, legal entities, the organization increases the available reserves, which can later be used to carry out highly profitable activities, primarily related to the issuance of loans - private, corporate. The bank can receive additional income from cash turnover, for example, by charging a commission for the issuance of funds in certain cases (as a rule, this concerns the withdrawal of proceeds from the settlement and cash accounts of enterprises).

Cash transactions of banks are carried out according to the following principles:

- the turnover of funds is carried out in accordance with the standards adopted by the Central Bank of the Russian Federation;

- cash is placed on internal accounts in a credit institution;

- the establishment of balance limits is implemented in accordance with the adopted regulations.

There is a special subspecies of cash transactions - those that are carried out by the regulator, the Central Bank. It will be useful to study their specifics in more detail.

Cash transactions of the Bank of Russia

Thus, not only commercial banks carry out cash transactions, but also the credit regulator - the Central Bank of the Russian Federation. They are carried out as part of the service of private institutions on the basis of a contract. These operations allow:

- optimize the cash flow of a commercial credit institution;

- ensure prompt settlements on client accounts owned by individuals or legal entities;

- to carry out timely transfer of funds to banks on limitrequirements.

The solution of each of the tasks of the Central Bank of the Russian Federation requires the regulator to follow the official rules of law or local regulations. Having considered what constitutes the cash operations of a bank that performs control and supervisory functions in the credit and financial market, we will study the specifics of such procedures carried out by commercial institutions.

Cash transactions in commercial credit institutions

Private banks carry out cash transactions that are aimed at serving customers - individuals or legal entities. In this case, the rules issued by the regulator, the Central Bank of the Russian Federation, are applied. The main operations of banks, which are carried out in the commercial segment of the credit and financial sector, are summarized:

- to accept cash;

- to issue cash.

The first group of operations assumes that the client or partner of the institution transfers cash:

- to the cashier;

- collectors who subsequently transfer funds to the bank;

- to partner organizations, which then transfer cash to a credit institution by bank transfer.

Money is issued in most cases directly at the cash desk of a financial institution. If a legal entity requires cash, then it can be received on the basis of supporting documents that confirm the targeted spending of funds.

Cashier functions

The banks that carry out cash transactions employ specialists who havecompetencies in this type of activity - cashiers. They are responsible for the correct calculation of the amounts to be received from clients, or, conversely, the issuance, credit them to the account and certify with the necessary documents. The cashier also provides safe storage of funds - using, for example, a safe. The work of a specialist of the corresponding profile is also quite strictly regulated by law.

Restrictions on cash transactions

Russian legislation provides for a number of restrictions on the use of cash payments. So, cash cash transactions of banks on accounts owned by legal entities can be carried out only subject to legally established limits on the amount. In turn, these transactions within the accounts of individuals, as well as in settlements between citizens and organizations, can generally be carried out freely, without taking into account the amount of cash.

Use of CCP in cash transactions

The most important aspect of the operations under consideration is the use of cash registers, that is, cash registers. This type of infrastructure is in most cases mandatory when accepting and issuing funds in banks. A CCP used by a financial institution must, firstly, be registered, and secondly, ensure the correct calculation of transactions. It can be noted that CCP is also used in cases where the client pays for something with a plastic card - without cashing out.

The considered operations of banks are carried out taking into account the norms that form cash discipline. Let's study themfeatures details.

Cash discipline in settlements: what is its specificity?

Norms that form cash discipline can be:

- issued by regulator;

- developed by the bank taking into account the interests of investors, managers - provided that they do not contradict the provisions reflected in official sources.

These norms establish:

- the general procedure for the bank's cash transactions;

- rules of storage, transportation of cash.

Relevant regulations are considered quite strict. In financial institutions, accounting for operations (both private and public banks) is carried out if there is the necessary infrastructure for maintaining cash discipline. Its presence is one of the criteria for the regulator to issue a license to a financial institution. The bank does not have the right to work without an appropriate permit.

There are a large number of other criteria that predetermine the legitimacy of holding a license by a credit institution. Among those - strict observance of cash discipline, as well as the provisions of the law governing cash transactions. Of great importance in this case, of course, are the economic indicators of the institution, but the quality of bank capital management is largely determined by the degree of compliance with cash discipline. The qualifications of specialists working in the organization, the capabilities of its infrastructure, and the effectiveness of the management system are important here.

Cashier -the main element of the infrastructure necessary for the bank to carry out the operations in question. It is usually presented in several varieties, which is determined by the scale of the financial institution, the features of the services it provides. Let's study the specifics of the work of bank cash desks in more detail.

Features of the organization of the work of cash desks

The main settlement operations of banks related to the circulation of cash are carried out within the following main types of cash desks:

- credit (they accept cash from customers or partners);

- consumables (cash is issued in them);

- change;

- cash recalculators.

The implementation of certain cash transactions is possible only on the basis of internal supporting documents. They are issued by a bank employee, most often by a cashier. These documents can be additionally certified with a seal, other elements certifying the authenticity of the source used. Often settlement operations of banks are implemented on a one-stop basis.

Probably, most modern banks have their own ATMs, through which funds are issued to their customers automatically. This procedure assumes that the clients of the financial institution have plastic cards issued by the bank.

It is possible to issue cash from an ATM of one institution to citizens who have cards in their hands that are issued by another bank. In this case, the relevant institution can earn extraby charging a commission for servicing customers of other organizations. But this procedure is possible only if the plastic card allows you to use one of those payment systems that is supported by the bank that provides the ATM with the acquiring function.

Along with ATMs, financial institutions also actively use payment terminals - in order, in turn, to accept cash from customers and credit them to their accounts. The next most important group of business operations of the bank - credit transactions. Let's consider their specifics in more detail.

Specificity of lending operations

Credit operations of banks, as it is easy to trace, based on their name, are associated with loans provided by the respective institutions. They are legal relationships fixed in special agreements with clients. As in the case of cash transactions, services can be provided to individuals or legal entities. This contract sets out how much the bank lends to the borrower and under what conditions - in terms of interest and repayment period.

There are quite a few varieties of credit transactions. They can be classified based on their assignment to a particular segment. Thus, the credit operations of banks can be connected with the markets:

- consumer loans;

- mortgages;

- corporate loans.

Each of the marked segments is characterized by a special approach of the bank to the formation of loan agreements. So, in the areaconsumer credit loans are issued to customers for a relatively short period, at fairly high interest rates, but, as a rule, without collateral. Mortgage loans are usually long-term, are issued at a lower interest rate and in most cases - with collateral in the form of housing being purchased. Corporate loans - especially when it comes to lending to the largest enterprises, may be characterized by the desire of banks and borrowers to determine individual terms of the agreement, depending on the scale of the business, its profitability, and credit history.

Another criterion for classifying credit transactions is the format of the loan. They are:

- primary;

- submitted refinancing agreements.

Primary loan - a legal relationship in which a person or organization enters into a contract with a bank for the first time or in order to use the funds received to solve problems not related to the repayment of existing loans. In turn, refinancing is a credit operation, which is a legal relationship in the form of a loan agreement for issuing funds to a person to repay existing loans.

Commercial banks and banking operations, as in the case of cash procedures, are regulated by the norms of the Central Bank of the Russian Federation. Among the main instruments of influence on the market of the main financial institution of the state is the key rate. In many ways, it determines how commercial organizations implement the policy in the field of credit operations. Let's study its features in more detail.

The key rate as the main regulatory instrument of the Central Bank of the Russian Federation

Very many operations of the Bank of Russia can affect the credit market on a national scale, but economists consider the establishment of a key rate to be the most important tool for the Central Bank of the Russian Federation to influence the financial system of the state. Its value determines what should be the credit interest paid by private financial organizations to the Bank of Russia for the use of borrowed issue funds. This indicator, in turn, directly affects the percentage that a commercial institution will set for loan agreements with its customers.

The lower the key rate of the Central Bank of the Russian Federation, the more active the private credit market, as a rule. A significant decrease in it, moreover, usually activates refinancing, as holders of current loans get the opportunity to re-borrow funds, but at lower rates.

A high key rate is usually set by the Central Bank in case of a problem situation in the state economy. In turn, the improvement of indicators at the macroeconomic level may predetermine the decline of the corresponding indicator. This may result in an increase in demand for loans from individuals or legal entities. In some states, the key rate is minimal or even negative. This is due to the desire of the monetary authorities to increase as much as possible the capitalization of the economy.

If the credit market at any given timeslows down, then the bank's management can intensify work related to the development of cash services for customers. The solution of this problem can be facilitated by the fact that the common types of bank operations considered by us are in many cases interconnected. Let's study this aspect in more detail.

Relationship between cash and credit operations of banks

The circulation of cash and the issuance of loans are the main operations of banks in terms of making a profit. The regularity of their implementation predetermines the fact that they are often held simultaneously. A simple example: a bank, having approved a client's loan application, signs an agreement with him and asks him to go to the cashier in order to receive cash. If a person draws up a credit card - perhaps, having it in hand, he will wish to cash out money at an ATM. Subsequently, a person will need to deposit cash into his credit account to repay the loan or to the card for the same purpose.

The fact that a bank uses the same infrastructure to service customers with loans that is used for standard cash transactions can play a positive role in diversifying the business model of a financial institution. If a bank encounters difficulties in promoting credit products, it will have opportunities to develop activities related directly to cash services.

CV

So, we have considered what are the main monetary operations of banks - cash and credit. The first - enoughhighly liquid, but not very profitable. A bank's cash transactions generate revenue primarily from commission fees charged by the credit institution. Indirectly, they predetermine the appearance of profit due to the formation of bank reserves that can be used in other areas of activity. The second operations, on the contrary, can significantly increase the capitalization of a financial institution. A bank, having issued a loan, usually expects to receive a fairly high profit, but there is a possibility that the client will not be able to repay the loan due to financial difficulties.

What bank operations have priority in terms of the implementation of the business model at a certain point in time is established by the management of a financial institution. This largely depends on the value of the key rate of the Central Bank. The higher it is, the less intensive the credit market is, as a rule, and it makes sense for the bank to actively develop areas related to cash customer service.