Types of banking operations. Settlement and cash services. Operations of banks with securities

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

Before you know what types of banking transactions exist, you need to understand some of the most important definitions. For example, what is the institution in question itself? In modern economic terminology, the bank acts as a financial and credit unit that performs all kinds of operations with both money and securities. In addition, he is authorized to provide all kinds of services to various individuals and legal entities, as well as, of course, the government. You can imagine this structure as a commercial organization created to raise profits, carrying out certain banking operations and endowed with exclusive rights to raise funds from third parties with their subsequent placement on its own behalf.

Main classification

In the modern world, almost every concept has a certain typology. So, we can highlight some of the main bankingoperations. There are only three of them:

• attracting foreign currency deposits;
• credit operations;
• acquiring new customers.

Let's consider each in more detail. So, the first type is aimed at raising funds under the conditions that are accepted for execution immediately after the conclusion of the contract between organizations. In turn, credit operations are distinguished by the fact that the previously involved funds are distributed by the bank on its own behalf and are replenished in accordance with the agreement, which specifies the terms and conditions for repayment. The third type is especially important because, like any other organization, the financial structure in question needs continuous development. Maintaining existing relationships and constantly attracting new customers should be ensured by creating profitable and favorable conditions for cooperation.

Additional varieties

Among other things, all banking operations and transactions can be divided into active and passive. The first is traditionally credits. This is the main activity from which the above structure receives income. Bank loan products usually make a profit from the interest that customers pay monthly for the services provided. However, it is important to remember that the interest rate charged on active transactions should exceed the indicators on passive transactions. All other services provided by the banking structure can be safely attributed to the number of settlement services, which, inin turn, also have a division into several basic types.

So, settlement operations include the following varieties: investment and cash activities, as well as savings and deposits. It should also be noted that the latter occupy a particularly important role in the field of banking services. This is the main type of passive operations. The main purpose of any deposits is to gradually increase the funds available to the bank. Settlement transactions of this type apply to the accounts of not only large state institutions, but also relatively small private organizations, as well as individual individuals who have expressed a desire to entrust their savings to one bank or another.

Banking developments

Over time, the activities of the structures under consideration constantly and continuously became more complex and universalized, after which the services provided became more and more diverse. The types of banking operations expanded, the organization of labor changed. The emergence of new types of activities was due to the achievement of a significant amount of profit, accompanied by minimized risks. The described actions have a beneficial effect on the further formation of off-balance sheet operations, which cannot be unambiguously attributed to either passive or active income. Consequently, the types of banking transactions shown are not included in the balance sheet, and the commission received from them is not taxable.

Off-balance sheet activities are well knownfor a long time, but recently it is especially in demand. Two of its varieties are actively gaining popularity: exchange and financial services. These traditionally include equity management, advisory activities, and planning of both tax and budgetary functions. You should also pay attention to the so-called guarantee business. It also belongs to the off-balance sheet operations. A distinctive feature is that the bank in this case acts not only as an intermediary, but also as a direct participant in any transaction. The above services have a huge impact on the overall development of the financial activity of the structure in question, as they allow expanding the boundaries of application.

Securities

This term implies a document that certifies the property rights associated with it, and also has the ability to independently circulate on the market and can be a full-fledged object of any transactions (for example, purchase and sale). It is important to remember that securities are sources of one-time or permanent income and can be classified as a type of money capital. Consequently, acts of transfer of such documents are made after being entered in a special register. In addition, the change of ownership means the transfer of all the rights indicated in them.

Securities are often used to organize the activities and successful functioning of various commercial entities. There are credit(bills, bonds) and means of payment (checks). All these documents are designed to ensure a simple and prompt transfer of rights to both material and any other benefits. Thus, all operations of banks with securities are divided into two main categories:

• issue their own documents of this kind;
• actions with customer materials.

After obtaining a special license, the above-described structures have the right to exercise trust management of the issued documentation in accordance with the concluded agreement, more often with legal entities, but sometimes with individuals. In addition, it becomes possible to carry out the following operations of banks with securities: issue, sale, purchase, storage and accounting of the above materials, which are used as payment documents. This helps to attract money to accounts and deposits.

Various credit institutions have the ability to carry out the following types of financial activities: dealer, brokerage, depositary, as well as securities management, keeping a register of their owners and, of course, determining mutual obligations between cooperating parties. Let's consider each of the above types of operations in more detail. So, the first category implies the commission of transactions such as purchase and sale by a commercial bank at its own expense and on its own behalf. A characteristic feature can be considered the fact that only a legal entity can act as a dealer. Second category of activityis determined by the conclusion of transactions in which a commercial bank is only an attorney or a commission agent, and all its actions are conditioned by the relevant agreement. In turn, depository activity is expressed in the performance of services, which consist in the storage of certificates and accounting for rights. Again, this feature is only available to legal entities. In addition, it is important to note that the conclusion of the so-called depositary agreement is not a basis for the transfer of ownership.

All operations of commercial banks with promissory notes related to the category of management are aimed at making a trust disposal of securities. At the same time, actions must be carried out on behalf of this structure for a previously agreed remuneration throughout the entire term of the contract in the interests of the person who has concluded such an agreement with the bank. It should be noted that not only the securities themselves are subject to transfer into possession, but also the funds that will subsequently be invested in them, as well as materials obtained as a result of management. Finally, we note that the activity of a clearing nature determines the mutual obligations of the parties. These can be collections, adjustments and reconciliations of information regarding transactions related to securities and the subsequent preparation of various accounting documentation.

Direct customer service

Settlement and cash services is another important function of banking structures, which involves working with both individuals and legal entities. Her mainthe task is to present the whole range of services to the customers who applied. It may include both storage and movement, and registration of financial resources. Thus, settlement and cash services can be divided into several main categories: non-cash, cash and foreign exchange transactions, as well as acquiring. For effective financial management, banking structures provide developed service packages. Of these, you can choose the one that best meets the requirements and expectations of the client.

Cashless transactions

The above calculations are traditionally distinguished by the effective execution of all orders, systematic notification of the receipt or expenditure of available funds, the preparation and provision of both intermediate and final results for all ongoing processes. Control over the procedure for conducting cash transactions of this kind is carried out by both the bank and the client who has contacted him. The transmission of correspondence and orders between the two parties mentioned takes place in two ways. The first - classic - involves the delivery of paper documentation personally or through authorized persons. The second option has been actively gaining popularity over the past few years. This is Internet banking. This method of management allows you to remotely operate financial resources. The presented system is already used in many organizations, since all orders and requirements can be sent via the Internet, which allows you to quickly and efficiently follow orders.

Currency transactions

Each company has its own bank account. Such accounts are rarely used to receive a passive type of income, since the main goal is to provide quick and reliable access to credited funds through various channels for transmitting orders. Maintaining a bank account can be done both in rubles and in foreign currency. The latter option is actively used if the organization carries out its activities using foreign banknotes. In such situations, you will need to open three accounts: current, transit and accounting. The first is necessary for direct disposal of the available currency, the second keeps records of incoming funds, and the third is used to account for the acquired currency in the domestic market. Operations on a bank account in foreign currency provide their owner with a whole range of services: the acquisition and subsequent sale of banknotes at the request of the client; conversion activity; sale of foreign exchange earnings; transfer of funds in accordance with the owner's export-import transactions.

Acquiring

This interesting term hides a widely used function - making payments with a bank card when paying for various goods and services at retail outlets. Such actions become available only after the conclusion of a separate contract. The entity responsible for providing the above services is referred to as the acquirer. in numberResponsibilities include the provision and installation of appropriate equipment at retail outlets, as well as their subsequent maintenance and, of course, the timely implementation of all activities related to the use of plastic cards. It should be noted that similar opportunities are provided for accepting payments via the Internet. In such cases, card-reading terminals are replaced by special programs, the forms of which are filled out by the buyer. This service is called Internet acquiring.

Cash

Like all the above types of banking operations, this category involves actions with the finances of the client who applied. After the conclusion of the contract for settlement and cash services, the organization is given the opportunity to issue a checkbook. It is necessary to receive cash, which can subsequently be used to finance the company's business activities, pay for suppliers' goods, as well as pay salaries to employees. In the modern world, a corporate bank card is an excellent alternative to the well-known checkbook. In parallel with its registration, a procedure for opening a specialized account takes place, according to which a credit institution will be able to keep records of all actions performed with it.

Registering each transaction with a bank card allows you to receive a statement with all turnovers at any time and calculate the remaining funds. Besides,With the help of the above service, you can make calculations to cover costs in two categories: operating expenses and overheads, as well as costs directly related to the main activity. The former traditionally include the purchase of office equipment and stationery, the necessary software and training materials. The presented category is also credited with paying for the services of various related services (for example, postal or courier). In turn, the second type of expenses that can be paid with a corporate bank card includes settlements with suppliers, representation and travel expenses (consisting of booking and buying tickets, paying for hotel rooms and meals for employees, car rental).

In addition, this category also includes settlements with counterparties whose services are directly related to the main line of business. It should be remembered that all expenses submitted for payment by a corporate bank card must be attributed to tax accounting only if they are regulated and confirmed by relevant documentation in accordance with the current Tax Code. Thus, the above function provides a legal entity with many useful features and is a way to solve a wide range of problems. We list some of them:

• simplification of the procedure for settlements in foreign currency;
• improving the security and reliability of ongoing processes (while minimizing the likelihood of loss or theft of funds, and if the card itself is lost, it can easily be blocked);
• significant time savings (no need to queue at bank cash desks);
• possibility of round-the-clock access to finance (for example, to increase or decrease the existing limit);
• providing simple and quick control over accountable funds (connecting the SMS-informing option, as well as making requests for statements with detailed details of expenses);
• providing management variability depending on the adopted model (dividing employee cards into groups or linking all to one account with a common limit);
• expansion of opportunities (make more payments, lump sum payments for amounts significantly higher than the amounts available for settlement with cash notes, and make purchases via the Internet).

In closing

Based on the foregoing, we can conclude that banking operations are aimed at close interaction between a financial institution and a client who applied and include a wide range of various services. However, there are still two main types. This is a credit and cash management service. This includes various operations on a bank account, accepting payment documents, issuing check books,issuance of the required certificates and statements regarding the status of the client's current account, actions with plastic cards and much more.