Active operations of commercial banks as the main method of their functioning
The active operations of commercial banks areUse own and attracted resources, carried out by the bank to make a profit. When active operations of commercial banks are carried out, many different investments are made, which bring profitability in percent, dividends or participation of the income of joint ventures. Active operations of commercial banks have the economic essence of an active operation, and these are the following economically interrelated tasks that are solved by banks at all times during which active operations are carried out.
In the end, any activity of the bank mustincome is achieved in order to cover expenses, dividend payment on shares, interest on deposit and deposit, and receive a certain profit; the solvency of the bank is ensured, and this makes it possible that the bank is on time and fully compliant with its obligation. The liquidity is provided by the turn and money, that is, it is possible to turn assets into money quickly (preferably without loss).
The greatest value in active operationscommercial banks have lending operations. Under current conditions, a commercial bank expands its own services and operations designed to generate revenue. These operations include trust, guarantee, operation using a plastic card and so on. The purpose of the activity is to deepen the existing active operations of a commercial bank and introduce new ones.
To achieve this goal, a mandatorysolving the following tasks: disclosure of the economic essence of an active operation, its types and the structure of an active operation of a commercial bank; to show the role of credit operative services in the activities of a commercial bank and their income in the current conditions, as well as the active operations of a commercial bank with securities in the stock markets.
The active operations of commercial banks arebanking activities while placing their own and attracted money from a commercial bank in order to make a profit. The economic essence of the active operation of commercial banks is the following economically interrelated tasks that the bank is solving during active operations: profitability is achieved in order to cover costs, dividends on shares, interest on deposit and deposit are paid, and profit is made; bank solvency is ensured; liquidity is provided. The quality of assets is determined by such properties: profitability, liquidity, the degree of risk. The management of the assets of a commercial bank is carried out directly by the bank.
Taking into account the profitability, the assets are:assets that do not yield profitability are cash, the mandatory reserve fund of the Central Bank, money on the account, an asset that yields profitability - a credit operation, a transaction with securities, income from leasing a building and a structure. Considering liquidity, assets are: first class assets - cash on hand, on the correspondent account, securities of the state, liquid assets - short-term loan, interbank loan, operations, factoring, operations with securities; these assets have a longer period of money-making, low-liquid assets - long-term loan, leasing operation, illiquid assets - an overdue loan, a paper of an insolvent or bankrupt organization. Risks are a potential loss probability during the transformation of assets into money. Basic banking risks: credit risks - the main debt and interest are not recovered, interest risks are loss, because the interest on the borrowed resource is exceeded.
Thus, any active operations of commercial banks are an integral part of their daily work, ensuring the movement of the available funds at their disposal.