Functions of commercial banks and their significance. The main activities of commercial banks.
The Bank is a structural unit of the monetarytreatment. In terms of finance, this organization acts as an intermediary in the flow of funds from lenders to borrowers and from sellers to consumers. For banks, a double exchange and taking on unconditional obligations with a loan of debt, which is fixed, is typical. A commercial bank is part of the credit system of our country, which includes the Central Bank, lending institutions, as well as branches of foreign banks.
Banks are of exceptional importance, inIn particular, they can form means of payment and issue them in circulation. In addition, it is banks that withdraw cash from circulation. Proceeding from this, it should be noted that it is banks that lend to the economic sphere of the Russian Federation, improving its development. The principles of the activity of commercial banks are that this organization operates within the limits of the resources encountered and in the circumstances of the market relations with its clientele. Thus, commercial banks realize their operations within the limits of the balance of money on accounts of a correspondent type of their own designation. The possibility of accomplishing this type of activity, as the most important operations of commercial banks, is certainly present.
A different matter is operations of a specific order,which are recognized as investment and mortgage. The chances of such operations are rigidly predetermined by the structure of liabilities. This circumstance requires the organization of painstaking work on the choice of sources of creating their own resources. Only a few banks can afford to operate within the own resources of the attracted species. These few credit institutions should have a high level of independence in the economic turnover of the Russian Federation, while ensuring their liquidity.
The functions of commercial banks aremediation. These functions of commercial banks are determined in credit relations, stimulation of savings in economic activity, in payments between legal entities and in transactions with securities. In addition, there is no doubt that the functions of commercial banks stipulate the fact that these organizations, having a high need for society in loans, should mobilize savings in the economy and create incentives of high order for accumulating funds on the basis of restrictive policies of their current consumption. Banks should conduct a deposit policy that would be tailored to the realities of today. In carrying out its activities in the form of a broker for finance, banks carry out transactions of an intermediary nature under agreements for the sale of securities at the expense and on the instructions of their principal. Functions of commercial banks are also expressed in the directions of its activities.
Thus, the bank conducts transactions thatdivided into two large groups - active and passive. Passive operations determine the sources of funds and the essence of the bank's relations of a financial nature, operations to attract financial resources to banks, to create their resources.
The operations of the active type arethe bank's activities aimed at making a profit and maintaining liquidity. To such types of operations of banks can include: deposits, loan operations, loan-accounting operations. Deposits are money that has been paid into the bank. They are stored in bank accounts and are applied in strict accordance with the banking laws of the country. Together with deposits, you can see the growth of other liabilities of the bank - this is also attracted money, but a non-deposit property. Their bank accepts in the form of loans or from the sale of individual debt obligations in the financial market. These are, in general terms, the main operations of commercial banks.