At the same time, the bank is an independent financial institution

For his efforts, for the services he has to make a profit, covering its costs, ie cost (price), its services should be at a level sufficient for further development. In other words, the public recognition of the bank as an independent entity assumes that the price of his product in the form of banking services must be at least not negative. Thus, each bank faces a liquidity problem, at least twice. First, as a technical executor of his role in the money market, carrying charges of market participants to each other. Secondly, as an independent subject of financial-credit sphere, making a profit or loss from the activity, the bank faces a liquidity of its own products - banking services. Consequently, the liquidity of commercial banks connected on the one hand, ensuring the cash and non-monetary accounts of its customers, and hence supporting the correspondence between the active and passive operations in terms of the end of the commitment, on the other - ensuring stable minimum yield. In terms of technical executor fees role of the bank lies in the simple mediation and the provision of liquidity is the need to have an appropriate amount of real money to make payments. But in terms of reimbursement and profit as a result of the gap in the chain of movement values ​​of T - M - C (commodity-money-commodity), the bank becomes the debtor and the creditor directly on a wide range of obligations, and here comes to the fore the problem of the risk of its activities as lender and reliability in carrying out its own obligations. Category: Management Operations Commercial Bank | Tags: services