The purpose of this regulation - ensuring price stability (in accordance with the inflation target determined by the Government in the budget message) and support for government economic policy, including the task of ensuring economic growth and employment. The Bank publishes a quarterly report on inflation. The task of ensuring price stability is now considered achieved if the retail price index is about 2.5%. The decision on interest rates taken by the Committee on Banking Monetary Policy (Monetary Policy Committee - MPC). The Committee meets monthly. The Committee consists of four permanent members and four experts appointed by the Chancellor of the Exchequer (finance minister he is). Voting is done on the principle "one man one vote." At a meeting of the Committee may participate in the Treasury. They have no right to vote. The decision on interest rates adopted by the Committee for immediate publication. Also be published and minutes of meetings of the Committee. Currently, bank supervision and oversight of money market operators included in the scope of liability of the Bank of England. However, the planned transfer of these functions is a special body - Financial Services Authority. Legally responsible for the Bank of England bank supervision has been defined in 1979, but before the Bank carried out an informal supervision of credit institutions near operating in the London market. The rights granted by the banking act of 1979 were further expanded the act of 1987 which, together with the EU directives defines banking supervision at the present time. The primary objective of banking supervision - protection of customer deposits of banks operating in the English market. According to the above the Bank Act in 1987 nobody has the right to accept deposits from the public without prior consent of the Bank of England (although the activities of some organizations, in particular, dealing with construction financing (Building Societies) and branches of banks from other countries - the EU is controlled by other regulatory agencies). After receiving permission, the credit institution continues to remain under the constant supervision of the Bank of England. There are now more than 500 banks are authorized to accept deposits. Bank of England oversees virtually all of them. Operates a special scheme of deposit protection. It usually covers 90% of the deposit (including accrued interest). The bank involved in the scheme, limits the payment of one depositor to 18 thousand pounds. Bank failures and bank Berings ofkredit End Commerce International, revealed weaknesses in the system of banking supervision, for which the Labour Party was subjected to severe criticism the Bank of England and proposed to deprive the bank supervisory functions and transfer them to the banking committee. But the British Bankers' Association opposed the measure because the task of ensuring financial system stability and the implementation of the Bank's banking supervision are closely related. Supervisors are now systematically take into account the risks faced by banks. Simultaneously, the Bank of England maintains constant internal quality control oversight functions.
For analysis
The first modification is to compare the dynamics of aggregate and mini-portfolios of the bank with its main competitors. On a similar principle can construct a matrix of business and products. The second modification of the portfolio analysis is to identify strategic opportunities, based on the profitability and risks of business, products, business units of the bank. In view of the tasks you can simulate the future competitive position of the bank in the market or potential security risk - taking into account the established yield. This tool allows you to identify the strengths of controlling the bank, promising products, business, regions, and focus resources on key areas of activity. Forecasting methods in controlling banking: extrapolation, regulatory, peer review, simulation. The method of extrapolation involves the transfer of past and current trends and events facilities in the future or dissemination of the findings obtained from one model to another object. Extrapolation method may be useful as the implementation of macroeconomic forecasts, and at the level of an individual bank. Correct and accurate forecast allows an objective assessment of change in the future of the banking market, predict the amount of equity and bank assets according to the level of risk. At the macroeconomic level, it is important to forecast trends in the banking sector, in particular to assess changes in the number of banks and their institutions, NBU discount rate, the official exchange rate, index of stock prices, the level of interest rates banks competitors for deposits and loans, business cycles VIP-clients, etc. Other information useful for predicting borrow from various economic publications, statistics, directories and newsletters, as well as from the base of the official reports of government agencies and authorities. At the level of individual bank extrapolate the quantitative parameters of the bank's financial strength and business performance of business units, the budget figures as a whole and of calculation units (the number of customers, interest margins, the level of spread, size of loan and investment portfolios return on assets and capital, amount of venture capital, growth equity value, the yield of banking products, taking into account risk, etc. The regulatory method plays an important role in anticipating and planning for banking activities. Topic: Analysis of controlling
The presence of singularities
Accordingly, the specifics of the operations they perform, and their role in ensuring the stability of the monetary system. As a company working in the financial markets, the bank belongs to the category of enterprises - financial intermediaries and has operations in the money, credit markets and the securities market with the use of various financial instruments. These banks are significantly different from companies operating in the production and the lion's share of operations which account for the purchase of raw material, its processing and manufacturing of finished products and its implementation. It is known that the bank as a financial intermediary stands between the small lender - zaoschadnikom and borrower-investor, who has investment opportunities and helps to move funds from one to the other. Movement of funds banks are carried out with the use of financial instruments, the most common of which are deposits, loans and securities. To gain a holistic understanding of how business transactions are recorded in the bank's financial statements, it is necessary to explain the meaning of the term "financial instrument". Under the financial instrument to understand any contract in which there is a financial asset of one enterprise and a financial liability or equity instrument, an enterprise. Contract (Agreement) may be either in writing or orally. For example, the company, having temporarily idle funds in the amount of UAH 25 000, signed with the bank deposit agreement for a period of one month and transfers funds to the fixed deposit in a bank. Due to this operation, the enterprise appears in the balance of a financial asset in the form of a financial instrument, as posted in the bank deposit. Simultaneously, the bank's balance sheet, these funds are recorded as a financial liability (debt) to the customer by the bank deposits. Topic: The role of accounting in the management of the bank, its types and destination
The essence of the bank's profits and the basic principles of management
Also note that the profit is characterized not all income received in the course of business, but only that part which is "cleansed" from the costs of implementing this activity. At the same time gain a value indicator, expressed in monetary terms. This form of assessment of income related to the practice of the generalized cost accounting of all related key indicators - invested capital, income received, expenses incurred, etc., as well as with the current procedures for fiscal management. Given the general characteristics of its earnings as defined in the most general form can be formulated as follows: profit - is expressed in net cash income of the entrepreneur on invested capital that characterizes his reward for the risk run business and is the difference between total revenue and total cost in the process perform this activity. Highly profitable role in the development of the bank and ensuring the interests of its founders and staff determines the need for effective and continuous management. Office of profit - the development and management decision-making on all major aspects of its formation, distribution and use in the bank. The main goal is to gain control of maximizing the welfare of the founders, members of the Bank in the current and future periods. Based on this primary objective, the control system gains should address the following objectives: 1. Providing the amount of profit maximization, which is formed according to the resource potential of the bank and market conditions. This task is accomplished by optimizing the composition of the Bank's resources and ensure their efficient use. The main limitations of the profit is the highest possible level of resource potential and the current financial market conditions. 2. Ensuring the optimum proportion between income and an acceptable level of risk. Between the two rates is directly proportional relationship exists. Given the ratio of managers to risk their allowable formed defining an aggressive, moderate or conservative policies of certain activities or of certain operations. Starting from a given level of risk while driving should be maxed out the corresponding level of profits. Category: Management Operations Commercial Bank | Tags: Earnings
The investment portfolio of the bank: the nature and function
Investment Banking and Securities to perform many important functions in the internal bank management, namely, provide an additional, distinct from credit source of income is especially important for management and shareholders when the income figures provided by drop, could be sold to the bank to obtain the necessary funds or used as collateral when borrowing additional funds, ie a source of liquidity and are used to limit the amount of cash reserves, helping to reduce the tax liabilities of the bank by investing in securities that are exempt from taxation can compensate the high credit risk portfolio of bank loans to purchase high-yielding securities, provide geographic diversification because securities are often associated with other regions than the bank credit facilities, are used as collateral in obtaining credit from banks and central bank the flexibility of the banking portfolio, because securities, unlike loans, may be readily purchased or sold for the restructuring of the bank's assets depending on market conditions ; improve the financial performance of banks' balance sheets due to the high quality of most of the securities held by the bank. Thus, the functions of the investment portfolio are as follows: revenue stabilization of the bank, regardless of the phases of the business cycle, compensation for credit risk portfolio of bank loans, providing geographic diversification, liquidity support, reducing the tax burden, the use of portfolio as collateral, the bank's insurance against losses due to changes in interest rates; Flexibility of the banking portfolio, improve the financial performance of banks' balance sheets due to the quality of the securities. When building an investment portfolio should be guided by the following considerations: security investments (investments invulnerable to shocks in the securities market), the stability of revenue; liquidity of investments (the ability to quickly and without loss in value to turn into cash). Category: Management Operations Commercial Bank
In client-oriented approach
In the client-oriented approach becomes important improvement of the quality of customer service that is associated with the action of a set of factors. The range of banking services is measured using quantitative and qualitative parameters: the number of banking services in comparison with other banks, the number of special packages for each target customer group, the most satisfying their needs and create a price attractive by reducing the cost of services in the package. Analysis of the prices of all banking is done by comparing them with the prices of bank competition. The comparison is made taking into account such factors as the efficiency of client solutions of problems, the level of organization of the process of customer service, convenience and variety of distribution channels for banking services. In this case customers pay attention to the existence of a wide choice of service channels (internet, telephone, ATM, etc.), courtesy and staff qualifications, location, interior design and space bank their adaptability to customer service, parking available, and others. staff - the economic value added per employee, to assess the amount of certain factors must be added and other factors, in particular: the number of errors made by staff of the bank during the cash, settlement, lending and other operations due date each transaction, the number of customer complaints etc. . Topic: Analysis of controlling
Monitoring the implementation of management strategies
Monitoring the implementation of the strategy management of foreign exchange, interest rate, credit and other financial risks, consideration of the current state of the resource base and projected resource position of the bank, the analysis of internal and external factors influence the bank's activities, control over the fund-raising by the bank, determine the most efficient forms and funding structure to ensure a stable income funds. Limit Committee shall be: an analysis of the counterparty banks and making decisions regarding cooperation in the interbank currency market of Ukraine with a select number of counterparty banks in the amount of agreed limits in order to minimize the risk of possible losses during active operations in the interbank market and optimize the level of profitability of these operations, consideration possibility of establishing mutually beneficial partnerships with new banks and the expansion of operations carried out in the interbank market. The most significant for the bank is credit risk. The purpose of Pravex in credit risk management is the creation of methodologies for credit operations, the most favorable for the customers, the bank provides a high quality loan portfolio. Category: Financial Management | Tags: strategy, management
Methods of financial management
The subject of investigation - management operations of commercial banks. The research methods used in the research process and material handling systems: a comparative, the coefficient, the vertical and horizontal financial analysis. The structure of the work. The main part of the thesis consists of four sections. The first section discusses the financial management of the bank, the planning process in the bank system and methods of financial analysis, systems and methods of internal financial control. The second section discusses the nature and management of asset and liability management, loan portfolio management, management of banking risks, the bank's investment portfolio management, management of bank liquidity, profitability management. The third section rozgyanuto financial management (for example, the Bank "Pravex"). In the fourth chapter rozgyanuto safety (for example, the Bank "Pravex"). Topic: Risks in Banking | Tags: management
The emergence of electronic money is due:
- The development of information and cryptographic technologies that helped to keep the technical devices of monetary value and pass it on - Needs e-commerce systems that require a tool for micro breakeven. Today in Ukraine, as in the world, to store electronic money use two types of technical systems: a smart card (consciously paid payment cards or multi-use electronic purses) and computer memory. Activities Issue of smart cards with electronic money in the absence of adequate legal provisions of the law governed by the rules of issue of payment cards, which in Ukraine is carried out only by banks. However, unlike the electronic money payment card serves as identification of the holder and its purpose is a means of access to his bank account. Electronic money is the monetary obligations of the issuer in an electronic format and stored on an electronic device holder. In systems implementing electronic money payments, bank accounts are used only for input and output of the system of money: cash deposit with the issuer of electronic money issuance and cancellation of withdrawals from the account in case the issuer of electronic money for repayment. It should be noted that the international banking institutions, in particular the Bank for International Settlements and European Central Bank, considering e-money products separately from access to a bank account and establish requirements for issuers of electronic money systems, and regardless of the medium in which electronic money saved. If the banks - issuers of electronic money on smart cards are the subjects of general banking regulation and supervision by the central bank, the non-banks - issuers of electronic money stored in computer memory, carrying out activities in the Ukraine issue electronic money out of state control . To indicate that the electronic money stored in the memory of computers, the Internet may be transferred between devices participating systems (both natural and legal persons), as well as to exchange the electronic money of such systems and electronic money, nominally in other currencies. Advantages of electronic money, including the ability to instantly serve remote payments and a high level of anonymity can be used for criminal abuse. Topic: A PRACTICAL ANALYSIS OF MONETARY ISSUE
Credit risk management system should include
A) the policy and provisions for credit risk management, which should be considered and approved in accordance with the principles of corporate governance. These policies and regulations are subject to periodic review, and b) the provisions of the loan, taking into account both balance sheet and off-balance-sheet activities of the bank, namely: - They regulate the types and terms of loans and other transactions that carry credit risk - consider the nature of markets and industries, which will be granted loans - provides for consideration of commitments to extend credit, a variety of information, particularly on the financial status of the borrower, the nature and value of collateral, the borrower's character and his ability to repay the loan under the agreement, the guarantor of financial responsibility, etc. - adequately take into account concentration of credit risk and the associated potential risks; - Other matters relating to lending, in particular the procedure and the procedure for determining the interest rate on the loan and deposit required - Regulations on exposure limits for single counterparty, a group of related counterparties, by industry and sector , by geographic region or other credit transactions, which can be viewed in the aggregate (exposures), these provisions should take into account all the components of credit risk, as the balance sheet and off-balance sheet faced institution, as well as the possible influence of other risk categories - clearly defined and elaborate system of decision-making regarding the adoption of the operations that carry credit risk Category: Risk in the Banking | Tags: credit risk management
Foreign exchange position of the authorized bank
A list of the bank's operations that affect the size of the open foreign exchange position and, consequently, on the bank's assets and liabilities in foreign currency purchase (sale) of cash and non-cash foreign currency, current, and urgent operation (under the swap, forward, option, etc.), for which there are assets and liabilities denominated in foreign currencies, regardless of the methods and forms of payments to them; receipt (payment) of foreign currency in the form of income or expense and accrued income and expenses are taken into account in the relevant accounts, purchase (sale) of fixed assets and inventory in foreign currency, receipt of funds in foreign currency to the authorized capital; repay bank bad debts in foreign currency (which the cancellation of the respective account of costs), and other exchange operations with foreign currency ( requirements of a single currency in payment for them in other currencies, including the National, which leads to a change in the structure of assets and liabilities of the immutability of the contrary). Foreign currency assets - are the resources in foreign currencies, which are controlled by the bank as a result of past events, the use of which is likely to contribute to growth in the future economic benefits. Accordingly, the bank's balance sheet foreign currency assets are presented as cash in foreign currency, precious metals, in foreign currency nostro correspondent accounts with the NBU and other banks, deposits and loans to other banks, securities in foreign currency, foreign currency loans and advances to customers , investments in foreign currency in associated companies and subsidiaries. Foreign exchange assets of the bank formed as a result of their active currency transactions, which include operations on placement of foreign currency and precious metals to generate income. Composition and structure of foreign currency assets to a large extent depend on the passive foreign exchange transactions, ie operations through which the bank generates foreign exchange resources for active operations. The sources of attracting foreign exchange (up to foreign currency liabilities) include: foreign currency vostro accounts of the correspondent, foreign currency deposits and loans from other banks in foreign currency on current and deposit accounts, loans from international financial organizations; Category: management operations of commercial banks | Tags: asset
However, the management accounting system is effective
To study the necessity of controlling the content and the relationship between him and the management accounting point leading national scholars, in particular MG Chumachenko. He notes that experts in Controlling should not perform the role of managers must provide the leadership necessary information to make informed management decisions. If workers are not controlling collect primary data, do not generalize it to the necessary areas, their role is, in effect, reduces the transmission of information. This link will take you to focus on the position occupied managerial accounting at the present stage of domestic banking institutions. Of course, managerial accounting office will not replace the bank controlling. Before this division provides management information on all activities and projects management decisions. Logically, it should provide direct division of management accounting. Intermediate, as the MG Chumachenko, in the form of controlling will be superfluous, and perhaps even harmful. For guidance information from a first-hand (namely, from the management accounting department), will be far more useful. This means that the banking institutions controlling premature refers to urgent problems. Better understand the positive possibilities of management accounting. At all stages of development of the banking system through the accounting born "order out of chaos." However, in the process of market mechanism in the banking institutions only managerial accounting subsystem is able to provide informed decision-making campaign, aimed at the optimization of the most promising directions. It is no accident leading role in the management of the bank assigned to the accountants. One prerequisite for the introduction of management accounting, says academician MG Chumachenko, is the awareness of its role. Obviously, this system is special, since acts as a filter. It makes, discarding irrelevant, focusing on the facts, which greatly contribute to the guidance of management decisions. A characteristic feature of management accounting is the relationship of its components: planning, accounting, analysis, control and regulation. Accounting component is only one element of this relationship, although it is quite important management information base inside the bank's activities, influencing its strategy and tactics. Category: Uchot bank ucherizhdeny
Tools of strategic controlling
Tools of Strategic Controlling should be viewed separately in terms of internal and external environment "class =" alignleft "/> Evaluation of the environment can be performed using tools such as analysis of the relationship, comparison, PEST-analysis, SWOT-analysis, portfolio analysis, the grouping, the method of absolute and relative averages, rankings, extrapolation, and expert, scripts, etc. In addition to these tools (except PEST-analysis), in assessing the internal environment of the balance method is used, the model McKinsey, Boston Advisory Group model, gap analysis, SNW-analysis. Regarding operative controlling bank should provide tools manufacturing and financial applications. The most common tools of production can be regarded as controlling most of the methods of general economic trends analysis, planning and forecasting system performance. In the field of financial controlling the main emphasis will be placed on the system of indicators and methods for calculating the margin, the marginal revenue calculations, the breakeven point and the efficiency of investment. For subsystems that form a controlling system (tools portfolio management, risk management, structure and balance the budget). Portfolio Management provides a robust competitive position of the bank through the development and implementation of an effective market strategy. The main tasks of portfolio management is to identify strategically important areas and types of banking businesses and identify key factors influencing the growth potential of the success of the bank (the dynamics of the potential, profitability, competitive environment, etc.). Significant attention should be paid to the critical analysis of macro-and micro-development of the banking business, which makes it possible to develop a strategic vision and alternative marketing strategies for each type and scope of banking business. This creates the basis for determining the overall development strategy of the bank. Topic: Analysis of controlling
The users of economic information
Internal users of information (bank shareholders of the Bank Board, the Board, the internal auditors of the bank, the bank's employees) - the purpose of planning, evaluating and monitoring the daily operations of the bank including the use of its resources, the responsible parties - external users of information ( National Bank of Ukraine, current and potential lenders and correspondent banks, current and potential clients (depositors) and others) - to assess the past and future performance of the bank. The accounting system includes a financial (accounting), managerial and tax accounting, based on a common information base, differing in form and frequency of data calculation. Accounting (financial) account provides a timely and complete reflection of all banking operations and to provide users with information about the status of assets and liabilities, financial results and changes to them. On the basis of accounting is compiled financial statements. Changes in financial accounting does not affect the tax records. Management accounting is to ensure the bank's management and its operational divisions of financial and nonfinancial information in a particular form of planning for evaluation, monitoring and management of their resources. Management accounting is the bank for internal information needs, based on the specifics and peculiarities of the structure and governance. Tax accounting is to accumulate data on gross income and gross expenditure in accordance with current legislation and is used for tax reporting, form, rule, order, and the deadline for submission is determined by the State Tax Administration. The responsibility for the organization of accounting and to ensure fixation of the facts of all banking transactions in the primary documents, deposited within the prescribed period of processed documents, ledgers and bank statements are the responsibility manager, who supervises the bank under the laws and founding documents all employees that perform accounting on accounting are subject to the chief accountant of the bank. Topic: Analysis of controlling
The study of environmental factors
The most important external factors include: general state of the economy (the phase of the business cycle, inflation, government deficit, etc.), the legislative privileges and restrictions, the state securities market - its content, the dynamics of interest rates and the market value of securities, etc. 4. The formation of the strategic objectives of investment policy. Rationale for the type of investment policy. Type of investment policy of the bank describes the fundamental approaches to its implementation in terms of their level of risk and return of investment of the bank. 5. Determination of the volume of investment in securities in the plan period. As a rule, is not defined in absolute terms, and by determining the ratio of the sum range of investments in securities to the amount of business assets, the amount of total assets, the amount of bank capital. 6. Determining the type and structure of the securities portfolio. In forming the Bank's securities portfolio must clearly form its management strategy and to determine the future type of portfolio. The main advantage is the possibility of portfolio investment portfolio selection for specific investment objectives. For this purpose, different portfolios, each of which has its own balance between the existing risk acceptable to the owner of the portfolio, and expected them returns (income) in a certain period of time. The relation between these factors and to determine the type of portfolio securities. Type the portfolio - this is his description of the investment based on the ratio of return and risk. An important feature of the classification of such portfolio is in what way and by any source of income received this: due to an increase in market value or at the expense of current dividends and interest. There are two main types of portfolios: Portfolio income (portfolio-oriented preferential profit from interest and dividends); portfolio growth (portfolio, focused on the preferential growth of the market value of securities included in the portfolio). Category: Management Operations Commercial Bank
For 2007, Pravex-Bank has issued 183 154 8 credits in the amount of UAH 1,182,154.25
In 2007, Pravex-Bank has issued 183,154 of consumer credit in the amount of UAH 369,399.93. Number of loans, compared with 2006 increased by 189.7%, and the amount - 220% growth dynamics of loans to outlets of consumer credits in 2007 (units) in 2007 Pravex plans designed to increase the number of consumer loans to 488 400 in the amount of UAH 1,050,000.00. At the beginning of 2007 the credit portfolio Pravex program "products and services on the installment plan" amounted to 234.68 mln. During 2007, increased by 601.53 mln. and at the beginning of 2008 amounted to 836.21 mln. In 2007, Pravex significantly increased the number of credits, expanded network of issuing consumer loans and strengthened its position in the consumer credit market. The dynamics of growth of loans to outlets in 2007 (USD) Category: Financial Management
Also for interest arbitration
In the analysis and planning of the volume of transactions involving banking and distribution of resources is a key indicator of the level of average interest rates, which determines the priority of financial transactions in the management of assets and liabilities. Yield of active-passive operations is measured by the interest margin, which is calculated daily and is the difference between the weighted average rate on interest-bearing assets and liabilities. The composition of interest-bearing liabilities include emergency funds and means to demand of businesses and individuals, interbank deposits and loans, subordinated debt, the loans of the National Bank of Ukraine and international financial institutions, funds on correspondent accounts of banks. The composition of interest-earning assets include loans and interbank deposits, certificates of deposit NBU loans to individuals and legal entities, investments in securities, funds on correspondent accounts with other banks. The rate for demand funds of individuals and entities determined by dividing the cost of these assets on average daily balances of these funds for the previous month. Asset and liability management in the Bank "Pravex" The Committee on Asset and Liability Management, who have the appropriate authority for the coordination of financial flows of all departments in order to improve profitability, reduce risk and optimize liquidity management. Category: Financial Management
Modern financial investment
It is based on the fact that most investors choose to invest more than one instrument, ie generates a set of them. In the formation of an investment portfolio should be guided by the following considerations: safety of investments, revenue stability, liquidity of investments. One of the key elements of effective portfolio management is designed investment policy should ensure the effective management of the portfolio securities of the bank, careful control over them and minimizing losses from the onset of the investment risks. Profit is the main goal of the banks. Profit - this is expressed in net cash income of the entrepreneur on invested capital that characterizes his reward for the risk run business and is the difference between total revenue and total cost in the implementation of these activities. That ensures the formation of profit and reserves for unforeseen losses possible in the banking industry, stimulates the activity of management personnel to improve the operation of the bank, reducing costs and improving competitiveness. High profits role in the development of the bank and ensuring the interests of its founders and staff determines the need for effective and continuous management. The most important factor affecting the amount of all income of the bank, the bank's income is the amount obtained in the normal course of business. While revenue management a focus on active operations, as the main source of income is income from the bank's active operations, so their efficiency determines the final financial result. Bank's activities relating to the implementation of different types of costs: operating costs associated with the solution of tactical problems of the bank (servicing of funds raised from individuals and legal entities, employee benefits, utility costs), long-term costs associated with the strategic objectives of the bank (branch network development, acquisition of fixed and intangible assets, providing solution of tactical problems of the bank). The main objective of cost management - the creation of a mechanism to optimize the cost of the bank, bring them in line with the selected return. Increase profitability and reduce risk, identify financial goals of the bank for immediate and future prospects are the main financial management of a commercial bank. Pravex is a multifunction financial institution that provides a full range of banking services to both retail and corporate customers. Category: Health and Safety
Bank management
As for organizing solutions to common problems and specific management of the banking group, institutional structures and systems to ensure the bank's activities. Financial management of commercial banks - a system of principles, forms, methods and tools of monetary relations, financial management to ensure high efficiency and financial stability in the bank, taking into account market fluctuations in financial markets. Important in the bank is planning. Planning banking is the process of setting goals for the future and developing ways to achieve them. Planning is the identification of priorities for further development of the bank on the basis of analytical processing of information received about the status and trends of the market environment conditions. For the bank, in contrast to other business entities, based on the mechanism of planning is financial planning, which is essentially the process of developing a system of financial plans and planning (regulatory) benchmarks to ensure a development bank with the necessary financial resources and improve its financial performance the future. Category: Health and Safety
Banks operate on
The Bank operates in financial markets and are classified as businesses - financial intermediaries. In Ukraine's banking system has two-level structure corresponding to model the credit system of developed countries: the first level - the National Bank of Ukraine, the second - the banks, leading business. The National Bank performs the traditional functions specific to the central bank of the state: develops and implements monetary policy, is the emission and the calculated center of the country, the bank of banks and the government's banker. It belongs to the organs of state regulation, and therefore its revenues and expenses are determined by estimates approved in accordance with applicable law. The National Bank is a business entity has legal personality and belongs to a non-profit organizations, because profit is not the purpose of its activities. Commercial banks shall organize and carry out inter-farm payments and cash payments to attract savings, capital and other funds that are released in the course of economic activity and provide them in a loan used for investment operations, etc. Consequently, the feature business of the bank as opposed to other businesses is that they are dealing with the financial resources that is attracted to free financial resources and place them in active operation for profit. Topic: The role of accounting in the management of the bank, its types and destination
The number issued to individuals loans to buy cars, pieces
Pravex does not stop there, however, to further develop the program of lending to individuals to buy cars at the beginning of 2007, introduced new, more favorable terms of credit: credit period on purchases of foreign cars and brands of CIS increased to 7 years, the credit period for the purchase of domestically produced cars is increased to 5 years, etc. Further improvement in banking technology and information systems for the design of auto loans reduced the time a decision by the bank for a loan up to 1 business day. It is also an important role in the achievements of Pravex in this area is actively cooperating with the majority of bank dealers in Ukraine Programme loans to individuals for purchase of vehicles, as evidenced by the fact that at the end of 2007 was signed 580 cooperation agreements between car dealers and Pravex the bank. Consumer lending. Pravex-Bank is one of the leaders in consumer lending among banks in Ukraine. Consumer credit for the purchase of virtually all goods and some services a client can get to any point in issuing consumer loans (consumer loans outlets located directly in the stores or shopping centers), and in one of the 520 branches of the Bank for a term of 3 years. Pravex in 2007 opened up new possibilities for its customers. From now on loan in cash will be available to all customers regardless of credit history in Pravex. The advantage of cash loan is that the client received the money in the credit has to use their own discretion, any store or retail chain. Category: Financial Management | Tags: Loans
Direct loans to the Ministry of Finance of Ukraine
For 1992-1995 provided direct loans to the Ministry of Finance of $ 3.3 trillion. rubles, or 69.9% of the total non-cash issue of the National Bank with 17.5% of non-cash issue, aimed at the commercial bank lending, and 12.5% - for purchase of foreign currency. In 1992 began the establishment of official foreign reserves of the National Bank of Ukraine, and the first intervention in the foreign exchange market, the National Bank carried out in 1993 in the amount of 930 billion rubles. Generalized sum of non-cash issue of the relevant periods are reflected. The second phase (1996-1999) of monetary policy in Ukraine related to the conduct of monetary reform and the beginning of its formation based on a market-based regulation of money market funds. Government and National Bank of Ukraine proceeded from the fact that on the eve of reform in cash circulation is a significant amount of money - 338 trillion. rubles, which was not fully cover the real in the form of stock (they had only a $ 157 trillion. rubles). and could not be maintained at the expense of foreign exchange reserves through their insufficient amount. According to specialists, confiscatory reform option would have negative consequences - namely, inflation at 50 percent per month for complete emptying shelves. This should be devastating not only for the stability of the currency, but also for the economy as a whole. Consequently, it can be concluded that the issuance of national currency hryvnia has provided the termination of formation of the monetary system of Ukraine. The full-blooded treatment introduced currency, which became one of the attributes of statehood, and tools for managing the economy. Topic: A PRACTICAL ANALYSIS OF MONETARY ISSUE | Tags: credit
The cumulative gap is measured
Cumulative (accumulated) ren - this is the algebraic sum (with sign) of gaps in each time interval, which divided the time horizon. The cumulative gap indicates an imbalance (difference) between the total volume of sensitive assets and liabilities of the bank, which during the time horizon may be overvalued. The economic content of the cumulative gap - is an integral indicator of the level of interest rate risk, which is exposed in the bank during the time horizon. The bank can manage this risk by setting limits cumulative gepu as the maximum of its value and the resulting structure-sensitive assets and liabilities in accordance with the established limit (an index of interest rate risk). Interest rate risk index indicates what portion of the assets (as a positive gap) or liabilities (when the gap is negative) can change its value due to changes in market rates. The index is calculated without regard to sign, since both positive and negative gap could lead to bank losses. Risk assessment of the bank with interest rate risk index provides a sufficient level of accuracy provided that the value of the assets of workers living in the entire time horizon. If the amount of such assets during the period of change, it is logical to evaluate the ratio of cumulative gepu in each period and the value of working assets, which is expected during this period. Category: Management Operations Commercial Bank
Banks have success
The most important in the management of the bank is to manage liquidity risk. The bank's liquidity - the ability of the bank to ensure the timely implementation of its monetary liabilities, determined by balance between the timing and amounts of assets and repayment of outstanding amounts and terms of the obligations of the bank. The banking liquidity is understood as a qualitative description of the subject of economic relations at the micro level it can be characterized as a unity of solvency, reliability and financial stability. Maintain the bank's liquidity is a serious and complex issue. In world practice, methods were developed (the theory), liquidity management, which are part of bank management. The composition of such methods include: asset management, liability management, sustainable management of liquidity (assets and liabilities). The bank's liquidity is influenced by many factors fully into account that in practice impossible. Therefore, the task of management is to develop approaches that will best address the factors of influence on the liquidity position in order to effectively control. The larger the detected effect on the liquidity position and the more precisely defined, this effect in quantitative measurement, the more effective management of activities in the area of liquidity management. Category: Health and Safety | Tags: Banks, success
The risk in banking operations
Using this index will take into account the risks in banking operations, evaluating the effectiveness of managers according to effectiveness of risk management, implement good governance balance (growth of the balance sheet must be accompanied by a corresponding increase in bank profits). Due to the introduction of the indicator SVA can accommodate the interests of both shareholders as well as bank managers, efficient use of capital and direct it primarily where there is high return and an acceptable level of risk. This figure also serves as a database for establishing reasonable prices for credit services, which are included in the adequate risk premium, to make decisions on granting loans to small volume, which significantly reduces the risk of individual credit transactions. This indicator allows you to control the cost of the bank, because the higher credit quality and portfolio, the higher its market value, as well as to define a single criterion for all parts of their work (a common language of financial communication). The second group of indicators - revenue per employee, profitability, capital, return on assets, the cost per employee, the ratio of operating income and operating expenses, etc. "Market and customer" perspective aims? To determine the competitive position of the bank and key customers to ensure receipt of an acceptable level of profitability in its current and future periods. Category: Controlling Analysis
In such a case management strategy is implemented duration
The bank is exposed interest rate risk, but also has the potential to obtain higher incomes. The method of control interest rate risk on the basis of duration is also characterized by fundamental flaws. In this method, all assets and liabilities do not differ, but are seen only for a period of obtaining the return of the original value (duration). However, the various types of assets and liabilities of the bank even with the same duration as distinguished from the average value of the cost of raising revenue and for the period, and their variability over the same period, and therefore, and possible interest rate risk. Since the cost of bank's equity capital equal to the difference of assets and liabilities, which are more correctly defined as the present value of the current period in the previous structure of assets and liabilities of the bank, all the components of which have their average yield, the cost of raising and risk indicators (the variance of return and the cost of raising), then quite fair to speak about the expected cost of equity and the risk of its decline. Thus, the method of controlling interest rate risk on the basis of duration does not give recommendations to optimize the structure of assets and liabilities on the criterion of maintaining the value of equity at the lowest possible risk to the reduction or by the criterion of maximizing it, given the specified risk reduction. In addition to this, this method has the following disadvantages: the difficulty of accurately calculating the duration of the need to take account of more subjective conditions, the need to predict the timing of changes in base rates and their level during the forthcoming movement of funds, the need for constant monitoring and correction of the duration of assets and liabilities, which varies with changes in interest rates and even with all conditions remaining unchanged with time. Category: Management Operations Commercial Bank
Non-cash issuance of central bank balance sheets
Active Passive 1. (Debit loan accounts of commercial banks) Issuance of emission credit the loan account of the commercial bank of 1-P. (Credit correspondent accounts of commercial banks) increase in the amount of emission credit balance on correspondent accounts of commercial banks (on the balance sheet of commercial banks - operation 2-A) 2-A. (Debit correspondent accounts of commercial banks) increase in the amount of emission credit balance on correspondent accounts of commercial banks (by the central bank's balance sheet - 1-P) 2. (Credit Loan Account received) Allowance for loan accounts of the emission credits obtained from the central bank's 3.1. (Debit loan accounts client) Issuance of credit to another bank or company to loan accounts from the issuing credit. 3.2. (Credit correspondent accounts of commercial banks) decrease in the amount of the loan balance on correspondent accounts of commercial banks in lending to another bank or, if the company has no current or deposit and checking account at the bank after these operations occur, for example, payment documents by the client company obtained a loan from the located on the bank's correspondent account (with the amount of emission credits of the central bank). Cheque deposit-emission can be theoretically done one commercial bank, if the resulting emission from the central bank's loan will not exceed the limits of the bank and its branches, and will be used in the calculations between its customers. Then the bank can issue more loans to their customers, thereby creating the appropriate deposits, each in an amount close to the emission of the loan. Issue of money has also leveraged nature. For example, some or all of the emission credit commercial bank receives the cash. Then the following occurs: (Appendix A, B). Institutions of National Bank of Ukraine shall take timely action to replenish the cash reserves and export of surplus cash and cash dilapidated [27]. In the issue of money is moving money from reserves in the back desk of the Central Bank of Ukraine in connection with an emission permit. Then when you move the central bank issuing the credit and secondary emissions of commercial banks through the circulation of money, especially between bank lending, there is an expansion of money supply in accordance with the multiplier. The money multiplier is calculated as simply the ratio of average money supply (M2 more) to the average of the monetary base over the period, also called the multiplier of the monetary base. Topic: The mechanism of emission | Tags: Non-cash issue
The main objectives of the management of credit portfolio of the bank are
Providing the highest level of profitability and loan portfolio of the bank's equity capital at the lowest level of risk, ensuring a balanced and optimal use of credit resources to achieve the optimal balance between growth in the loan portfolio and the rate of improvement of its quality, that all the requirements and performance standards set forth in instructions, orders and decrees of the NBU, including regulating the volume of credit investments, the maximum amount of loans (including insiders, related and affiliated parties), expanding its customer base by providing high quality loan services Category: Management Operations Commercial Bank
PEST-analysis
Outlook environment is the basis for the development of alternative development scenarios for the future of the bank, taking into account its potential chances and risks. Such forecasts may be qualitative and quantitative interpretation. The qualitative form of the forecast impact of external factors more reasonable to assess the political, social and technological factors, in part, and quantitative - economic. The results of PEST-analysis are used in forecasting the bank's positions in the market and making managerial decisions regarding strategic directions of its development. In the case of forecasting negative scenarios are the bank must develop a plan for responding to acts of God, which is a component of a business plan. For practical use of PEST-analysis of Ukrainian banks is expedient to create a centralized database to make information about changing the environment, to develop a standard collection of information (according to the scheme: the list of external factors influence the activity of the bank, the source of the media - radio, television, print media, the statement bank managers at conferences, symposia, seminars, hearings, statements of the bank and other sources, a responsible person who has made the information into a centralized database, comments, date of entry of information) provide the responsible division for tracking and processing information and identifying the most significant factors influencing the work of the bank. SWOT-analysis - an analysis of the strengths (S) and weaknesses (W) side of the bank, as well as opportunities (O) and threats (T) from the external environment. Conducting the SWOT-analysis is preceded by the development strategy of the bank. The main efforts of the Bank in the implementation of the strategy should be focused on overcoming weaknesses, achieving benefits through more effective management. Strengths and weaknesses of the bank's activities are compared on the following parameters: the level of capitalization, the effectiveness of marketing policy, the quality of its customer base, staff qualifications, level of operating and non-operating expenses, the profitability of capital and assets, etc. Topic: Analysis of controlling
The essence of financial accounting
Whole, complete and continuous mapping of all business transactions for an accounting period, "Building the set of financial statements; interpretation and presentation of reliable financial information to users. To understand the functions of accounting, you must first find out the essence of the concept of "business transaction" and select the criterion by which it is subject to reflection in accounting. In accounting practice, more likely to use such a definition of business transaction. Business operation - an act or event which causes changes in the financial condition of the bank. Let us see what is understood by the business under financial condition? Financial condition or financial position, reflects the bank than the bank owns the (economic resources), and that he who should at this point in time. In the financial account of economic resources (assets) that are owned by the bank or the bank that controls it are treated as assets. Sources from which received resources, usually denoted as its liabilities and equity (debt). Liabilities indicate how much the bank has attracted funds from creditors, and capital - how much is invested in the bank, its founders. Analyzing the financial condition of the bank, we can conclude whether he is able to pay its creditors, and brought a banking profits. Financial condition can be expressed by the equation: Assets = Liabilities + Equity (own). This equation is known in accounting as a classical accounting or balance sheet, of the equation. Topic: The role of accounting in the management of the bank, its types and purpose | Tags: Financial Accounting
We can distinguish the following tasks
1. Ensure provision of quality credits. Quality loans (stable, stable credits) - these are loans that provide adequate interest income even in the case of adverse changes in the macroscopic conditions or changes in business conditions. 2. Ensuring the profitability of its loan portfolio. The cost of credit must meet the budgeted (calculated) risk. Bank's credit policy should be aimed at creating a stable profitable for the bank's relationships with customers. Yield of client relationships to maximize sales by cross in order to maximize the ratio of risk and return for each client. You should avoid such a loan, in which no other relationship other than credit, between the customer and the bank does not exist and is not expected. 3. Provision of reasonable growth of credit portfolio. The purpose of the bank is a long-term stable growth of profitability. This growth can not be achieved in the first place, without the formation of the respective loan portfolio quality, and secondly, without achieving an optimal balance between return and risk. Each bank determines its own credit policies, taking into account the economic, political and social situation in the region of its operation, or taking into account the totality of external and internal risks that affect the particular bank. Category: Management Operations Commercial Bank
The essence of controlling as an economic category
According to A. Daila controlling term (born to control) means to regulate or control. The group of authors under the guidance of AN Karminsky believes that this term can be translated as leadership, management, control, control. D. Khan is of the opinion that from an economic point of view, this term is defined as the management and supervision. The paper stresses that the word comes from the English controlling to control - to control, manage, which, in turn, from the French word controle, which means "to register, previrny list." Controlling pozafunktsionalny construed as a management tool, which is due to tsilespryamovannyam data collection and processing aids in decision-making and management of the enterprise [81]. In the dictionary of foreign words, controlling (English controlling) is considered as a function of management, a systematic inspection tasks and assess the state of affairs in the company. The new explanatory dictionary of the Ukrainian language is the term "controller", which refers to a person who controls or checks, which greatly restricts its essence. Controlling evolution in the banking sector took place in several stages: initiation, establishment, moderate and active development. Nucleation stage is characteristic of the late 60s - early 70s of the XX century in this period there was a rapid increase in the branch network, expanding the range of banking services, a significant increase in the balance sheet, which required banks to the introduction of calculation and payment of margin management accounting costs. At this point, controlling the banking office to function only in some banks. The main activity of the Comptroller has focused on accounting procedures. Increased competition between banks led to a change in emphasis in the banks - to ensure the mechanical growth of the scope of activities to enhance its efficiency is attributed to the transition stage of becoming, which lasted from the early 80s to early 90s. The features of controlling at this stage was to support the profitability orientation as a whole on the bank, and for his calculation units. Task orientation has determined the scope of controlling professional supervisors of the bank. Started to establish business planning, budgeting, effective control over the achievement of key performance parameters of the current activities of banks, as well as an integrated system of information support of management. Controller with a simple recorder of economic developments gradually moved on to serve in an advisory manager and organizer of the information flows within the bank. More and more banks abroad started to create a separate service controlling. Moderate development phase - started in the mid 90s and saw the emergence of strategic controlling the orientation of which - the future. Controller considerable attention was paid to identifying the strengths and weaknesses of the bank's activities, opportunities and threats. As a consequence, there was a need to conduct special studies of the market situation, identify the bank's competitive position, calculating the level of risk, etc.
This requires to take into account factors
- Over-concentration - the concentration of loans in a sector of the economy - over-diversification, which reduces the quality of governance in the absence of a sufficient number of highly qualified specialists with knowledge of the many sectors of the economy - Foreign exchange risk portfolio - Portfolio, if he formed only with the needs of customers, not the bank - the bank's level staff. The main causes of the credit risk on a per-credit: - Failure to establish adequate borrower's cash flow - liquidity risk of collateral - Moral and ethical characteristics of the borrower. The approaches to risk management, a separate loan include: analysis of the borrower's creditworthiness, credit score, loan structuring, documenting the credit operations, control of state loans and collateral. A feature of these methods is the need for their consistent application, since they are both stages of the process of lending. If at each stage before the credit the employee tasked to minimize credit risk, it is legitimate to consider the stages of credit risk management techniques as a separate loan. Topic: Risks in Banking | Tags: Credit risk
Characterization techniques for liquidity management
The strategy of transformation of the assets is estimated as less risky than others, but it is also quite expensive in terms of cost. Selling assets is accompanied by certain costs (commissions, brokerage, stock exchange fees, etc.), but also leads to deterioration of the balance, as low-risk assets are sold. In addition, the bank loses future revenue that could be generated by such assets. Sometimes the bank is forced to sell assets at lower market prices, if there is a pressing need for cash. Support for large, the stock of liquid assets generally reduces the rate of return of the bank. Consequently, we can define the following disadvantages of the method: the loss of future income that could be obtained by the assets sold, cost of payments for transactions (commissions) paid to brokers for securities transactions, the deterioration of the balance sheet as assets sold with low-risk, and their presence indicates the financial soundness of the bank, the need for asset sales at lower prices in the market, putting the bank at risk of significant loss of income and capital preservation funds in liquid form reduces the rate of return of all assets. Advocates of the theory of management liability claim that the banks can solve the problem of liquidity by attracting additional funds from the market. This theory suggests the involvement of liquidity in the money market in amounts sufficient to cover all the expected demand for liquid assets. Credits are used only when a bank has a real need for liquidity, avoiding too much highly liquid assets that do not make profits. Category: Management Operations Commercial Bank
In practice, the analysis of the causes of deviations are distinguished analysis
In practice, the analysis of the causes of deviations differentiated analysis that focuses on the past, and analysis, focused on the future (the future). In this analysis of variance with the orientation for the future is possible in the case where the bank made a regular forecast of the control parameters. Comparing planned and forecasted values, we can estimate the possible deviations in the future, and to identify the causes of possible deviations. The predicted deviation is a warning that the intended target can not be achieved and that measures should be developed to address them. According to the analysis carried out adjustment of financial plans and budgets if their further implementation in this way is impractical, or view action aimed at achieving certain goals. According to the results of financial monitoring suggestions are made to adjust the target system specifications, performance current financial plans or individual budgets. In some critical cases can be justified by the suspension of individual operations, and even of individual financial responsibility centers. Thus, financial control is an important component of financial management of the bank. It provides feedback to managers paying attention to significant deviations from planned performance, which allows to make operational management decisions aimed at fulfilling the tasks. Topic: Fundamentals of Financial Management Bank | Tags: Analysis
Emission causes an increase in money supply
The issue is money supply growth and deletions - to decrease it. Both processes are almost parallel, the two divergent streams of varying intensity. As a rule, the issue of money than their removal, although some, particularly small intervals of time, sometimes vice versa. Balance (sum) of equity transactions on release (emission) and withdrawal from circulation - this is the result of emission [10. 29]. In this paper I would like to draw your attention to detail and to consider the mechanism of emission of the central bank and ways to improve emission policies. For a start I would like to give a clear definition ponyattb "money issue" and "optimization". Money issue - (from the English. Issue, evission) issuance of currency in exchange of worn and damaged, resulting in an increase in the money supply; issuance of an additional quantity of money, an increase of the mass produced commodity (GNP) and inflation . Optimization - choosing the best option among many possible solutions, the process of bringing the system into a better state. In the first definition implies optimization analysis of the system in terms of the optimality criterion. This search for "optimum" and called optimization. The second definition of optimization is the process of translating the system studied in the right state. In this case, depending on the optimality criteria distinguish vector optimization, stochastic, multi-criteria, etc. [25]. The concept of "money issue" and "issue" - are not equal. Issue of money in circulation is constant. Non-cash money issued into circulation, when commercial banks lend to their customers. Cash released into circulation when the banks are in the process of carrying out cash transactions give their clients from operational cash. But at the same time customers are repaying bank loans and take cash in the bank teller. The quantity of money in circulation and can not grow. Under the emission is understood this issue of money in circulation, which leads to an overall increase in money supply in circulation. That is, we can conclude that the optimization of printing money - to select the best version release cash and noncash money into circulation, an increase of the mass produced commodity or inflation. The emission system is regarded as under the statutory procedure for issuing bank notes in circulation and is an integral part of the monetary system. Regulation of the emission system is provided by open market operations, changes in reserve requirements, interest rates and other instruments of monetary policy [26]. To gain a better understanding of the nature of emission appropriate, in my opinion establish the key issue: cash and cashless. Under the cash emission understand the issue of currency in circulation, that is, granting the central bank in the economy of a certain mass of money. To determine the issue of non-cash non-cash in the form of loan and deposit.
Economic capital
Part of the economic capital in the form of a certain fixed percentage of the bank's charter capital ("risk appetite"), as recorded in its strategic plan, it is reserved in the form of liquid assets to cover unexpected losses [18]. The main quantitative and qualitative indicators characterizing the term "innovation" in the bank are: the number of new products offered to customers, new technologies of bank management (customer-oriented, protsesnoorientovana etc.), the new version of the operating day of the bank, new tools for controlling and distribution channels of banking products, reducing the complexity of banking operations, the number of employees by introducing innovations, etc. On the adoption and implementation of innovative banking projects will evaluate their effectiveness in terms of: net cash flow, ROI, payback period, net present value, annuity, etc. As embodied innovation is constant monitoring of the achievement of their impact on performance as individual units, which carry out project and the bank as a whole. The introduction of innovative projects requires, on the one hand, significant financial investments, which can cause a temporary reduction of the performance of the bank. On the other - implementation of innovative projects at a certain lag allows the bank to increase not only their own technical, human, and economic potential, which will be reflected in the improvement of indicators in all perspectives Category: Analysis of Controlling | Tags: 3 types, asset analysis controlling
Concept and types of emissions
Due to the fact that central banks - are the main organs of the monetary authorities and the implementation of monetary policy, focusing on their activities to ensure stability of the national monetary unit [20. 73]. Therefore, a national bank in any country has a set of functions that allow you to achieve this goal. Traditionally, the central bank put five main objectives, namely to be: - emission center of the country, ie enjoy the sole right to issue banknotes - the Bank of banks, ie perform operations with no commercial and industrial clientele, mainly from banks and the country: to keep cash reserves, the amount of which shall be established by law, to grant them loans (lender of last resort), to perform surveillance, maintaining the necessary level of standardization and professionalism in the national credit system - Banker government, for that he should support state economic programs and to place government securities, loans and grant to carry out payment transactions for the government to keep the official foreign exchange reserves - the main computational center of the country, mediating between the other banks in the country for non-cash payments, based on standings mutual claims and liabilities (clearing) - Authority for regulating the economy by monetary methods [3. 381]. Issue of banknotes - the oldest and one of the most important functions of the central bank. With the development of capitalism, it has changed: if in the early stages of the credit system, commercial banks, together with the central issue of banknotes carried out, the process of centralization of bank note issue in a number of major commercial banks and the transformation of these banks, central banks monopoly on note issue was fixed at one bank - central [8, p.55]. The problem issue - to repay government spending and increase the money supply for the economy. The difference between the nominal value of issued paper money and spending issue (on special paper costs, printing costs) form the seigniorage (seigniorage), which represents a share premium of the State Category: METHODOLOGICAL FOUNDATIONS OF MONEY EMIS | Tags: types of emissions
Use of information systems
To optimize the operation of the block on "Cashier" in the PC-48 in Inside of opportunities to work "night cashier" prioritization process, staff conducted a number of areas of IT technologies and technical work. The transition to a new technological model of cash held in stages. In the first stage in the "new office" operations were carried out to replenish the cards (accounts) or by removal from the card (bills). Operations under the contracts (the opening of the contract, supplement or payment via the "Contract" - "More", a work night depository shipment with postings in the next day) has not yet been translated. In this regard, the menu "cash" was temporarily divided into two separate menus: - cash contracts - cash. If you open contracts (menu "Contract" - "Discovery of the map and agreements") with the completion of the contract or the payment thereof with the use of the menu "Contract" - "More" cash orders always get a menu - "Cash Journal", t . e. the new cashier. In the same menu they should hold the cashier. In the same teller cash journal is printed on the day (only for those payments, which are displayed in this menu.) In the standard replenishment cards (accounts) nice of them paid, operator uses the menu item "Cash". In the same menu they should hold the cashier. In the same teller cash journal is printed on the day (only for those payments, which are displayed in this menu.) Thus, in the end of the day will again be a teller cash journal. To enter a new document, use the menu item "Payments" - "Cash" - "New box office document." When you enter this menu will automatically open (see Figure 2.1). In this window, you must enter the card number in the "account \ card" (you can manually, using a card reader) and to automatically enter the client data click sign. And automatically vidtkrivaetsya window, where required? necessarily need to check the country of residency client (for cases recharge cards or razhunkiv non-residents) and click. Topic: Analysis of Controlling | Tags: banking system
The legal protection of property rights
Ownership of the property is the most comprehensive law that a person has in real estate, and provides the right of possession, use and disposal of real estate. The right of ownership is recognized legally secured possibility of actual domination over the face of real estate (the number on their balance sheets, etc.). Legally recognized right to use the opportunity provided by the person to obtain from the property of their useful properties to meet their personal and property needs. Legally recognized right to dispose of secured to determine the fate of real estate (exclusion under the contract, devolution, destruction, etc.). The owner of property at the same time concentrated all three above-mentioned powers. But separately they may belong, and not the owner, and other legal (title, that is so, based on a legal basis), the owner of the property, such as the tenant. The latter not only owns and uses property of the owner-lessor under a contract with him, but also has the right to consent to hand over property to rent in (sublease) another person to commit acts that enhance property, ie within certain limits, to dispose of it. However, it is worth noting that, by itself, "triad" of powers is still insufficient to describe the rights of the owner. The owner may transfer to other persons their rights of possession and use or ownership and disposition of real property owned by him, while remaining its owner, for example, at the time of real estate for rent. This is the basis and provides opportunity to pass real property to control the other person does not entail the transfer to the latter (the manager) ownership of the transferred real estate, management is the way of the owner of its own powers, a form of realization of the right order, but completely non-identification of a new title to real property. In the case where the available documents evidencing title to real property in full and can not be negative, so the title is "clean." If property rights can be challenged on certain grounds, such a title is called "dirty". Category: Klasifikatsiya real estate | Tags: property rights
Very important for the economy-wide understanding of risk is the theory
It is very important for understanding the general economic theory of risk is an American economist F. Knight, according to which the risk - is the result of any activity which can be measured by methods of probability theory and the law of large numbers. If these calculations can not be performed, this activity is the result of uncertainty. On the concept of risk is associated with the economist uncertainty, which is a source of profit, which may be technically measured, and evaluated using the method probabilistichnih (probability) calculations. Moreover, the risk can be represented by a logical probability, based on knowledge of the laws of nature and society, through statistical probability, which reflect the collection, storage, analysis and systematization of statistical data. In the economic and financial-economic activity of the subject, as stated in the Financial Dictionary, under the risk aware "aware of the possible risk of unexpected losses expected profits, property, money, due to random changes in the conditions of economic activity, adverse circumstances. Measure the frequency, probability of occurrence of a a certain level of losses. sufficient to complete and modern is the definition of risk, which is given in the textbook "Financial Management" edited by prof. Kireytseva GG: "A risk should be understood as the possibility of damage due to the action in the vast majority of external factors in assessing (before deciding) were unknown and whose influence can change the probability of achieving the desired result. " Category: Risks in Banking | Tags: risk
With the help of portfolio management
With the help of various tools portfolio management bank examines its strategic position, identify potential market opportunities, evaluate the degree of influence of internal and external environment on their performance, and identify reserve growth in the value of equity. When managing a strategic portfolio of the bank used primarily specific methods and analysis techniques, as well as some forecasting methods. Specific methods of analysis in the bank controlling. Specific methods of analysis include the PEST-analysis, SWOT-analysis, SNW-analysis, portfolio analysis, model Mc Kinsey, Boston Advisory Group model, the gap-analysis, the calculation of the breakeven point, VaR-method, stress-testing, etc. . PEST acronym means: P - politics, and E - the economy; S - sociology, T - technology. P - the practice of Ukrainian banks show that political factors have a significant impact on their livelihoods. Sometimes the effect of political factors (the change of political power, legislative and regulatory framework for bank regulation, the emergence of political tension, etc.) leads to the cessation of existence of the bank. E - in-economic situation, in particular the pace of privatization of housing, land, businesses, the dynamics of the hryvnia exchange rate against the U.S. dollar and the refinancing rate of the NBU, the extent of the government securities market, the size of the budget deficit to GDP, the change in money supply, wages, etc. . S - changes in basic values, the material situation of the population of the state and the entities and people to work, recreation and education, demographic changes, changes in the structure of revenues and expenses of citizens, the unemployment rate of the population, its degree of confidence in the banks, the level of emigration of highly skilled personnel outside the country. T - changes in technology and software, the banking industry, the emergence of new banking products based on advanced technological approaches (Internet Service, Internet Banking, etc.), automation of banking processes, bank management need improvement). Topic: Analysis of controlling
The main components of the real estate market
Primary (real estate as a commodity for the first time to enter the market is the main sellers of the state represented by their executive agencies, construction companies. Secondary (real estate serves as a commodity that was previously in use, and belongs to a separate owner. Market segmentation is the division of his estate into homogeneous groups of buyers. segments of the real estate market: - The housing market - commercial real estate market - The market of plots. The territorial factor: each region can be a separate market. For use: housing markets, commercial, industrial, and / x purposes. In terms of value: the market is expensive real estate market is a relatively inexpensive mass-Space. As the investment motivation: the real estate market, income, real estate market with the potential to increase in value, the tax shelter. By type of ownership: unrestricted rights of ownership; easement (right of the limited use of one or more persons, the land of another person) the right to minerals, the right to lease the right to participate in a condominium (legal form of ownership, by which the object is divided into elements, elements of personal property and joint ownership), the right of economic ownership, the right of operational management, the right of lifetime tenure. There are centralized and decentralized markets (street) and exchange (auction, bidding), OTC. The real estate market is an essential part of any national economy, as real estate - is an important part of national wealth, which accounts for more than 50% of global wealth. Without the real estate market can not be the market in general, because the labor market and capital market, and market goods and services, etc. for its existence must have or rent the room they need. The national real estate market - a set of regional and local markets that are significantly different from each other asynchronous development, the level of prices and risks, the effectiveness of investments in real estate and particularly of the regional legislation, political and social stability in the region, and so on Ukrainian real estate market reflects all of the problems with economic transition and is characterized by uneven development of its segments, imperfect legislative base and low investment activities of citizens and legal persons. Meanwhile, the market is a promising area of investment. Category: Klasifikatsiya real estate market
In the service of accounting
Centrally establish and maintain a uniform accounting rules for banking operations, and develop regulations for new operations that are planned on the basis of regulations of the National Bank of Ukraine - the registers of accounting in conformity with the essential requirements of the National Bank of Ukraine and the bank's accounting policies, management and maintaining internal chart of accounts (analytical accounts of the plan), compiled on the basis of Chart of Accounts prescribed for banks National Bank of Ukraine - the timely preparation, review and provision of internal and external financial reporting - the establishment of a centralized accounting controls for the application of the rules of accounting policies in different units and the reliability of financial reporting. The bank determines its policies, develop a system and form of management accounting, internal accounting and control operations, defines the rights of workers to sign documents, according to the rules of document processing technology and accounting information, an additional system of accounts and analytical accounting registers: - the accounting policies of cash transactions; - accounting policies accounting credit entities - accounting policy on nostro accounts - an accounting policy on the forms and uses. provision of accounts receivable - accounting policies of the investment business - accounting policy of accounting. account deposit transactions juridical persons - accounting policies intra-operations - accounting policies of transactions on purchase / sale of foreign currency - accounting policy operations with bills - accounting policy on letter of credit operations - accounting policies of the individual business - accounting policies are current accounts in national currency - accounting policies interbank business Privat - accounting of consumer loans of individuals; control - this is one of the four major functions of management is the process of achieving the objectives set by the organization implementing the decisions taken. Category: Controlling Analysis
The concept of controlling
The concept of controlling in domestic banks should provide guidance on the accounting system, taking into account the work on its traditional forms of management of the business. Prerequisite for the successful implementation of the reform program of bank account in the banking system of Ukraine. In the course of reforming the accounting is methodologically divided into administrative and financial. This allowed the user to reorient the processes of the past into the future. Now, based on the credentials created by the information system to support management decision-making, strengthen planning and control subsystems of the banking institution. International practice recognizes the two models of the organization controlling system-oriented accounting. On the American model to include also Controlling the problem of financial accounting. At the heart of the German model - internal management accounting in various forms: routine, documentary control. This model is usually classified as a European concept of controlling. It covers the following issues: - the planned and actual financial results of the calculations - the planning and budgeting; initial stage in Ukrainian banks controlling system on the European model is to develop effective procedures for management accounting. Its release into the general accounting system primarily associate with the acquisition of commercial banks, legal and economic autonomy in market conditions. State bank as the subject of these relations leads to a new way to consider the problems of its financial activities. Before increasing the level of competition in the lucrative financial markets. Recently, the implementation of banking products complicate the nonbank financial institutions and organizations. Technology, in particular, maintenance operations of businesses and individuals, the organization of production and marketing systems have become essential factors of competition. The actual intervention in these processes is only possible if ownership changes to the preliminary information on the activities of other participants in capital markets and investment. Of course management decisions depend largely on the structure and volume of the system of controlling an information product of a particular bank. This is facilitated by a process of active integration of traditional methods of accounting, analysis, planning and control in a single system of receiving, processing and acting upon management decisions. Clearly, the bulk of the information generated in the subsystem of management accounting. Category: Uchot bank ucherizhdeny | Tags: Controlling
The bank, which is a well-capitalized
A bank that is well capitalized and sufficiently capitalized and conducting break-even activity within the last six months, may grant loans in excess of the established standard maximum amount of credit exposure to one counterparty (H7), in the case of lending to customers, which Debt service is provided cash cover (deposit or certificates of deposit) or an unconditional obligation, delivered directly to the bank: a) governments or central banks of states belonging to category A (Australia, Austria, Belgium, Denmark, Greece, Iceland, Ireland, Spain, Italy, Canada, Korea, Luxembourg, Mexico, Norway, New Zealand, Netherlands, United Kingdom of Great Britain and Northern Ireland, Poland, Portugal, USA, Turkey, Finland, France, Czech Republic, Sweden, Switzerland and Japan), or the countries - members of the EEC or b) the International Bank for Reconstruction and Development or the European Bank for Reconstruction and Development, or c) first-class banks that have issued a credit rating not below investment grade - for the obligations of contracting parties with execution period of one year or less. The Board of the National Bank may grant permission to exceed the established standard of maximum risk on a counterparty, subject to the bank with the applicant standard large credit risks (N8), and if it has at the date of the actual loan documents and additional conditions stipulated by the Regulations. Category: Risks in Banking | Tags: capitalized, Credit Risk
The essence of the assets and liabilities of banks
In modern conditions of development banking challenge is to find practical ways to minimize risk and generate sufficient revenue to maintain depositors' funds and life support of the bank. A successful solution to this complex problem requires the use of many methods, techniques, methods, systems, and develop new approaches to the management of assets and liabilities of the bank. Worldwide, the efficiency of asset and liability management is regarded as one of the most important factor in improving the stability, reliability, liquidity and profitability of the business. The essence of the assets and liabilities of banks due to their role in the economy as financial intermediaries, accumulating temporarily surplus funds of economic entities and place them on terms of repayment, maturity and payment of those subjects in the economy that need to assure the production process. The main tasks of a modern commercial bank is to provide various types of loans to its customers, which calls for raising funds from various sources at the appropriate time, the implementation of cash management services for customers and payments, the transactions of buying and selling foreign currency as on behalf of clients, both for his own expense. Category: Health and Safety
Monitoring is necessary
This is the testing results are the basis for the leaders of the organization to adjust earlier decisions. Thus, we see the close relationship of such functions as management control and planning in the modern management control should be understood as a form of management, through which you can keep the organization on the right track, comparing its performance to the plan and ensuring the timely adjustment according to the results. Control function - a comprehensive, it is not only the powers specifically designed controller, or a separate entity it must implement each leader in their daily work. Control is divided into preliminary, current and final. Well-established control system allows to identify problems and prevent them from tightening, if the control is exercised at all stages of work. Pre-audit is carried out before work starts at this stage is controlled by a course of conduct, availability of necessary resources for implementation. Current control is performed directly in the course of work and provides the actual measurement of work done and compared with targets. The main instrument of control is the feedback. The results of monitoring substantially affect the organization of the personnel. Topic: Analysis of Controlling | Tags: state of the banking system
Mechanism for implementing the policy of this type is
Providing loans to riskier categories of borrowers, increasing the term of the loan and their size, lower cost of credit to the lowest possible level, giving borrowers the possibility of extension of credit. 5. Development of the basic parameters of the organization of the credit process and determine the degree of responsibility of credit managers at various levels: the definition of authority in granting loans, which belongs to each employee credit and the credit committee; duty on transfer of rights and provision of information in the credit department, practice audits, evaluations and decision-making on loan applications customers, the formation of standards for assessing the creditworthiness of borrowers and differentiation of credit conditions, the required documentation attached to each loan application and documentation is stored in the credit business (financial statements, contracts and collateral warranties, etc.), the rights of employees of the bank with a detailed definition of who is responsible for storing and checking credit files, the basic rules of adoption, implementation and evaluation of collateral, a description of policies and practices to establish interest rates and commissions on loans, credit terms pogashannya, a description of the quality standards that apply to all loans, a description practice of identifying, analyzing and solving situations and problem loans. 6. The formation mechanism of monitoring the implementation of monetary policy. 7. Overall assessment of the effectiveness of monetary policy developed. In the development of credit policy banks determine the priorities in the formation of the loan portfolio, considering its diversification in terms of determining the optimal monetary policy. Category: Management Operations Commercial Bank | Tags: credit
Asset and liability management
It should be based on reliable, proven information that really reflects the objective reality, and the conclusions must be substantiated by exact analytical calculations. From this requirement follows the need to continuously improve the process of collecting and processing information in order to improve the accuracy and reliability of the calculations. 6. Management is intended to be effective, actively influence the bank's activities and its results, on time identifying gaps, mistakes, mistakes in their work. 7. Asset and liability management should be carried out as planned, systematic, and not from time to time. From this requirement implies the need for planning the management of the bank, the allocation of responsibilities for its implementation between the performers and oversee its implementation. 8. The unity of strategic (long-term) and tactical (current) plan indicates compliance with the strategic objectives of tactical plans to ensure continuity of the process. 9. Management must be expeditious. Efficiency means the ability to quickly and accurately assess the situation, management decisions and implement them. 10. Moral and material incentives to creativity, success and achievements of the whole team and each member individually - condition of achieving high performance of the bank. Category: Management Operations Commercial Bank | Tags: asset, liability, management
To affect the bank's liquidity
This is the budget deficit, inflation, imbalances in the effective demand for goods and supply. As a result of these factors, even in the absence of defects in the work of the bank may have liquidity problems. Although the direct fault of banks in this small, yet outwardly it looks like a violation of their liquidity, and such a situation does not arise from an individual bank, and covers many of them. To eliminate some of the negative phenomena measures should be applied beyond the competence of individual banks. So, in understanding the liquidity there are two aspects. In a narrow sense, they understand the funds and other highly liquid assets that can be transformed as soon as possible in cash or cash and adapted to the micro level for the timely payment of obligations and credit, and at the macro level - for the organization money and prompt reallocation of available funds between the entities the economy. In broad terms, bank liquidity is understood as a qualitative description of the subject of economic relations at the micro level it can be characterized as a unity of solvency, reliability and financial stability. Category: Management Operations Commercial Bank
Central Bank of developed countries
Bank of developed countries often do not only manufacture but also design, protection of banknotes against counterfeiting, and other technical issues. In the states of Western Europe and the U.S. Banknotes do not write that they are provided with gold, precious metals, securities and other assets (but this is reflected in the published balance sheets of the Central Bank). How to ensure that acts as an asset of the Central Bank, the principal articles which are usually foreign exchange reserves portfolio of government and other securities, loans to banks against securities. In developed countries, the issue of banknote issue is solved in different ways, but he always has a legal basis: often legally defined the nature of software and, therefore, set limits consequential issue of paper money. On the insignificant role of the Central Bank as a function of the emission center is often indicated by the absence of a special unit in the main office of the Central Bank (for example, the Bank of England). This function is increasingly seen as a technical and concerns, mainly bank branches dealing directly with a cash job, as well as the printer of banknotes. Monopoly is needed, above all, to avoid abuse and to facilitate the single monetary policy. Topic: Banking systems | Tags: characteristics of the banking system
According to the current time position
According to the current Provisional Regulations on the procedure of registration of ownership of real property for the registration of, existence, termination of ownership of real property to the Bureau of Technical Inventory (BTI), together with the application for registration of property title documents are served. Upon registration of ownership of real property arising under the contracts for the alienation of immovable property under the laws do not require notarization, also served notice on the absence or presence of arrests from the Unified Register of prohibitions of alienation of immovable property shall be issued on the basis of the relevant request of BTI. To register ownership of the property owner (owners) or duly authorized person shall submit application form. When applying for registration of property rights an individual must present a document confirming his identity, and in case of an application by the representative of the person or entity - a document confirming the authority to act on their behalf. If the documents on state registration of rights is filed is not in full or made payment, the state registrar may, within three working days, decide on the suspension of state registration of rights and shall notify the applicant stating the grounds of suspension and proposals to eliminate detected violations. If, within the AOR days the applicant has not eliminated the violations that led to the suspension of state registration of rights, the state registrar decides to refuse to conduct it. Category: Klasifikatsiya real estate market
Asset and liability management and its results
These requirements imprinted on self control and must be done at each stage. We define the fundamental principles of asset and liability management. 1. Asset and liability should be based on state approach in assessing the economic processes and phenomena, results of operations. In other words, the management of assets and liabilities must be considered compliance with the state's economic, social, environmental, international politics and law. 2. Management must be scientific in nature, ie based on the provisions of dialectical theory of knowledge, understand the requirements of the economic laws of development, using the achievements of scientific and technical progress and excellence, the latest methods of economic research. 3. Management must be integrated. Complexity management requires coverage of all parts and aspects of the activity, a comprehensive study of causal relationships in the bank. 4. One of the requirements for management is to ensure a systematic approach, where every object that we study, is regarded as a complex dynamic system, which includes a number of in some way interconnected elements and the external environment. The study of each facility must take into account all internal and external communication, interdependence and vzaemopidporyadkovanosti its individual elements. Category: Management Operations Commercial Bank
In particular, in 2007
So, at the beginning of 2007 was introduced a new service, "Universal salary credit", which allows cardholders to establish a credit limit of up to 600% of average salary (calculated - for the last three months). The discount program. Thanks to the most democratic and flexible policy Pravex among other banks, each owner of the card, issued by the bank, regardless of the level or type (payroll, deposit, customer, pension, corporate) can receive discounts of up to 30% over 5000 merchants Ukraine. It should be noted that the program in 2007 attracted more than 600 partner companies, whose services are most popular among consumers. Cardholders Pravex can save by visiting the shops of jewelry and watches "Damian", "Louvre", "Basel", "Avenue", "nobless" furniture showroom "Riviera" hookah bar "Habibi" restaurants "Velour "," 001 "," Klovsky "lingerie boutiques" Belle Femme "," Dim ", a travel agency," MW-round "," Athena-travel "," Trajectory, "dental clinic" Lana-dent, "" Mildent " "Slalom" and other network enterprises, the bank's partners is constantly growing both in Kyiv and throughout Ukraine. Thus, Pravex made a significant contribution to the overall development of card business in Ukraine, occupying a niche stability, reliability and trust . Category: Financial Management
