Money and credit - Ivanov VM

24.3. to attract deposits and savings operations

Contribution - is a cash (cash or cashless form, in national or foreign currency), sent to the bank by its owner or a third party on behalf of and for the account of the owner for storage on certain conditions. Operations related to the raising of funds in deposits, called deposit. Therefore, in the practice of commercial banking customer deposits are deposits and are the main source of bank resources.

Deposit can be in principle any open client in a commercial bank account, which stored his money, including active-passive accounts if they credit balance.

There are various signs of classification of deposits. It should be borne in mind that the boundaries between different types of deposits are eroded, there are hybrids that combine the properties of different types of deposits. The reason for this process is the growing competition between commercial banks themselves, as well as between commercial banks and non-banking institutions to attract funds from legal entities and individuals.

Depending on the investor deposits can be subdivided on the deposits of individuals and legal entities. The composition of heterogeneous entities, so they can be classified depending on the type of partnership, ownership, nature of the investment and other characteristics. Deposits in banks may place the government and local authorities, businesses and organizations of all sectors of the economy, credit and financial institutions, citizens.

Depending on the term and the order of withdrawal deposits are divided into demand deposits and term.

In terms of destination deposits can be divided into three groups: demand, time and savings.

Demand deposits are intended for the implementation of the current calculations; placed in commercial banks in the current or the current account, and can be at any time fully or partially replenished or demand. In the case of placement of funds on the current account of the client can withdraw an amount not exceeding his actual balance. On the contrary, the current account is possible both credit and debit balance, t. E. The account holder can only withdraw your contributions, but also to get a certain time bank loan.

Withdrawal of demand deposits is carried out both by cash and by using various forms of non-cash payments.

With regular use of funds held in current and other bank accounts, most customers still remain certain unused cash balances. Education balances of customers due to the settling of funds to the passive and active-passive accounts in a commercial bank for a period of time, which is set at the time of receipt of funds in the account can not. In its composition are heterogeneous and include funds: settlement, current and fiscal accounts of legal entities and individuals; special accounts for the storage of their various target economic purpose funds and funds; in the calculation; on correspondent accounts for settlements with other banks; on some other bank accounts. Bank, serving customers, using credit balances on their accounts by means of active and other operations in order to make a profit.

Demand deposits are unstable, which limits the possibility and scope of their use by commercial banks. Therefore, owners of current accounts are paid lower deposit interest or not paid at all. However, it should be borne in mind that the owner of the account has to pay for the services of a commercial bank for the maintenance and for interest-bearing accounts commission is charged from deposit interest. Some commercial banks instead cover operating costs of maintaining non-interest bearing current accounts require owners maintain them pre-specified cash balance. In violation of the owner to do so, ie. E. With a decrease in the previously agreed balance, he pays all the operating costs of the bank's current accounts. This encourages account holders more attentive to issues related to current accounts.

In the absence of payment on demand deposits and increase competition in the deposit market, commercial banks are trying to attract customers and stimulate demand deposits growth by providing value-added services, greatly facilitate the owner of the account for regular payments, and improve service quality.

Term deposits - is money placed in the bank for a strictly specified period of time. They are, in comparison with the demand deposits, which have mainly short term in nature, are made for longer periods.

Depositor, has a significant amount of money on deposit on demand and anticipate that in the future the significant costs to any goal, profitable to keep these funds on the current account for a relatively small percentage, or even without such payments. It is more profitable to place free funds on term deposit. Then, when the time comes, he can withdraw funds from the term deposit and implement the planned expenditure, while receiving additional income. For term deposits characterized by an abrupt change in size, as well as establishing their values ​​rounded amounts. Therefore, the meaning of long-term investment funds is to obtain a contributor higher than on demand deposits, interest.

The Bank is also interested in attracting term deposits, because they are stable and allow him to have the money for a long time and thus increase the operating income from interest.

Term deposits can be of two kinds: the actual time deposits and with advance notice of withdrawal. Actually the term deposits are returned to the owner in a pre-determined period of time. If the initial investment as a fixed deposit amount is not withdrawn by the owner in the prescribed period, then later he may dispose of it similar to the demand deposit.

To remove deposits from the prior notification to the commercial bank must be received by the notification of the depositor. The deadline for notification of withdrawal of deposit in advance is stipulated between the commercial bank and the depositor. Notice of withdrawal of funds allows commercial banks to refinance their active operations from other sources and thus reduce the amount of operating expenses.

The fact that the owner of the term deposit can dispose of it only after a pre-specified period of time, in some cases, does not rule out the possibility of early receipt of a commercial bank their money. In case of early withdrawal depositor cash amount to be paid interest on time deposits decreased substantially.

One form of term deposits is a certificate of deposit - a written certificate of registration of the bank funds, which entitles the investor to receive at the end of the deadline of the deposit and interest thereon. Certificates of deposit issued by banks under a certain percentage of the contract for a certain period or on demand, registered and bearer. Registered certificates can not be treated, and their sale (alienation) to other persons is void.

In a number of countries issued certificates of deposit, which can be sold or transferred to the bank depositors from one person to another via transfer labels (endorsement). Such certificates of deposit, as a rule, produced a large nominal value, are traded on the secondary securities market, allowing their owners to return the money before the maturity period of the deposit.

If the owner of the term deposit certificate requires the return of the deposited funds before the established deadline in it, then he shall be paid a lower percentage, the level of which is determined on a contractual basis when making a deposit.

Savings deposits are designed for accumulation of savings or investments. They are characterized by a slow, gradual growth and the fact that funds are normally used only after a long period of time. It should be borne in mind that to the savings deposits are not placed on the accounts of the funds intended for payment or invested for a predetermined period of time. A feature of savings deposits is that their owners illustrious names testimony of the presence of the contribution in the form of a passbook, which specifies the identity of the owner and the rules for the use account and reflect all transactions on the account. Savings book is issued only when you make an account in a commercial bank a certain amount of money, that is. E. It can not be obtained on a credit basis.

A variety of savings deposits are accounts with the discharge state savings deposits, which are generally similar to those accounts, which carried a savings book. In this case, instead of passbooks are used statements about the status of a savings account that occasionally the agreed time and manner (eg by mail) are sent to the depositor.

Withdrawal of funds from a savings account is only possible after the filing of the notice the owner's contribution. The notice period may be determined by law or established on an individual basis between the commercial bank and the account holder. This suggests that savings deposits suggests the presence on stable cash balance accounts, which are used in the active banking operations. And in some countries, legislation established that the monetary savings for most of their safety should be invested in relatively safe assets such as government securities or mortgage on the land.

Despite the need for prior notification of withdrawal of funds from savings deposits, commercial banks issue them to investors upon request. In this case, a commercial bank will charge the investor a fee to cover its operating expenses, as a rule, by keeping them from deposit interest.

Increasing competition in the market of deposit transactions, the use of computer technology and other factors have contributed to the emergence of new types of deposits that combine individual properties of demand deposits, time and savings. This is evidenced by the experience of both countries with developed market economies, and Ukraine. Commercial banks are increasingly pay interest on demand deposits, use "hybrid" bills, money that is used for financial investments and to current payments. Term deposits in the degree of liquidity approach to savings, because the size of the losses of depositors for early withdrawal of funds in practice negligible. The liquidity of savings deposits increased in connection with the implementation of cashless payments on them, using ATMs that allow at any time to withdraw funds from deposits, as well as the use of credit cards.

Deposits are an important source of resources of commercial banks. However, it is the source of the formation of the banking capital of a single commercial bank, has some drawbacks. First, the operation to raise funds on deposit associated with significant marketing efforts, money and material costs of the commercial bank. It does not allow a commercial bank, if necessary, promptly receive money for active operations, the implementation of contingency payments. Secondly, part of the attracted deposits and deposits of commercial banks are required to keep with the National Bank of Ukraine. Thirdly, the mobilization of funds into deposits in most cases depends on the investor, and not from a commercial bank, which is often difficult or even impossible to obtain additional funds by attracting deposits. Finally, the total amount of temporarily free funds in the framework of a given region is objectively limited.

For operative attract the necessary additional funds, commercial banks use the opportunities of the interbank market resources, on which the cash sale, mobilized other lending institutions.

Interbank loan occupies a special place in the structure of commercial banks' resources. It is operational on a method for producing a source of funds that are inherent in the main short-term nature. Provided interbank loan as part of correspondent relations, but at the same time is expensive in relation to other sources of bank resources formation. Additional resources commercial banks can acquire from other commercial banks or the National Bank of Ukraine. Possibility of sale of cash commercial banks one another due to the presence of the first in the individual periods of excess resources that reflects the value of the resources mobilized by the bank net liquidity reserve funds and loan investments, and other income-generating bank operations. And reserve liquidity of commercial banks depends on the reserve requirements set by the National Bank of Ukraine, and the liquidity reserve as defined commercial bank individually. The reasons for selling one commercial bank to another bank resources are different: the absence of proper demand and profitable allocation of resources among its customers, the need to establish a closer relationship between banks, etc. At first, commercial banks resorted to purchasing resources from other commercial banks solely to conform to.. the instructions of the National Bank of Ukraine, its level of required reserves, solvency and liquidity as well as when faced with certain difficulties. Subsequently, this operation was linked to the need to increase its resources for the purpose of earning income from their investments profitable.

Specific to commercial bank loans are obtained from the National Bank of Ukraine. Their source may be substantially emissions. Possibilities of use of loans by commercial banks National Bank of Ukraine defined the main directions of the single state monetary policy. For loans of the National Bank of Ukraine - it means the issue and a tool for regulating the money supply in circulation. To reduce the money supply, the National Bank carries out a policy of credit restriction, including by reducing the commercial banks provided loans and increase interest rates on these loans. Conversely, if the expected growth of the money supply in circulation, the National Bank of Ukraine carries out credit expansion, including through the extension of loans provided by commercial banks and reduce interest rates on them.

Provision of loans by the National Bank of Ukraine, in some cases associated with refinancing, t. E., Commercial banks provide loans primarily to its clients using its own resources, and in the future, the National Bank shall reimburse (refinance) their commercial bank. To obtain a loan from the National Bank, commercial banks may use in order to maintain economic standards established by them, causing a term of payment of its obligations, and in some cases - to increase the resources for the provision of loans and making other active operations, income-generating commercial bank. The National Bank is the lender of last resort for commercial banks.