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Archives for the ‘Concept of the Bank and the Banking System’ Category

Concept and determinants of liquidity and solvency of commercial banks

Category: Concept of the Bank and the Banking System

Liquidity — one of the distributions of quality characteristics of the bank, which is responsible for its reliability. Bank liquidity — the ability to promptly and without loss to meet their obligations to depositors and creditors. The bank’s liabilities consist of the actual and potential. Real commitments are reflected in the bank’s balance sheet in […]



Assessing the level of commercial bank profit

Category: Concept of the Bank and the Banking System

The main methods of assessing level of profit a commercial bank can be identified: Structural analysis of the sources of profit; analysis of financial ratios; factor analysis.



Assessing the level of income and expenditure of the commercial bank

Category: Concept of the Bank and the Banking System

The main ways of estimating revenues and expenditures of the commercial bank highlighted the structural analysis, dynamics of incomes and expenses, including certain types, the calculation of financial ratios describing the relative level of income and expenses. Set of methods allows us to give a quantitative and qualitative assessment of revenues and expenses of the […]



Interest margin of banks

Category: Concept of the Bank and the Banking System

Interest margin — the difference between interest income and expense of a commercial bank, between interest received and paid. It is a major source of bank profits and is intended to cover taxes, losses on speculative transactions and so-called «burden» — the excess of interest income on non-interest expenses and banking risks. Margin can be […]



Costs of commercial bank

Category: Concept of the Bank and the Banking System

Costs of a commercial bank can be classified by the nature, form, method of accounting period to which they relate, to influence the tax base, a process constraint. By the nature of bank expenses are divided into six groups: operational, the costs for the business of the bank, to pay bank staff, taxes, contributions to […]



Revenues of the commercial bank

Category: Concept of the Bank and the Banking System

Sources of income of commercial banks are different types of businesses. The elements of the banking business are: business loan, discount business, security business, the guarantee the bank’s activities, business with the securities business based on taking deposits and performing operations on behalf of investors, correspondent relationships with other banks in providing innovative banking services.



Banking certificates of deposit and saving certificates. Bank bills. Interbank loans

Category: Concept of the Bank and the Banking System

Kind of term deposits and savings deposits are deposits and savings certificates. Deposit or savings certificate — a written certificate of the issuing bank’s contribution of funds, certifying the right of the depositor or its assignee to receive money after the due date and interest thereon. Certificates may be registered, bearer may be transferred or […]



Non-deposit sources of Bank

Category: Concept of the Bank and the Banking System

In the world of banking practice, extensive development of receiving non-deposit sources of resource mobilization. The most common forms of such engagement means include: — Borrowing on the interbank market; — An agreement to sell securities and repurchase (or operation «repo»); — Consideration of bills and receipt of loans from central banks; — Sale of […]



The composition and structure of assets

Category: Concept of the Bank and the Banking System

Active operations of the bank account for a significant and decisive part of its operations. Under the structure of assets refers to the ratio of different quality asset balance of the bank’s balance sheet total. The quality of bank assets, determines whether the structure of its assets, the diversification of active operations, the volume of […]



The quality of bank assets

Category: Concept of the Bank and the Banking System

Asset quality is determined by their liquidity, the volume of risky assets, a specific gravity of the critical and substandard assets in assets that yield income. To ensure the daily bank’s ability to meet its obligations asset structure of commercial bank shall comply with quality requirements of liquidity. To this end, all the bank’s assets […]





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