Operations of commercial banks

In the activities of banks are the following types of operations: passive, active and commissions, including brokering.

Using passive banks accumulate operations necessary for its functioning money - their own, borrowed and issued. Source of equity are: the contributions of founders (long-term loan); proceeds from the sale of stocks and bonds; deductions from current profits to the reserve fund; retained earnings. Borrowed funds are formed and issued by banks at the expense of customer deposits on current, term and savings accounts, as well as a result of the issuance of credit money. An important role in raising funds play interbank loans, discounting and rediscounting of bills.

Functions of commercial banks

Commercial banks - the main link in a two-tier banking system.

Today, a group of commercial banks in different countries is a number of institutions with different structure and a different attitude to the property. Their main difference from the central banks yazlyaetsya no right to issue banknotes. Among the commercial banks are two types - universal and specialized banks.

Calculations for collection

Calculations on collection is a banking operation by which a bank (issuing bank) on behalf of and for the account of the client on the basis of settlement documents will take steps to obtain payment from the payer. For the settlement of collection issuing bank has the right to involve other banks (nominated bank).
The calculations are carried out for collection on the basis of payment requests, the payment of which can be made by order of the payer (with acceptance) or without his orders (without acceptance), and collection orders for which payment is made without the order of payers (without recourse).

International credit

International credit - the movement of loan capital in the field of international economic relations associated with the provision of currency and commodity resources in terms of repayment, urgency, security and interest payments. Interrelated functions, the international credit plays a dual role in the development of production: positive and negative.

On the one hand, credit ensures the continuity of reproduction and expansion. He contributes to the internationalization of production and exchange, deepening international division of labor. On the other hand, the international credit reinforces imbalances of social reproduction, stimulating an abrupt expansion of profitable industries, hinders the development of industries that do not attract foreign borrowings. International credit is used to strengthen the position of foreign creditors in the competition.