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.

Commercial banks, acting on the financial market with the demand for credit, not only to mobilize savings available in the economy, but also form a sufficiently effective incentives to the accumulation of funds. Incentives to the accumulation and preservation of cash generated based on flexible deposit policy of commercial banks.

In all countries with market economies commercial banks occupy a leading position in the payment mechanism of the economy.

A special unit of the banking system is the banking legislation, which is designed to regulate the banking business. Currently in Russia there are two laws directly related to the work of the banks. This federal law "On the Central Bank of the Russian Federation" (1995) and "On Banks and Banking Activity" (1996). International practice shows that the laws of banking institutions should be supplemented by special laws on the banks of the bank holding companies, associations and consortiums, credit cooperatives and other small credit institutions. In addition, the system of banking laws usually also includes laws governing various aspects of banking activities, including credit business, electronic payment system, banking secrecy, the failure of banks and others. In the system of banking laws stand out at the same time universal laws of action (Civil Code, the Law "On Advertising"), as well as laws to ensure that regulation of parallel institutions and affecting the banking business.

The main functions of commercial banks are:

attracting temporarily available funds;
provision of loans;
implementation of cash payments Mr. payments in the economy;
issuance of credit-treatment;
counseling and provision of economic and financial information.

Feature mediation functions of commercial banks is that the main criterion reallocation of resources serves the profitability of their use by the borrower. Redistribution of resources is carried horizontally economic relations from the lender to the borrower, through the banks without intermediaries in the face of superior banking institutions under the terms of payment and repayment. Fee for given and received loan funds formed under the influence of demand and supply of loanable funds. The result is the free movement of financial resources in the economy. The value of mediation functions of commercial banks for the successful development and operation of a market economy is that banks reduce their activity level of risk and uncertainty in the economic system.




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).

Payment requests and collection orders imposed recipient of funds (recoverer) to the payer's account via bank serving the payee.

The bank also transferred the settlement documents listed in the register referred for collection of payment documents. Registry is made in two copies, it may be included at the discretion of the recipient of funds (the claimant) payment requirements and (or) order.

The first copy of the register is made by two signatures of persons authorized to sign the settlement documents, and stamp.

When receiving payment for collection requirements, collection orders issuing bank checks the compliance of the settlement document prescribed form form, completeness of all details provided by the blank, matching the signatures and seals recipient of funds (the claimant) samples specified in the card with specimen signatures and seal, and and the identity of all copies of settlement documents. After checking the correctness of filling on all copies of settlement documents taken to stamp of the issuing bank, the date of receipt and signature of the artist. Missed documents are deleted from the registry referred for collection of payment documents and returned to the payee, the amount and the amount of the settlement documents in the register are corrected. All corrections and both copies of the registry certified by the signature of the responsible officer of the issuing bank.

Executive in charge of the executing bank shall monitor the completeness and correctness of filling out details of the settlement documents, except for the verification of signatures and seals recipient of funds (the claimant), as well as checks on all copies of settlement documents the stamp of the issuing bank and the signature of the responsible officer. Settlement documents issued in violation of, non-refundable, while in the log entry is made with the date and reason for the return.

Payment settlement documents produced upon receipt of funds to the account of the payer in the order established by the legislation. Allowed partial payment payment requests, collection orders, which are on file for off-balance sheet "Settlement documents not paid in time." Partial payment is payment orders in a manner similar to the procedure of partial payment of the payment order, except for the level of partial payment.

In the case of non-performance or improper performance of the customer's order to obtain payment on the basis of settlement documents issuing bank is liable to him in accordance with the law. In the case of non-compliance by banks requirements for the verification of settlement documents they are responsible for damages arising out of the execution wrongfully exposed payment requests, paid without acceptance payers or collection orders.

There are several types of collection operations. Simple (pure) collection - the operation for which the bank agrees to get money from a third party on the basis of the payment request is not accompanied by commercial documents and exposed by the client through the bank "

Documentary (or commercial) collection - the operation as a result of which the bank must submit to a third party resulting from the firm-client documents, usually tovaroraspredelitelnye, and give them to that person only against payment.