Commercial Banks (CB) - organizations that cater to a variety of businesses, individuals and legal entities.As independent economic entities, they are an important part of the overall banking system, in fact, its main link.The functions and operations of commercial banks reduced to maximizing profits.And the relationship with customers, these organizations are building on a commercial basis.
Commercial Bank.Features
KB is acting as a credit institution which has the right to perform certain banking operations.Each commercial bank, whose functions are very diverse, engaged in complex customer service.This is its main difference from other credit institutions are not endowed with such great powers.
KB, attracting funds from clients have the right to post the capital on its own behalf.But at the same time on the terms of payment, maturity, repayment.It is also the responsibility of the organization is to carry out payment transactions on the basis of customers' orders.
financial resources of these banks are defined by three components:
- registered capital;
- borrowed funds;
- retained earnings.
Commercial Bank has a well defined management structure, where the main role is given to the shareholders meeting.It is usually convene once a year, not counting extraordinary meetings.The meeting may be attended by all shareholders, but the right to vote is only the owners of ordinary shares.The Board of Directors is the operative management body CB and its members are elected on the board of shareholders.
Commercial Bank.Options
In accordance with the banking legislation in the CB has certain commitments to a comprehensive customer service.By the functions of commercial banks include:
- accumulation and mobilization of funds raised.This is the most important function in the implementation of which the bank acts as a borrower, because CB is assigned the leading role in attracting capital and its exaggeration.
- Investing and placement of borrowed funds in order to gain profit.
- Mediation loan also included in the list of powers that provides a commercial bank.Functions of this kind play an important role in the expansion of production and consumer demand.
- Cash Service banking customers.
Basic KB
Commercial Bank, whose functions have been listed above, and must perform certain operations.These include:
- Deposit operations - raising funds belonging to individuals and legal entities, for the purpose of deposit for an indefinite period of time or on demand.
- Loans under certain interest for the borrowed funds on terms of repayment.
- Opening and maintenance of customer accounts.
- Collection of means of payment.
- Issue of securities.
- buying and selling foreign currency.
- operations with precious metals.
- Financial consultation and bank guarantee.
In general, all the operations of commercial banks are a manifestation of their functions.Russian CB must conduct all transactions in Russian rubles.Transactions in foreign currencies are allowed only in case of a license.In addition, banks are categorically forbidden to engage in insurance, commercial and industrial activity (by federal law).
