Interbank settlements and their importance in the banking system

Interbank settlements are taking place in the case where the recipient and payer are holders of accounts in different banks.All transactions between financial institutions through correspondent accounts are organized in two ways: by using centralized and decentralized systems.

cash processing center

in Russia often uses the first option.For the implementation of centralized settlement units responsible CRH - cash settlement centers (RCCs).In order to carry out the operation, every banking institution must discover its location on the correspondent account in RCC.All relations between the credit institution and the central bank that it caters to the implementation of the transfer of funds, carried out in accordance with the laws and treaty correspondent accounts.

Write-off of funds from sub-account KB or enrolling them in this regard confirmed by an extract in the form of an electronic official document or on paper.

interbank settlement system

transactions through correspondent accounts in other banks, held as follows: respondent bank concludes with other credit institutions and the contract is open account.Correspondent bank opens it after receipt of the relevant documents of the respondent and the signing of the contract.The account opened in another CB banking institution called the "nostro".And the one that opens another bank in the organization (KB) - "Loro".The calculation is made between financial institutions while maintaining daily equality.

Lines of interbank payments

1. Payments between banks through a network of RCCs.The system for the transfer of funds is the main.If RCC is open at least one correspondent account, it makes it possible to operate with any credit organization of the country.

2. Interbank payments for correspondent public relations.The main advantage here is the lack of intermediaries in the implementation of settlement operations that allows them to make faster and more affordable.Such interbank payments carried out on behalf of customers, but without their direct involvement.

3. Inter-bank payment transactions of the domestic banking system - used by major financial institutions which have a wide network of branches.This type of calculation makes it possible to rationally allocate resources to support the liquidity of small units and increase the profitability of the credit institution.

4. Interbank payments carried out via clearing centers.Clearing - it Interbank clearing system, which is implemented by special clearing houses using netting payments.In this case, only the obligations and requirements - net calculations.The main advantage of this system is the acceleration and optimization of inter-bank transactions.But the presence of intermediaries makes this process payments more expensive.

International correspondent commercial networks

To perform such calculations are commercial international correspondent network: TARGET - an automated system in real time;SWIFT - community worldwide financial communications between banks;CHIPS - electronic clearing (clearing) calculations.