Reserve fund of the Bank is intended for. Statutory fund and reserve fund. Tools for impairment

With the advent of the Central Bank and the development of the financial regulation system at the state level, reserves of commercial banks were created, as well as credit institutions. During their account, the amount of residues on the relevant (spare) accounts or the conditions of their replenishment are controlled. Let us then consider what the bank's mandatory reserves represent.

General

Reserves of banks provide cash to the uninterrupted execution of payment obligations relating to the return of deposit depositors and settlement with other financial structures. In other words, they act as a guarantee. Reserves should be kept in cash monetary form as deposits in the central bank or in the form valuable papers To provide liabilities.

Requirements

Today, almost in all states with market economy Bank introduced. The effectiveness of this financial and credit regulation tool is confirmed and fundamental research, and world practice. In the Russian Federation, minimal requirements also serve as a source of repayment of obligations to creditors and depositors in the event of a license to the organization for operations. In practice, the return of funds constituting the reserve of the Central Bank is clearly regulated. Minimum requirements are mainly used in the framework of financial and credit regulation when solving a long-term problem to stabilize money turnover and in combating inflation. This tool acts as a limiter to the growth rate of cash and regulation of demand for bank reserves. Its specific purpose is given in position No. 342. In accordance with the definition given in this act, the use of this tool ensures the regulation of the total liquidity of the banking structure of the Russian Federation. Cash control is carried out by reducing the money multiplier.

the main goal

In practice activities financial organizations There is always a risk of unplanned losses. No institution is insured from them by 100%. In this regard, during the functioning and in the process of risk management, each financial institution needs to ensure the formation of bank reserves. To ensure its reliability, the organization is obliged to create various funds, funds from which will be directed to the coverage of probable damages. The order, in accordance with which the formation and subsequent use of them is carried out, in most cases it is established legislative acts and the Central Bank. The amount of deductions from profit to the taxation is regulated by the FZ on taxes. Minimum amount Bank reserves are established by the Central Bank. As practice shows, the use of "stock" is appropriate in the presence of objective need to reduce the money supply in circulation (suspend or control the growth) to prevent "overheating" of the economy, if it will be used to achieve this goal to restrict the credit opportunities of financial institutions through the seizure of a certain share of attracted funds (or increase this part). From this it follows that the reserve of the Bank of Russia is the means of financial organizations that accumulate as indefinite contributions that should be excluded from any turnover.

Classification

Bank reserves, in general, have one destination - compensate for probable costs or losses if necessary. However, they are divided into species. Thus, the mandatory reserve is a tool by which the overall liquidity of the system is regulated. It is used by the Central Bank to ensure control of funds by reducing the cash savings in commercial banks. This mechanism limits credit capabilities. financial companies and supports at a certain level the money supply in circulation. In essence, mandatory reserves are funds that commercial banks should be stored in the Central Bank. They act as a warranty financial fund, ensuring reliability in the fulfillment of obligations to its customers. Such reserves of banks are created not so much in the interests of the organization itself. They act as a state tool monetary policy. Being highly liquid, these assets cannot be used by financial institutions fully when adversely appear. For example, if the institution began the outflow of depositors funds, the reserve can be used exclusively within the framework of the established standard.

Fund

It is represented as part of its own capital formed by annual contributions from profits. The reserve fund is necessary to cover losses arising in the process of activity of a financial organization. It is also created to increase the authorized capital. The cost of deductions is determined at the general meeting of shareholders. The value can be any of the established amount of share capital. Financial enterprise It is entitled to deduct funds only when there is profits. His replenishment is thus implemented due to the increase in the net asset. The fund accumulates funds received by the Financial Institute during its activities. By transferring from profits to the Fund, the banking organization provides for the use of the share of its assets exclusively in certain directions. As the main one, the loss is covering.

Bank reserves on probable losses on loans

Their creation is caused by credit risks that may arise in the process of activity. Such reserves allow you to prevent oscillation of profits when debiting losses on loans. Thus, the impact on the amount of capital. The formation of such reserves is derived from deductions that belong to expenses for each loan. These funds are used only when covering outstanding debt on the main obligation. Due to these reserves, the losses on loans are implicitable for recovery. With a lack of funds, the debt recognized as unreal or hopeless is included in the loss of the reporting period. Due to this, the taxable base of the financial institution decreases.

Tools for impairment

Monthly on the last working day there is a revaluation of investments in stock at market value. Under the latter should be understood as the weighted average price of one paper on transactions, which have been completed over the day on the stock exchange or using the Bid Organizer. In some cases, the actual cost of buying a security on the last operating date can be accepted as a market, reduced twice. If it is below the balance sheet price, the financial organization must create a reserve for impairment. Its value should not be more than 50% of specified value. The formation is carried out in the last working date of the month in which the security was purchased. Her write-off is carried out simultaneously with the disposal of the action. Creating reserves data, as described above, is carried out separately for each paper, regardless of increasing or maintaining their total cost.

The specificity of the stock impairment

When reassessing attachments, there is a need to form reserves. However, the papers remain unchanged. In this regard, these funds are rather considered not so much a reserve as they act as a pricing price adjustment for accounting. At the end of the reporting month, credit institutions should overestimate the reserves created earlier reproduction of investments, taking into account the market value and the number of papers.

Other species

In addition to those listed, there are other reserves of banks. They are combined into a group of likely losses on other assets. To them, in particular, are reserves:

• Under balance assets With a risk of losses.
• For a number of tools reflected in the accounting accounts of accounting.
• According to urgent transactions.
• For other losses.

Classification of losses

Under possible losses of the financial institution, the formation of reserves should be understood as hypothetical risks in the upcoming periods associated with the emergence of the following circumstances:

1. Increased costs or liabilities compared to previously reflected in accounting.
2. Reducing the value of the assets of the credit company.
3. Failure to fulfill the obligations adopted by counterparties of the financial institution for perfect operations (concluded transactions) or in connection with the non-fulfillment of the promise of subjects, the proper repayment of the debt of which is provided by the serving banking organization.

From the above bank reserves, only the fund is considered the most effective. This is due to the fact that at the expense of its generation, the financial institution can control their expenses. All other bank reserves are not considered as effective. This is explained by the fact that an increase in their size will not help strengthen the ability of the organization to withstand emerging adverse circumstances.

Zolovolovoy reserves of the bank

They are financial assets distinguished by high liquidity. are managed by the Central Bank and the Ministry of Finance. Their composition includes:

1. Monetary gold.
2. Special borrowing.
3. Reserve position in the world WF.
4. Foreign currency.

The cost of these stocks is given at the reporting date in terms of the US dollar.

Purpose

Zolotovolnoy reserves act as a financial supply, due to which, if necessary, state debt can be paid or fulfilled budget expenditures. Their presence, in addition, allows the Central Bank to carry out control over the dynamics of the ruble exchange rate through interventions on foreign exchange markets. The size of this stock must largely overlap the volume of mass of money in circulation, provide both private and sovereign payments on external debt and guarantee a 3-month-month import. In the event of achieving such a magnitude gold and collar reserves The Central Bank gets the opportunity to make effective controlling the movement of the ruble and interest rates.

None credit organisation not insured one hundred percent of unplanned financial losses, therefore, in the process of its functioning and regulation of banking risk, The financial institution must allocate an important role in the formation of bank reserves..

In order to ensure its financial reliability, the Bank is obliged to create a different kind of reserves for the coverage of possible losses, the procedure for the formation and use of which is established in most cases by the Bank of Russia and legislative acts. The minimum size of the bank's reserves is determined. The amounts of deductions in the Bank's reserves from profit to taxation are established federal laws about taxes.

Types of reserves of the bank

It should be understood that bank reserves Though have one general purpose - As it: in case of acute necessity, expected costs or loss, but, nevertheless, divided into certain species.

Required reserves of the bank or reserve requirements

Required reserves of the bank or reserve requirements - are a tool for regulating the general liquidity used by the Bank of Russia to monitor funds by reducing the cash savings commercial banks. Such a mechanism is established in order to limit the credit opportunities of financial organizations and maintain at a certain level of money supply in circulation.

Mandatory reserves of the bank - this is, in fact, the means of commercial banks and other credit institutions that they must be stored in Central Bank as warranty financial Fundproviding reliable fulfillment of its obligations to clients. Basically, the task of creating mandatory reserves lies outside of the interests of a separate bankIn essence, this is a tool for the implementation of the state monetary policy.

Mandatory reserves, being highly liquid assets, however, cannot be fully used in the occurrence of adverse circumstances. For example, if the bank has started outflow of depositors' cash, then the mandatory reserves can be used to finance this process only within the boundaries of the established standard. And even the increase in the amount of mandatory reserves due to the change of the standard does not increase the reliability of a separate bank, since additional costs are taken from the turnover. cash.

Reserve Fund of the Bank

Reserve Fund of the Bank - Part of the equity, formed by the annual deductions from profits. The reserve fund serves to cover the losses of the bank arising from its activities, and is also created to increase the authorized capital. The ratio of deductions B. reserve Fund Installed general meeting Shareholders, but can not be less than a certain amount of authorized capital.

The reserve fund is included in the calculation of the Bank's capital. Credit organization has the opportunity to make deductions to the Reserve Fund Only if there is a profit. Thus, the Bank's reserve fund is created by increment pure assets.

Thus, the reserve fund accumulates assets received by the Bank as a result of its activities. By making transfer from profits to the Reserve Fund, the Financial Institute provides for the use of part of its assets only for certain purposes, the main one is coverage of damages.

Bank reserves for possible losses on loans

Reserve for possible losses on loans It is a special reserve of the bank, the formation of which is due to credit risks in the activities of financial institutions. This reserve avoids vibrations of the magnitude of the profit of banks in connection with the write-off of losses on loans, thereby affecting the amount of capital.

This reserve is formed at the expense of deductions attributable for bank expenses, and separately for each loan issued. The Bank's reserve for possible losses on loans is used only to cover the loan debt not rejected by customers. Due to the specified reserve of the Bank, a loss of losses are imposed on failure to recover loans.

At the same time, loan debt, hopeless and (or) recognized unreal for recovery, is written off from the balance sheet of the credit institution at the expense of a reserve for possible losses on loans, and if it disadvantages its losses of the reporting year, thereby reducing the taxable base of the bank. True, in the formation of such a reserve of the bank, no resources with value are used.

Bank reserves for securities impairment

On the last working day of each month, revaluation is made at the market value of the investment of a credit institution into securities. IN this case, under the market price it is understood as the weighted average cost of one security for transactions committed during the last trade day of the reporting month on stock Exchange or through the organizer of trading. In exceptional cases for market value As of the last working day of the reporting month, the actual purchase price of a purchase of securities is adopted, reduced twice.

In the event that the market value of the security for the last working day of the reporting month (so-called. Revaluation price) will be lower balance value Security, then commercial Bank Or a loan institution is obliged to create a reserve for impairment of investments in securities in the amount of decline in the average market price (revaluation price) relative to the book value. In this case, the amount of the reserve should not exceed 50% of its book value.

This bank's reserve is formed on the last working day of the month, which purchased securities, and is written off simultaneously with the disposal of the security. Bank reserves are created separately for each securities.regardless of the preservation or increase in the value of all securities.

The reassessment of investments in securities leads to the creation of a bank reserves for their impairment, but does not change the book value of these securities. Therefore, the Bank's reserve for impairment of securities, in fact, is rather not a reserve, but the adjustment of the value of the security for accounting in its balance sheet. Credit organizations on the results of the reporting month should be adjusted to the reserves created earlier for impairment of investments in securities, taking into account the number of securities and market value.

Other types of bank reserves

In addition to those listed above the main reserves of the bank, there are other, combined in a group of possible losses on other assets - they include:

• bank reserve for balance sheet assets for which there is a risk of loss
• bank reserve for some tools reflected in off-balance accounts accounting
• reserve Bank for Urgent Transactions
• bank reserve for other losses

It should be understood that under possible losses of the financial institution in relation to the formation of the reserveimply hypothetical losses in the future due to the following circumstances:

• reducing the cost of assets of the credit organization
• increased liabilities and (or) bank expenditures compared to previously reflected in accounting
• failure to fulfill the obligations of the counterparties of the credit institution on the transactions concluded (perfect operations) or due to the non-fulfillment of promises by the person, proper execution obligations of which is ensured by a credit institution committee.

Basically, from the considered reserves of the bank, only its reserve fund is effective.because Only at the expense of this fund, the Bank may influence its expenses. All other reserves are not effective for the Bank, because their increase does not contribute to strengthening the ability of the Bank to resist the unfavorable development of events.

Any financial activity is accompanied by the possibility of cash loss, and 100% of insurance against such risks does not exist. Given this fact, each banking organization must have a certain reserve fund, and this aspect is reflected in the legislation of the Russian Federation. What should be the amount of the reserve for the Russian commercial bank? How is the calculation of the backup magnitude? Let's try to deal with these and other issues.

What does bank reserves mean?

Reserve, in the generally accepted sense, this stock financial means, materials, products and so on, for some particular case. Banks also have their own financial reserves - reserves.

What do they provide? Reliability of a specific financial structure. And not one reserve is created, but a few, because damages can also be of different kinds . In what order to form one or another stock of finance and how to use it is written in legislative Base RF. The minimum size of each reserve determines Central bank Russia.

The main types of reserves of commercial banks

All reserves have one destination - cover the loss of banking organization. They are used in the occurrence of acute necessity. For each type of financial loss, a fund is provided.

In commercial credit structures, the main types of "stocks" are:

• Mandatory reserve funds

They are a tool regulating the liquidity of the entire credit structure of the country. Such a tool uses the Bank of Russia. This is a kind of control over finance concentrated in commercial banks. What role does he play? Limits bank credit ability, and in addition money massin circulation is supported at a certain level.

Such reserves are stored in the Central Bank and serve as a warranty providing calm customers. They can be sure that the banking organization will fulfill all the obligations anyway.

In fact, the compulsory species fund does not affect the interests of a particular banking structure. Such a mechanism is needed by the state for holding financial and credit measures with highly liquid assets. For example, in the bank there is an outflow of money, then reserve finances are used related to the obligatory form.

• Banking Reserve

This is your own capital of a specific banking organization, more precisely its part formed by the annual deductions of a certain percentage of profit. If the organization has not received a profit for the year, then it simply has nothing to replenish the fund. The question arises functional purpose Such a reserve fund. It consists in covering losses arising in the process of the Bank's activities, as well as to increase the authorized capital. The rate of deductions establish shareholders.

• Bank reserve providing for the possibility of non-return of loans

Always risk not getting back their funds in full. Forming this reserve, the organization eliminates possible fluctuations in numbers reflecting the magnitude of the profit - losses from irrevocable loans are written off, which affects the size of the capital.

How are mandatory reserves or requirements of commercial banks?

Reserves of banks from the category of mandatory are stored in the Central Bank. These are or securities that ensure the implementation of banking obligations to depositors in the form of a refund of deposits or settlements with other banking structures. Mandatory reserves are inherent norms expressed as a percentage in relation to various assets and liabilities of the bank.

What can affect the norm:

• Period of business - How long the bank is working.
• Asset or liability size banking organization.
• The size and type of deposits attracted.
• Features of the region where banking is carried out.

Mandatory reserves are formed due to cash transfers in national currency RF . The bank opens a correspondent account in the Central Bank of the Russian Federation and it transfers the funds for the reserve fund monthly.

Reserve requirements Performed by the bank from the moment he received a license to keep banking activities. Moreover, the fulfillment of the requirements is prerequisite For the credit institution of any operations.

Formation of a commercial bank reserve fund - calculation and norm

If there is a possibility of losses, it means you need to assess the level of risk. This uses professional judgment, as well as a special risk level classification.

She has five quality categories financial state Counterparty:

1. If there is no real or potential threat Failure to the counterparty obligations, the calculated reserve will be 0% (the calculated base of the element is taken as the base).
2. With the existence of a threat to loss of moderate potential type – 1-20%.
3. If the threat of losses is potentially a serious argument or in fact there is moderate argument for losses (the counterparty has deteriorated a financial situation) - 21-50%.
4. The simultaneous presence of both potential and moderately real risks – 51-100%.
5. There are all the facts indicating the loss of the value of a particular element. , that is, the counterparty will not fulfill obligations under the contract - 100%.

At the same time, the created reserve, or rather it generalIn fact, must be in accordance with the indicator of alleged losses.

Reserves of commercial banks for possible losses on loans

In the formation of the Fund, the deductions that belong to bank expenses. This method applies to each loan issued. The reserve is used only in one case to cover the main credit debt client . You can write off the loss only in the absence of any possibility to recover a loan.

Loan debt (loan) recognized as hopeless to write off from the bank's balance sheet. If the reserve funds in this fund are not enough, the amount is carried out as the losses of the bank for the reporting year. Thus, the taxable base is reduced. In the formation of this reserve, valuable banking resources do not take part.

Other reserves of commercial banks

Financial and credit organizations are owned by securities. This financial instrument Also inherent depreciation. That is why their reassessment is made monthly - the cost of each paper on the market is checked. In other words, it turns out the average cost of each type of securities on the stock exchange for the reporting month.

If the price of the market will be less than that indicated in the balance sheet, the credit institution or the bank is mandatory creating a reserve providing for the depreciation of such investments. The size of the reserve is the size of which the cost of paper has decreased relative to the price reflected in the balance sheet, but not higher than 50% (the figure is the figure specified in the balance sheet).

The banking system is the key link of the credit system, concentrating the bulk of credit and financial transactions, which performs the functions of mobilization of monetary resources, non-cash payments, lending and cash maintenance of enterprises of various sectors of the national economy.
Banks attract capital savings and other free funds, released in the process of economic activity, and pose them to temporary use of other economic agents in need of money capital.
Today, according to the banking code, the Bank must deposit part of the funds raised in the Mandatory Reserve Fund, posted in the National Bank.
Through the funds of mandatory reserves, the monetary circulation is regulated in accordance with the objectives and objectives of the monetary policy of the Republic of Belarus, as well as the liquidity and solvency of the Bank are insured.
The National Bank On the basis of the order of the Chairman of the Board of the National Bank, it is entitled to collect funds unrelated into the fund of fundamental reserves through the undisputed their write-off from the Bank's correspondent account.
All this causes the relevance of the chosen topic: "Reserve Fund of Commercial Bank".
The object of study was elected to the activities of the branch 527 OJSC ASB Belarusbank of the city of Minsk.
The subject of the study will be a reserve fund of a commercial bank.
The purpose of this work is to study the process of forming and using the reserve fund.
To achieve the goal, the following tasks were solved:

Examine the concept of a commercial bank reserve fund, its formation and regulation
Consider the regulatory framework for the formation and use of the Commercial Bank Reserve Fund.
Analysis of the activities of OJSC "Belarusbank" on the formation of a reserve fund

Course work is based on legislative, regulatory acts of the National Bank of the Republic of Belarus, decrees of the President of the Republic of Belarus, theoretical and periodicals, in which the theme of this work is considered, as well as on the methodological instructions and materials of the accounting and statistical reporting of the branch 527 OJSC ASB "Belarusbank" of Minsk .

1 Reserve Commercial Bank Fund, its formation and regulation

1.1 Principles of Commercial Bank's activities

We list the basic principles of the activities of commercial banks and consider their interaction with the structure of the Bank's resources.
The first and fundamental principle of the activities of the commercial bank is to work within the limits of actually available resources.
Work within real resources means that the commercial bank should ensure not only quantitative compliance between its resources and credit investments, but also to ensure compliance of the nature of banking assets to the specifics of resource mobilized them. First of all, this refers to the timing of those and others. So if the bank attracts funds mainly for a short time, and puts them mainly in long-term loans, then its liquidity is threatened. The presence of a large number of loans with increased risk in the assets of a bank requires an increase in the specific gravity of own funds in the total amount of its resources.
The second most important principle on which the activities of commercial banks are based, is the economic independence, implying and economic responsibility of the bank for the results of its activities. Economic independence implies freedom of disposal of the bank's own funds and attracted resources, free selection of customers and depositors, bank income disposal.
The current legislation provides all commercial banks with economic freedom at its disposal by their funds and incomes. The profit of the bank remaining at his disposal after paying taxes is distributed in accordance with the decision of the General Meeting of Shareholders. It establishes the rules and sizes of deductions to various bank funds, as well as the size of dividends on shares.
According to its obligations, the Commercial Bank meets all the means and property belonging to him, which may be imposed. The whole risk from their operations commercial bank takes over.
The third principle is that the relationship between a commercial bank with its clients is being built as ordinary market relations. By providing loans, the commercial bank proceeds primarily from market criteria for profitability, risk and liquidity. The fourth principle of the commercial bank is that the regulation of its activities can be carried out only by indirect economic (and not administrative) methods. The state defines only the "rules of the game" for commercial banks, but cannot give them orders.
Commercial banks, like other business entities, to ensure their commercial and economic activities should have a certain amount of funds, i.e. Resources. In modern conditions for the development of the economy, the problem of resource formation is of paramount importance.
This provision is due to the fact that with the transition to the market model of the economy, the liquidation of the state monopoly into banking, the construction of a two-level banking system, the nature of banking resources undergo significant changes.
This is explained as follows. First, a national fund of banking resources was significantly narrowed, and the scope of its functioning focuses in the first link of the banking system - in the National Bank of the Republic of Belarus.
Secondly, the formation of organizations with various forms of ownership means the emergence of new owners of temporarily free cash. These owners independently determine the place and method of storing funds, which contributes to the creation of a market of credit resources organically included in the system of monetary relations.
In addition, the scale of the activities of banks defined by the object of its active operations depend on the aggregate amount of the resources with which they have, and especially from the amount of the resources attracted. This situation exacerbates the competitive struggle between banks for attracting resources.
Resources of commercial banks, or banking resources, are a combination of all funds available to banks and used to implement active operations.
According to the method of education, the resources of a commercial bank are divided into their own and attracted (obligations to customers and credit organizations).
Own funds - funds received from shareholders (participants) of the Bank in its creation and educated in the process of its activities that are at the disposal of the bank without limiting the timelines.
Attracted funds - customers received for a certain period or demand. For borrowed funds include funds received from credit institutions.
The main source of resources of the commercial bank are the funds that make up about 70-80% of all banking resources, which, by nature, can be classified for funds received from bank customers and borrowed in the banking sector.
Functions performed by bank capital are ambiguously determined both in domestic and western literature. Three main functions are distinguished: protective, operational and regulating. Since a significant proportion of bank assets is funded by depositors, the main function of the most limited amount of equity is the fence of interests of depositors. In addition, the Bank's capital reduces the risk of bank shareholders.
The protective function means the possibility of paying compensation to depositors in the event of the Bank's liquidation, as well as the preservation of solvency by creating a reserve for assets that allows the Bank to function, despite the threat of losses. At the same time, however, it is assumed that most of the losses are not covered at the expense of capital, but at the expense of the current revenue of the bank. Unlike most enterprises, the maintenance of the solvency of the commercial bank is provided only by part of its own capital. As a rule, the Bank is considered solvent until the share capital remains untouched, i.e. As long as the cost of assets is not less than the amount of obligations (minus unsecured) issued by the Bank and its share capital.
Capital plays the role of a kind of protective cushion and allows the Bank to continue operations in the event of large unforeseen losses or expenses. To finance such costs, there are various reserve funds included in their own capital, and with mass defaults of clients for loss loans, it is possible to use part of the share capital.
The operational function of banking capital has a secondary value compared to the protective. It includes the allocation of own funds for the acquisition of land, buildings, equipment, as well as the creation of a financial reserve in case of unforeseen damages. This source financial resources Indispensable at the initial stages of the Bank's activities, when the founders carry out a number of priority expenses. At the subsequent stages of the Bank's development, the role of equity is equally important, some of these funds are invested in long-term assets, in creating various reserves. Although the main source of costing the cost of expansion of operations is accumulated profit, banks often resort to new issues of shares or long-term loans during structural events - the opening of branches, mergers.
The execution of the regulating capital function is connected exclusively with the special interest of society in the successful functioning of banks. With the help of the capital of the Bank, state bodies evaluate and monitor the activities of banks. Typically, the rules relating to the Bank's own capital include the requirements for its minimal size, assets restrictions and the conditions for the purchase of other bank assets. Economic standards established by the Central Bank are mainly based on the amount of equity bank. Within the framework of the classification of functions to the regulatory function, the use of capital to limit loan and investment operations (to the extent to which loan and investment of the Bank are limited to available equity). Many specialists, recognizing that the main purpose of banking capital is to reduce risk, focus on the following functions:

Capital serves as a buffer that allows you to cope with losses and keep solvency;
Capital provides access to financial resources markets and protects banks from liquidity issues;
Capital supports customer confidence in the bank and convinces creditors in his financial power. Capital should be large enough to ensure the confidence of borrowers that the Bank is able to satisfy their needs for loans, even if the economy is experiencing a decline;
Capital limits risk.

Listed capital functions contribute to risk reduction. Such an approach has greater practicality and is adapted for the purpose of managing a commercial bank.
The role of capital as a buffer upon receipt of losses on loans is clearly manifested if it is considered in the context of the cash flow. If the bank's customers cease to fulfill their liability obligations, instantly decreases the inflow of funds for interest and basic payments. The outflow of funds does not change. The bank remains solvent until the inflow exceeds the outflow. And here the capital serves as a buffer, because it allows to reduce forced outflows.
The bank can delay dividends on shares, being unable to pay. Payments for bank debt, on the contrary, are mandatory. Banks with sufficient capital produce new commitments or stocks to replace lost funding inflows with new and win time until they are solved with assets. Thus, the more bank capital, the greater the assets may be unpaid, before the bank becomes insolvent, and the less the risk of the bank.
The bank held a credit and investment policy should contribute to the implementation of the banks planned by the Bank with changes in the demand for credit, interest rates and liquid resource needs.

Figure 1.1 - Typical Bank Management Scheme

The Council is responsible for ensuring that credit and investment operations are carried out in accordance with the laws and instructions of bank control and regulation bodies. In this regard, the Directors carry out a general monitoring of the Bank's activities and checking banking operations.

Figure 1.2 - Option of organizational structure of a commercial bank

Adequate bank capital makes it possible to reduce operational problems, providing free access to financial markets. Capital allows the bank to make loans from traditional sources at ordinary rates. Large equal capital provides a stable reputation of the Bank, the self-confidence in the depositors.
Capital restrains growth and reduces the risk by restricting new assets that the bank can purchase through financing through debt. This feature is closely related to the state authorities by the standards of capital to assets. So, if banks decide to increase the size of the loans or purchase other assets, they must maintain growth through additional financing of share capital. It warns speculative assets growth, because banks should always remain within their capabilities of successful assets management.
These funds of banking capital show that its own capital is the basis of the Bank's commercial activities. It provides its independence and guarantees its financial stability, being a source of smoothing the negative consequences of various risks that the Bank carries.

1.2 Reserve Fund as a factor affecting the formation of sufficient capital of bank

The proprietary capital of the commercial bank is a source of bank financial resources. At the expense of own capital, banks cover about 12-20% of the overall need for resources. It is indispensable at the initial stages of the Bank's activities, when the founders carry out a number of initial costs, without which the bank simply cannot begin their activities. No less important is the role of equity as a source of financing the bank's expenses at the subsequent stages of deploying banking operations. They play an important role and to assess the financial position of the bank. The larger the size of the free reserve, the more stable this bankBut the less profit it will receive.
The term "capital adequacy" reflects the overall assessment of the reliability of the bank. It causes the relationship between capital values \u200b\u200band bank exposure to risk. Hence the rule: the higher the proportion of risky assets in the bank's balance sheet, the greater should be his own capital. If, for example, the loans granted by the Bank are conjugate with great risk, then the Bank requires more capital funds than if he conducted a more cautious credit policy. Thus, it can be said that the Bank's capital is the most important insurance fund to cover possible claims in the event of a bank bankruptcy and the source of financing the development of banking operations. In this regard, the baths seek to increase their capital.
The total capital structure is as follows:
1. Combine capital:
· Paid share capital.
· Announced open reserves (these are reserves created and increasing from joint-stock profits, general and official reserves received or created during the accountable year).
2. Additional capital:
· Hidden (nonposable) reserves.
· Reserves arising from the reassessment of assets.
· General reserves for dubious debts.
· Hidden income.
· Securities and subordinated loans with an indefinite period.
In order to improve the reliability of capital of the Bank, the following requirements for its structure were adopted:
1. The basis of the basic capital should be at least 50% of the total capital of the bank. Moreover, the basic capital should be determined after the payment of income taxes.
2. Such auxiliary liabilities should not exceed 50% total amount basic capital.
3.If, general reserve funds in case of credit losses include assets with an understated assessment, then their volume should not exceed 1.25% item or in exceptional cases of 2% of the points from the size of assets exposed to risks.
4. If the reserves from the revaluation of assets take the form of hidden revenues from unrealized securities, then they are subject to 55% discount.
Capital Commercial Bank is needed to maintain its financial assets in order to provide shareholder obligations to protect depositors from unexpected losses of the bank. In the process of retrieving profit, the capital of banks tends to reduce over time. To do this, you need to maintain capital at a certain level. The adequacy of the capital of a commercial bank can be determined by the minimum permissible size of the bank's share capital and specifically designed for this purpose.
There are many ways to calculate capital adequacy ratios from which factors can be distinguished affecting the formation of a sufficient capital amount of the Bank:
1. Baby and bank funds:
1.1. Decision capital;
1.2. Associated shares repurchased from shareholders;
1.3. Tube capital;
1.4. Bank funds;
1.5. Reviews for possible losses on loans (according to the I risk group).
2. Future time:
2.1. Transaction of own funds in the root;
2.2. Transaction of funds in the reservoir;
2.3. Transaction of securities;
3.Odds and profits.
4.Summage deposits.
5. Asum of assets.
6.The Costoga Net Balance Asset.
7. Assigned assets.
8. Asum of assets weighted with the risk of their losses.
9. Reviews for possible losses on loans (2-4 risk categories).
10. Prev for impairment of securities.
11. Reviews for possible losses on other assets and calculations with debtors.
Maintaining capital banks at a sufficient level allows us to ensure the reliability and strength of the financial situation of the commercial bank.

1.3 Regulatory framework for the formation and use of the Reserve Fund of the Commercial Bank.

Formation of the Commercial Bank's mandatory reserves of the Commercial Bank stipulated by Article 110 of the Banking Code of the Republic of Belarus "Fund of Mandatory Reserves Placed in the National Bank"
The bank is obliged to deposit part of the funds raised in the Request Reserve Fund, located in the National Bank.
Through the funds of mandatory reserves, the monetary circulation is regulated in accordance with the objectives and objectives of the monetary policy of the Republic of Belarus, as well as the liquidity and solvency of the Bank are insured.
The National Bank On the basis of the order of the Chairman of the Board of the National Bank, it is entitled to collect funds unrelated into the fund of fundamental reserves through the undisputed their write-off from the Bank's correspondent account.
Certain nuances are governed by the letter of the National Bank of the Republic of Belarus of December 1, 1998 №130 "Regulations on the procedure for the formation and use of the Bank's Reserve Fund". In accordance with the Law of the Republic of Belarus "On the National Bank of the Republic of Belarus", in order to ensure the sustainable functioning of the banking system, the following procedure for the formation and use of the Bank's Reserve Fund is established.
The reserve fund is created by banks to cover losses arising from their activities.
The reserve fund is included in the bank's own capital.
The source of the formation of the reserve fund is the profit of the bank, directed to the reserve fund in the manner prescribed by the Regulation.
The correctness of the formation of a reserve fund in accordance with the procedure established by the Regulation must be confirmed by the Audit Organization (Auditor.)
The procedure for the formation of a reserve fund. Considering to the reserve fund of the Bank are made from the profits of the reporting year, which remains at the disposal of the Bank after paying taxes and other mandatory payments to the budget (hereinafter referred to Separate taxes and other mandatory payments to the budget from the profits. During the year, if there is current profit, the Bank's Reserve Fund may include advance deductions. Executions The reserve fund are made from the profits of the reporting year, remaining at the disposal of the bank after paying taxes and other mandatory payments (hereinafter referred to as the profit of the reporting year). During the year, if there is current profit, the Bank's Reserve Fund may include advance deductions. The deductions to the reserve fund from the profit of the reporting year are made after approval by the General Meeting of Shareholders (Participants) of the Bank of the Annual Accounting Balance and Profit and Loss Report. The minimum amount of annual contributions to the reserve fund is determined by the Board of the National Bank of the Republic of Belarus. The funds of the reserve fund are taken into account by the Bank on the balance sheet account 7321 "Reserve Fund" of an accounting account plan in the commercial banks of the Republic of Belarus of 27.06.1995 N 555.
The reserve fund of the bank can be used in accordance with the decision of the authorized body of the Bank or in the manner prescribed by the General Meeting of Shareholders (Participants), only for the following objectives: coverage of losses of past years and at the end of the reporting year; Increase in the authorized capital fund. Reserve fund funds can be directed to an increase in the authorized capital by capitalization only in a part exceeding 15 percent of the registered authorized capital. The reserve fund cannot be used for the purposes not provided for by the Regulation.
The Board of the National Bank of the Republic of Belarus (Protocol of November 25, 1998 No. 18.2) decided to banks, the reserve fund of which is formed in the amount of less than 15 percent of the registered authorized capital, establish minimum size Executions - 10 percent of the profits of the reporting year.
For banks that have formed a reserve fund in the amount of more than 15 percent of the registered statutory fund, the amount of deductions to address the authorized branch of the Bank can be less than 10 percent of the profits of the reporting year.

2 Analysis of the activities of Belarusbank for the formation of a reserve fund

2.1 Basics of the formation of the Bank's Resource Base

By defining banking policies for the formation of its and attracted funds, commercial banks must achieve the most rational structure of the latter. To date, the main resource for attracting funds in separation No. 527 of OJSC ASB BelarusBank is deposit resources.
In general, the goal of deposit operations is reduced to compliance with the commercial interests of the bank and improving the liquidity of its balance, which involves the knowledge of the basic rules underlying deposit operations:
1. Deposit operations should be organized in such a way that they contribute to receiving banking profits or create conditions for profit gains in the future;
2. In the process of organizing deposit operations, it is necessary to provide a variety of subjects of deposit operations and a combination of various forms of deposits;
3. When carrying out banking operations, it is necessary to ensure the relationship and consistency between deposit operations and issues for issuing loans in terms and amounts of deposits and investment loans;
4. Special attention in the process of organizing deposit operations should be given to urgent deposits, which most ensure the maintenance of the Bank's balance sheet;
5. When organizing deposit operations, the bank should strive to ensure that reserves of free (not involved in active operations) of funds on deposit accounts were minimal (reserves of free banking resources are defined as the difference between the balances of funds on the settlement, current and other deposit accounts and the value of the loan debt);
6. Measures to develop banking services and improving the quality and culture of service, which contributes to the involvement of deposits.
Passive and active deposit operations differ. Passive reflects the attraction of funds into account for a period or demand. These are the main types of banking resources. Active - reflect the placement of temporarily free resources of some banks in others credit institutions. The variety of the latter is the contribution by banks of deposits in the National Bank, which serves as the basis of monetary regulation and clearing calculations.
According to Belarus, in the Republic of Belarus, the legislation as subjects of deposit operations may be:

non-banking financial institutions,
State enterprises and enterprises of others forms of ownership,
individual entrepreneurs,
individuals
Different public organizations.

Business banks can act in subjects of deposit relations. This is due to the development of direct correspondent relations, accompanied, as a rule, by the discovery of correspondent accounts, as well as the practice of registration of the (received) resources of commercial banks of the deposit agreements, which are an alternative to loan agreements.
The objects of deposit operations are deposits - amounts of funds that are subject to deposit operations to the bank, at a certain time deposited in bank accounts by virtue of the current procedure for banking operations.
Traditionally, the term "deposit" applies to the cash legal entities and individual entrepreneurs, and the term "deposit" - in relation to the placed funds of individuals. But according to Article 180 of the Banking Code of the Republic of Belarus, these terms are similar.
The Bank acquires the right to attract funds individuals In deposits (deposits) as in belorussian rubles, so I. foreign currency From the moment of receipt of the license to attract individuals in the contributions of individuals. The ability to such an attraction is provided to banks that meet the following requirements:

have a license to attract funds in deposits of individuals, which can be issued to the bank not earlier than 2 years from the date of its state registration;
have own funds (Capital) in the amount equivalent to at least 10 million euros;
have a sustainable financial situation under which the absence of damages is understood by the implementation of established National Bank Economic standards, the creation of reserves for the coverage of possible losses for doubtful and hopeless assets in full, compliance with the requirements for the formation of mandatory reserves deposited in the National Bank, the lack of debt to the budget and state extrabudgetary funds For the last 12 months before applying the appropriate application.

With regard to the Bank's right to attract funds of legal entities, it arises:

to raise funds in Belarusian rubles from the date of receipt by the Bank of the General License, that is, from the date of its state registration;
To attract funds in foreign currency - from the moment the Bank receives an internal license, which may be issued to its application after conducting state registration.

To post cash in a deposit of a bank between the Depositor and the Bank, a bank deposit agreement is concluded.
Bank deposit agreement (deposit) - a contract for which one party (bank) adopted from the other side (depositor) or received for it monetary sum (Contribution), undertakes to return the amount of the contribution and pay interest on it under conditions and in the manner prescribed by the Treaty.
The bank deposit agreement must be concluded in writing.
After the conclusion of a deposit agreement for deposit to the bank, with whom a bank deposit agreement was concluded, the depository deposit into this bank in the Deposit currency.
The Bank is obliged to return the deposit on the period stipulated by the bank deposit agreement. The initial review of the deposit is possible only if such an opportunity is directly provided for by the Agreement of the Parties. If the urgent bank deposit is returned to the depositor at its request (i.e., in the absence of an agreement of the parties) before the expiration of the deposit return period, interest on the deposit is paid in the amount and procedure established by the bank deposit agreement. As a rule, in deposit contracts it is envisaged that in the case of early return of the deposit, the deposit is paid interest in the amount of demand for demand, which is significantly less than the rates on an urgent deposit.
Returns to the deposit amount deposit can be carried out in a foreign currency of the deposit either in Belarusian rubles, if provided for by the parties in the contract deposit agreement.
The disadvantages of cash deposit in the form of a deposit are:
1. The complicated procedure concluded in the signing of the contract, opening a deposit account (for which it is necessary to obtain a duplicate UNN, which requires certain time costs), transfer funds from the current deposit account;
2. The impossibility of using the deposit amounts before the expiration of the deposit period, if the Bank has not yet been reached on the early seizure of the deposit. Early seizure of the deposit without signing such an agreement is possible only with significant losses due to changes interest rate before the demand rate;
3. The impossibility of mobile use of funds placed on the deposit account, directly for the settlements for goods, work, services.
The advantages of the deposit as a form of posting free funds:
1. Opening a deposit account in a specific bank and in a certain currency once, it can be used for
etc.................

All credit organizations work under uncertainty. From unplanned financial losses, none of them is insured one hundred percent. website

Consequently, all banks must regulate their risks and form a mandatory cash reserves, why refer to licenses from banks read here. To provide financial reliabilityBanks must create various reserves that can cover possible losses. The size of reserves, the procedure for the use and formation of funds from them is established by the Central Bank of Russia (CBD). These money is used only in case of acute necessity, they have next species. website

Reserve Fund of the Bank

This is some share of equity, which is formed from inconctions from profits every year. They are covered by damages that arise as a result of the bank's work. Also, the Bank's reserve fund is created to increase the authorized capital. The deductions to this fund are established by shareholders, but they cannot be less than the legislation of the value of authorized capital. All banks may at the end of the year to deduct funds to this fund, but only if they have profits from activities.

If the Bank's activities brings only losses in the reporting year, then there can be a speech on creating a reserve fund. Consequently, the reserve fund is created by the increase in net assets. Thus, the funds are accumulated in this fund, which were obtained as a result of the Bank's activities. Listing part of the profit in the reserve fund, the bank can use it only to cover possible losses, and any other extraneous goals. website

Reserve requirements

They were established by the Central Bank of Russia (http://www.cbr.ru/) to control the funds by reducing the accumulation of money by commercial banks. This is a tool that can be regulated by the overall liquidity of all countries of the country. Compulsory reserves of banks are cash of commercial credit institutions that should be kept in the Central Bank of the Russian Federation in the form of a financial warranty fund.

With the help of it ensures reliable execution of its bank duties to customers. Reserve funds are not created in some specific banks, but in all credit institutions without exception. These funds are highly liquid assets, but can be used with some limitations. website

For example, if the bank has ceased to come from depositors to the bank, then using mandatory reserves, it is possible to finance this process only within the framework of the established standard, and in any way otherwise. If you increase the amount of mandatory reserves due to a change in the standard, this will not make a separate bank reliable, as additional cash will be seized from the turnover. website

Reserve fund of banks for impairment securities

Once a month, all banks produce reassessment of investments in securities at their market value. Under their market value is meant the average price of one paper on transactions for a certain period. In some cases, under market value, they understand the actual purchase price of this paper, reduced twice.

Thus, if the market value of the paper will be lower than its balance sheet, the Bank is obliged to make the fund for impairment of deposits into securities. The amount of the reserve should not be more than fifty percent of its balance value. This reserve is usually formed on the last working day of each month. It is written off at one time with the disposal of this paper. website

It should be noted that the Bank's reserves need to be created for each valuable paper separately, regardless of whether it has increased or its cost has been preserved. Using the reassessment of deposits into securities, you can create a reserve fund for impairment. However, this does not change their value by accounting balance. Bank reserves for impairment securities are not reserves, but by adjusting their cost, given the number of securities and their market value. website

Bank reserves for loans for loans

This type of reserve is formed due to credit risks in the activities of credit institutions. It allows you to avoid changing the magnitude of the profit due to losses on loans. This, in turn, affects the amount of capital. This reserve is formed from the deductions that relate to the bank's expenses, and for each loan issued separately.

This species The reserve is used only to cover the customers not paid by loan debt on the principal debt. Due to it, loss of loans are written off, which cannot be recovered. Banks are struggling with debtors on loans in different ways, but if it comes to a dead end, and the money on the main debt cannot be returned, a reserve fund is being held. website

Loan debtwhich cannot be recovered will be written off from the bank's balance sheet due to this reserve. If it is not, it will spike as "loss of the reporting year." Thus, the taxable base of the bank will be reduced. Forming such a fund, banks do not enjoy any resource-owned resources. website

Other reserves of the bank

In addition to the listed bank reserves, there are others to which reserves are reserves for balance assets, according to urgent transactions, according to the other losses. Under possible losses of the Bank understand the circumstances that imply losses in the future under certain circumstances.

These circumstances include a reduction in the value of the bank's assets, the failure to fulfill the obligations of counterparties, an increase in costs compared with the early period. There may be many unexpected situations, but reserves of the bank must be sure to be able to cover losses if necessary. The site from all reviewed bank reserves is the most effective is the reserve fund. Only with the help of it a credit institution can regulate and cover its expenses. All other funds cannot be called effective, since their increase does not lead to the fact that the Bank can withstand various risks and unforeseen situations. In addition to the material, we note our ranking of banks. website

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