The liabilities side of the bank balance reflects all sources of formation of bank resources, which are accumulated by the bank for profitable use in the course of operations.
Bank liabilities ("bank resources") can be divided into two large groups:
- Bank capital and items equivalent to it (Bank's own funds (capital).
- Funds raised (deposit and non-deposit).
The main source of commercial bank resources are borrowed funds, which account for 86-88% or more of all banking resources. The share of own funds of Russian commercial banks accounts for 12-14%, which generally corresponds to the current structure in the world banking practice.
Own funds (capital) of the bank
Law on banks and banking activities the minimum amount of own funds (capital) for operating Russian banks in 2009 was set at 180 million rubles. But this norm is introduced in the Russian banking system gradually. Thus, as of January 1, 2010, the amount of own funds (capital) that meets the requirements of the law must be at least 90 million rubles. Banks that do not meet the established standards must either increase their capital or transform into a non-bank credit institution, for which the minimum capital requirements are lower. If the bank's capital remains below the allowable level as of January 1, 2010, the Bank of Russia is obliged to revoke the bank's license. And as of January 1, 2012, according to the law on banks and banking activities, the minimum amount of own funds (capital) of all Russian banking organizations must be at least 180 million rubles. A bank that applies to expand its operations and obtain a general license must have a capital of at least 900 million rubles.
The bank's own funds (capital) is a calculated indicator, which is defined as an amount consisting of:
- authorized capital of the bank;
- bank funds;
- retained earnings.
As part of equity, about half is accounted for by funds, and the second half is the profit of the current year.
The structure of the bank's own funds is heterogeneous in quality and changes during the year depending on a number of factors.
Authorized fund (capital) creates the economic basis for the existence of the bank and is a prerequisite for the formation of the bank as a legal entity, and therefore special requirements are imposed on it. The authorized capital of a credit institution is made up of the amount of the contributions of its participants and determines the minimum amount of property that guarantees the interests of its creditors. Its value is regulated by legislative acts of central banks. Currently, in the Russian Federation, the minimum amount of the authorized capital of a newly registered bank on the day of filing an application for state registration and issuance of a license for banking operations is set at 180 million rubles. The minimum amount of the authorized capital of a newly registered non-banking credit organization is set at 90 million rubles. Intangible values (for example, know-how) cannot be used to form the authorized capital. The Bank of Russia establishes the maximum amount of property (non-monetary) contributions to the authorized capital of a credit institution, as well as a list of types of property in non-monetary form that can be paid in payment of the authorized capital. Funds raised cannot be used to form the authorized capital of a credit institution, i.e. founders should not contribute to the authorized capital funds taken on credit.
For the purpose of evaluating the funds contributed to pay for the authorized capital of the bank. The Bank of Russia may establish criteria for assessing the financial position of its founders. The criteria for the participation of individual participants in the formation of the bank are also defined. Thus, the acquisition as a result of one or more transactions by one legal or natural person or a group of persons interconnected by agreements, over 1% shares (stakes) of a credit institution requires notification of the Bank of Russia, more than 20% - prior consent. These provisions have been in effect since 11 January 2007 for both residents and non-residents.
reserve fund will be created in order to absorb possible losses arising in the activities of the bank, and ensures the stability of its functioning. The formation of a reserve fund is mandatory for a commercial bank, and its value is established by law as a percentage of the actually created authorized capital. Now the minimum amount of the reserve fund cannot be less than 15% of the authorized capital. The reserve fund is formed at the expense of deductions from the profit of the current year, after the approval of the annual accounting report by the general meeting of shareholders of the bank. Strictly defined purposes have been established for which funds from the reserve fund can be used. This is, firstly, covering the losses of a credit institution at the end of the reporting year and, secondly, an increase in the authorized capital through capitalization. In this case, only the funds of the reserve fund that exceed the minimum amount are subject to capitalization.
Other funds can also be created in the bank, such as, for example, economic incentive funds, development funds, etc. There is also a group of funds associated with the action of certain economic factors, such as inflation and exchange rate differences between national and foreign currencies. These are funds for the revaluation of fixed assets and funds for the revaluation of foreign currency. The size of these funds is very flexible, and their volume under certain circumstances can reach very significant figures.
In the course of the bank's activities, the amount of own funds changes. It is adjusted (that is, it can, depending on the prevailing conditions, increase or decrease the size of the bank's capital) by the amount of revaluation of funds in foreign currency, revaluation of securities traded on the stock exchange, revaluation of precious metals. And there are bank performance indicators that only reduce the amount of own funds of a credit institution, this is the size of: incurred losses, repurchased own shares, underestimated reserve for possible losses on loans, under-created reserve for possible losses on balance sheet assets and off-balance sheet accounts, under-created mandatory reserve for impairment investments in securities, excess of expenses for the acquisition of tangible assets (including the acquisition of fixed assets) over own sources, funds on correspondent accounts with credit institutions with a revoked license, etc.
Funds raised from credit institutions
In both sums of bank resources, attracted funds occupy a predominant place. Their share in various banks ranges from 75% and above.
In world banking practice, all attracted resources are grouped according to the method of their accumulation, as follows:
- deposit;
- non-deposit.
The bulk of the attracted resources of commercial banks - about 90% - are deposits, i.e. funds deposited in the bank by its customers - individuals and legal entities.
Non-deposit funds - these are borrowed funds that are purchased on the market on a competitive basis, and the initiative to attract them belongs to the bank itself. Non-deposit sources of bank resources include:
- obtaining loans in the interbank market from other credit institutions (interbank credit - IBC);
- obtaining loans from the Central Bank (various types of loans from the Central Bank: settlement, overnight, pawnshop, CPO operations);
- issuance of own bonds and bills by a commercial bank.
Deposit funds are the funds deposited to the bank by its customers on certain accounts and used in accordance with the account regime and applicable law.
The basis for opening a bank account, an account for a deposit (deposit) is the conclusion of a bank account agreement and the provision of all documents determined by the legislation of the Russian Federation. So, in order to open a current account for a resident legal entity, the following are provided to the bank:
- certificate of state registration of a legal entity;
- constituent documents of a legal entity;
- licenses (permits) issued to a legal entity in accordance with the procedure established by the legislation of the Russian Federation for the right to carry out activities subject to licensing;
- card with samples of signatures and seal imprints;
- documents confirming the authority of the persons indicated in the card to dispose of the funds in the bank account, and in the case when the agreement provides for the certification of the rights to dispose of the funds in the account using an analogue of a handwritten signature, documents confirming the powers of persons endowed with the right to use an analogue of a handwritten signature;
- documents confirming the powers of the sole executive body of the legal entity;
- certificate of registration with the tax authority.
The opening of a bank account is completed by making an appropriate entry in the Book of Registration of Open Accounts, which is kept in the bank. The client may be denied opening a bank account if documents confirming the information necessary to identify the client are not provided, or if false information is provided. When opening an account, the bank must establish whether the client is acting in his own interests or in the interests of the beneficiary (in this case, bank officials must identify the beneficiary).
Banks enter into the following agreements with customers:
- bank account agreement (contract for settlement and cash services);
- bank deposit agreement (deposit agreement for legal entities and savings agreement for individuals);
- correspondent agreements (balances on correspondent accounts of other banks in this bank - Loro accounts).
In accordance with the legislation of the Russian Federation, banks in our country can currently open the following types of accounts in Russian currency and foreign currency: current accounts, current accounts, correspondent accounts, correspondent sub-accounts, trust management accounts, deposits (deposits).
These accounts are divided into two groups:
- demand deposits;
- term deposits (with their variety - deposit and savings ln y m and certificates fi katami).
Demand deposits- these are funds on current, settlement, budget and other accounts related to settlements, funds on correspondent accounts of other banks (“Loro”), as well as deposits of individuals and legal entities on demand, i.e. these funds can be used by investors at any time, either in whole or in any part. From their settlement and current accounts, enterprises and organizations pay their expenses related to settlements with suppliers, contractors, the budget and extra-budgetary funds, withdraw money to pay wages and travel expenses to employees, and make other necessary payments. These accounts receive proceeds from the sale of products and services of enterprises, other payments are made to legal entities - the owners of these accounts, and cash deposited by enterprises to their bank account is credited. In addition, the settlement and current accounts of legal entities may be credited with the amounts of loans granted to them, contributions of shareholders (members) of enterprises to their authorized capital, amounts of deposits and interest paid by banks to enterprises for the use of borrowed funds, as well as fines, penalties and other cash receipts in non-cash and cash forms.
A variety of demand accounts, which are becoming more common, are special card accounts, opened by bank card holders. Funds from a special card account are spent within the spending limit (for payment cards) or within the credit line and spending limit granted to the account holder (for credit cards).
As a rule, demand accounts are the lowest-yielding ones, since they either do not pay interest at all, or their size is very small. But this is the least stable part of the resources, since they can be used for calculations at any time. For transactions on the account, the bank charges a commission in the form of a fixed monthly fee for maintaining the account or a certain amount (or a percentage of the payment amount) charged for each transaction on the account.
Term deposits - this is money deposited in the bank for a fixed period in the contract. These accounts are opened for individuals and legal entities to account for funds placed with credit institutions in order to receive income in the form of interest accrued on the amount of placed funds. The interest paid on them is usually higher. But these are the most interesting funds for banks, as they are more stable and can be used in long-term bank investments.
Term deposits can be of two types. Deposits with a set term for notifying the bank about the withdrawal of funds are, to a certain extent, a transitional stage between demand accounts and time deposits (deposits). This also determines the amount of interest paid on such accounts. When placing funds in banking products of this type, the client concludes an agreement with the bank, which fixes the period (in days, months) for advance notification by the client of the intention to withdraw funds from the bank account. Such an account may also allow the possibility of its replenishment, which, as a rule, does not require advance notice.
When raising funds for deposits (deposits) with a fixed term(term deposits, deposits) the bank undertakes to return to the client the amount of his deposit within the period specified in the deposit agreement. At the same time, it is possible to pay interest on the deposit either simultaneously with the expiration of the period for which it was accepted, or at certain intervals (monthly, quarterly, etc.). Early withdrawal of funds from a deposit account in this case usually involves deducting a certain penalty from the client or reducing the amount of interest paid on the deposit. The deposit agreement concluded between the depositor and the bank regulates in detail the rights and obligations of the parties to the agreement, the procedure and conditions for returning the deposit amount to the depositor and paying interest on the deposit, the procedure for resolving disputes and contains other significant points for the bank and the depositor.
Attracting funds by credit institutions for a fixed period may be formalized not by a deposit agreement, but by issuing a deposit or savings certificate - a security certifying the amount of the deposit made and the right of the depositor (certificate holder) to receive after the expiration of the established period the amount of the deposit and the interest stipulated in the certificate in the credit organization issuing the certificate. In Russia, certificates of deposit are issued to depositors - legal entities, savings certificates - to depositors - individuals.
The structure of bank accounts and deposits depends on the quantity and quality of its clientele, the bank's place in the banking system and economy, the bank's ability to offer investors banking products that satisfy them in terms of reliability, profitability and terms. The ability of a bank to fully fulfill its obligations to creditors and depositors on time is the most important requirement for organizing a bank management system and its liquidity.
conclusions
The main source of funds with which the bank operates are the money attracted by it from enterprises, organizations and the population - the bank's obligations. Depending on the conditions under which the bank raises funds from organizations and individuals, the bank's liabilities can be divided into deposit and non-deposit, demand and urgent, etc. Demand accounts form the basis of deposit resources. Non-deposit forms of attracting funds by banks are the issuance and placement of bonds, bills of exchange, other debt securities, obtaining loans from the central bank and other credit institutions, rediscounting bills of exchange and bank acceptances.
The Bank of Russia will increase the minimum capital requirements for federal banks to 1 billion rubles, Central Bank Chairman Elvira Nabiullina said at the International Financial Congress. “In relation to other banks, except for systemically important ones, we call them banks of federal significance, it is proposed to increase the minimum requirements for the amount of own funds to 1 billion rubles. and consistent implementation of international standards,” she said.
According to Nabiullina, the EurAsEC countries have higher capital requirements for banks than Russia. And even after the Central Bank raises the minimum value to 1 billion rubles, in the three countries the requirements will still be higher.
Capital requirements for banks in Russia and EurAsEC countries
Russia: now - $4.6 million; $15.5 million Kazakhstan: $30 million Armenia: $60 million Belarus: $25 million Kyrgyzstan: $8.8 million Source: Central Bank
Nabiullina promised that banks would have two years for a transitional period so that they could decide whether they see themselves as regional banks or as federal ones. Now the minimum amount of capital for all banks is 300 million rubles.
She also promised that stress tests would no longer be only informative: “Stress tests will no longer be a purely monitoring exercise, the volume of requirements for banks will depend on their results. Measures against banks in a preventive manner, i.e. in the absence of actual violations of prudential norms, but in the presence of potential risks of future violations, will first be applied to the largest banks, whose assets exceed 500 billion rubles.” The results of the stress tests will be taken into account by the Central Bank when assessing the possibility of banks joining each other, agreeing on a financial recovery plan, and making other decisions on supervision, Nabiullina warned.
Own capital is the basis of the activities of a commercial bank. It is formed at the time of the bank's establishment and initially consists of the amounts received from the founders as their contribution to the authorized capital of the bank, which can be made both directly if the bank is established in the form of a limited liability company, and through the purchase of shares if the bank is established in form of a joint stock company.
Equity capital also includes all savings received by the bank in the course of its activities, which were not distributed among the shareholders (members) of the bank in the form of dividends or spent for other purposes. Equity capital represents the amount of money that will be distributed among the shareholders (participants) of the bank in the event of its closure.
Equity capital provides the bank with economic independence and stable operation. Equity capital is considered in banking practice as a reserve of resources that allows maintaining the solvency of the bank even if it loses part of its assets.
Own funds (capital) perform a number of important functions in ensuring the management and life of a commercial bank: The protective function is manifested in the fact that capital serves as a kind of buffer that absorbs damage from current losses until the management of the bank resolves emerging problems, ensuring the continuation of the bank's activities regardless of the presence of losses . Due to the presence of own capital, a commercial bank can carry out risky operations. Losses resulting from these operations are covered by its own capital, without affecting the attracted funds of depositors.
At the same time, the possibility of losing equity provides incentives for shareholders to ensure that the bank is managed soundly and prudently. In the event of bankruptcy, the bank's own capital becomes a source of compensation to creditors and depositors.
Regulatory function, when capital acts as a regulator of the bank's activities, through which government agencies set the norms of economic behavior for it, warning it from excessive risks. Under current legislation, the economic standards established by the Bank of Russia and regulating the activities of commercial banks are mainly based on the amount of the bank's own funds. The size of the bank's own funds determines the scope of its activities. The possibilities of commercial banks to expand active operations are determined by the size of their actual equity capital.
The minimum amount of own funds (capital) is set for the bank in the amount of 180 million rubles, in addition, according to the Instruction of the Bank of Russia dated January 16, 2004 N 110-I "On the mandatory ratios of banks", the ratio between equity capital and the total volume of assets, weighted taking into account the risk, for banks whose equity capital exceeds 5 million euros, it is set at 10%, for banks with equity capital of less than 5 million euros - 11%. The size of the actual equity capital of the bank also determines the maximum amount of risk per borrower and creditor (depositor), the maximum amount of household deposits that the bank can attract.
In order to improve the stability of the banking system, the Bank of Russia has established the following requirements for the minimum amount of authorized capital required to establish a credit institution and the amount of own funds (capital) of a bank applying for a General License for Banking Operations (Federal Law "On Banks and Banking Activity") "of 02.12.1990 N 395-1, as amended by the Federal Law of 02.28.2009 N 28-FZ):
The minimum amount of the authorized capital of a newly registered bank on the day of filing an application for state registration and issuance of a license for banking operations is set at 180 million rubles.
The minimum amount of the authorized capital of a newly registered non-bank credit institution applying for a license providing for the right to make settlements on behalf of legal entities, including correspondent banks, on their bank accounts, as of the date of filing an application for state registration and issuance of a license to carry out banking operations is set at 90 million rubles.
The minimum amount of the authorized capital of a newly registered non-banking credit institution that does not apply for such a license, as of the date of filing an application for state registration and issuance of a banking license, is set at 18 million rubles.
As the system of banking supervision develops, the importance of the regulatory function of equity increases.
The operational function of equity is that equity is a source of investment in its own tangible assets and the development of the material base of the bank. In terms of the authorized capital contributed by the founders of the bank, it acts at the initial stage as start-up funds necessary for the construction or rental of premises, installation of equipment, hiring staff and other expenses, without which the bank cannot start its activities. During the period of growth, the bank needs additional funds to create new capacities related to expanding the range of services provided and introducing advanced banking technologies, the source of which is its own capital.
For joint-stock banks, the size of equity capital is a factor that determines the price of its shares. When assessing the value of a bank, they proceed from the size of its net assets, i.e. actual equity, which allows us to talk about its pricing function. Equity capital provides a permanent source of income for shareholders (participants) in proportion to the amount of contribution to the authorized capital, each shareholder (participant) receives a share of the bank's profit in the form of dividends.
The sources of the bank's equity capital are:
Authorized capital;
Extra capital;
Reserve fund of the bank;
Retained earnings of the reporting year and previous years.
The authorized capital of a credit organization is formed from the amount of contributions of its participants and determines the minimum amount of property that guarantees the interests of its creditors. For joint-stock banks, it is made up of the nominal value of its shares acquired by the founders of the credit institution, and for banks in the form of a limited company and an additional liability company, from the nominal value of the shares of its founders. The amount of the authorized capital is determined in the founding agreement on the establishment of the bank and in the Charter of the bank. Each participant (shareholder) of the bank, in proportion to its contribution to the authorized capital, annually receives a part of bank profit in the form of dividends.
Contributions to the authorized capital of the bank can be made in the form of cash, tangible assets, as well as securities of a certain type.
The authorized capital of the bank can be formed only at the expense of the shareholders' (participants') own funds, the attracted funds cannot be used for its formation. Cash contributions to the charter capital of a credit institution in the currency of the Russian Federation must be transferred from the settlement accounts of shareholder enterprises (participants). Enterprises and organizations that have an illiquid balance sheet or have been declared insolvent cannot act as founders of banks and purchase their shares during the initial offering.
Credit institutions have the right to pay the authorized capital in foreign currency, but the authorized capital must be reflected in the balance sheet in rubles.
Only the bank building (premises) in which the credit institution is located, except for construction in progress, may act as a tangible asset contributed as payment for the charter capital of a credit institution.
The maximum amount (normative) of the non-monetary part of the charter capital of the newly established credit institution must not exceed 20%.
Tangible assets must be valued and reflected in the balance sheet of the credit institution in the currency of the Russian Federation.
In credit institutions established in the form of a limited liability company, the monetary value of material contributions to the authorized capital must be approved by a unanimous decision of the general meeting of participants.
In accordance with the instruction of the Central Bank of the Russian Federation dated August 14, 2002 No. 1186-U, it is allowed to form the authorized capital of the bank at the expense of the budgets of all levels, state extra-budgetary funds, free cash and other objects of property administered by state authorities and local governments.
The founders of the bank must fully pay the authorized capital of the bank they created within one month after its registration.
Additional capital includes: the increase in the value of the property during its revaluation, share premium, i.e. the difference between the placement price of shares at the time of issue and their nominal value, the cost of property received free of charge by the bank in ownership from organizations and individuals.
The reserve fund of the bank is formed from profit in the manner prescribed by the constituent documents of the bank, taking into account the requirements of the current legislation.
The reserve fund is intended to cover losses and losses arising from the activities of the bank. The minimum size of this fund is determined by the Charter of the bank, but it cannot be less than 5% of its authorized capital. Contributions to the reserve fund are made from the profit of the reporting year remaining at the disposal of the bank after paying taxes and other obligatory payments, i.e. from net profit. At the same time, the amount of annual deductions to the reserve fund must be at least 5% of net profit until it reaches the minimum amount established by the charter. By decision of the Board of Directors of the bank, the reserve fund can be used to cover the bank's losses at the end of the reporting year.
Each commercial bank independently determines the amount of own funds and their structure based on the development strategy adopted by it.
If a bank, obeying the laws of competition, seeks to expand the range of its customers, including through large enterprises that are in constant need to attract bank loans, then, naturally, its own capital should increase. The nature of its active operations also affects the value of the bank's own capital. With a long-term diversion of resources into risky operations, the bank needs to have significant equity capital. The amount of own capital determines the competitive position of the bank in the domestic and international markets.
In practice, there are two ways to increase equity capital:
Profit accumulation;
Raising additional capital in the financial market.
Accumulation of profit can take place in the form of an accelerated creation of the bank's reserve fund with subsequent capitalization, or in the form of accumulation of retained earnings of previous years. This is the cheapest way to increase capital without affecting the existing bank management structure.
However, the use of a significant part of the profits to increase equity means a decrease in the current dividends of the bank's shareholders and may lead to a drop in the market value of shares of open joint-stock banks.
If a credit institution's own funds are used to increase its authorized capital (their capitalization), a decision must be made on the distribution of these funds among the participants for their subsequent targeted use in the authorized capital of the credit institution.
Attracting additional capital of a bank established in the form of an LLC can occur both on the basis of additional contributions from its participants, and at the expense of contributions to the authorized capital of the bank of third parties, which become participants in this bank (unless this is prohibited by the bank's Charter).
For effective management of own capital and for its use as the most important regulator of the bank's activities, it is necessary to adequately assess its actual availability.
In fact, equity capital is equal to the net assets of the bank, i.e. assets free from liabilities. It can be calculated by direct account, subtracting from the market value of the bank's assets the amount of its liabilities, adjusted for their real market value.
There is another option for determining the bank's actual equity capital by adjusting the sum of capital sources by values that reduce (increase) the balance sheet values of individual items of the asset and liability of the balance sheet. In the Russian practice of banking supervision, this option is used.
The amount of equity, determined by adjusting the sum of its sources, is sometimes called net capital.
According to the regulation "On the Methodology for Calculating Own Funds (Capital) of Credit Institutions" dated February 10, 2003 No. 215P, the amount of own funds (capital) is determined as the sum of core and additional capital.
The sources taken into account in the calculation of fixed capital include:
The authorized capital of joint-stock banks, formed as a result of the issue and placement of ordinary shares, as well as preference shares of a certain type, which are not cumulative;
The authorized capital of banks established in the form of a limited (or additional) liability company, formed at the expense of shares (contributions) of the founders (participants) of the bank;
Share premium of banks established in the form of joint-stock companies;
Property received free of charge by banks in ownership from organizations and individuals;
Funds of banks formed in accordance with the requirements of federal laws, regulations of the Bank of Russia and in the manner established by the constituent documents, formed from the profits of previous years remaining at the disposal of banks, the use of which does not reduce the value of the bank's property;
Part of the funds indicated above, which are formed at the expense of the profit of the reporting year, the data on which are confirmed in the conclusion of the audit firm based on the results of the banks' activities;
Part of the profit of the reporting year, reduced by the amount of distributed funds for the corresponding period, the data on which are confirmed by the conclusion of the audit firm;
The amount of the reserve created for the depreciation of shares (participation interests) of subsidiaries and dependent business companies and resident credit institutions, investments in which reduce the total amount of core and additional capital;
Profit of previous years, data on which are confirmed by an audit organization;
The difference between the authorized capital of the bank and its own funds (capital) in the event of a decrease in the authorized capital to the amount of its own funds due to a decrease in the nominal value of ordinary and a part of preferred (not related to cumulative) shares or shares of the bank;
Additional own funds in the part formed from non-capitalized balances of the closed balance account "Exchange rate differences on the revaluation of own funds in foreign currency".
To calculate the actual fixed capital, the following are deducted from the total amount of its sources listed above:
Intangible assets (reduced by the amount of accrued depreciation);
Own shares repurchased from shareholders and shares of participants who have submitted an application for withdrawal from the bank transferred to the bank;
Uncovered losses of previous years and losses of the current year.
At the same time, current losses should be increased by the excess of balances on correspondent accounts opened with credit institutions with a revoked license, and the excess of other bank claims against such credit institutions over the amount of reserves formed for possible losses. Thus, when calculating the fixed capital, its sources are reduced by the amount of direct and potential losses and losses of capital. Such a procedure for calculating fixed capital is explained by the fact that in the Russian Federation, as noted, not a direct calculation of the actual availability of capital is used, but indirectly by adjusting the sources of capital for a reliable assessment of its property and liabilities. The same approach is used when calculating additional capital. The sources of equity capital taken into account in the calculation of additional capital include:
Increase in the value of property on the balance sheet of banks due to revaluation;
Provisions for possible losses on loans to the extent that they can be considered as provisions of a general nature, i.e. in terms of reserves created for loan debt, referred to the first risk group;
The bank's funds in the part formed by deductions from the profit of the current year without confirmation by an audit organization, and the profit of the previous year before confirmation by an audit firm, the use of which does not reduce the value of the bank's property. In the absence of audit confirmation after July 1 of the next year, funds formed from the profit of the previous year are not included in the calculation of additional capital;
Profit of the current year, not confirmed by the conclusion of the audit organization and not included in the fixed capital. When included in the sources of additional capital, the profit of the current year must be reduced by the excess of the balances on correspondent accounts opened with credit institutions with a revoked license, and the excess of the amount of other claims of the bank to such credit institutions over the amount of reserves formed for possible losses;
Part of the authorized capital of the bank, formed by capitalization of the increase in the value of property during revaluation;
Preferred shares, with the exception of preferred shares of a certain type, the amount of the dividend on which is not determined by the charter of the bank and not related to cumulative shares;
The difference between the authorized capital of a joint-stock bank and its own funds (capital) in the event of a decrease in the authorized capital to the amount of its own funds due to a decrease in the nominal value of preferred (including cumulative) shares, with the exception of those that were taken into account when determining the appropriate source of the bank's fixed capital ;
Prior year's profit prior to audit, less funds used from prior year's profit. If there is no audit confirmation after July 1 of the following year, the profit of the previous year is not included in the calculation of capital.
The total amount of sources of additional capital is included in the calculation of own funds in an amount not exceeding 100% of the value of the core capital. If the value of the fixed capital is zero or negative, then the sources of additional capital are not included in the calculation of capital. At present, given the severe consequences of the financial crisis for the banking sector, the increase in banks' own capital is the most urgent problem of the Russian banking system. The amount of bank capital in the near future will determine the prospects for expanding the lending activity of banks.
Chapter 3. Assessment of the quality of management of own funds.
The concept and necessity of assessing the capital adequacy of the bank.
The problem of determining the capital adequacy of a bank has long been the subject of scientific research and disputes between banks and regulators. Banks prefer to get by with a minimum of capital in order to raise profitability and asset growth; bank controllers require more capital to reduce the risk of bankruptcy. At the same time, the opinion is expressed that bankruptcies are caused by bad management, that well-managed banks can exist even with low capital rates.
Excessive "capitalization" of the bank, the issuance of an excessive number of shares compared to the optimal need for equity capital, is not a blessing. With an underestimated share of capital, a disproportionate liability of the bank to its depositors arises. The bank's liability is limited to its capital, and depositors and other creditors risk a much larger amount of funds entrusted to the bank. In addition, there are a number of factors that determine the requirements for increasing bank capital:
The market value of bank assets is more volatile than that of industrial enterprises. It depends on changes in interest rates, the financial situation of its borrowers, the situation on the stock and currency markets;
The Bank relies more on intermittent sources of short-term resources, many of which can be withdrawn on demand. Therefore, any event in political or economic life can provoke a massive outflow of bank resources.
Determining a sufficient amount of capital and maintaining it within the established limits is one of the main ways of managing capital, both on the part of the regulatory authorities and the bank itself. Therefore, a constant analysis of the structure and value of capital is an indispensable condition for modern bank management.
Analysis of the adequacy of own funds (capital) is carried out in order to identify the degree of stability of the bank's capital base and capital adequacy to cover losses from the risks taken by banks.
It is known that the volume, composition, quality and nature of active operations affect the value of the bank's own capital adequacy. The orientation of the bank to predominantly carry out operations associated with high risk requires a relatively large amount of own funds and, conversely, the predominance of loans with minimal risk in the bank's loan portfolio allows for a relative decrease in equity. The amount of equity required by a bank also depends on the specifics of its clients. Thus, the predominance of large credit-intensive enterprises among the bank's clients requires it to have a large amount of its own funds with the same volume of active operations compared to a bank that focuses on servicing a large number of small borrowers, since in the first case the bank will have high risks per borrower.
In the 1980s, the question of the methodology for assessing bank capital became the subject of discussions in international financial organizations. The goal was to develop common capital adequacy criteria applied to different subjects of the banking community, regardless of their country of origin.
Regulatory requirements for the amount of own funds (capital) of the bank.
The Russian practice of the credit system is guided by international capital formation standards, but commercial banks are deprived of the right to choose a capital adequacy methodology. Instruction of the Central Bank No. 110-I “On Mandatory Ratios of Banks” dated January 16, 2004 established the minimum amount and adequacy ratios for a bank's capital.
In accordance with Chapter 2 of this instruction, the bank's own funds (capital) adequacy ratio (H1) regulates (limits) the risk of bank insolvency and determines the requirements for the minimum amount of the bank's own funds (capital) required to cover credit and market risks. The bank's own funds (capital) adequacy ratio is defined as the ratio of the bank's own funds (capital) to the amount of its assets, weighted by risk level. The calculation of the bank's own funds (capital) adequacy ratio includes:
The amount of credit risk on assets reflected on the balance sheet
accounting accounts (assets minus created reserves for
possible losses and reserves for possible losses on loans, loan and
equivalent debt, weighted by risk level);
The amount of credit risk on contingent liabilities of the credit
character;
The amount of credit risk on futures transactions;
The amount of market risk.
A bank's own funds (capital) adequacy ratio (H1) is calculated using the following formula:
K - the bank's own funds (capital), determined in accordance with the Regulation of the Bank of Russia dated February 10, 2003 N 215-P "On the methodology for determining the own funds (capital) of credit institutions", registered by the Ministry of Justice of the Russian Federation on March 17, 2003 N 4269 ( "Bulletin of the Bank of Russia" dated March 20, 2003 N 15) (hereinafter - Regulations of the Bank of Russia N 215-P);
Risk coefficient of the i-th asset;
I-th asset of the bank;
The amount of the reserve for possible losses or the reserve for possible losses on loans, on loan and equivalent debt of the i-th asset (code 8987);
KRV - the amount of credit risk on contingent liabilities of a credit nature, calculated in the manner prescribed by Appendix 2 to the instructions;
KRS - the amount of credit risk on futures transactions, calculated in the manner prescribed by Appendix 3 to the instruction;
РР - the amount of market risk, in accordance with the requirements of the Bank of Russia regulation on the procedure for calculating the amount of market risks by credit institutions.
The minimum allowable numerical value of the H1 ratio is set depending on the amount of equity (capital) of the bank:
For banks with own funds (capital) not less than the equivalent of 5 million euros - 10%;
For banks with own funds (capital) less than the equivalent of 5 million euros - 11%.
The following are interested in the capital adequacy of the bank:
1. The banks themselves (to convince large depositors that there are adequate guarantees);
2. Regulatory authorities (to ensure confidence in the banking system as a whole).
The minimum size of the bank's authorized capital
The authorized capital of a bank (credit organization) consists of the amount of paid contributions of its participants and determines the minimum amount of property that guarantees the interests of its creditors.
The authorized capital of a credit organization ensures the normal operation of the bank in servicing and lending to customers and is formed from the monetary and tangible assets of the founders.
The Bank of Russia, individually for each bank, also establishes the maximum amount of property (non-monetary) contributions to the authorized capital of a credit institution, and also establishes a list of types of non-monetary property that can be contributed to the authorized capital.
The authorized capital of a credit institution is determined by Article 11 of the Federal Law No. 395-1 of December 2, 1990, "On Banks and Banking Activities" (as amended).
Authorized capital of the bank
The minimum amount of the authorized capital of a credit institution in Russia in accordance with the Federal Law "On Banks and Banking Activities" on the day of filing an application for state registration and issuance of a license for banking operations is set as follows:
- 1 billion rubles - for a newly registered bank with a universal license;
- 300 million rubles - for a newly registered bank with a basic license;
- 90 million rubles - for a newly registered non-bank credit institution, except for the minimum amount of the authorized capital of a newly registered non-bank credit institution - a central counterparty;
- 300 million rubles - for a newly registered non-bank credit institution - a central counterparty.
- 154 banks have an authorized capital of 1 billion rubles. and above, which correspond to the status of banks with a universal license, including especially large ones, with an authorized capital of 10 billion rubles or more. and higher in Russia - only 35.
- 159 banks with authorized capital from 300 million rubles. up to 1 billion rubles - correspond to the status of regional banks with a basic license.
Of the total number of credit institutions as of November 1, 2017 (572), the first two categories of banks account for 54.7% (154 + 159 = 313) This includes the largest and systemically important banks for Russia, such as: Sberbank of Russia, VTB, Alfa Bank, Rosselkhozbank, Bank GPB, etc.
Banks and non-banking credit institutions, whose authorized capital is in the range from 60 million rubles to 300 million rubles, will have to make a difficult decision about their reorganization in the near future. As of November 1, 2017, there were 186 such credit institutions, and their activities are limited by time frames.
And there are 73 banks and non-bank credit institutions with a minimum authorized capital of less than 60 million rubles as of November 1, 2017 in Russia. They can be safely classified as credit institutions with an increased risk of bankruptcy, their activities are limited by time frames.
What awaits those banks that do not collect the authorized capital required by law or it decreases? The actions of the Bank of Russia in relation to such credit institutions are clearly spelled out in Chapter 20 of the Federal Law "On Banks and Banking Activity":
The Bank of Russia is obliged, with the exception of cases established by federal laws, to revoke a license for banking operations in the following cases:So, the banks, which during the specified periods will not be able to resolve the issue with the minimum size of the authorized capital up to the required norm, will either have to lower their status, or close, or join other banks. Banks are already working in this direction.
- if the value of all equity (capital) adequacy ratios of the credit institution falls below two percent.
If during the last 12 months preceding the moment when, in accordance with this article, the specified license must be revoked from a credit institution, the Bank of Russia changed the methodology for calculating the capital adequacy of credit institutions, for the purposes of this article, the methodology in accordance with which the capital adequacy of a credit organization reaches its maximum value;- if the amount of own funds (capital) of the credit institution is below the minimum value of the authorized capital established as of the date of state registration of the credit institution. The specified ground for revocation of a banking license does not apply to credit institutions during the first two years from the date of issue of a banking license;
- if the credit institution fails to comply within the time period established by paragraph 4 (1) of Chapter IX of the Federal Law "On Insolvency (Bankruptcy)", the requirements of the Bank of Russia to bring the size of the authorized capital and the amount of own funds (capital) into line;
- if a bank with a universal license as of January 1, 2018 does not meet the requirements established by part one of Article 11(2) of this Federal Law as of January 1, 2018, there are no grounds established by part four of Article 11(2) of this Federal Law to continue its activities as a bank with a universal license, and such a bank did not receive until January 1, 2019, in accordance with the procedure established by the Bank of Russia, the status of a bank with a basic license, or did not change its status to the status of a non-bank credit institution, or did not receive the status of a microfinance company with simultaneous termination of the status of a credit institution and cancellation of a license to carry out banking operations;
- if a bank with a universal license after January 1, 2019 for four consecutive months allowed a decrease in the amount of own funds (capital) below the minimum amount of own funds (capital) established by part one of Article 11(2) of this Federal Law, with the exception of its decrease due to a change the Bank of Russia of the methodology for determining the amount of own funds (capital) of a bank with a universal license, and within six months from the date of the expiration of the specified period, did not receive the status of a bank with a basic license in the manner established by the Bank of Russia, or did not change its status to the status of a non-banking
a credit institution, or has not received the status of a microfinance company with the simultaneous termination of the status of a credit institution and the annulment of the license for banking operations;- if a bank with a basic license after January 1, 2018 for four consecutive months allowed a decrease in the amount of own funds (capital) below the minimum amount of own funds (capital) established by part one of Article 11(2) of this Federal Law, with the exception of its decrease due to a change Bank of Russia methods
determining the amount of own funds (capital) of a bank with a basic license, and within six months from the date of expiration of the specified period, did not change its status to the status of a non-bank credit institution in the manner established by the Bank of Russia or did not receive the status of a microfinance company with the simultaneous termination of the status of a credit institution and cancellation banking licenses;- if a bank with a universal license has not complied with the requirement provided for by part seven of Article 11(2) of this Federal Law, and within the period established by part nine of Article 11(2) of this Federal Law has not received the status of a bank with a basic license in accordance with the procedure established by the Bank of Russia, or has not changed its status to the status of a non-banking credit organization, or did not receive the status of a microfinance company with the simultaneous termination of the status of a credit organization and cancellation of the license for banking operations;
- if a bank with a basic license has not complied with the requirement stipulated by part eight of Article 11(2) of this Federal Law, and within the period established by part ten of Article 11(2) of this Federal Law has not changed its status to the status of a non-bank credit institution in accordance with the procedure established by the Bank of Russia, or did not receive the status of a microfinance company with the simultaneous termination of the status of a credit institution and the annulment of the license for banking operations;
- if a non-bank credit institution whose own funds (capital) as of July 1, 2016 amounted to 90 million rubles or more, or a non-bank credit institution established after July 1, 2016, for four consecutive months allows a reduction in the amount
own funds (capital) below the minimum amount of own funds (capital) established by part thirteen of Article 11(2) of this Federal Law, except for its reduction due to a change in the methodology for determining the amount of own funds (capital) established by the Bank of Russia;- if a non-bank credit institution whose own funds (capital) as of July 1, 2016 amounted to less than 90 million rubles, for four consecutive months allows a decrease in the amount of own funds (capital) (except for its decrease due to the application of a modified methodology for determining the amount of own funds ( capital) established by the Bank of Russia) below the amount of own funds (capital) it had as of July 1, 2016;
- if the non-bank credit institution has not complied with the requirements established by Parts fifteen and sixteen of Article 11(2) of this Federal Law.
When choosing a bank for servicing, you should first of all check its authorized capital and which category the bank belongs to. How to do it? In accordance with Bank of Russia Regulation No. 385-P, dated July 16, 2012, “On Accounting Rules for Credit Institutions Located in the Territory of the Russian Federation,” the authorized capital of a credit institution is reflected in balance sheet account No. 102 of the Bank’s Balance Sheet.
Clients can find out or clarify the size of the authorized capital of the bank:
- on the bank's website (in reports),
- on the website of the Bank of Russia (in the Directory of Credit Institutions),
- from periodicals,
- in the bank - from the financial statements for the current year.
A credit institution is obliged, at the request of an individual or legal entity, to provide him with a copy of the license for banking operations, copies of other permits (licenses) issued to it, if the need to obtain these documents is provided
federal laws, and accounting (financial) statements for
this year.