The main goal of the bank's asset management is the most effective placement and use of the bank's own and borrowed funds to obtain the highest profit.

The main principles of banking management in asset management include the following:

• asset return management;
• maintaining a rational structure of assets;
• risk analysis and provisioning.

Assets commercial bank are subdivided as follows.

By appointment:

• working (current), bringing current income to the bank;
• cash, providing liquidity of the bank;
• investment, intended to generate income in the future and achieve other strategic goals;
• non-current, intended to ensure the economic activity of the bank;
• others.

By degree of liquidity:

• highly liquid (cash, precious metals, funds in the Bank of Russia, funds in non-resident banks from developed countries, funds in banks for settlements on plastic cards and etc.);
• liquid (loans and payments in favor of the bank with a maturity of up to 30 days, marketable securities quoted on the stock exchange, other marketable values);
• long-term liquidity (loans issued and deposits placed, including in precious metals, with a remaining maturity of more than a year);
• low-liquid (long-term investments, capitalized assets, overdue debt, unquoted securities, unreliable debts).

According to the requirements of the Bank of Russia, the share of the first two groups of assets must be at least 20% of all assets net of required reserves. IN international practice the share of highly liquid assets should be in the range from 12 to 15%.

By terms of placement:

• a) unlimited;
• b) placed for a period (on demand, up to 30 days, from 31 to 90 days, from 91 to 180 days, from 181 to 360 days, from 1 year to 3 years, over 3 years).

Currently, the structure of term assets of Russian banks is dominated by assets placed for a period of 91 to 180 days.

By risk level The assets of a commercial bank are divided into five groups, each of which has its own loss of value coefficient.

Depending on who uses the bank's assets, i.e. By subjects , the assets are divided as follows:

• a) in the use of the bank itself;
• b) provided for temporary use to other entities (the state, legal entities, individuals - non-residents).

It is important to note that the structure of assets by entities shows how diversified its investments are and in which sectors and sectors of the economy the bank directs its resources.

Asset quality consists in how much they contribute to the achievement of the main goal of the commercial bank - its profitable and stable work. The factors that determine the quality of a bank's assets are:

• return on assets;
• compliance of the structure of assets with the structure of liabilities by maturity;
• liquidity of assets;
• diversification of active operations;
• the volume and share of risky and defective assets.

By quality, the assets of a commercial bank are divided into:

• to complete ones;
• defective.

A defective asset is an asset that the bank cannot convert into cash at the current book value after the maturity date.

Defective assets include: overdue loans; bills and other debt obligations not paid on time; illiquid and depreciated securities; accounts receivable for a period of more than 30 days; unrealizable real estate, funds on correspondent accounts in bankrupt banks; and etc.

Currently, there are three main asset management method :

• method of general distribution of funds or general fund of funds;
• method of asset allocation or conversion of funds;
• scientific method of asset management.

Method of general distribution of funds (general fund of funds) consists in the fact that all attracted funds of the bank are considered as a single fund, i.e. aggregate amount banking resources. Funds from this fund are distributed in the following order:

• 1) replenishment of primary reserves (cash and correspondent account with the Bank of Russia);
• 2) secondary reserves are formed from among short-term highly liquid securities (with this approach secondary reserves are the main means of providing liquidity for the bank);
• 3) the funds of the fund are used to finance all valid applications for loans, and the loan portfolio is not considered a means of providing liquidity;
• 4) after all applications for loans are satisfied, the remaining funds are directed to the purchase of securities, primarily government securities, which are a source of income and, in addition, replenish secondary reserves as their maturity approaches.

The application of the method of general distribution of funds has a number of disadvantages. First, it focuses on maximizing highly liquid funds that do not provide the required level of profitability, which in the long term will negatively affect the financial stability of the bank. Secondly, the urgency of deposits is not taken into account different types: demand deposits are intended for settlements, while savings and term deposits are placed to generate income and have certain retention periods.

The general method of investing funds is considered risky. It is mainly used by large banks that have significant resources and financial stability and, on the basis of this, may not comply with the maturity of deposits.

Asset Allocation Method (Conversion of Funds) is based on the fact that the amount of liquid funds required by the bank depends on the sources of raising funds but on the timing. The application of this method uses the differentiation of sources of funds in coordination with the norms of required reserves and the speed of their circulation.

For example, demand deposits require a higher reserve requirement than savings and term deposits. At the same time, their turnover rate is also higher. Therefore, funds on demand deposits should be placed mainly in primary and secondary reserves, less often in investments.

The asset allocation method will create several "liquidity-profitability centers" within the bank itself, which are used to place funds raised by the bank from various sources. Such centers in banking practice are called "banks within the bank." In a bank, as it were, there are "bank savings deposits", "bank of fixed capital", "bank of demand deposits". Having determined which funds, in terms of their profitability and liquidity, belong to the corresponding "banks", the management of this commercial bank establishes the procedure for their placement. It is important that the placement of funds from a certain " bank" occurs independently of the other "banks" (Fig. 16.1).

The advantages of this method include the fact that when it is used, there is coordination of terms between deposits and their investments in assets, and also increase

Rice. 16.1.

additional investments in loans and investments, which leads to higher profits. The method allows you to eliminate the excess of liquid assets that oppose savings and term deposits as well as fixed capital.

Along with this, this method also has some disadvantages. First, there is no close relationship between individual groups of deposits and the total amount of deposits. Secondly, there is an independence of the sources of funds from the ways of their use, since the same clients invest and borrow from the bank, if banks are striving for this. In addition, when using this method, banks proceed from the average, and not from the marginal level of liquidity.

In banking practice, it is also used scientific method of asset management , which is based on the use of the so-called objective function. The Bank calculates the investment of its resources using the following formula:

Where R - profit; x - xb - investment amounts on government short-term bonds, government long-term bonds, commercial loans, term loans, consumer credit, mortgage loan; 2, 3, 5, 6, 8, 9 - percentages corresponding to these types of investments.

The use of this method is focused on maximizing profits. The scientific method proceeds from the assumption that at any level of risk that is not associated with investment, the bank invests based on the maximum in a certain period interest rates(V this case these are 8 and 9%). However, the bank must comply with regulatory central bank, take into account the requirements of risk management and the requests of other clients.

In this regard, the bank does not invest all its funds in assets where the highest income (interest) is potentially possible, but distributes them in several directions. But he will place a significant part of his resources in places where there is an opportunity to obtain higher incomes. Such actions should provide him with sufficient profit while maintaining liquidity at the required level.

Currently, all three methods of asset management are used in the world banking practice. The application of each method is determined by the economic situation and the position of the bank in the market. At the same time, we note that the most effective method of asset management is based on the objective function.

Bank liability management. Management of liabilities (passive operations) is the most important area of ​​banking management. It is focused on managing the mobilization of credit resources, managing the issuing activity of the bank, and maintaining the liquidity of the bank. It should be noted that passive operations are primary in relation to active ones, since before placing resources, you first need to form them.

The resources of a commercial bank are divided into two groups:

• a) equity ( own funds);
• b) attracted funds.

Equity capital represents funds owned directly by a commercial bank. At the expense of their own capital, banks form 12-20% of the total need for resources to ensure their activities.

Bank capital management involves maintaining its sufficiency, choosing the most effective way to increase it. Sources of capital growth of a commercial bank are divided into internal and external.

Internal sources include the bank's retained earnings and the revaluation of its funds. External sources include: issue of shares; issue of subordinated obligations; attracting funds from shareholders of the bike.

Low profit share joint-stock bank, directed to increase equity, leads, respectively, to a slow growth of the bank's own capital, holding back the growth of assets and income, while a high share leads to a decrease in dividends paid. At the same time, high and stable dividends lead to an increase in the market value of the bank's shares, which makes it easier to raise capital from external sources. When pursuing a dividend policy and choosing a source of capital increase, the bank's management must comprehensively take into account the trends in the general economic and banking environment, a combination of various factors and trends.

The main volume of bank resources is formed at the expense of borrowed funds, which the bank accumulates in the process of conducting deposit and non-deposit operations.

Deposit operations provide the bulk of attracted resources of commercial banks. The implementation of deposit operations involves the development by each credit institution of its own deposit policy. It should be understood as a set of measures aimed at determining the forms, tasks, content of activities for the formation of banking resources, their planning and regulation.

In the management of bank liabilities, there are concepts of deposit expansion and reduction of deposits. The volume of deposits in commercial banks depends mainly on the amount of loans provided by banks and investments.

Non-deposit operations are associated with obtaining loans from the Bank of Russia from correspondent banks, i.e. interbank loans, which are usually provided for a short period. Large Russian banks Eurocurrency loans are also attracted - loans received in Eurodollars. To non-deposit passive operations also includes the attraction of funds by commercial banks through the issuance of securities - bonds and bills.

The conclusion is as follows: the defining goal of managing the liabilities of a commercial bank is to form and increase the volume of its resources, while minimizing the bank's expenses and maintaining the required level of liquidity, taking into account all types of risks.

Bank personnel management. Bank personnel management (personnel management) includes the development and implementation of personnel policy, management of remuneration and labor incentives, management of relationships in the bank's team.

There are three main groups of personnel management methods:

• 1) economic methods, including the development of systems for remuneration and material incentives, planning and personnel management;
• 2) administrative or organizational and administrative methods;
• 3) socio-psychological methods - moral stimulation of labor, methods social protection bank employees, the system of relationships in the team, the socio-psychological climate, etc.

The most important tasks of bike personnel management (personnel policy) are:

• regulatory and legal support of the personnel management system;
• selection and distribution of personnel;
• terms of employment and dismissal;
• training and professional development;
• assessment of personnel and their activities.

Legal support of personnel management

includes:

• legislative acts and other regulatory documents on labor and personnel issues ( Labor Code Russian Federation, Civil Code of the Russian Federation, regulations, instructions, guidelines and rules of ministries, departments, other government agencies);
• orders, regulations, rules and other documents issued by the bank's management on labor issues, number of personnel, remuneration, composition of divisions, etc. (for example, internal labor regulations, regulations on the bank's division, staffing, job descriptions).

The main stages of recruitment and distribution of personnel are:

• determination of the need for personnel;
• recruitment;
• selection and placement of personnel.

Determining the need for personnel is one of the priority tasks of personnel management, which makes it possible to establish the quantitative and qualitative composition of personnel for a certain period.

In quantitative terms, the number of employees of a commercial bank is determined primarily by the volume of banking operations performed and the productivity of employees, organizational structure bank and other factors.

Qualitative characteristics of personnel include: level of education, qualifications, practical professional skills, motivation (professional and personal interests, etc.); personal characteristics (hard work, sociability).

Determining the need for personnel involves:

• 1) assessment of the available personnel for a given period (taking into account the outflow of personnel for various reasons);
• 2) determination of the future need for personnel in accordance with the current and future tasks of the bank;
• 3) drawing up a program for fulfilling the bank's needs for personnel, which takes into account directions for achieving quantitative and qualitative correspondence between the future need for personnel and its current availability.

Internal sources of covering the need for personnel - the release, retraining and transfer of personnel within the bank. External sources: admission of graduates of relevant educational institutions, specialists from other banks.

The selection and placement of personnel are carried out on the basis of certain principles, which provide for the development of specific requirements for the bank's personnel, taking into account the volume of its activities, the level of competitiveness, as well as the existing plan for the effective placement of personnel between the structural divisions of the bank (departments, departments, departments and branches).

Persons nominated for the positions of the head and chief accountant of the bank must meet the requirements established by law O banking. Candidates for the position of heads of main functional units must have a higher legal or economic education and, as a rule, at least one year of experience in managing a department or other unit of a credit institution related to banking operations.

In addition to assessing candidates for vacant positions in the bank, a current and periodic assessment of all employees must be carried out - certification, which involves determining the qualifications, level of knowledge of the employee, as well as forming an idea of ​​\u200b\u200bhis business and other qualities. The main purpose of certification is to establish the professional suitability of each bank employee for the position. Based on the results of the certification, certain decisions are made - changing wages, transferring an employee to another position (demotion or promotion), dismissal, etc.

An obligatory task of personnel management is the development of the bank's personnel.

The main goals of personnel development are as follows:

• increase in labor efficiency;
• staff development;
• training the necessary leadership;
• reduction in staff turnover;
• education of young promising employees;
• improvement of the psychological climate in the team.

The main factors in the development of personnel include, first of all:

• motivation (high level of wages, prestige of work, compliance of wages with its results, the presence of a social package);
• professional growth (compulsory special education, openness of information about the prospects for professional growth, providing opportunities for growth);
• leadership style (fairness of requirements and a friendly microclimate in the team).

Training and advanced training is focused on continuous training of bank personnel at all levels, either within the bank itself or in special training centers at higher educational institutions(universities, institutes, colleges). The need for training in order to improve qualifications is primarily due to the requirements and market conditions

banking market, growing competition and high level scientific and technological progress in the field of banking technologies.

In the personnel management of the bike, it is important to ensure the motivation of the bank staff, based on material and moral incentives.

Financial incentives include:

• material remuneration for work (wages, bonuses, benefits);
• working conditions.

Salary in a commercial bank is usually determined by the staffing table. In commercial banks, usually to the main wages allowances are established (personal, for length of service, academic degree, knowledge of a foreign language, etc.). The official salary of an employee according to the staffing table is a constant part of the remuneration. The second part of the wage fund - variable - is directly dependent on financial results activities of the bank as a whole or its divisions.

The remuneration system involves the payment of monthly, quarterly and annual bonuses. The premium is paid for efficient work, suggestions for improving customer service, mastering new banking technologies, etc. At the same time, the bonus should have not only material, but also moral significance for the bank's staff. In Western countries, a number of banks practice as an incentive system the issuance of their shares to staff, which is considered the highest level in wages.

In the system of remuneration, a special place is occupied by benefits, the so-called social package provided to bank staff, increasing its overall income. Such benefits may include: payment for travel and food at work, medical treatment, maintenance in child care facilities, education and recreation for children; the possibility of obtaining loans at preferential interest rates; pay lump sums to pay for treatment and rest; life insurance at the expense of the bank, etc. Benefits provided to employees depending on the specific results of work are an important means of increasing the productivity of bank personnel.

Under asset management understand the ways and procedure for placing own and borrowed funds in order to generate income and ensure the liquidity of a commercial bank.

Banking assets consist of capital and current items. Capital items of assets - land, buildings owned by the bank; current - bank cash, discounted bills and other short-term loans, loans and investments. Up to 80% of banking assets account for such operations as accounting and loan, credit and securities transactions.

The stability of the bank as a whole consists of such indicators of its work as liquidity, profitabilityAndreliability. In many ways, these indicators depend on the bank's asset management.

Liquidity of assets- this is the ability of assets to be transformed into cash through their sale or repayment of obligations by the debtor (borrower). The degree of liquidity of assets depends on their purpose. In this regard, according to the degree of liquidity, the bank's assets are divided into:

First-class liquid assets - directly the bank's cash held in its cash desk or on correspondent accounts; government securities in the bank's portfolio, which it may resort to selling in case of insufficient cash to pay off obligations to creditors.

The second group of assets in terms of liquidity are short-term loans to legal entities and individuals, interbank loans, factoring transactions, commercial securities of joint-stock companies. They have a longer period of conversion into cash.

The third group of assets covers long-term investments and investments of the bank, including long-term loans, leasing operations, investment securities.

And the fourth group of assets, which includes illiquid assets in the form of overdue loans, certain types of securities, buildings and structures.

Bank assets are considered liquid if they can be easily converted into cash with a minimum decrease in their value. But at the same time, liquid assets have a lower rate of potential profit compared to long-term assets. This discrepancy forces the bank's management to design the asset structure in such a way as to achieve the optimal combination of profitability and liquidity.

Optimalasset structure could be next:

the amount of bank loans issued must be greater than the sum of all liabilities of the bank (since loans are supposedly the least liquid assets, and deposits are their main source and their unexpected outflow can cause a shortage of funds for the bank);

liquid assets, together with the bank's own capital, must ensure the total liabilities of the bank by at least 20%;

the ratio of highly liquid assets and profitable assets should be approximately equal so that the lack of liquidity is compensated by the profitability of assets.

Loan operations form the basis of the active activity of the bank in the placement of its resource base. They bring banks a significant part of their income. But these same operations bring banks and a significant part of their losses. Therefore, many banks prefer to invest most of their resources in government securities or in foreign exchange transactions, rather than in lending to the real sector of the economy.

Recently, banks have been increasing their incomes, increasingly carrying out operations that are uncharacteristic for them, including operations with securities, leasing, factoring, consulting, and trust.

Another factor affecting the bank's liquidity is the quality of its assets. Asset quality is determined based on 4 criteria: liquidity, riskiness, profitability and diversification.

Riskiness as a criterion for the quality of assets means the potential for losses when they are converted into money. The degree of risk of assets depends on many factors specific to their particular type.

According to the degree of riskiness, bank assets are also divided into several groups. The classification of assets according to the degree of risk and the level of risk of each group of assets are ambiguous in different countries and for various purposes. The higher the total risk of the bank's assets, the lower the bank's liquidity.

The return on assets as a criterion of their quality reflects the performance, efficiency of assets, i.e. the ability to earn income and thus create a source for the development of the bank and strengthen its capital base.

According to the degree of profitability, assets are divided into 2 groups: income-generating and non-income-producing. The higher the share of income-generating assets, the more equal conditions, the bank has more income (profit), and, consequently, more opportunity strengthen its capital base. And this means that the bank can better withstand the risks it has taken on.

At the same time, rationality should be observed in regulating the structure of assets according to the degree of profitability, since the unbridled pursuit of profit can result in the loss of assets and loss of liquidity.

A criterion for the quality of assets can also be their diversification, which shows the degree of distribution of the bank's resources in different areas of placement. The more diversified the assets, the higher the bank's liquidity.

EXPOSED CREDIT RISK

19.1. Composition of assets exposed to credit risk, the need for risk management

Banking assets are formed as a result of active operations, which represent the placement by banks of their own and borrowed resources in various areas.

Bank assets are quite diverse. Their composition and structure largely depend on what goals and objectives a particular bank has determined for itself. The main part of the bank's active operations is carried out by it in order to generate income. These operations primarily include all types of lending and investment. Carrying out other active operations allows banks to form such types of assets that provide it with a liquidity reserve and make it possible to fulfill obligations to creditors and depositors to return borrowed funds in a timely manner. Traditionally, such assets are the bank's cash held in its cash desks and exchange offices placed as a free balance on correspondent accounts with the National Bank of the Republic of Belarus, commercial banks. As a certain source of funds that ensure the maintenance of the bank's liquidity, one can consider the funds transferred to the National Bank in the mandatory reserve fund and the bank's investments in precious metals. Another group of active operations carried out by banks is the formation of various capital expenditures and the acquisition of intangible assets. These operations do not provide banks with either a supply of liquid funds or direct income generation, but they are necessary to create the conditions for the functioning of the bank, like any other operating organization.

The bank's assets subject to credit risk include the vast majority of bank assets, since credit risk, which is the risk of non-repayment of borrowed funds by the debtor, is present wherever the bank places funds on a repayable basis.

In regulatory legal acts The National Bank of the Republic of Belarus has identified those types of assets that are exposed to credit risk. These assets include:

All types of loans provided to legal entities (except banks), individual entrepreneurs, individuals;

Financial lease (leasing);

Factoring;

Repo transactions funds;

Debt arising from the issuance and sale of promissory notes with deferred payment;

Obligations fulfilled by the bank issued for third parties;

Interbank loans and deposits;

Funds on correspondent accounts in other banks;

Funds in promissory notes and certificates of deposit of other banks.

As a result of the above operations, banks form that part of the assets, which is defined in a broad sense as the bank's loan portfolio. With the exception of placing funds on correspondent accounts with other banks, all other transactions are carried out by banks in order to generate income. Maintaining certain cash balances on correspondent accounts with other banks has a different main goal - it is necessary to ensure the possibility of uninterrupted decentralized interbank settlements. The risk of loss of funds placed on correspondent accounts, which is present at the same time, makes it possible to classify them as a group of the bank's assets subject to credit risk.

It must be said that the provision of a bank guarantee or guarantee in itself is not an active operation. Guarantees and sureties initially issued by the bank are reflected in off-balance sheet accounts and only when they are executed by the bank acquire the character of active operations.

Conducting active credit operations by the bank provides it with income, which can take various forms: interest for the use of credit resources, various commission payments for supporting credit transactions, discount on factoring operations, etc. operations of a credit nature are considered as “performing” assets that provide the bank with income, but at the same time it is these assets that carry the bank and the most high risks losses. First of all, there is a threat of loss of the assets themselves, which in turn can become a serious reason for the loss of the bank's liquidity, since the main source of placed credit resources is 442

owls, as a rule, are customer funds attracted by the bank. In addition, when there is credit risk banks usually face direct losses arising from the shortfall in income from lending operations. The formation of a special reserve by it to cover possible losses on assets exposed to credit risk can be considered indirect losses of the bank. If there are problem loans in the loan portfolio, banks must make deductions to this reserve, which are charged to the bank's expenses, increasing them and at the same time reducing profits. That is why credit risk is often considered not only as the risk of non-repayment of principal on a loan, but also interest on it.

Credit risk is considered one of the main risks in the system of banking and is the main object of control by commercial banks and banking supervisors. Since most of the bank's financial losses are associated with active lending operations, credit risk management is of particular importance in its activities.

Bank credit risk is formed under the influence of many factors that must be taken into account when conducting credit operations and organizing risk management. The banking risk factor is defined as the cause of possible losses in the value of the bank's assets, which determines their nature and scope. Broadly speaking, all factors can be grouped into external And internal. External factors of credit risk are considered on macro level, internal - on individual borrower level. From these positions, approaches to credit risk management are divided. Individual risk management occurs at each stage of the credit process when working with individual borrowers. To do this, various methods are used to prevent and minimize credit risk. These include:

Preliminary analysis of the creditworthiness and solvency of a potential borrower, the main purpose of which is to decide on the appropriateness of the bank's credit relations with this client and to prevent credit risk;

Usage various ways ensuring the fulfillment by the debtor of obligations (pledge, guarantees, guarantees, etc.), which mitigate credit risk, acting as secondary sources of debt repayment;

Credit monitoring, which provides for control intended use credit, security

collateral, timeliness of payment of interest, dynamics of indicators of the financial condition of the debtor and allows timely recognition of a possible risk;

Creation of a special reserve, which will ensure the possibility of writing off bad debts from the bank's balance sheet, if all the methods listed above did not prevent and eliminate credit risk in a timely manner.

Since the bank's loan portfolio is made up of the debt of many individual borrowers, the quality of individual credit risk management directly affects the quality loan portfolio and its overall risk.

The management of the total risk of the bank's loan portfolio occurs as a result of the use of various methods, among which one of the main ones is diversification.

19.2. Credit risk diversification and system

economic standards that ensure it

In banking practice, various methods of credit risk management are used. Under management method bank credit risk is understood as a set of techniques and methods of influencing a managed object (credit risk) in order to achieve the goals set by the bank. The main objectives of bank credit risk management are its prevention and minimization, as well as maintaining the risk at a certain level. It is important enough to prevent credit risk is to eliminate the prerequisites for its occurrence in the future. In this regard, credit risk management can be carried out already at the stage of developing a certain strategy and policy when forming the bank's loan portfolio.

When forming a loan portfolio to minimize credit risk, it is recommended to use principle of diversification. The implementation of this principle in practice involves the distribution of the bank's credit resources by various categories of borrowers, types of credit products, terms of provision, types of collateral and other features. It should be borne in mind that the concentration of credit investments in any one of the directions leads to the concentration of risk.

Diversifying loan portfolio for different categories of borrowers, the bank disperses risks,

inherent in working with a particular type of clientele. As a rule, when lending, banks give preference to large to corporative clients, however, a certain part of the clientele should be small and medium-sized businesses, individual entrepreneurs, individuals. In addition, the provision of interbank loans may be practiced. Diversification of credit investments by types of credit services assumes that the bank provides credit resources to customers not only in the form of classic loans, but also on the basis of factoring, financial leasing, overdraft lending, etc. It is important to diversify loan investments for lending purposes: to form current assets and create non-current assets business entities, consumer goals individuals or for the purchase and construction of housing by them. Diversification of credit investments for borrowers in various industries allows banks to disperse industry-specific risks. When lending to business entities, diversification can occur according to their form of ownership: state enterprises, individual private enterprises, joint-stock companies. Of course, it is important to diversify the loan portfolio. terms of loans. Banks with a significant amount of long-term investment loans in their loan portfolio find it more difficult to maintain an acceptable level of their liquidity. In addition, in an inflationary environment, the bank's long-term assets may be subject to the risk of impairment. Therefore, it is recommended to maintain certain proportions between long-term and short-term credit investments.

Diversification of the loan portfolio according to the criteria discussed above can be achieved by developing banks of various internal limits that limit the volume of lending operations in various areas.

Particular importance in banking practice is given to the diversification of the bank's loan portfolio by amounts. To this end, the National Bank of the Republic of Belarus has established a number of mandatory economic standards for Belarusian banks that limit large credit risks. The Instruction on economic standards for banks and non-bank financial institutions, the National Bank of the Republic of Belarus presents a system of standards that limit large credit risks, which include the following standards:

The maximum amount of risk per client (group of related clients);

major risks;

Risk per insider and related persons;

Insider risks;

Risk on funds placed in foreign countries not included in the "A" group.

These standards serve as one of the means of minimizing credit risks jar. Limitation the amount of risk per client or group of related clients is established to reduce the bank's probable losses in cases where funds invested in risky operations are not returned on time and in full. In this case, related clients are understood as legal entities and individuals - clients of the bank, related economically and (or) legally. This connection can be expressed, for example, in the provision of mutual warranty obligations. Clients that have common property, subsidiaries and dependent legal entities and (or) having a combination of managerial positions by one individual in such a way that the financial difficulties of one client cause or make it probable that another client will experience financial difficulties are also considered to be related.

Standard maximum size risk per client represents percentage the total amount of the bank's claims to the client and the bank's own capital. This standard is calculated:

For clients - individuals and legal entities;
. by banks;

For each issuer in whose debt securities the bank has invested;

For off-balance sheet liabilities in the amount of credit
equivalent.

The total amount of claims includes: loans; deposits (including in precious metals); investments in debt securities of each issuer; operations (of a credit nature) using promissory notes; purchased bills; factoring; leasing; fulfilled guarantees; overdue debt under the above requirements, as well as the credit equivalent of off-balance sheet liabilities issued by the bank in respect of this client providing for execution in cash. The current methodology for calculating the norm under consideration provides for certain exceptions for certain types of bank assets. So, for example, the total amount of claims against the client does not include: tre-446

for assets with a degree of risk. O (for example, credit debt bodies government controlled in national currency); guarantees and guarantees issued against counter guarantees of the central banks of the countries of group "A", banks of group "A"; funds in banks of group "A" in the amount of 80% of the amount of the claim.

Normative values ​​in terms of the maximum amount of risk per client are differentiated depending on the duration of the bank's activity and the type of client.

There are two types of clients: insider clients and other clients (ordinary).

An insider is understood as legal entities and individuals associated with the bank, its founders and, due to their connection, are capable of influencing the decision of the bank when carrying out transactions with them.

Insiders - individuals include: founders (participants) of the bank, who have more than 5% of shares; members of the bank's management bodies; members of the credit committee of the bank; heads of legal entities-participants; heads of structural divisions of the bank involved in credit operations (up to a level not lower than the head of the department); persons who are closely related or related to insiders; former

insiders, etc.

Insiders - legal entities include: founders of the bank, having more than 5% of shares; legal entities that may influence the decision to grant a loan due to their relationship with the founders; subsidiary and dependent legal entities of the bank; legal entities owning 20% ​​or more of the voting shares of a legal entity holding more than 5% of the shares

bank, etc.

Maximum risk per insider- individual cannot have more than 2% of the bank's own capital.

The maximum amount of risk per insider - legal entity in the first two years after the state registration of the bank should not exceed 10% of the bank's equity capital, in subsequent years of activity - 15%.

- legal entities and insiders- individuals is set as a percentage of the total amount of all insider risks and the bank's equity and cannot exceed 50% of the bank's equity.

Maximum risks by insiders- individuals cannot exceed 5% of equity

Maximum risk per client (for other clients) in the first two years after the state registration of the bank, it cannot exceed 20% of its capital, in subsequent years of activity - 25%.

There is a concept of large credit risk. This will be considered the risk on a loan, the amount of which exceeds 10% of the bank's equity capital. Banks are required to provide the National Bank with information on all such large loans. To limit the total amount of large credit exposures, norm of the maximum size of large risks. It represents the percentage of the total amount of large risks to the bank's equity capital. This indicator cannot exceed six times the size of the bank's own capital.

To limit the risks associated with the placement of bank credit resources in other banks that do not have first-class ratings, the maximum risk limit for funds placed in countries that are not included in group "A". The amount of funds placed in such banks by a Belarusian bank should not exceed the amount of its own capital.

In addition to the system of standards discussed above, for the diversification of credit risk by amount, it is recommended to use the provision of loans to customers for consortium basis. Specific here are the mechanism of accumulation of credit resources and the technique of granting credit. A consortium loan is a loan provided to one borrower by several banks that have entered into an agreement on joint activities for granting a loan. In accordance with this agreement, the participating banks undertake to combine their credit resources and act jointly without forming a legal entity for lending to any project.

Loan portfolio diversification is one of the most effective methods minimizing the bank's credit risk. However, it should be borne in mind that excessive diversification of credit investments can create additional difficulties in risk management and lead to its increase. A sufficient level of diversification of the loan portfolio is a reliable means of minimizing credit risk, but for effective management credit risk in banking practice, other methods should be used.

19.3. Reserve to cover possible losses on the bank's assets exposed to credit risk

Despite the set of methods used by banks to prevent and mitigate credit risk, it is not always possible to avoid it in banking practice. In cases where it is impossible to repay the debt by the debtor and there are no real secondary sources of repayment of this bad debt, the bank needs to have a reserve of funds to compensate for credit risk. Therefore, one of the ways to minimize bank credit risk is the creation by banks of a special reserve that ensures the accumulation of funds, through the use of which it is subsequently possible to compensate for the loss of bad assets.

This reserve is created by banks to maintain the liquidity of their assets and ensure more stable conditions financial activities bank, since a source is formed in advance for writing off bad credit debt from the balance sheet. The reserve is formed on the assets of the bank (in Belarusian rubles, foreign currency, precious metals) exposed to credit risk. It should be borne in mind that when creating a reserve in Belarusian rubles for bad foreign currency debt in the event of a change (growth) in the exchange rate of a foreign currency, an additional charge of the reserve is required.

Deductions to the reserve are charged to the bank's expenses before tax and are fully included in expenses, regardless of the amount of income received. The formed reserve is not included in the bank's own funds (capital).

The reserve is formed on the basis of the classification of assets by credit risk groups made by the bank. The classification of the bank's assets and the assessment of credit risks are carried out on a comprehensive basis using certain criteria:

The ability of the debtor to repay the debt;

Quality and sufficiency of provision;

Number of extensions (one or more);

Duration of overdue debt (up to 90 days, from 91 to 180 or more).

For different types of assets, different “sets” of criteria are used for classification. For such assets, k/ik all types of loans (with the exception of microcredits issued under a simplified procedure) provided to legal entities (except banks) and individual entrepreneurs and transactions using promissory notes, classification

And the assessment of credit risks is made depending on the ability of the debtor to repay the debt, the quality and sufficiency of collateral, the amount of prolongation, the duration of the overdue debt. For all types of loans provided to individuals, microcredits issued under a simplified procedure and leasing, the classification is carried out depending on the ability of the debtor to repay the debt, the amount of prolongation and the duration of the overdue debt. When classifying funds placed with other banks, such criteria are used as the ability of the debtor (correspondent bank) to repay the debt, the presence of prolongation and the duration of the debtor's default on payments. For factoring, purchased promissory notes, fulfilled obligations under issued bank guarantees and guarantees, and other assets, classification is made using only two criteria: the debtor's ability to repay the debt and the duration of the overdue debt.

Debtor's ability to repay debt is determined by analyzing its solvency and creditworthiness, profitability, income stability.

To assess the financial condition, it is recommended to use the criteria set out in the Instructions for the analysis and control of the financial condition and solvency of subjects entrepreneurial activity approved by the Decree of the Ministry of Finance of the Republic of Belarus, the Ministry of Economy of the Republic of Belarus, the Ministry of Statistics and Analysis of the Republic of Belarus. Signs of deterioration in the financial condition of the debtor are:

Negative dynamics (after the loan issuance) of the actual values ​​of creditworthiness indicators determined as a result of financial analysis, relative to the values ​​of these indicators at the time of the loan issuance;

The debtor's losses reporting period;

Late payment of interest on loans;

The presence of overdue debts on other loans;

Height accounts receivable and etc.

When assessing the ability to repay the debt of non-resident debtors of the Republic of Belarus, their ratings assigned by official international rating agencies. When assessing the financial condition of a counterparty bank, indicators characterizing its profitability and profitability can be used, the bank's compliance with economic standards and other requirements established by supervisory authorities is assessed. 450

Depending on the financial condition of the debtor and his ability to repay the debt, the debt is divided into two types:

With signs of deterioration in the financial condition of the debtor;

No signs of deterioration.

Depending on the sufficiency and quality of ensuring timely repayment, loans and transactions using promissory notes are divided into:

For the secured;

Insufficiently provided;

Unsecured.

When classifying on this basis, the qualitative characteristics of the collateral (acceptability) and its sufficiency, the status of guarantors and guarantors, the availability of insurance contracts by the bank for the risk of non-repayment of the debt are taken into account. In particular, to secured include assets secured by highly liquid collateral that fully covers the amount of principal and interest on it; To underserved- secured by highly liquid collateral at a cost of less than 100%, but more than 70% of the principal debt and interest on it; To unsecured- without collateral in the form of highly liquid collateral or secured with highly liquid collateral, the value of which is less than 70% of the principal debt and interest on it.

Depending on the degree of credit risk, assets are divided into five groups, each of which provides for a certain percentage of reserves (relative to the amounts on the balance sheet), which is 0, 10, 30, 50, 100%, respectively.

There are some features of the formation of a special reserve when lending to a client on a consortium basis. The participants of the consortium form a reserve within the limits of their share of the provided funds.

For long-term and other types of loans repaid in several stages, a reserve may be created not for the entire amount of the debt, but for a part of it, according to the repayment schedules. Under the issued bank guarantees and guarantees, the reserve is created from the moment the guarantor bank (guarantor) fulfills its obligations.

The reserve is used to write off debt on the bank's assets classified as bad (V risk group) in terms of the principal debt.

Bad debt is written off at the expense of the reserve created on it after one year from the date of its assignment to risk group V. If there is a decision to provide the debtor with an installment plan (deferral) of repayment of

With regard to secure debt, the outstanding debt is written off at the expense of the reserve formed on it at the end of the installment (deferment) period.

When bad debts are written off at the expense of the reserve created for them, the corresponding accounts for recording credit debt and other active accounts of customers are closed, and overdue interest is also written off from the balance sheet.

Debt write-off from the balance sheet is not grounds for termination of the debtor's obligations. The written-off debt is recorded on off-balance accounts until the termination of the debtor's obligations on the grounds provided for by the legislation of the Republic of Belarus.

Banks regularly (at least once a quarter) send the relevant statements of the off-balance account to the debtor client.

On a monthly basis, banks submit reports to the National Bank of the Republic of Belarus “Calculation of the amount of a special reserve to cover possible losses on assets exposed to credit risk”. It determines the amount of the estimated reserve at the reporting date and shows the amount of the actually created reserve. The purpose of their comparison is to determine the completeness of the formation of the reserve, since the amount of the under-created reserve decreases calculated value bank's own capital, used in the calculation of economic standards. In addition, “Information on the movement of a special reserve to cover possible losses on assets exposed to credit risk” is submitted to the National Bank on a monthly basis. The information indicates the amount of the incoming balance at the beginning of the year, additional accrual and reduction of the reserve for the reporting period and the amount of the balance at the reporting date. The reasons for the additional charge of the provision may be a change (deterioration) in the quality of loans and other assets and a change (decrease) in official exchange rate Belarusian ruble against other currencies. The range of reasons for which a decrease in the reserve may occur is wider. Thus, a decrease in the reserve may occur as a result of its use to write off bad loans and other assets; when repaying loans and other assets by the debtor; as a result of a change (improvement) in the quality of loans and other assets; when changing (increasing) the official exchange rate of the Belarusian ruble against other currencies.

Questions for self-control

1. What types of banking assets are exposed to credit risk?

2. Why is credit risk management important?

3. What factors influence the occurrence of credit risk?

4. What methods of credit risk management are used by the bank in the implementation of credit relationships with individual customers?

5. What are the ways to manage the total risk of the bank's loan portfolio?

6. What is credit risk diversification?

8. What are the economic standards set by the National
a central bank to limit large credit risks?

9. What is the purpose and sources of creating a special reserve
to cover possible losses on the bank's assets subject to
women's credit risk?

10. What criteria underlie the classification of bank assets by credit risk groups?

11. What are the groups of credit risk and in what amounts is the reserve created for them?

20. LIQUIDITY OF COMMERCIAL BANKS 20.1. Liquidity of banks, its essence and significance

The term "liquidity" is widely used to assess the stability and reliability of a bank. The interpretation of this concept in the normative, scientific and educational literature, in fact, coincides and consists in the definition liquidity as the bank's ability to ensure timely and complete fulfillment of its obligations to depositors and creditors. At the same time, the assessment of the understanding of liquidity makes it possible to single out different priorities in its determination.

Many authors, when interpreting the term "liquidity", mainly take into account the ability of assets to turn into the most liquid form, those. the literal meaning of the word liquidity is used, which literally translates as liquid, fluid and means ease of sale, sale, transformation

Nia material assets into money. The variety of forms and terms of placement of bank assets makes such an approach mandatory, since it allows them to be evaluated according to a single criterion, but it is not universal, first of all, it indicates the liquidity of the bank's assets, and not the bank as a whole.

Another approach lies in the ability to assess the bank's liquidity based on the totality of bank claims and liabilities. For example, in normative documents National Bank of the country states that liquidity is determined by the balance of assets and liabilities, the degree of compliance with the terms of placement of assets and attraction of funds. This approach explains the main criteria for assessing liquidity and allows considering liquidity as a derivative of the state of not only assets, but also liabilities, both in the present and in the future, in accordance with the timing of raising and placing funds. And this implies that liquidity cannot be determined only by the state at the date of consideration, but includes the movement of assets and liabilities in accordance with the terms of the concluded contracts for claims and obligations.

The understanding of liquidity without taking into account the movement in the accounts of assets and liabilities is considered in the literature as stationary liquidity, or the liquidity of the stock, and taking into account the prospect of movement, as the liquidity of the movement, or the liquidity of the flow. Stock Liquidity involves the assessment of the bank's assets at a certain moment in terms of the possibility of their use to fulfill obligations on the same date. It is generally agreed that this approach does not capture the essence of liquidity, which is subject to significant changes and fluctuations over a certain period. So, at the beginning of the period, a significant excess of claims over liabilities is possible, and such excess liquidity in the form of free resources of the bank can be placed on various dates, including outside the period under review. At the same time, at the end of the period, the picture may change; obligations may take precedence over requirements. In this case, to maintain liquidity throughout the period, not only the actual balances at the beginning are important, but also the estimated balances at the end, including taking into account their release and placement at the beginning and during the period. This approach reflects the assessment liquidity as a flow and is considered more reliable and accurate.

When considering liquidity, taking into account the risk, the conditions for fulfilling obligations to creditors and depositors up to-454

are filled with the requirement to fulfill them without losses, i.e. the concept of liquidity includes liquidity risk. Liquidity risk- the risk of the bank incurring losses due to the inability to ensure the timely fulfillment of its obligations in in full. Liquidity risk arises as a result of the imbalance of the assets and liabilities of the bank, the unforeseen need for the immediate and one-time performance by the bank of its obligations. The reason for the risk may also be the untimely fulfillment of obligations by one or more counterparties of the bank.

Liquidity risk assessment introduces an additional aspect to the understanding of liquidity, as it involves not only assessing the fulfillment of obligations by the bank, but also assessing the costs and losses that accompanied the maintenance of liquidity.

Considering a bank's liquidity as its ability to timely fulfill its obligations implies a distinction between the concepts of liquidity and solvency. It seems that they are not synonyms, but are closely related, both contain an assessment of the bank's performance. Solvency as a narrower concept expresses the goal of liquidity and defines the tasks that must be solved in the bank in the process of liquidity management. Thus, liquidity comprehensively reflects the state of the bank to ensure its solvency. It should be noted that in the literature there is a broader interpretation of the bank's solvency, based on the ability of the bank's own capital to cover the realized risk for all assets, including illiquid ones.

Unlike solvency, liquidity is the ability of a bank to fulfill all its debt and financial obligations to depositors and creditors in full and without loss, both now and in the future.

Liquidity as a systemic concept can be represented as a set of interrelated elements included in its composition (Fig. 20.1). The figure shows the relationship between the liquidity goal and objectives, the ways in which they are achieved, the main results of the bank's liquidity management and the consequences of non-compliance with liquidity requirements.

Thus, if liquidity requirements are not met, bank customers inevitably experience difficulties when working with the bank. For them, cases of untimely transfer of funds from their accounts, failure to provide a loan under concluded agreements make us consider the expediency of cooperation with this bank differently. There is a reason to go to another bank.

Performance

obligations to creditors

MANAGEMENT OBJECTIVES Balance of assets

and liabilities by terms and amounts Formation of bank assets

taking into account the required level

liquidity

Availability of liquidity reserve

WAYS TO ACHIEVEMENT

Development of banking policy in the field of liquidity management

Definition of liquidity management tools

Asset management methods

Liability Management Methods

Creation of early warning systems for liquidity violations

LIQUIDITY ASSESSMENT

normative

Failure to fulfill obligations to creditors terms and amount

Fulfillment of obligations to creditors and depositors in terms of amounts and terms, on balance sheet and off-balance sheet obligations. on redemption of issued securities

bank failure

Rice. 20./.Content of the bank's liquidity

The loss of customers leads to the loss of the image of a reliable bank and, as a result, the loss of resources and an increase in liquidity risk. Cases of a single non-compliance with the bank's obligations to customers require clarification of the causes of these violations. Such a reason may be an error related to operational risk, which is not considered as a loss of liquidity. If the reason is the impossibility for the bank to raise funds without losses in the interbank, stock market, then this reason reflects problems with the liquidity and financial stability of the bank, a potential threat to creditors and depositors. 450

The real reason for this phenomenon is usually the nature of the placement of funds, the presence of high-risk, dubious investments with high probability their loss. At the same time, investing the bank's funds mainly in highly liquid assets, which usually contain an insignificant amount of risk, can become a problematic placement for the bank, since there may be a loss of profitability of banking operations and losses. This situation reflects excess liquidity. For each bank, the search for a compromise between liquidity, on the one hand, and risk, profitability of operations, on the other, reflects the meaning of banking management.

Liquidity does not act as an alternative to risk and profitability, but is a condition for financial stability of the bank, since any violation of obligations implies losses in the search for additional, more expensive external sources, the application of penalties.

Maintaining liquidity within the expected parameters and with minimal losses allows the bank to remain a stable and reliable partner in the implementation of its operations, the obligations for which are reflected both on the balance sheet and on off-balance sheet accounts. Such a bank makes all payments on current accounts of clients and correspondent accounts of other banks in a timely manner, returns the funds received under deposit agreements on time, including those in case of their early withdrawal, loan agreements and loan agreements, repays issued securities. In accordance with the assumed obligations to provide funds, the liquid bank has no problems with providing a loan on open credit lines and overdraft lending, fulfilling obligations on foreign exchange transactions, payments on issued guarantees and other off-balance sheet obligations.

In the process of assessing and managing liquidity, the bank must take into account the whole range of factors affecting liquidity. There are internal and external factors. The degree of their influence is determined by the analysis of calculated liquidity indicators. TO external factors include: economic situation in the country, the level of development of the securities market and the interbank market, monetary policy, the content of the supervisory functions of the National Bank of the Republic of Belarus, as well as the organization of the refinancing system and the principles of regulating current liquidity banking system. External factors include financial stability customers and partners of the bank, the possibility of

sinking emergencies associated with their activities, the presence of seasonal fluctuations in attracting temporarily free funds and loan needs. External factors are interrelated and outside their influence, the activities of a commercial bank, including the management of its liquidity, are impossible.

Internal factors liquidity are: the composition and structure of the bank's assets, their quality, the composition and structure of its liabilities, the size of the bank's own capital, the stability of the resource base, the degree of dependence on external sources, the balance of assets and liabilities in terms of amounts and terms. The factors affecting the bank's liquidity include the quality of the bank's management, which predetermines the action of all other factors and reflects the bank's ability to prevent the loss of liquidity and losses while maintaining it. The liquidity of the bank is closely related to such concepts as the liquidity of the bank's balance sheet, the liquidity of the bank's assets, the liquidity of the banking system.

The liquidity of a bank is largely determined by the liquidity of the bank's balance sheet. Under bank balance sheet liquidity is understood as the correspondence of the totality of individual articles and sections of the bank's balance sheet, grouped by types and terms. The balance sheet of a commercial bank is considered liquid if its condition allows, due to the rapid sale of funds on the asset, to cover urgent liabilities on the liability. At the same time, a balance should be ensured in the balance between the released funds on the asset and forthcoming payments on the bank's obligations both in terms of amount and timing.

The bank's liquidity is derived from the liquidity of the bank's balance sheet. It is also based on the assessment of the bank's assets and liabilities. The liquidity of the balance sheet takes into account the ratio of existing assets and liabilities, while the bank's liquidity also takes into account the possibility of obtaining additional funds outside the bank, through the interbank market and refinancing.

Under liquidity of assets understand the possibility and speed of their transformation into means of payment to fulfill obligations. When classified by the degree of liquidity, four groups of assets can be distinguished:

1) highly liquid assets. These include assets that can be immediately used to fulfill obligations without additional transactions associated with any risk, including operational, market, credit. They are defined as assets with 100% liquidity. Such assets include, for example, cash, 458

funds placed in National Bank, securities of the Government and the National Bank in Belarusian rubles, etc. Assets of this quality constitute a liquidity reserve. Their presence is mandatory in every bank to maintain liquidity. The share and size are determined in the process of liquidity management and compliance with established indicators. This group also includes assets, the transformation of which into means of payment is associated with some risk, for example, currency. They are defined as assets with 80% liquidity. These include interbank loans and deposits in foreign currency, secured by guarantees of the Government and the National Bank or pledge of their securities, securities of the Government and the National Bank in foreign currency, etc.;

2) medium liquid assets- these are assets with significant credit, market and operational risk of transformation into absolutely liquid assets. Treated as assets with 50% liquidity. They include funds on demand in banks of the Republic of Belarus, securities on demand of banks of the Republic of Belarus, local authorities and self-government, etc.;

3) illiquid assets, or assets with zero liquidity. This group combines overdue and interbank loans, securities not paid on time, overdue credit debt to legal entities and individuals, equity participations(up to 20% of the authorized capital of the issuer), intangible assets, buildings, structures and other fixed assets;

4) assets with selective future liquidity, or ak
loans placed for the term. These include funds
loans for a period in resident banks, banks of other countries;
securities of local authorities and self-government
nia; securities issued legal entities;
credit debt of legal entities and individuals;
part of other assets. Fluctuation range of asset liquidity
of this group is very large, which is due to their composition,
dominance of loans. Thus, the liquidity of credit investments
ny is determined by the liquidity of their provision. For example,
government-backed debt
securities is considered as a highly liquid
tiv, and secured real estate is estimated as
investment of a low-liquid nature. But since all the
the assets of this group are placed for a period of time and the bank does not have the right
claim them before the expiration of a certain period, he cannot

they can be considered as realizable at the date of classification of assets by liquidity groups. These are assets with future liquidity.

The concept of "banking system liquidity" is broader and more complex. Liquidity of the banking system.- the ability of the entire banking system of the country to fulfill contractual obligations in a timely and uninterrupted manner. The reliability and stability of the banking system, the state of its liquidity depends on the liquidity of each individual bank, since all banks are connected with each other through the system of correspondent accounts, the interbank loan market, stock market. Failure to fulfill the obligations of one bank to another, their bankruptcy can cause huge financial difficulties for creditor banks and lead to the suspension of payments on their obligations. The assessment and supervision of the liquidity status of each bank is carried out by the National Bank of the country. Correspondent accounts of all commercial banks are opened with the National Bank, which allows it to promptly assess the situation with the solvency of banks and use the instruments established by it to maintain liquidity. These instruments, available to all banks, operate within the framework of the current liquidity regulation system created by the National Bank. Under current liquidity of the banking system refers to the ability of banks to ensure the timely fulfillment of their obligations denominated in Belarusian rubles, including through the redistribution of funds between banks through the money market.

Similar information.

The main goals and objectives of managing the assets and liabilities of the bank

The main criterion for evaluating the effectiveness of the asset and liability management method chosen by a credit institution is the level of profitability on active operations and the amount of expenses on passive ones.

Significant factors are also the liquidity of the bank, the level of risks assumed and other parameters that characterize the reliability and efficiency of the credit institution.

Asset and liability management constantly correlate with the interests and general requirements when consumed by customers banking services, namely: increase in profitability; security; return guarantee.

These general requirements refer to the basic, classic. They are realized through a number of other conditions and requirements, such as: liquidity; correspondence of the deadlines for the fulfillment of obligations on passive products to the periods of turnover of the clients' assets; the adequacy of banking policy in all areas; observance of the interests of an organizational nature; the possibility of converting the type of active and passive products and services depending on the needs of customers, etc.

Bank asset management: essence, meaning

Asset management of credit institutions consists in the formation of such a procedure for placing own and borrowed funds in order to constantly maintain an objectively necessary balance between the desire to receive maximum income and risk minimization.

Among the main principles of asset management are the following:

1. the structure of assets should be built in such a way as to ensure the necessary level of liquidity and profitability;
2. active operations are diversified;
3. a system of risk control and creation of reserves is being built;
4. return on assets and other principles should be supported.

In world practice, there are several approaches to the management of banking assets.

Among them, the following methods are distinguished: the stock pool, the conversion of funds, the analytical method of asset management.

Method general fund funds (stock pool) is to distribute the total amount of banking resources between different types of assets, regardless of the source of resources. For the implementation of a specific active operation in accordance with this model, it does not matter from which source the funds are taken. The principle of operation of this method is clearly shown in Figure 1.

Remark 1

The main advantage of the fund pool method is the freedom to choose the direction of investment of funds and specific types of active operations conducted by the bank. At the same time, the determination of the structure of placed funds may be too subjective and lead to additional risks. In addition, differences in terms of attracting and placing funds are not taken into account.

The method of distribution of assets (conversion of funds) is based on establishing the relationship between sources and directions of their use. Liabilities and assets are compared in terms of terms and amounts, for which they are grouped in such a way that funds from a certain group of resources are placed in certain groups of assets, taking into account the return on investments and maintaining the liquidity of the credit institution. The implementation scheme of this method is shown in Figure 2.

Figure 2. Asset allocation method. Author24 - online exchange of student papers

The funds conversion method allows you to build a term structure of assets in accordance with the terms of attracting resources. The share of investments that do not generate income is reduced to a minimum, additional funds are invested in loans and investments, which leads to an increase in the income of a credit institution.

However, the principle of the speed of circulation of resources underlying the method does not always mean that total amount liabilities of this group is subject to strong fluctuations.

The analytical (combined) method of asset management acts as a combination of the fund pool method and asset allocation. The basis of the method is the use of modern economic and mathematical models for the analysis of performance indicators of a credit institution.

Remark 2

The analytical method is focused on obtaining maximum profit while meeting liquidity requirements and observing risk diversification.

In this case, the following rules are observed: short-term liabilities are directed to short-term assets (long-term liabilities - to long-term assets); the amount of short-term and medium-term funds for the active part of the balance sheet should not exceed the amount of the corresponding obligations in terms of terms; the amount of long-term funds on the asset may be higher than the amounts long-term obligations credit institution and the amount of equity, with the terms of placement not exceeding the terms of attraction.

There are also a number of methods for asset management through liquidity.

The procedure for managing the bank's liabilities

The main tasks in the management of liabilities are:

1. Preventing the attraction of resources that do not generate income;
2. Finding and preferential attraction of resources, in sufficient quantity for the implementation of active operations;
3. Find "cheap" resources according to their qualitative bases, satisfying the terms of attraction and withdrawal;
4. When attracting resources, the principle of information and insurance support and others that affect the quantity and quality of liabilities must be observed.

The liability management process should consider:

• size, amount of attracted resources;
• term of attraction;
• types of investors, industry, territory;
• return modes and procedures;
• the amount and rules for calculating interest;
• types of interest, the possibility and reason for their change;
• a variety of accompanying and additional services;
• regimes and stipulated requirements for protection against early withdrawal of funds, etc.

The formation of these qualitative characteristics is based on the principles of diversification.

Thus, asset-liability management is carried out in two main areas: quality management of specific banking products; management of the entire portfolio of banking products and services.

However, these directions should take into account all the characteristics necessary for customers and are reflected in the contracts. All transactions could be in accordance with the conditions protected, and if necessary, adjustments could be made.