Functions of the bank's own capital. Equity capital of a commercial bank: composition and formation procedure. Need help studying a topic?

The term “capital” (from the Latin capitalis - main) literally means the main property. Bank's own capital by general definition, this is the bank’s property, free from obligations, the bank’s own property (funds).

The bank's own capital represents a special form banking resources. It, unlike other sources, is of a permanent, irrevocable nature and has a clearly defined legal basis and functional certainty is a prerequisite for the formation and functioning of any commercial bank, i.e. serves as the core on which all activities of a commercial bank rest from the first day of its existence.

Despite the insignificant share in the resources of a commercial bank (on average about 17%), its own capital performs a number of vital functions, which in turn act as components equity in creating favorable conditions for normal functioning bank and its further development.

The exception is newly created commercial banks, whose activity in attracting deposits is at an initial stage, as well as the vast majority of medium and small banks, the share of equity capital in total amount resources which significantly exceed the level prevailing in the region as a whole. Maintaining a share of equity capital by small banks for more than high level It is connected, first of all, with a greater likelihood of crisis situations and their consequences.

Protective function. This is the main, main function of the equity capital of a commercial bank. It is actually its general property. Due to its permanent nature, equity capital acts as the “main means of protecting” the interests of depositors and creditors, from whose funds a significant share of the bank’s assets is financed. This is a kind of “safety belt” that allows them to receive compensation for losses in the event of bank liquidation. In banking practice, equity capital is considered as the amount within which the bank guarantees liability for its obligations.

At the same time, equity capital serves to protect the bank itself from bankruptcy. Having an irrevocable nature, it allows the bank to carry out operations despite the occurrence of large unforeseen losses, compensating for current losses until the bank management resolves the problems that have arisen. It is no coincidence that in economic literature it is compared to a “shock absorber”, called “a kind of pillow”, “money for a rainy day” and, finally, the “ultimate line of defense”.

Operational function. Throughout the entire period of operation of the bank, its own capital is the main source of formation and development of the bank’s material base, providing conditions for its organizational growth. Thus, to begin its work, a new bank needs funds to carry out such priority expenses as purchasing or renting premises, purchasing the necessary machinery, equipment, etc. The equity capital formed at the stage of creating a commercial bank acts as starting funds for reimbursement of such costs.

During a period of growth, any operating bank is interested in both establishing long-term relationships with its clientele and in attracting new solvent clients. This forces the bank to work towards expanding the range banking services, improving their quality, increasing the number of developments, introducing advanced banking technologies, new software products, equipment upgrades, as well as carry out structural measures (in particular, create branch network both within the region and beyond). Financial base bank, as well as a means of protecting it from the risk associated with organizational growth and deployment of operations, is its own capital.

Regulatory function. This function is connected, on the one hand, with the special interest of society in the normal functioning of commercial banks and maintaining the stability of the entire banking system, and on the other hand, with the norms of economic behavior that make it possible to control the activities of the bank. It, as well as the previous ones, embodies the protective property of the bank’s own capital. The latter is called upon to protect commercial Bank from financial instability and excessive risks, acting as a regulator of its activities, namely, to serve as support for uniform, orderly growth banking assets and regulate the volume of almost all passive operations.

1 Bank’s own capital and its essence

Own funds of a commercial bank consist of the funds formed by it and the profit received by the bank as a result of its activities in the current year and over the past years. The bank's funds form the basis own funds. Each of them has a specific purpose. The order and sources of their formation also differ.

The starting point in organizing banking is the formation by commercial banks authorized capital (capital). Its creation in the amounts determined by law is a mandatory condition for registering a bank as legal entity. Regardless of the organizational and legal form of the bank, its authorized capital is formed entirely from the contributions of participants - legal and individuals. Funds contributed to the authorized capital represent start-up capital for starting economic and commercial activities newly created bank and throughout the entire period of operation of the credit institution are economic basis his existence.

IN mandatory commercial banks should form reserve fund, which is intended to compensate for losses from active operations of the bank, pay dividends on preferred shares in case of insufficient profit received and for other similar purposes. The reserve fund is formed from contributions from net profit jar. The size of this fund is directly dependent on the size of the bank's authorized capital. According to the law, the size of the reserve fund must be at least 15% of the authorized capital.

In addition to the mandatory formation of a reserve fund, commercial banks can create other funds, the sources of which are bank profits. The number of these funds, their purpose, size, procedure for formation and use must be stipulated in the bank’s constituent documents or in special internal bank regulations on funds approved by the relevant management bodies of the bank. Most often, a bank development fund, funds accumulating funds for paying dividends to shareholders and indexing the par value of shares, and a bank current expenses fund are formed. Various target funds can also be created, for example, for retraining and advanced training of bank personnel, etc.

A special group should include bank funds, the formation of which is associated with various foreign economic factors. They can be combined under the general name revaluation funds. Due to inflation there is a lag book value the bank's fixed assets from the market. When periodically revaluing their value, the bank forms a fund for revaluation of fixed assets. When the exchange rate of foreign currencies changes against national currency Banks experience so-called unrealized exchange rate differences. The bank's own funds include unrealized exchange rate differences from the revaluation of foreign currency in the authorized and other funds of the bank.

A separate group in the bank's funds is represented by funds accumulated as a result of depreciation of fixed assets.

The bank’s own funds may include a number of other elements:

Reserves for risks and payments created at the expense of bank profits;

Issue differences resulting from the sale of initially issued shares at a price exceeding their par value;

Retained earnings of the reporting year and previous years.

It must be borne in mind that in the course of their activities, commercial banks can partially or fully use the funds they have accumulated in funds intended purpose. In this case, there will be a decrease in the total amount of the bank's own funds.

It is necessary to distinguish between the concepts of own funds and the bank’s own capital. Own funds is a generalized concept. Including all bank liabilities formed during its internal activities: authorized and reserve funds, other funds and reserves created at the expense of profits; emission differences; revaluation funds; retained earnings previous years and the current year. Bank's own capital is a calculated value. It may include, in addition to certain items of own funds, and individual species attracted, which can theoretically be equated to their own and which are capable of performing the functions of the bank’s capital. The bank's capital includes elements of its own funds that meet such principles as stability, subordination in relation to the rights of creditors and the absence of fixed income accruals. Thus, the bank’s own capital should be understood as the funds and reserves created by it, which ensure the bank’s stability of operation and the ability to smooth out potential losses, as well as those that are in use by the bank throughout the entire period of its activity. Own capital includes: authorized capital, reserve capital, reserves to cover various risks, founder's profit (issue differences), retained earnings of the current year and previous years. In addition, the equity capital may include an attracted or subordinated loan, which is characterized by sufficient long periods attraction (at least 5 years), the lack of possibility of reclaiming by the creditor earlier provided for by the agreement expiration dates of the contract.

It can be noted that the structure of bank liabilities has its own specifics compared to the structure of liabilities of business entities. It consists of a relatively small share of the bank’s own funds (about 10%) compared to the share of borrowed funds. This is due to a number of reasons. Firstly, banks, by the nature of their activities, are engaged in redistribution temporarily free funds clients, i.e. They work mainly with “other people’s” funds. Secondly, the banking assets of non-financial companies, since they are mainly in cash, and are not “frozen” in the form of fixed assets and inventories. This allows you to mobilize the jar faster cash to fulfill its obligations to creditors and reduces the need for equity capital.

The own funds of various commercial banks can account for a much larger share of the total resources. It depends mainly on the duration of the bank’s activities and the resource policy pursued by the bank. The newly created bank has all liabilities formed from its own funds and represented by funds contributed to the authorized capital. In some cases, banks are pursuing a targeted policy to “reduce the cost” of the resource base by reducing the attraction of customer funds and increasing their own funds.

2 Functions of equity

Equity- this is, firstly, the source financial resources for the bank. It is indispensable in the initial stages of a bank’s activities, when the founders make a number of priority expenses, without which the bank simply cannot begin its activities (purchase of land and buildings, equipment of premises, payment of wages to staff).

The bank's own capital performs the following functions:

Operational;

Regulatory;

Protective.

Operational support function It has important during the creation and early stages of the bank’s operation. During such periods, the bank’s own capital finances the acquisition or rental of fixed assets, computer and office equipment, organizational measures to create security systems in the bank, and the introduction of banking technologies and communication systems.

In the further activities of the bank, the function of ensuring operational activities becomes secondary, in contrast to enterprises in the field material production, where it remains central throughout the entire period of activity.

Content regulatory function capital is that through fixing the amount of equity capital or its individual components, supervisory authorities influence banking activities and limit the level of banking risks. Thus, to determine the mandatory economic standards for regulating the activities of banks established by the National Bank of the Republic of Belarus, indicators of the bank’s equity capital are used in ten of the thirteen mandatory standards. That is, the amount of bank capital significantly affects the volumes and directions of banking operations. The equity capital of a commercial bank can also be used to participate in the ownership of joint stock and general enterprises.

The essence protective function is that capital serves to protect the funds of depositors and creditors, since losses from credit, investment, foreign exchange transactions bank, abuses, errors are written off from reserves that are included in capital. Therefore, if a bank has sufficient reserve capital, it can be considered reliable and solvent for a long time even if losses occur in its core activities. That is, the bank’s capital plays the role of a kind of buffer that absorbs losses from the realization of various banking risks.

This function includes guaranteeing deposits, protecting the interests of depositors in the event of liquidation or bankruptcy of the bank, and also ensures the functioning of the bank in the event of losses from current activities, which are covered, as a rule, by current profits. The protective function of bank capital is the main one throughout the entire period of operation of the bank.

It is easy to notice that protective features are characteristic of all these functions. Thus, it turns out that the protective function is common feature the total capital of the bank. It should be noted that the protective function of equity capital changes under the influence of certain factors:

Economic and financial situation of the country and stability monetary sphere;

Development of deposit and loan insurance in the country;

Bank strategies and tactics.

The higher the level of development in the country of insurance of deposits, deposits and debt transactions, the lower the requirements for the protective function and the lower the share of equity capital in the bank's liabilities. The more strictly a bank adheres to the requirements for its liquidity and carefully insures its activities against all types of risks, the fewer requirements are placed on the protective function. However, an excessive increase liquid assets, complete exclusion from the practice of issuing risky loans leads to a decrease in bank profitability. In conditions of economic, financial and legal instability, the activities of commercial banks face additional risk, which increases the requirements for the protective function of equity capital.

The multifunctional purpose of the bank's own capital makes it heterogeneous in composition. One part, intended to ensure the operational activities of a commercial bank, is the most permanent and appears in the form of funds: authorized, partially reserve, depreciation, economic incentives. The second part is intended to insure the bank's active and other operations against losses. This part is more mobile and appears in the form of funds: insurance, partially reserve, reserves to cover losses associated with non-repayment of loans. The third is intended to regulate the size of the bank's own capital, although it can be used to ensure operational activities and insurance needs. Therefore, the size of this part of equity capital is the most flexible and may depend both on changes in the strategic and tactical goals of the bank itself, and on the requirements of regulatory authorities.[

3 International capital standards

In 1987, representatives of 12 leading industrialized countries (the G7 countries, Sweden, Switzerland and the Benelux) announced an agreement on capital standards, often called the Basel Accord, that would apply uniformly to all banking institutions under their jurisdiction. states

The size of a commercial bank’s own funds plays a huge role:

For the bank itself, since the volume and nature of both active and passive operations directly depend on the amount of capital, which ultimately has a significant impact on the formation of operating results;

For bank creditors, as well as clients located on settlement and cash services, which is associated with ensuring the safety of their investments and guaranteeing stability of service;

For government agencies, including central banks, which are interested in the stability of the economy as a whole, in particular, banking systems and non-cash payment systems, since this stability can only be achieved if commercial banks have their own funds that meet established requirements, adequate to the market situation in terms of its quantitative and qualitative parameters.

In the Republic of Belarus minimum size equity capital must be 5 million euros.

Thus, bank management periodically faces the problem of replenishing its own funds.

Replenishment of bank capital is carried out in two ways:

Capital increase due to internal sources;

Increase in capital from external sources.

The first method is to carry out a certain dividend policy, the essence of which is to increase the share of profit retention by reducing (or a relative reduction with constant profit growth) payment of dividends to holders ordinary shares.

The second method consists primarily of additional issue of equity shares. valuable papers with the right to exchange for shares. This method also includes the sale of fixed assets and, first of all, real estate with subsequent rental. Transactions of this kind are most attractive during periods when inflation and economic growth significantly outpace the increase in current value compared to its original cost reflected in the bank's balance sheet.

To support its activities, it must have a certain amount of funds and tangible assets, which constitute its resources. In terms of origin, these resources consist of the bank's own capital and borrowed money, attracted by him for a while from outside, employed by other persons. This implies, what are the resources of the bike represent a set of own, attracted and borrowed funds available to the bank and used by it to conduct active operations.

The bank can place its funds and conduct active operations that generate income only within the limits of its available resources. Banking resources are formed and replenished through passive operations, which play a primary and determining role in relation to active operations, logically and actually precede them and determine the volume and scale of profitable operations.

There are four forms of passive operations of commercial banks:

primary issue of securities;
deductions from bank profits for the formation or increase of funds;
loans and borrowings received from other legal entities;

With the help of the first two forms of passive operations, the first large group of credit resources is created - own resources. The following two forms of passive operations create a second large group resources - borrowed and attracted resources, i.e. obligations. Thus, the structure of banking resources can be presented as follows:

Own funds

The theory of world banking distinguishes between the concepts of equity and bank capital. The first concept is the most general; the second refers to specially created funds and reserves intended to ensure the economic stability of the bank. However, in Russian practice the concepts of “own funds” and “capital” are identical.

Capital is the monetary expression of all real property, bank-owned. In accordance with the Federal Law “On the Central Bank Russian Federation» equity capital"is set as sum authorized capital, funds credit organization and retained earnings».

The value of the bank's own funds is primarily in maintaining sustainability. At the initial stage of creating a bank, it is own funds that cover priority expenses (land, buildings, equipment, wage), without which the bank cannot begin its activities, the necessary reserves are created. Own resources They are also the main source of investment in long-term assets. Banks' own funds include:

authorized capital;
reserve fund;
special fund;
insurance reserves;
Extra capital;
profit undistributed during the year.

Authorized capital commercial bank is the monetary expression of the minimum required amount of property that the bank must possess as a legal entity and as an economic entity, i.e. this is the amount of property, only with which a newly created bank can be generally registered as a legal entity and receive the first, simplest banking license and with which the bank is ultimately responsible to its creditors (i.e., if to fulfill its obligations, to pay the bank will have no other means of debt).

Grouping of operating credit institutions by size of registered authorized capital over three years last year characterized by the following data (Table 13.1).

Table 13.1. Authorized capital of credit institutions

Amount of capital, million rubles.	Number of credit institutions

	quantity	quantity	quantity
Up to 3 million rubles.
From 3 to 10 million rubles.
From 10 to 30 million rubles.
From 30 to 60 million rubles.
From 60 to 150 million rubles.
From 150 to 300 million rubles.
Above 300 million rubles.
Total in Russia

The bank's authorized capital - the basis of its resources - consists of contributions from legal entities and individuals - participants (shareholders or shareholders) of the bank. The bank's authorized capital (both directly and as part of its own capital) performs a number of very important functions:

at the initial stage of the bank’s work, it acts as the starting funds necessary for priority expenses;
During a period of growth, the bank needs additional capital to create new capacities, and for this purpose banks often resort, in particular, to attracting new participants - shareholders or shareholders, i.e. to increase its authorized capital;
capital is a regulator of the bank’s activities, including a limiter on the unreasonably rapid growth of its operations and corresponding risks. Supervisory authorities, by putting forward certain requirements for banks in terms of capital, thereby set standards of economic behavior designed to protect banks from financial instability and excessive risks;
the presence of solid capital creates and strengthens customer confidence in the bank. However, this function cannot be perceived straightforwardly;
capital plays the role of a shock absorber, absorbing damage from current losses, which allows the bank to continue operations even in the event of relatively large unexpected losses or emergency expenses. Although the bank must have reserve funds to finance such costs, under unfavorable circumstances (for example, massive non-payments by customers), losses may increase so much that part of the authorized capital must be used to pay off losses. It is this that serves as a kind of last buffer, absorbing current losses until the bank’s management resolves the urgent problems.

Reserve Fund a commercial bank is intended to compensate for losses on active operations and, in the event of insufficient profits, serves as a source of payment of interest on bank bonds and dividends on preferred shares. A reserve fund is formed through annual deductions from profits. The minimum size of the fund from the level of the authorized capital is established Central Bank RF. At the same time, a commercial bank independently determines the level size limit reserve fund, which is fixed in the bank's charter. This amount can range from 25 to 100% of the authorized capital. When the established level is reached, the formed reserve fund is transferred to the authorized capital (capitalized), and its accrual begins anew.

Along with the reserve fund, a commercial bank creates other funds(for production and social development the bank itself): fund special purpose, accumulation fund, etc. These funds are similar to reserve funds, as a rule, they are formed at the expense of bank profits. The procedure for the formation of funds and their use are determined by the credit organization in the regulations on funds, as well as regulatory documents Central Bank RF.

Extra capital The jar includes the following three components:

increase in property value during revaluation. The revaluation procedure is determined by separate regulatory documents of the Central Bank of the Russian Federation published on this issue;
share premium (only for shareholders of credit institutions), which is income received during the period of issue when shares are sold at a price exceeding the par value of the shares, as the difference between the cost (price) of the placement and their par value;
property received free of charge from organizations and individuals.

Insurance reserves are a special component of the bank's capital. Insurance reserves are formed when specific active operations are performed. These primarily include reserves created for possible losses on loans and for the accounting of bills of exchange, reserves for possible depreciation of securities acquired by the bank, as well as a reserve for possible losses on other assets and settlements with debtors. The purpose of these reserves is to offset the negative consequences of the actual decline market value various assets. Reserves are formed at the expense of bank profits in a mandatory manner prescribed by the Central Bank of the Russian Federation.

retained earnings also applies to the bank’s own funds, since in the conditions market economy The operating principles of commercial banks require independent management of the profit remaining after paying taxes, dividends and contributions to reserve capital.

Total bank capital adjusted by the amount resulting from the revaluation of funds in foreign currency, securities traded on the organized securities market (OSM), precious metals, as well as the amount of accumulated coupon income received (paid).

By controlling the activities of commercial banks, the Central Bank of the Russian Federation establishes capital adequacy standards for commercial banks. This indicator is determined by the permissible size of the bank's authorized capital and the maximum ratio of its total capital and the amount of assets, taking into account the risk assessment.

Along with the absolute value of the size of bank capital (as well as authorized capital), the Central Bank of the Russian Federation introduces relative standards, in accordance with which a relationship is established between the size of equity capital and volumes various types banking operations. These ratios are also defined in Instruction of the Central Bank of the Russian Federation No. 1.

The bank's own funds serve as a source for the development of its material base; they are used to purchase buildings, necessary machinery, equipment, computer equipment, etc.

In the structure of the bank's liabilities, the share of equity capital is insignificant. However, it must be sufficient to fulfill the obligations assumed by the bank, protect the interests of depositors and other creditors, and prevent bank bankruptcy.

Bank's own capital and its structure

The bank's own capital is a combination of fully paid elements of various purposes that ensure economic independence, stability and sustainable operation of the bank. A prerequisite for inclusion of certain funds in the equity capital is their ability to fulfill the role insurance fund to cover unexpected losses that arise in the course of the bank's activities, thereby allowing the bank to continue current operations if they occur. However, not all elements of equity capital have such protective properties to the same extent. Many of them have their own unique characteristics that affect the element's ability to recover extraordinary unforeseen expenses. This circumstance necessitated the allocation of two levels in the structure of the bank’s own capital:

fixed (basic) capital, representing first-tier capital
additional capital, or second-tier capital.

IN composition of fixed capital, refer to funds that are of the most permanent nature, which a commercial bank can, under any circumstances, freely use to cover unexpected losses. These elements are reflected in the reports published by the bank, form the basis on which many assessments of the quality of the bank's work are based, and, finally, affect its profitability and degree of competitiveness.

IN composition of additional capital with certain restrictions, include funds that are less permanent in nature and can only be directed to the above purposes under certain circumstances. The cost of such funds may change over time.

The sources of the bank's fixed capital include:

authorized capital of the bank in organizational and legal form joint stock company formed as a result of the issue and placement of ordinary shares, as well as preferred shares, not related to cumulative;
authorized capital of the bank in the organizational and legal form of a company with limited liability, formed by payment of shares by the founders;
share premium of banks;
bank funds (reserve and other funds) formed from the profits of previous years. remaining at the disposal of banks and confirmed by an audit organization;
profit of the current year and previous years in the part confirmed by the auditor’s report.

Sources of additional capital are:

increase in property value due to revaluation;
funds formed from deductions from the profits of the current and previous year before confirmation by the audit organization;
current year profit not confirmed by an audit organization;
profit previous years before audit confirmation, before July 1 of the year following the reporting year (in the absence of such confirmation, profit after this date is not included in the calculation of own capital);
subordinated loan;
part of the authorized capital formed by capitalizing the increase in the value of property during revaluation.

Functions of bank equity

The bank's own capital is a special form of banking resources. It, unlike other sources, is of a permanent irrevocable nature, has a clearly defined legal basis and functional certainty, and is a prerequisite for the formation and functioning of any commercial bank, i.e. serves as the core on which all activities of a commercial bank rest from the first day of its existence.

Despite the insignificant share in the resources of a commercial bank, its own capital performs a number of vital functions:

protective;
operational;
regulating

Protective function

This is the main, main function of a commercial bank’s own capital. It is actually its general property. Due to its permanent nature, equity capital acts as the “main means of protecting” the interests of depositors and creditors, from whose funds a significant share of the bank’s assets is financed. This is a kind of “safety belt” that allows them to receive compensation for losses in the event of bank liquidation. In banking practice, equity capital is considered as the amount within which the bank guarantees liability for its obligations.

Operational function

Throughout the entire period of operation of the bank, its own capital is the main source of formation and development of the bank’s material base, providing conditions for its organizational growth. So, in order for a new bank to start operating, it needs funds to carry out such priority expenses as purchasing or renting premises, purchasing the necessary machinery, equipment, etc. The equity capital formed at the stage of creating a commercial bank acts as starting funds for reimbursement of such costs.

During a period of growth, any operating bank is interested in both establishing long-term relationships with its clientele and in attracting new solvent clients. This forces the bank to work towards expanding the range of banking services, improving their quality, increasing the number of developments, introducing advanced banking technologies, new software products, updating equipment, as well as carrying out structural measures (in particular, creating a branch network both within the region and outside of it). The financial base of the bank, as well as a means of protecting it from the risk associated with organizational growth and deployment of operations, is its own capital.

Regulatory function

This function is connected, on the one hand, with the special interest of society in the normal functioning of commercial banks and maintaining the stability of the entire banking system, and on the other hand, with the norms of economic behavior that make it possible to control the activities of the bank. It, as well as the previous ones, embodies the protective property of the bank’s own capital. The latter is designed to protect a commercial bank from financial instability and excessive risks, acting as a regulator of its activities, namely, to support the uniform, orderly growth of banking assets and regulate the volume of almost all passive operations.

The listed functions of equity capital help reduce the risks of banking activities.

Characteristics of individual elements (sources) of equity capital

Initially, at the stage of creating a commercial bank, the only source of its own capital is the authorized capital. The remaining sources are generated directly in the process of the bank's activities. As they are created, the authorized capital becomes part of the bank's equity capital, but continues to remain its main element. Authorized capital, forming the core of equity capital, plays a significant role in the activities of a commercial bank. It is he who determines the minimum amount of property that guarantees the interests of the bank’s depositors and creditors and serves as security for its obligations. It is this that allows a commercial bank to continue operations in the event of large unforeseen expenses and is used to cover them, if the bank has the resources to finance such expenses reserve funds will not be enough. Banking analysts proceed from the fact that a bank, unlike other commercial enterprises, maintains its solvency as long as its authorized capital remains intact.

Share premium for a credit organization in the organizational and legal form of a joint stock company, this is the positive difference between the price of shares when they were sold by the first owner and the par value of the shares. This income is included in the calculation of fixed capital after the Bank of Russia registers a report on the results of the issue.

The share premium of a credit organization in the legal form of a limited liability company is the positive difference between the value of the shares when they are paid by participants when increasing the authorized capital and the nominal value of the shares at which they are included in the authorized capital. This income is included in the calculation of fixed capital after registration in the prescribed manner of changes in the amount of authorized capital.

Credit organization funds(reserve and other funds) formed in accordance with the requirements federal laws and regulations of the Bank of Russia in the manner established by the constituent documents of the credit institution, are included in the calculation of fixed capital based on annual data balance sheet, confirmed by an audit organization.

Funds that are a source of credits (loans) to employees of a credit organization, funds for material incentives and economic incentives, as well as other funds, as a result of the use of which the value of the credit organization’s property decreases, are not included in the calculation of own funds (capital).

Profit of previous years and current year included in fixed capital based on data confirmed by an audit organization.

A number of items act as sources of additional capital. Let us characterize some of them.

Increase in property value due to the revaluation of fixed assets, it is included in the calculation of additional capital no more than once every three years based on the data of the latest annual balance sheet confirmed by an audit organization.

A hybrid instrument such as subordinated loan. It is provided to a commercial bank for a period of at least five years and can be claimed by the creditor only upon expiration of the agreement, and in the event of liquidation of the bank - after full satisfaction of the claims of other creditors.

However, despite the fact that the subordinated loan is not subject to repayment at the initiative of its owner, it continues to remain a fixed-term debt obligation with fixed term return and, as a rule, cannot be fully used to cover the bank’s losses, which served as the basis for introducing additional restrictions on its amount. In particular, a subordinated loan used as an element of additional capital cannot exceed 50% of the value of the fixed capital.

Calculation of the bank's equity capital and its adequacy

Equity capital as the totality of all sources of fixed and additional capital listed on the bank’s balance sheet is gross equity capital of the bank (gross capital). However, in Russian banking practice, to calculate economic standards, limits on open currency positions, and in other cases when the bank’s own funds (capital) are used to determine the value of prudential banking standards, the indicator is used net equity capital (net capital) which represents the amount of own funds actually available to the bank and can be used as credit resources. Net equity is determined in stages.

The first stage is determining the amount of net fixed capital. And from the sum of all sources of fixed capital available to the bank, which, as already noted, constitute the first level of the bank’s gross equity capital, are excluded intangible assets minus accrued depreciation; own shares purchased by a commercial bank from shareholders; uncovered losses previous years; current year loss; investments in shares (participation shares).

The second stage is to determine the actual amount of additional capital (i.e., taking into account restrictions), which will be included in the calculation of the bank's net equity capital. The amount of sources of additional capital of the bank is compared with the resulting amount of net fixed capital. If this amount turns out to be less than or equal to the amount of net fixed capital, then all of it will be included in the calculation of additional capital. Otherwise, it must be reduced to an amount equal to the amount of net fixed capital, which was calculated at the first stage. If the resulting net fixed capital value is zero or negative, then sources of additional capital will not be included at all in calculating the bank’s equity capital.

Thus, the maximum ratio between the various parts of the bank’s equity capital is achieved: the sum of the elements of additional capital should not exceed 100% of the net fixed capital.

The third stage is calculating the amount of net equity capital. From the total amount of net fixed and additional capital obtained as a result of the two previous stages, subtract the amount of uncreated reserves for possible losses on loans of the 2-5th risk groups, for the depreciation of securities and other assets, overdue accounts receivable duration over 30 days, provided subordinated loans.

The bank's net equity capital must be positive. Its negative value indicates that a commercial bank actually has no free funds of its own, and exclusively borrowed funds are used to cover unforeseen expenses of the bank. As a result, the financial stability of a commercial bank is significantly reduced, which leads to serious complications and additional difficulties in the event of a crisis situation.

Capital adequacy reflects overall assessment(mainly by regulatory authorities) bank reliability.

This means that a bank will be considered reliable in terms of its capital if the parameters of the latter fit into the calculation standards developed empirically either by the banking community or by the body regulating banking activities.

World banking experience developed a method based on the advisability of linking the amount of capital with the level of risks of active operations of banks.

In accordance with the Instruction of the Bank of Russia dated January 16, 2004 No. 110-I “On Mandatory Standards of Banks,” when calculating the regulatory capital adequacy of a bank, its assets are grouped depending on the degree of investment risk and the possible loss of part of their value. Weighting of assets by risk is done by multiplying the funds in the relevant balance sheet account or part thereof by the risk factor. The assets of Russian banks are divided into five groups by risk level with weighting coefficients of 0-2, 10, 20, 50 and 100%. Zero risk is assigned to funds in correspondent and deposit accounts with the Bank of Russia, mandatory reserves transferred to the Bank of Russia, funds of banks deposited for settlements by checks, funds on savings accounts when issuing shares, investing in Bank of Russia bonds, unencumbered obligations, and other means. On the contrary, the Bank of Russia has established the highest degree of risk (50-100%) for funds in accounts in banks - residents of the Russian Federation and in banks - non-residents of countries not included in the group developed countries, for securities for resale and other assets.

Capital adequacy ratio a commercial bank is defined as the ratio of the bank's own capital to the total volume of risk-weighted assets, and its minimum acceptable value is set depending on the size of the bank's own capital. The minimum acceptable value of the bank's own capital adequacy ratio (captain), as well as the minimum amount of capital of a newly created bank, changed with changes in the operating conditions of banks. Thus, until 1996 the standard was 4%, then it was increased to 5% and then, increasing annually, reached 8% by February 1999. From January 1, 2000, the value of this standard was established for banks with a capital equivalent to 5 million euros and above at 10%, and for banks with a capital of less than 5 million euros - 11%. These figures correspond to the capital adequacy standard (8%) set by the banking community (Basel Committee on Banking Supervision).

Question No. 53. The bank’s own capital, its structure and functions. Bank capital adequacy.

The bank's own capital (funds) represents funds contributed by shareholders (founders of the bank), as well as funds generated in the process of further activities of the bank. Compared to enterprises in other fields of activity, the equity capital of a commercial bank occupies an insignificant share in the total capital (approximately 8-10%), while for industrial enterprises this figure is 40-60%.

In commercial banks, equity capital has a different purpose than in other areas of business. The own capital of a commercial bank serves, first of all, to insure the interests of depositors and, to a lesser extent, to financial security its operational activities.

The amount of equity capital is an important factor in ensuring the reliability of the bank’s functioning and should be under the control of the authorities that regulate the activities of commercial banks.

The equity capital of commercial banks is divided into basic and additional capital. The bank's fixed capital is the funds that provide it financial basis. It consists of authorized, reserve funds, economic incentive funds and other funds that are created from profits. Additional capital- These are funds that supplement the total equity capital. It is formed from unused reserves, which are intended to insure active operations of commercial banks and retained earnings.

The bank's capital is divided into:

1) basic (tier I capital);

2) additional (tier II capital).

The bank's fixed capital includes the paid-up and registered share capital and disclosed reserves that are created or increased through retained earnings, share price premiums and additional shareholder contributions to capital, general fund coverage of risks, which is created under an uncertain risk when conducting banking operations, with the exception of losses for this year and intangible assets.

The bank's additional capital includes:

1) undisclosed reserves (such reserves are not displayed in the published balance sheet of the bank);

2) revaluation reserves;

3) hybrid (debt/equity) capital instruments;

4) subordinated debt.

In this case, additional capital cannot exceed 50% of the fixed capital.

Own capital is, firstly, a source of financial resources for the bank. It is indispensable in the initial stages of a bank’s activities, when the founders make a number of priority expenses, without which the bank simply cannot begin its activities (purchase of land and buildings, equipment of premises, payment of wages to staff).

The bank's own capital performs the following functions:

1) operational;

2) regulatory;

3) protective.

The function of ensuring operational activities is important during the creation and in the initial stages of the bank’s operation. During such periods, the bank’s own capital finances the acquisition or rental of fixed assets, computer and office equipment, organizational measures to create security systems in the bank, and the introduction of banking technologies and communication systems.

In the further activities of the bank, the function of ensuring operational activities becomes secondary, in contrast to enterprises in the sphere of material production, where it remains the main one throughout the entire period of activity.

The essence of the protective function is that capital serves to protect the funds of depositors and creditors, since losses from credit, investment, foreign exchange transactions of the bank, abuses, and errors are written off from the reserves that are part of the capital. Therefore, if a bank has sufficient reserve capital, it can be considered reliable and solvent for a long time even if losses occur in its core activities. That is, the bank’s capital plays the role of a kind of buffer that absorbs losses from the realization of various banking risks.

The amount of bank capital significantly affects the level of reliability and trust in the bank from the public.

The term “capital adequacy” reflects the overall assessment of the bank’s reliability and the degree of its exposure to risk. The interpretation of capital as a “buffer” determines a reversible relationship between the amount of capital and the bank’s exposure to risk. Hence: the higher the proportion of risky assets in the bank’s balance sheet, the greater its equity capital should be. At the same time, it should be noted that excessive “capitalization” of the bank, issuing an excessive number of shares in comparison with the optimal need for own funds is also not a good thing. It negatively affects the bank's activities. Mobilizing monetary resources by issuing and placing shares is a relatively expensive and not always acceptable method of financing for a bank. As a rule, it is cheaper and more profitable to attract funds from investors than to increase your own capital.

It is difficult to determine exactly the amount of capital that a bank or the banking system as a whole should have, but it should be sufficient to perform the functions already discussed in maintaining the confidence of depositors and regulatory authorities. The amount of capital required depends on the risk taken by the bank.

For a long time, commercial banks and society have sought to develop a system of standards that could be applied when checking the capital adequacy of a bank or the banking system as a whole.

To assess the adequacy of bank capital, different methods are used. One of the oldest indicators, which is still widely used today, is the capital-to-deposit ratio. In this case, the specified coefficient should not be lower than 10%.

In recent years, more advanced methods for assessing bank capital and its adequacy have begun to be applied. Assets, in accordance with new approaches, began to be differentiated depending on the degree of risk associated with them. The greater the risk associated with a given type of asset, the larger part of the amount of these assets was used in calculating the capital/asset ratio.

Capital items were also differentiated: the categories of primary and secondary capital were distinguished.

The main general indicator of capital adequacy according to the Basel Accord is the risky asset ratio:

risky asset ratio = bank capital/risk-weighted total assets.

There are also other methods for assessing capital adequacy.

Book value method. According to this method, all assets and liabilities of the bank are valued on the balance sheet at the value they had at the time of receipt or issue. The basis is an accounting model, where the amount of the bank's equity capital is determined from the basic balance sheet ratio and is equal to the difference between the bank's assets and its liabilities.

This method of assessing capital is most appropriate when the book and market values of the bank’s assets and liabilities do not differ significantly from each other. But over time, the present value may deviate significantly from the primary book value, which leads to an inadequate assessment of bank capital. During periods when loans and securities are impaired, the book value method of valuing capital does not provide reliable results for determining the extent to which investors are protected from risk.

Market value method. This method means that assets and liabilities are valued at market price, on the basis of which the bank’s capital is calculated. This method of assessing bank capital is the most useful for both investors and depositors, as well as for bank managers. The market value of capital quite accurately reflects the real level of protection of the bank from the risk of bankruptcy. In addition, the method under consideration is the most dynamic, since the market value of assets and liabilities, and therefore capital, can change every day. Bank management has the opportunity to approximately estimate changes in the market value of capital based on the current market value of the bank's shares and their number on the market.

The method of “regulatory accounting procedures”. The essence of the method is to calculate the amount of capital according to the rules established by regulatory authorities. Rules in different countries are not the same, but often this approach is an attempt to make banks more reliable for outside observers. According to the “regulatory accounting procedures” method, the bank’s capital is calculated as the sum of the following components: share capital, retained earnings, reserve funds, in particular to cover credit and currency risks, subordinated liabilities, and so on. This approach has significant drawbacks, which include considering debt obligations and loss reserves as the bank's capital. It is for this reason that this method has been criticized by many economists.

To register a bank, it is necessary to ensure the minimum required amount of authorized capital and maintain established capital adequacy standards throughout the entire period of activity.

BANK CAPITAL (English capital of bank), the amount of the bank’s own funds, constituting the financial basis of its activities and source of resources. The bank's capital must be large enough to provide borrowers with confidence that the bank is able to meet their loan needs even in unfavorable conditions. economic development countries. This explains the increased attention of state and international supervisory authorities to the size and structure of the bank’s capital. The sufficiency indicator is considered one of the most important when assessing the reliability of a bank. The special importance of a bank's capital is determined by its functions. The main function - protective - is implemented by absorbing possible losses and ensures the protection of the interests of investors. The operational function of a bank's capital is to create an adequate growth base for the bank's assets, i.e., the possibility of expanding its activities. Therefore, banks with conservative policies may have less capital than banks whose activities are characterized by increased risk. The regulatory function of bank capital is associated exclusively with the special interest of society in the successful functioning of banks. Rules related to ensuring the normal functioning of the bank include requirements for the minimum amount of authorized capital to receive banking license; limit amount risk per lender and borrower; asset restrictions when purchasing assets of another bank. Single order calculation of bank capital was adopted in 1988 in Basel (the so-called Basel I). The Agreement on the International Unification of Capital Calculations and Capital Standards established: uniformity in determining the structure and elements of capital (tier I and II capital, the ratio between them); risk weighting scale for balance sheet assets and system for recalculating off-balance sheet items (definition credit risk); ratio of capital to assets and risk-weighted off-balance sheet transactions at 8%. In 1997, the Basel Committee adopted a new decision, according to which the bank’s capital began to be calculated taking into account market risks.

In 2004, the Basel Committee (Basel II) made changes to the calculation of the bank's capital adequacy ratio. It is proposed to take into account operational risk when calculating capital, along with credit and market risks; when calculating credit risk, take into account financial position borrower, quality and term of collateral. The minimum capital requirements and calculation algorithm have not changed. Basel II also provides for increased attention supervisory authorities to capital adequacy and ensuring market discipline.

In domestic practice, the calculation of the capital adequacy ratio is as close as possible to international standards. In accordance with the recommendations of the Basel Committee, starting from 2009, market risks will be taken into account when calculating the bank’s capital adequacy ratio.

In banking practice there are distinguished: authorized, share, share, reserve, declared, additional capital.

Authorized capital is an organizational and legal form of capital, the amount of which is determined by the agreement on the creation of the bank and is enshrined in its charter. It includes the par value of issued ordinary shares or contributed shares and is formed by issuing shares upon creation joint stock bank or contribution of shares by participants of a non-joint-stock bank. If the acquired amount of shares or shares of one participant or bank participants related by common interests is more than 20% of the authorized capital, it is necessary to obtain the consent of the Central Bank of the Russian Federation (CB of the Russian Federation). The minimum authorized capital for a newly created bank is set at an amount equivalent to 5 million euros. The minimum amount of authorized capital was determined by the EEC in December 1989. The predominant form is share capital. The authorized capital of joint-stock banks consists of ordinary and preferred (par value should not exceed 25% of the bank's authorized capital) shares. The authorized capital of non-joint-stock banks consists of shares contributed by bank participants in accordance with the constituent documents.

The authorized capital is reflected in the liabilities side of the balance sheet and is formed cash contributions in national and foreign currency, as well as buildings and property owned by the founder in the form of ATMs and terminals operating automatically and intended for receiving cash from clients and storing it.

Share capital is the capital of a bank created as a joint stock company. Formed by selling shares of the issuing bank. Share capital consists of ordinary and preferred shares. When selling shares at a price higher than their nominal value, the joint-stock bank receives share premium (founder's profit), which is an integral part of the share capital. The increase in share capital occurs through the capitalization of retained earnings from previous years and other own funds of the bank through additional issue of shares.

Declared capital is the bank's capital specified in the constituent documents when it was created or in the prospectus or notification letter to the Main Directorate of the Central Bank of the Russian Federation upon a subsequent increase in the amount of the bank's authorized capital. The declared capital of a newly created bank cannot be lower than the minimum amount of authorized capital required for its registration and obtaining a license for banking activities.

Share capital is the capital of a bank created as a limited liability company (not a joint-stock bank). They distinguish between the declared capital of shareholders, paid (i.e., shares contributed by bank participants to the corresponding bank account) and registered (i.e., approved by the relevant department of the Central Bank of the Russian Federation) capital. An increase in share capital can occur by attracting new bank participants and capitalizing the bank’s own funds. When participants leave the bank or when it is liquidated, the contributed shares are returned to their owners in the manner established by the bank’s charter and the Civil Code of the Russian Federation.

Reserve capital (fund) is a part of a commercial bank’s own funds, formed through deductions from net profit. The minimum amount of reserve capital is set at 5% of the paid-in amount of the authorized capital. Used to cover losses in the bank’s operating activities, and to repurchase bonds in the event of insufficient funds. The replenishment procedure is determined by the Regulations on the distribution of profits, approved by the meeting of shareholders (participants) of the bank. The need to create reserve capital is dictated by the instability of market conditions and the tasks of ensuring financial stability commercial banks.

Additional capital is a part of a commercial bank's own funds, formed as a result of the sale of shares at a price above their nominal value by the first shareholder and changes in the market value of invested property (revaluation of fixed assets). Additional capital, by decision of the meeting of shareholders (participants) of the bank, can be used to increase the authorized capital and cover the bank's losses if other sources are insufficient.