Reflection in the accounting of the bank of credit operations. Organization and accounting of credit operations of a commercial bank
Accounting for credit and factoring transactions
Lending operations are the main active operations of banks. A bank is a credit institution that allocates funds on its own behalf and at its own expense on the basis of repayment, payment and urgency (Federal Law "On Banks and Banking Activities"). Payability, repayment and urgency are the basic principles of lending.
Loans issued to the bank's customers are reflected in active accounts of the first order: 441-457.
The fourth and fifth characters in the numbers of these accounts reflect the terms of the loans. You should remember the accounts for granting loans to individuals:
account 455 reflects loans issued to Russian citizens;
on account 457 - loans issued to foreign citizens, that is, non-residents.
Loans issued to other commercial banks are reflected in active accounts:
account 320 - russian banks;
account 321 - to non-resident banks.
Commercial banks can provide loans:
1) by crediting funds to the settlement accounts of clients - legal entities;
2) opening a credit line, based on the conclusion of an agreement on the provision of a credit by opening a credit line;
3) lending under "overdraft", that is, issuing a loan with a temporary need for funds;
4) the bank's participation in providing loans on a syndicated or consortium basis (since a commercial bank has restrictions on the amount of a loan issued to one borrower, several banks can participate in issuing large loans to borrowers);
5) in other ways that do not contradict banking legislation.
The issuance of a loan to a commercial client for a period of 50 days will be reflected by posting:
D 45204 "Credit provided to commercial non-government clients for a period of 31 to 90 days"
K 40702 "Commercial organizations"
If a collateral is provided when issuing a loan, then an off-balance sheet entry is made:
К 91312 "Property accepted as a pledge for placed funds"
If the pledge is received by the bank in the form of securities, then the posting is performed:
К 91311 "Securities accepted as collateral for placed funds"
If the loan is issued against a guarantee or surety, then the posting is performed:
D 91414 "Received guarantees and sureties"
When calculating interest on a loan, the bank makes a posting in accounting:
D 47427 "Claims to receive interest"
K 70601 "Bank income"
The specified posting is performed by the bank on the basis of the principle of income accounting introduced by the Bank of Russia using the interest rate method. The method lies in the fact that when interest is accrued, before it is paid by the borrower, they are considered received in accounting and are immediately reflected as income.
When paying interest by the borrower, the transaction will be reflected:
If interest is not paid on time, then interest claims will be reflected by posting:
D 45912 "Overdue interest on loans extended to commercial non-governmental organizations"
To 47427 "Claims to receive interest"
Thus, an overdue interest debt arises in the bank's balance sheet, and the income not received by the bank remains on the books, and the bank will ultimately pay an additional amount of income tax from this income.
At the same time, interest on loans outstanding on time will be reflected in the off-balance sheet account by posting:
D 91604 "Interest not received on loans and other placed funds provided to customers"
If the loan is repaid on time, then this will be reflected in accounting by posting:
D 40702 "Commercial clients"
At the same time, the bank returns the collateral received on the loan.
Posting in progress:
D 91311 "Securities accepted as collateral"
When the collateral is returned by property, the following is posted:
D 91312 "Property accepted as security"
When redeeming a guarantee or surety accepted as collateral for a loan, the following is posted:
K 91414 "Received guarantees and sureties"
If the loan is not repaid on time, then the amount of debt is reflected by the bank on the account "Overdue loans":
D 45812 "Loans outstanding on time by commercial non-state clients"
К 45204 "Loans issued to commercial non-government clients for a period of 50 days"
A loan issued by a bank in the form of a line of credit will be reflected in an off-balance sheet entry:
К 91316 "Unused credit lines for granting loans"
When a loan is provided against an open credit line, the balance entry is reflected depending on the type of borrower and the term of the loan:
At the same time, an off-balance sheet entry is made for the amount issued against an open credit line:
The overdraft loan is also limited for each client, therefore, when the amount of the limit is reflected in the agreement with the client, off-balance sheet accounting will reflect the posting for the amount of the established limit:
К 91317 "Unused limits on the provision of funds in the form of" overdraft ""
Loans issued by the bank under overdraft are reflected by the entry:
D 45201 "A loan provided by a bank with a lack of funds in their current accounts (" overdraft ")"
K 40702 (30102)
At the same time, the wiring is carried out:
When issuing an interbank loan to another commercial bank, the following is posted:
D 32003 "Loans and deposits provided to credit institutions for a period of 2 to 7 days"
К 30102 "Correspondent account in the Bank of Russia"
When the loan is repaid on time, the following is posted:
If the loan is not repaid on time, then it is reflected in the account between bank loans, outstanding on time, by posting:
D 32401 "Overdue debt on granted interbank loans
The bank creates a provision for overdue loans by posting:
D 70606 "Bank expenses"
К 32403 "Provisions for possible losses"
If the loan is repaid, the amount of the created reserve will be restored to the "Income" account by posting:
K 70601 "Bank income"
The repayment of the overdue loan will be reflected by the posting:
D 30102 "Correspondent account in the Bank of the Russian Federation"
К 32403 "Interbank loans outstanding on time"
Accounting entries, reflecting the accrual of interest on interbank loans and overdue interest on interbank loans, are performed in the same way as for customer lending operations, but overdue interest on interbank loans is reflected in a separate account by posting:
D 32501 "Overdue interest on interbank loans"
K 47427 "Claims for the payment of interest"
Repayment of overdue interest on interbank loans will be reflected by the entry:
6.2.The procedure for creating reserves and writing off overdue debt from the balance sheet
IN russian practice lending to customers all loans issued by the bank are classified according to five degrees of risk.
Standard loans. Provisions for possible losses are not created.
Non-standard loans. An analysis of the activities of borrowers in this group means that we can state the existence of a moderate potential threat of loan default. For loans of this group, a reserve is created in the amount of 5-10% of the loan amount, not covered by pledges and guarantees.
Doubtful loans. An analysis of the activities of borrowers belonging to this group shows the existence of a serious or moderate threat of losses, that is, there are facts of poor-quality debt service by the borrower. For loans of the third group, the reserve is created from 21 to 50% of the amount of the debt not covered by guarantees and pledges.
Problem loans. This means that there are serious potential and moderate real threats, that is, there are difficulties in meeting the borrower's debt. In this case, a reserve is created in the amount of 51-100% of the debt amount not covered by guarantees and pledges.
Bad loans. The borrower is obviously unable or refusing to meet its obligations. In this case, a reserve is created in the amount of 100% of the debt.
It should be noted that the classification of loans according to the degree of risk is also important for the reflection of income on loans in accounting, since in accounting policies the bank specifies how income on loans for the first three risk groups will be reflected in the accounting. The third group, in accordance with the bank's accounting policy, can be defined as one of the most risky groups, and incomes on loans classified in the third group will be accounted for in the same way as for the fourth and fifth risk groups, that is, on the basis of the principle of cash reflection of income. and not on an accrual basis, as indicated in the Regulation of the Bank of Russia No. 302-P.
The cash method in reflecting the accrued interest is used in banks for the fourth and fifth risk groups, but if the bank's accounting policy provides, then for the third risk group. In this case, the accrual of interest in accounting will be reflected by the posting:
D 47427 "Claims for the payment of interest"
To 61301 "Deferred income from credit operations"
Upon payment of interest by the borrower, the following is posted:
D 40702 "Settlement account of a commercial organization"
The interest received will be reflected in the "Income" account by posting:
To 70601 "Income"
Thus, the new procedure for accounting for interest on the most risky groups of loans issued is called “in the presence of uncertainty in the recognition of income”.
Reserves are created by posting:
D 70606 "Bank expenses"
К 45215 "Provisions for possible losses"
If the loan is repaid within the period established by the agreement, then the amount of the reserve is restored to the "Bank's income" account by posting:
K 70601 "Bank income"
If the loan is not repaid on time, then the amount of the reserve is transferred to the "Provisions for overdue loans" account by posting:
D 45215 "Provisions for possible losses"
К 45818 "Provisions for possible losses on overdue loans"
If it is necessary to increase the amount of the created provision, the following is posted:
D 70606 "Bank expenses"
The classification of credit claims is determined by the bank and the audit company at least once a month on the first day of the month.
The Bank of Russia has the following powers to define the group credit risk... In the process of exercising supervisory functions during inspections, the territorial divisions of the Bank of Russia check:
availability and implementation by the bank of procedures for the formation and use of the reserve;
the completeness of consideration of the factors that the bank knew or should have known when making a judgment about the level of risk;
the correctness of the bank's motivated judgment on the level of risk;
the correctness of the creation of a reserve for possible losses and the reflection of the reserve in accounting;
the legitimacy of banks writing off loans from the balance sheets that are not repaid on time and are unrealistic to be collected.
Uncollectible loans are written off the balance sheet. Loans that are uncollectible are recognized as those for which the measures taken by the bank to collect are of a complete nature, including the sale of collateral, the levy of execution on the guarantee and guarantors. All the measures taken indicate the impossibility of collecting the debt.
The decision to write off a large debt from the balance sheet accounting, which is more than 1% of the bank's equity capital, must be confirmed by procedural documents in the form of a determination or resolution of judicial and notarial authorities, indicating that at the time of the decision to recover the loan repayment at the expense of funds the debtor is impossible.
For other loans with a debt of less than 1% of the bank's equity capital, decisions to write off the balance sheet are made by the bank's Board of Directors.
Writing off the balance sheet allows you to clear the balance sheet of bad debts. The write-off is made at the expense of the created reserve. Posting in progress:
D 45818 "Provision for overdue loans"
At the same time, an off-balance sheet entry is made:
D 91802 "Debt on loans to customers, written off at the expense of provisions for possible losses"
If the created reserves are not enough to write off the funds from the balance sheet, then the remaining debt is written off as a loss:
D 70606 "Bank expenses"
К 45812 "Loans not repaid on time by commercial clients"
At the same time, a posting is made to off-balance sheet accounts:
D 91803 "Debts written off at a loss"
Thus, the presence of accounts 91802 and 91803 in the reporting shows the amount of debits from the balance sheet of loans not repaid on time. These accounts are very important for analysis, as they show the scale of asset losses on outstanding loans.
Since the interest outstanding on loans issued was reflected in the off-balance sheet account 91604 "Uncollected interest on loans and other placed funds provided to customers", the interest on loans written off from the balance sheet is transferred to account 91704 "Uncollected interest on loans and other placed funds provided to clients, debited from the balance credit institution", Which will be reflected by the wiring:
On this account, the amount of overdue interest debited from the balance sheet will be recorded over the next five years. Every month the bank will charge interest on loans written off from the balance sheet. Bank statements on account 91704, together with statements on accounts 91802 and 91803, will be sent by the bank to the borrower at least every quarter over the next five years as proof of the debt on the loan and interest unpaid on time.
If, over the next years, the borrower repays the debt and pays interest, then the amounts received in repayment will be reflected in accounting by a balance entry:
K 70601 "Bank income"
At the same time, the amount of the repaid debt and interest will be written off on accounts 91802, 91803, 91704.
If, five years after writing off debts from the balance sheet, the borrower does not fulfill its obligations to repay the principal and interest, then off-balance sheet accounts are closed with entries:
К 91704 - for the amount of outstanding interest on the loan debited from the balance sheet
К 91802 - for the amount of the loan outstanding on time, written off from the balance sheet due to the created reserves
К 91803 - for the amount of the loan written off from the balance sheet at a loss
At this, the accounting of funds on loans not repaid on time is terminated.
Obligations of a financial agent under an assignment financing agreement monetary claim on the part of the financial agent can include maintenance of accounting, as well as the provision of financial services to the client related to monetary claims that are the subject of the assignment.
In Russian practice, as in the world, the mandatory signs of a factoring operation are: assignment of a monetary claim by the client; and on the part of the financial agent - prepayment of payment documents on a returnable basis. On the part of a financial agent, this is lending against payment documents, that is, a financing agreement, the enforcement of which is established by the assignment of the borrower's claims to its debtors in favor of the lender (financial agent), is a factoring agreement, and the parties who entered into it become participants in factoring relations. The factoring agreement is the legal basis for the relationship of its participants and determines the obligations and responsibilities of the parties: the financial agent (factor bank) and the client (supplier).
The subject of professional licensing under Art. 825 of the Civil Code of the Russian Federation is the professional activity of the bank, namely, lending and financing under special security.
One of the forms of the supplier providing a loan to the buyer is the receipt by the supplier from the buyer of a bill of exchange, that is, the buyer becomes the borrower, and the supplier-holder of the bill gets the right to demand payment of the amount of money from the drawer by a certain date, that is, becomes a creditor. The right to demand payment on the bill is transferred to the bank with which the factoring agreement is concluded. The bank pays the supplier an advance in the amount of 70-80% of the bill face value. And the remaining 20-30% of the value of the bill serve as a guarantee for the bank against possible losses and insure the bank's losses.
Settlements with customers on factoring transactions are recorded on the passive account 47401 “Settlements with customers on factoring, forfeiting operations” and on active account 47402 “Settlements with clients on factoring, forfeiting operations”. On the active account 47423 "Claims for other transactions" for a separate personal account reflects "Requirements for factoring operations".
When accepting a bill from the supplier, the bank reflects the bill in the amount of the face value on account 91418 "Nominal value of acquired rights of claim" by posting:
The amount of the advance paid by the bank to the supplier will be reflected in the transaction:
D 47402 "Settlements with clients on factoring, forfeiting operations"
K 30102 "Correspondent account in the Bank of Russia" (K 40702 "Commercial clients")
When the bank creates a reserve for a factoring operation, the following is posted:
D 70606 "Bank expenses"
К 47425 "Provisions for possible losses"
The amount of the bank's claim will be reflected in the transaction:
D 47423 "Requirements for other transactions"
К 47421 "Settlements with customers on factoring, forfeiting operations"
When funds are received from the payer to redeem a bill of exchange, the following is posted:
After that, the bill amount is debited from off-balance sheet accounting by posting:
The amount of the provision created for the factoring operation is restored by posting:
K 70601 "Bank income"
The amount of the advance payment is repaid by posting:
The interest amount is posted:
K 70601 "Bank income" - according to the corresponding personal account
For the amount of commission received by the bank for the operation:
K 70601 "Bank income" - on a personal account to record commissions received
The remaining amount is sent to the settlement account of the supplying customer by posting:
K 30102 (K 40702) "Commercial clients"
If the bill is not paid by the buyer in fixed time, then the bill is returned to the supplier and is written off by the bank from off-balance sheet accounting.
The advance debt is transferred to the personal account "Overdue credit for factoring", which is reflected by the posting:
D 47402 on the personal account "Overdue loan on factoring"
К 47402 - for the amount of overdue debt
The reserve created for the operation is sent by posting to repay the debt:
D 47425 "Provisions for possible losses"
If the created reserve does not cover the entire amount, then the balance of the debt is written off to loss:
To 47402 on the personal account "Overdue loan on factoring"
Lending operations are the main active operations performed by banks. Stability depends on the correct reflection of credit transactions in accounting. financial situation bank, the reliability of its indicators, the correct reflection of the income received and, ultimately, the bank's profit for reporting period... Reflection of operations for the issuance of credit claims of the bank to the account of overdue debt shows the real loss of assets by the bank and, in this regard, the need for the bank for additional resources. The bank's credit claims on client operations are reflected on balance sheet accounts 441-457. Loans issued by the bank to other Russian and foreign banks are reflected in the active balance sheet accounts 320-321. The presence of active accounts 458, 324 in the bank's balance sheet shows the bank's losses on loans issued to customers and other banks. This is a test indicator characterizing the risky credit policy pursued by the bank.
Negative phenomena are also manifested in the presence in the balance of accounts 459 “Overdue interest on loans and other placed funds” and account 325 “Overdue interest on interbank loans granted”.
Existing classification by credit requirements in terms of the degree of risk introduced by the Bank of Russia, it is rather conditional, since in the practice of Russian banks there have been cases of non-repayment of a loan classified as the first category of standard loans. A particularly dangerous trend is the recommendation, introduced into practice by Regulation No. 302-P, to reflect in the bank's accounting policy different methods of accounting for interest on loans with standard and increased risks, since this practice of accounting for interest distorts the real income received from credit transactions.
Factoring operations, in their essence, also relate to operations related to the placement of funds by the bank. Operations are performed by banks in accordance with Art. Art. 824 and 825 of the Civil Code of the Russian Federation, as well as in accordance with the current Regulation of the Bank of Russia No. 302-P.
Self-test questions
What are the main accounts of the current chart of accounts reflecting loans to banks?
What information does the fourth and fifth characters in the loan account numbers contain?
What balance sheet account reflects the debt on loans issued to the bank's customers?
What off-balance sheet accounts reflect the collateral received by the bank to secure the loan?
When should a bank create a reserve for issued loans?
What powers does the Bank of Russia have to control the legality of reserves created by a commercial bank for loans issued?
What groups of loans are distinguished by the degree of risk in the practice of banks?
In what cases is it allowed to write off large credit claims from the balance sheet?
What balance sheet accounts reflect the unpaid interest on loans issued?
Which paired balance sheet accounts keep records of transactions with factoring participants in commercial banks?
What funds are directed by the bank to write off overdue loans from the balance sheet?
What is the method of accounting for interest on loans issued for the first two risk groups?
Lending operations are the main active operations of banks. A bank is a credit institution that allocates funds on its own behalf and at its own expense on the basis of repayment, payment and urgency (Federal Law "On Banks and Banking Activities"). Payability, repayment and urgency are the basic principles of lending.
Loans issued to the bank's clients are reflected in active accounts of the first order: 441-457.
The fourth and fifth characters in the numbers of these accounts reflect the terms of the loans. You should remember the accounts for granting loans to individuals:
- · Account 455 reflects loans issued to Russian citizens;
- · On account 457 - loans issued to foreign citizens, that is, non-residents.
Loans issued to other commercial banks are reflected in active accounts:
- · Account 320 - to Russian banks;
- · Account 321 - to non-resident banks.
Commercial banks can provide loans:
- 1) by crediting funds to the settlement accounts of clients - legal entities;
- 2) opening a credit line, based on the conclusion of an agreement on the provision of a credit by opening a credit line;
- 3) lending under "overdraft", that is, issuing a loan with a temporary need for funds;
- 4) the bank's participation in providing loans on a syndicated or consortium basis (since a commercial bank has restrictions on the amount of a loan issued to one borrower, several banks can participate in issuing large loans to borrowers);
- 5) in other ways that do not contradict banking legislation.
The issuance of a loan to a commercial client for a period of 50 days will be reflected by posting:
D 45204 "Credit provided to commercial non-government clients for a period of 31 to 90 days"
K 40702 "Commercial organizations"
If a collateral is provided when issuing a loan, then an off-balance sheet entry is made:
К 91312 "Property accepted as a pledge for placed funds"
If the pledge is received by the bank in the form of securities, then the posting is performed:
К 91311 "Securities accepted as collateral for placed funds"
If the loan is issued against a guarantee or surety, then the posting is performed:
D 91414 "Received guarantees and sureties"
When calculating interest on a loan, the bank makes a posting in accounting:
D 47427 "Claims to receive interest"
K 70601 "Bank income"
The specified posting is performed by the bank on the basis of the principle of income accounting introduced by the Bank of Russia using the interest rate method. The method lies in the fact that when interest is accrued, before it is paid by the borrower, they are considered received in accounting and are immediately reflected as income.
When paying interest by the borrower, the transaction will be reflected:
If interest is not paid on time, then interest claims will be reflected by posting:
D 45912 "Overdue interest on loans extended to commercial non-governmental organizations"
To 47427 "Claims to receive interest"
Thus, an overdue interest debt arises in the bank's balance sheet, and the income not received by the bank remains on the books, and the bank will ultimately pay an additional amount of income tax from this income.
At the same time, interest on loans outstanding on time will be reflected in the off-balance sheet account by posting:
D 91604 "Interest not received on loans and other placed funds provided to customers"
If the loan is repaid on time, then this will be reflected in accounting by posting:
D 40702 "Commercial clients"
At the same time, the bank returns the collateral received on the loan.
Posting in progress:
D 91311 "Securities accepted as collateral"
When the collateral is returned by property, the following is posted:
D 91312 "Property accepted as security"
When redeeming a guarantee or surety accepted as collateral for a loan, the following is posted:
K 91414 "Received guarantees and sureties"
If the loan is not repaid on time, then the amount of debt is reflected by the bank on the account "Overdue loans":
D 45812 "Loans outstanding on time by commercial non-state clients"
К 45204 "Loans issued to commercial non-government clients for a period of 50 days"
A loan issued by a bank in the form of a line of credit will be reflected in an off-balance sheet entry:
К 91316 "Unused credit lines for granting loans"
When a loan is provided against an open credit line, the balance entry is reflected depending on the type of borrower and the term of the loan:
At the same time, an off-balance sheet entry is made for the amount issued against an open credit line:
The overdraft loan is also limited for each client, therefore, when the amount of the limit is reflected in the agreement with the client, off-balance sheet accounting will reflect the posting for the amount of the established limit:
K 91317 "Unused limits on the provision of funds in the form of" "overdraft" ""
Loans issued by the bank under overdraft are reflected by the entry:
D 45201 "A loan provided by a bank with a lack of funds in their current accounts (" "overdraft" ")"
K 40702 (30102)
At the same time, the wiring is carried out:
When issuing an interbank loan to another commercial bank, the following is posted:
D 32003 "Loans and deposits provided to credit institutions for a period of 2 to 7 days"
К 30102 "Correspondent account in the Bank of Russia"
When the loan is repaid on time, the following is posted:
If the loan is not repaid on time, then it is reflected in the account of interbank loans outstanding on time by posting:
D 32401 "Overdue debt on granted interbank loans
The bank creates a provision for overdue loans by posting:
D 70606 "Bank expenses"
К 32403 "Provisions for possible losses"
If the loan is repaid, the amount of the created reserve will be restored to the "Income" account by posting:
K 70601 "Bank income"
The repayment of the overdue loan will be reflected by the posting:
D 30102 "Correspondent account in the Bank of the Russian Federation"
К 32403 "Interbank loans outstanding on time"
Accounting entries reflecting the accrual of interest on interbank loans and overdue interest on interbank loans are made in the same way as for customer lending operations, but overdue interest on interbank loans is reflected in a separate account by posting:
D 32501 "Overdue interest on interbank loans"
K 47427 "Claims for the payment of interest"
Repayment of overdue interest on interbank loans will be reflected by the entry:
The procedure for creating reserves and writing off overdue debt from the balance sheet
In the Russian practice of lending to customers, all loans issued by the bank are classified according to five degrees of risk.
- · Standard loans. Provisions for possible losses are not created.
- · Non-standard loans. An analysis of the activities of borrowers in this group means that we can state the existence of a moderate potential threat of loan default. For loans of this group, the reserve is created in the amount of 5-10% of the loan amount, not covered by pledges and guarantees.
- · Questionable loans. An analysis of the activities of borrowers belonging to this group shows the existence of a serious or moderate threat of losses, that is, there are facts of poor-quality debt service by the borrower. For loans of the third group, the reserve is created from 21 to 50% of the amount of the debt not covered by guarantees and pledges.
- · Problem loans. This means that there are serious potential and moderate real threats, that is, there are difficulties in meeting the borrower's debt. In this case, a reserve is created in the amount of 51-100% of the debt amount not covered by guarantees and collateral.
- · Bad loans. The borrower is obviously unable or refusing to meet its obligations. In this case, a reserve is created in the amount of 100% of the debt.
It should be noted that the classification of loans by the degree of risk is also important for reflecting income on loans in accounting, since the bank's accounting policy indicates how income on loans will be reflected in the accounting for the first three risk groups. The third group, in accordance with the bank's accounting policy, can be defined as one of the most risky groups, and incomes on loans classified in the third group will be accounted for in the same way as for the fourth and fifth risk groups, that is, on the basis of the principle of cash reflection of income. and not on an accrual basis, as indicated in Bank of Russia Regulation No. 302-P.
The cash method in reflecting the accrued interest is used in banks for the fourth and fifth risk groups, but if the bank's accounting policy provides, then for the third risk group. In this case, the accrual of interest in accounting will be reflected by the posting:
D 47427 "Claims for the payment of interest"
To 61301 "Deferred income from credit operations"
Upon payment of interest by the borrower, the following is posted:
D 40702 "Settlement account of a commercial organization"
The interest received will be reflected in the "Income" account by posting:
To 70601 "Income"
Thus, the new procedure for accounting for interest on the most risky groups of loans issued is called “in the presence of uncertainty in the recognition of income”.
Reserves are created by posting:
D 70606 "Bank expenses"
К 45215 "Provisions for possible losses"
If the loan is repaid within the period established by the agreement, then the amount of the reserve is restored to the "Bank's income" account by posting:
K 70601 "Bank income"
If the loan is not repaid on time, then the amount of the reserve is transferred to the "Provisions for overdue loans" account by posting:
D 45215 "Provisions for possible losses"
К 45818 "Provisions for possible losses on overdue loans"
If it is necessary to increase the amount of the created provision, the following is posted:
D 70606 "Bank expenses"
The classification of credit claims is determined by the bank and the audit company at least once a month on the first day of the month.
The Bank of Russia has the following powers to determine the credit risk group. In the process of exercising supervisory functions during inspections, the territorial divisions of the Bank of Russia check:
- · Availability and implementation by the bank of procedures for the formation and use of the reserve;
- · Completeness of consideration of the factors that the bank knew or should have known when making a judgment about the level of risk;
- · The correctness of the bank's motivated judgment about the level of risk;
- · Correctness of creation of a reserve for possible losses and reflection of the reserve in accounting;
- · The legality of writing off by banks from the balance sheets of loans outstanding on time and unrealistic to collect.
Uncollectible loans are written off the balance sheet. Loans that are uncollectible are recognized as those for which the measures taken by the bank to collect are of a complete nature, including the sale of collateral, the levy of execution on the guarantee and guarantors. All the measures taken indicate the impossibility of collecting the debt.
The decision to write off a large debt from the balance sheet accounting, which is more than 1% of the bank's equity capital, must be confirmed by procedural documents in the form of a determination or resolution of judicial and notarial authorities, indicating that at the time of the decision to recover the loan repayment at the expense of funds the debtor is impossible.
For other loans with a debt of less than 1% of the bank's equity capital, decisions to write off the balance sheet are made by the bank's Board of Directors.
Writing off the balance sheet allows you to clear the balance sheet of bad debts. The write-off is made at the expense of the created reserve. Posting in progress:
D 45818 "Provision for overdue loans"
At the same time, an off-balance sheet entry is made:
D 91802 "Debt on loans to customers, written off at the expense of provisions for possible losses"
If the created reserves are not enough to write off the funds from the balance sheet, then the remaining debt is written off as a loss:
D 70606 "Bank expenses"
К 45812 "Loans not repaid on time by commercial clients"
At the same time, a posting is made to off-balance sheet accounts:
D 91803 "Debts written off at a loss"
Thus, the presence of accounts 91802 and 91803 in the reporting shows the amount of debits from the balance sheet of loans not repaid on time. These accounts are very important for analysis, as they show the scale of asset losses on outstanding loans.
Since the interest outstanding on loans issued was reflected in the off-balance sheet account 91604 "Uncollected interest on loans and other placed funds provided to customers", the interest on loans written off from the balance sheet is transferred to account 91704 "Uncollected interest on loans and other placed funds provided to customers, debited from the balance sheet of a credit institution ", which will be reflected by posting:
On this account, the amount of overdue interest debited from the balance sheet will be recorded over the next five years. Every month the bank will charge interest on loans written off from the balance sheet. Bank statements on account 91704, together with statements on accounts 91802 and 91803, will be sent by the bank to the borrower at least every quarter over the next five years as proof of the debt on the loan and unpaid interest. If, over the next years, the borrower repays the debt and pays interest, then the amounts received in repayment will be reflected in accounting by a balance entry:
K 70601 "Bank income"
At the same time, the amount of the repaid debt and interest will be written off on accounts 91802, 91803, 91704.
If, five years after writing off debts from the balance sheet, the borrower does not fulfill its obligations to repay the principal and interest, then off-balance sheet accounts are closed with entries:
К 91704 - for the amount of outstanding interest on the loan debited from the balance sheet
К 91802 - for the amount of the loan outstanding on time, written off from the balance sheet due to the created reserves
К 91803 - for the amount of the loan written off from the balance sheet at a loss
At this, the accounting of funds on loans not repaid on time is terminated.
Accounting for bank factoring operations
In Art. 824 of the Civil Code of the Russian Federation, a factoring operation is defined as follows.
- Under a financing agreement against the assignment of a monetary claim, one party (financial agent) transfers or undertakes to transfer to the other party, that is, to the client, funds against the client's (creditor's) monetary claim to a third party (debtor) arising from the client's provision of goods, works or services to a third party, and the client assigns or undertakes to assign this monetary claim to the financial agent.
- · The obligations of a financial agent under a financing agreement against the assignment of a monetary claim by a financial agent may include maintaining accounting records for the client, as well as providing the client with financial services related to the monetary claims that are the subject of the assignment.
In Russian practice, as well as in the world, the mandatory signs of a factoring operation are: assignment of a monetary claim by the client; and on the part of the financial agent - prepayment of payment documents on a returnable basis. On the part of the financial agent, this is lending against payment documents, that is, a financing agreement, the enforcement of which is established by the assignment of the borrower's claims to its debtors in favor of the lender (financial agent), is a factoring agreement, and the parties who entered into it become participants in factoring relations ... The factoring agreement is the legal basis for the relationship of its participants and determines the obligations and responsibilities of the parties: the financial agent (factor bank) and the client (supplier). The subject of professional licensing under Art. 825 of the Civil Code of the Russian Federation is the professional activity of the bank, namely, lending and financing under special security. One of the forms of the supplier providing a loan to the buyer is the receipt by the supplier from the buyer of a bill of exchange, that is, the buyer becomes the borrower, and the supplier who holds the bill of exchange receives the right to demand payment of the amount of money from the drawer by a certain date, that is, becomes a creditor. The right to demand payment on the bill is transferred to the bank with which the factoring agreement is concluded. The bank pays the supplier an advance in the amount of 70-80% of the face value of the bill. And the remaining 20-30% of the value of the bill serve as a guarantee for the bank against possible losses and insure the bank's losses. Settlements with customers on factoring transactions are recorded on the passive account 47401 "Settlements with customers on factoring, forfeiting operations" and on the active account 47402 "Settlements with clients on factoring, forfeiting operations". On the active account 47423 "Claims for other operations" on a separate personal account, "Claims for factoring operations" are reflected.
When accepting a bill from the supplier, the bank reflects the bill in the amount of the face value on account 91418 "Nominal value of acquired rights of claim" by posting:
The amount of the advance paid by the bank to the supplier will be reflected in the transaction:
D 47402 "Settlements with clients on factoring, forfeiting operations"
K 30102 "Correspondent account in the Bank of Russia" (K 40702 "Commercial clients")
When the bank creates a reserve for a factoring operation, the following is posted:
D 70606 "Bank expenses"
К 47425 "Provisions for possible losses"
The amount of the bank's claim will be reflected in the transaction:
D 47423 "Requirements for other transactions"
К 47421 "Settlements with customers on factoring, forfeiting operations"
When funds are received from the payer to redeem a bill of exchange, the following is posted:
After that, the bill amount is debited from off-balance sheet accounting by posting:
The amount of the provision created for the factoring operation is restored by posting:
K 70601 "Bank income"
The amount of the advance payment is repaid by posting:
The interest amount is posted:
K 70601 "Bank income" - according to the corresponding personal account
For the amount of commission received by the bank for the operation:
K 70601 "Bank income" - on a personal account to record commissions received
The remaining amount is sent to the settlement account of the supplying customer by posting:
K 30102 (K 40702) "Commercial clients"
If the promissory note is not paid off by the buyer in due time, then the promissory note is returned to the supplier and is debited by the bank from off-balance sheet accounting. The advance debt is transferred to the personal account "Overdue credit for factoring", which is reflected by the posting:
D 47402 on the personal account "Overdue loan on factoring"
К 47402 - for the amount of overdue debt
The reserve created for the operation is sent by posting to repay the debt:
D 47425 "Provisions for possible losses"
If the created reserve does not cover the entire amount, then the balance of the debt is written off to loss:
To 47402 on the personal account "Overdue loan on factoring"
findings
Lending operations are the main active operations performed by banks. The stability of the bank's financial position, the reliability of its indicators, the correct reflection of the income received and, ultimately, the bank's profit for the reporting period depend on the correct reflection of credit transactions in accounting. Reflection of operations for the issuance of credit claims of the bank to the account of overdue debt shows the real loss of assets by the bank and, in this regard, the need for the bank for additional resources. The bank's credit claims for client operations are reflected in balance sheet accounts 441-457. Loans issued by the bank to other Russian and foreign banks are reflected in active balance sheet accounts 320-321. The presence of active accounts 458, 324 in the bank's balance sheet shows the bank's losses on loans issued to customers and other banks. This is a test indicator characterizing the risky credit policy pursued by the bank.
Negative phenomena are also manifested in the presence in the balance of accounts 459 “Overdue interest on loans and other placed funds” and account 325 “Overdue interest on interbank loans granted”.
The existing classification of credit requirements according to the degree of risk introduced by the Bank of Russia is rather conditional, since in the practice of Russian banks there have been cases of non-repayment of a loan referred to the first category of standard loans. A particularly dangerous trend is the recommendation, introduced into practice by Regulation No. 302-P, to reflect in the bank's accounting policy different methods of accounting for interest on loans with standard and increased risks, since this practice of accounting for interest distorts the real income received from credit transactions.
Factoring operations, in their essence, also relate to operations related to the placement of funds by the bank. Operations are performed by banks in accordance with Art. Art. 824 and 825 of the Civil Code of the Russian Federation, as well as in accordance with the current Regulation of the Bank of Russia No. 302-P.
Accounting for interest on attracted and placed funds commercial bank
Interest is charged on all attracted and placed funds, on deposits, loans and other borrowed funds in accordance with the terms of agreements and methods used by credit institutions. Accounting for interest payment transactions is carried out using accounts:
- passive account 47411 "Accrued interest on deposits";
- active account 47427 "Interest claims";
- active account 70606 "Expenses".
Consider the procedure for accounting for accrued and paid interest:
Depositors group | Interest accrued | Interest added to the deposit / received / paid |
Individuals | Debit 70606 Credit 47411 | Debit 47411 Credit 423, 426 |
Legal entities | Debit 70606 Credit 47426 | Debit 47426 Credit 410-422, 425 |
Other credit institutions (on deposits) | Debit 70606 Credit 47426 | Debit 47426 Credit 312, 313, 314, 315, 316 |
Our bank (on deposits) | Debit 47427 Credit 70601 | Debit 319, 320, 321, 322, 323 Credit 47427 |
Other credit organizations (for received loans) | Debit 47427 Credit 70601 | Debit 30102, 30109, 30110 Credit 47427 |
Our bank (for received loans) | Debit 70606 Credit 47426 | Debit 47426 Credit 30102, 30109, 30110 |
Depending on the terms of the deposit agreement, the amount of interest due to the client may not be added to the deposit, but paid in a separate amount. Then:
If the bank violates the terms of settlements with clients on deposits and other borrowed funds, then account 476 "Unfulfilled obligations under contracts for attracting client funds" will be used. Account 476 records the bank's liabilities on deposits and other borrowed funds from individuals and legal entities, with the exception of credit institutions and non-resident banks, and on interest payments.
The most common deposit operations:
P / p No. | the name of the operation | Account debit | Account credit |
Accepted in cash on the deposit of an individual for up to 180 days | |||
A part of the amount of a demand deposit owned by a non-resident individual was issued in cash | |||
The amount from the current account of a non-governmental commercial organization was credited to a deposit for up to 90 days | |||
The amount from the correspondent account was credited to the deposit of another credit institution for up to 7 days | |||
The amount debited from the deposit of a state financial organization for up to 30 days for transfer to another branch of the bank | |||
The amount of interest accrued in the same month is credited to the deposit of an individual for a period of up to 1 year | |||
The amount of interest was credited to the deposit of a non-resident bank for a period of 1 day | |||
The amount debited from the correspondent account was credited to the deposit of our bank for up to 30 days in the Bank of Russia | |||
The amount of interest due on the deposit is credited to the current account of a federal non-profit organization | |||
The amount of interest due on the deposit has been credited to the correspondent account of our bank in the RCC |
Organization and accounting of credit operations of a commercial bank
Lending consists in the fact that the bank provides customers with funds on certain conditions... Conditions are determined by the principles of lending:
1) urgency of return - the loan must be repaid on time, for violation of the terms of the loan repayment, the borrower must pay a fine;
2) paid - the client pays interest for using the loan;
3) differentiation - the bank provides loans based on an individual approach to each client;
4) security - loan repayment must be secured; a guarantee, surety of third parties, pledge of securities or other property can be presented as security.
Credit accounting is built on the same principles. To account for lending to individuals and legal entities, accounts have been opened in the fourth section of balance sheet accounts 441-457, and for interbank loans - accounts 312, 313, 314, 320, 321 in the third section of balance sheet accounts.
All legal entities-borrowers can be divided into two groups.
1. Legal entities - clients of our bank, that is, those who have a current account in our bank. Usually, such borrowers do not provide documents confirming the legality of their creation for obtaining a loan. The loan is provided to them by crediting the loan amount to the current account.
2. Legal entities with a current account in another bank... Such borrowers must include in documents for a loan documents confirming the legality of their formation, an extract from a current account in another bank, etc. And a loan is provided to them by transferring through a correspondent account of our bank in another bank.
To account for loans granted to legal entities, accounts 441-453 and 456 were opened, first-order accounts allow for a differentiated approach to each borrower. They are open to the classification of borrowers depending on the form of ownership, type of activity and place of registration. Second-order accounts allow for the action of the principle of urgency of repayment, since they are open for classifying loans by maturity. These accounts are active in nature, therefore, on their debit, the amounts of loans granted are taken into account, and on a loan, the amounts received to repay loans provided, or amounts charged to overdue debt.
To account for overdue debts of legal entities on account 458 "Overdue debts on loans and other placed funds", active accounts 45801-45813, 45816 were opened.
The debit of account 458 takes into account the amount of identified loans that have not been repaid on time, on the loan - the amounts received in repayment of overdue loans or written off as hopeless for collection at the expense of the reserve.
Examples of accounting for standard transactions:
- a loan was provided to a legal entity - a client of our bank: Debit 441-453, 456; Credit 405-408;
- a loan was provided to a legal entity - a client of another bank: Debit 441-453, 456; Credit 30102, 30109, 30110;
- received a payment to repay a loan provided to a legal entity - a client of our bank: Debit 405-408, 30102; Credit 441-453, 456;
- the amount of the loan provided to the legal entity, not repaid on time and attributed to the overdue debt, was taken into account:
Debit 45801-45813, 45816; Credit 441 ...- 453, 456 ...
On accounts 441-453, 456 and 45801-45813, 45816, the principal amount of the loan is taken into account. Analytical accounting are kept in separate personal accounts opened for each borrower.
Modern banking practice provides for lending to legal entities also by opening line of credit . An agreement is concluded between the bank and the borrower, on the basis of which the client-borrower acquires the right to receive and use funds for a specified period... Lending to a legal entity in the form of an open credit line is reflected simultaneously with the balance sheet accounts in the accounts of section "B":
- on passive account 91316 "Unused credit lines for granting loans";
- on the active account 91416 “Unused limits for obtaining loans”.
Collateral for loans granted is recorded on passive accounts:
- 91311 "Securities accepted as collateral for placed funds";
- 91312 “Property accepted as collateral for placed funds, except for securities and precious metals”;
- 91313 " Precious metalsaccepted as security for placed funds ";
- 91314 "Securities received on transactions made on a returnable basis";
- 91414 “Received guarantees and sureties”.
On the debit of accounts 91311, 91312, 91313 and 91314, the amounts of collateral received at the time of granting the loan are taken into account, for the loan - the amount of collateral, canceled, returned, realized after the loan is fully repaid or written off as hopeless for collection.
All loans provided to individuals can be divided into two groups:
1) loans provided without specifying a specific purpose, they are provided for a period not exceeding 2-3 years;
2) targeted loans, they are provided for a long time, usually over 3 years.
To obtain a loan, individuals submit documents to the bank, the list of which depends on the type of loan and the group to which the borrower will be assigned. Usually individuals present to the bank: 1) passport; 2) a questionnaire; 3) certificate of income; 4) documents confirming the security of the loan. At the bank, the client draws up loan application and a loan agreement, urgent obligation and other documents at the request of the bank.
Loans provided to individuals are accounted for in the first order accounts:
- 454 "Loans and other funds provided to individuals - individual entrepreneurs»;
- 455 "Loans and other funds provided to individuals";
- 457 "Loans and other funds provided to non-resident individuals".
Second-order accounts are opened by time and allow you to control the principle of urgent return. These accounts are active. On the debit of these accounts, the amounts of loans granted are taken into account, and on the loan - the amounts received to repay the loans provided, or the amounts attributed to overdue debt. For example:
- a loan was provided to an individual: Debit 454, 455, 457; Credit 40802, 20202, 30102, 3010, deposit;
- received a payment to repay the loan provided to an individual: Debit 40802, 20202, 30102, 30110, deposit; Credit 454, 455, 457.
Analytical accounting for accounts 454, 455, 457 is kept in personal accounts, opened separately for each borrower. The following information is reflected in the personal account:
1) personal data of the borrower;
2) information on the type and amount of the loan provided;
3) loan term;
4) interest rate;
5) the schedule of receipt of payments in repayment of the principal debt and payment of interest.
To record overdue debts on loans provided to individuals, the following active accounts have been opened:
- 45814 "Overdue debt on loans granted and other placed funds to individual entrepreneurs";
- 45815 "Overdue debt on loans and other placed funds to citizens";
- 45817 "Overdue debt on loans and other placed funds to non-resident individuals".
On the market interbank loans banks work in two directions, just like in the interbank deposit market - they provide loans to other banks and receive loans from other banks.
In accordance with Regulation 385-P, the appointment of accounts 312-314 and 320-321 is universal, they are intended for accounting for both attracted and placed funds, therefore, the accounting of amounts on these accounts is partially set out in the seventh question of this section. [But some aspects of the peculiarities of accounting for credit transactions will be discussed below].
For accounting of loans granted to other credit institutions, active accounts are opened:
- account 320 "Loans and deposits granted to credit organizations";
- account 321 "Loans and deposits granted to non-resident banks".
On their debit, the amounts of loans provided are taken into account, and on the loan - funds received to repay the loan, or the loan amount attributed to overdue debt.
For accounting of overdue debt on interbank loans account 324 “Overdue debt on granted interbank loans, deposits and other borrowed funds” was opened. Active accounts of the second order have been opened for this account:
- 32401 "Overdue debts on granted interbank loans, deposits and other borrowed funds provided to credit institutions";
- 32402 "Overdue debts on granted interbank loans, deposits and other borrowed funds provided to non-resident banks."
For accounting of loans received from other credit institutions, accounts opened:
- account 312 “Loans and deposits received by credit institutions from the Bank of Russia”;
- account 313 "Loans and deposits received by credit institutions from credit institutions";
- account 314 "Loans and deposits received from non-resident banks".
These accounts are passive; on their credit, they take into account the amount of loans received by our bank from others, on debit - the amounts sent to repay loans received by our bank, or referred to overdue debt.
For accounting of overdue debts account 317 “Overdue debt on received interbank loans, deposits and other borrowed funds” was opened for received loans. Second-order passive accounts have been opened for this account:
- 31701 "Overdue debt on received interbank loans, deposits and other borrowed funds received from the Bank of Russia";
- 31702 "Overdue debt on received interbank loans, deposits and other funds raised from credit institutions";
- 31703 "Overdue debt on received interbank loans, deposits and other funds raised from non-resident banks";
- 31704 "Overdue debt on other borrowed funds received from the Bank of Russia".
Collateral for received loans taken into account on active accounts:
- 91411 "Securities pledged as collateral for borrowed funds";
- 91412 "Property transferred as collateral for borrowed funds, except for securities and precious metals";
- 91413 “Precious metals pledged as collateral for borrowed funds”;
- 91315 “Issued guarantees and sureties”.
Accounts 91411-91413 are active, their debit takes into account the collateral transferred at the time of obtaining the loan, for the loan - the collateral returned or sold by the lender.
Accounting for interest received on loans granted and paid on loans received, are conducted in the same way as accounting for interest deposit operations... When calculating and paying interest on loans, the following accounts are used:
- passive account 70601 "Income";
- active account 70606 "Expenses";
- passive account 47426 "Obligations to pay interest";
- active account 47427 “Interest claims”.
Interest on placed funds is accounted for in the same way as for borrowed funds. If the borrower violates the terms of settlements with the bank for loans and other placed funds, overdue interest will be charged, for which accounts 318, 325 and 459 have been opened.
To reduce possible losses in case of non-repayment of the loan by the borrower, credit organizations are obliged to formulate for each loan granted reserve... The reserve is formed in accordance with the Regulation of the Bank of Russia "On the procedure for the formation by credit institutions of reserves for possible losses on loans, on loan and equivalent debts" dated March 26, 2004 No. 254-P.
The reserve is formed by the credit institution in the event of a loan impairment, that is, in the event of a loss of value by the loan due to non-performance or improper performance by the borrower of the loan obligations to the credit institution in accordance with the terms of the contract or the existence of a real threat of such non-performance or improper performance.
The amount of the allowance for classified loans
The costs of forming the reserve are charged to active account 70606 "Expenses". To account for the amounts of reserves themselves on each account 455 "Loans provided ..." a second order passive account 45515 "Provisions for possible losses" was opened. All accounts for accounting for reserves are passive, therefore, for a loan, the formation of a reserve, additional accrual of a reserve are taken into account, and for a debit, the use of the amounts of a reserve to cover losses on outstanding loan or the restoration of the amount of the reserve and its transfer to active account 70107 "Other income". The reserve can only be used to cover losses on an outstanding loan, it cannot be used for any other purposes.
At least once a month, the amount of the reserve is adjusted, and if the amount of outstanding loans has decreased, the reserve is reduced. If the amount of outstanding loans has increased, the reserve is charged additionally, that is, they increase:
- a reserve has been formed for the provided loan:
- the amount of the reserve has been adjusted due to the increase in loan debt: Debit 70606; Credit 45515 “Provisions for possible losses”;
- the amount of the reserve has been adjusted due to the decrease in outstanding loans: Debit 45515 “Provisions for possible losses”; Credit 70601.
Examples of accounting for credit transactions:
P / p No. | the name of the operation | Account debit | Account credit |
A cash loan provided to an individual for up to 1 year against a surety | Debit 45505 Debit 91414 | Credit 20202 Credit 9999 | |
Received cash in cash to repay a loan provided to an individual for up to 1 year | Debit 20202 | Credit 45505 | |
The amount of overdue debt on a loan provided to an individual for a period of up to 1 year was taken into account | Debit 45815 | Credit 45505 | |
A loan was provided to a non-governmental commercial organization - a client of our bank for a period of 90 days on security of property | Debit 45204 Debit 9998 | Credit 40702 Credit 91,312 | |
A reserve has been formed for a loan provided to a non-governmental commercial organization | Debit 70606 | Credit 45215 | |
The amount debited from the current account of a non-state commercial enterprise to repay a loan for a period of 90 days | Debit 40702 | Credit 45204 | |
A loan was provided to another bank for a period of 7 days secured by securities | Debit 32003 Debit 9998 | Credit 30102 Credit 91,311 | |
Received a payment to repay a loan provided to another bank for a period of 7 days | Debit 30102 | Credit 32003 | |
Received a loan from the Bank of Russia for a period of 30 days secured by securities | Debit 30102 Debit 91411 | Credit 31203 Credit 9999 | |
The last installment was transferred to repay a loan received from the Bank of Russia secured by securities for a period of 30 days | Debit 31203 Debit 9999 | Credit 30102 Credit 91411 |
Organization and accountingpassive operations of a commercial bank with securities
Valuable paper– a document certifying the compliance with the established form and mandatory details of property rights, the exercise or transfer of which is possible only upon presentation.
With the transfer of the security, all the rights certified by it in the aggregate are transferred. According to the Civil Code of the Russian Federation, securities include a government bond, bond, bill of exchange, check, deposit and savings certificate, banking savings book bearer, bill of lading, share, privatization securities, as well as a double warehouse certificate (each of two parts) and a simple warehouse certificate.
Credit institutions work with their own securities and securities of other issuers. Own securities can be divided into two groups: shares and other securities. Promotions a credit institution issues in order to form or increase its authorized capital. Other securities - e.g. bonds, certificates, bills of exchange - a credit institution issues in order to attract free funds of customers... Credit institutions work with securities of other issuers in order to obtain income.
Operations with securities are recorded in the fifth section of balance sheet accounts "Operations with securities and derivatives financial instruments", As well as on the accounts of the chapter IN Off-balance sheet accounts and chapters D "Securities accounts". On the balance sheet accounts of the fifth section, the par value of the security or its book value (market), that is, the value at which the security was accepted on the bank's balance sheet. On securities accounts, securities are accounted for in pieces and, if necessary, at par. On off-balance sheet accounts, securities are accounted for at par or at notional value - one piece corresponds to the cost of one ruble.
Commercial banks, issuing securities, incur expenses: 1) for the production of securities; 2) for registration of the issue (except for certificates); 3) for advertising; 4) for shipment and storage; 5) for the payment of income on securities to their owners. These expenses are recorded on the active account 70606 "Expenses". The costs of manufacturing securities are taken into account as follows:
1. Listed are the means of the printing house for the production of securities:
Debit 70606; Credit 30102;
2. Forms of own securities received from the printing house:
Debit 90701; Credit 99999;
- active account 90701 "Forms of own securities for distribution".
- active account 30102 "Correspondent accounts of credit institutions with the Bank of Russia".
To account for operations on the issue of securities, the following accounts were opened:
- 520 "Issued bonds";
- 521 "Issued certificates of deposit";
- 522 "Issued savings certificates";
- 523 "Issued bills and bank acceptances";
- 907 "Unplaced securities".
Second-order accounts have been opened for these accounts, indicating the period for which the securities were issued. For example, passive accounts have been opened to account 520 "Issued bonds":
- 52001 “Maturity up to 30 days”;
- 52002 “Maturity from 31 to 90 days”;
- 52003 “With maturity from 91 to 180 days”;
- 52004 "With a maturity of 181 days to 1 year";
- 52005 "Maturity over 1 to 3 years";
- 52006 "With a maturity of over 3 years."
The credit of these accounts records the issue of securities, that is, the par value of the issued securities. The debit of these accounts is written off the par value of the issued securities, redeemed and repaid early and on time.
Settlements with the owners of securities on the interest and income due to them are carried out on accounts 524 (all passive accounts) and 525:
– 524 "Obligations for issued securities to be fulfilled":
- 52401 "Issued bonds for execution";
- 52402 "Obligations for interest and coupons on bonds to be executed";
- 52403 "Issued certificates of deposit for execution";
- 52404 "Issued savings certificates for execution";
- 52405 "Interest certified by savings and deposit certificates for execution";
- 52406 "Promissory notes for execution";
- 52407 "Obligations to pay interest and coupons at the end of the interest (coupon) period on outstanding bonds";
– 525 "Other accounts for transactions with issued securities" :
- passive account 52501 “Interest and coupon liabilities on issued securities”;
- active account 52503 "Discount on issued securities".
The accounting of transactions for all debt obligations from issue to redemption of securities is similar.
I. The order of reflection in accounting operations from issue to redemption of securities (on the example of certificates of deposit).
1. Certificates of deposit issued (sold): Debit 405-408, 30102; Credit 521; Debit 99999; Credit 90701.
2. Interest accrued on certificates of deposit: Debit 52503; Credit 52501.
3. The certificates of deposit were redeemed on time:
Debit 521; Credit 52403;
Debit 52501; Credit 52405;
- a certificate of deposit accepted for payment: Debit 90704; Credit 99999;
● face value: Debit 52403; Credit 405-408, 30102;
● amount of interest: Debit 52405; Credit 405-408, 30102.
4. Debit 70606; Credit 52503.
5. Debit 99999; Credit 90704.
In the case of early presentation of a certificate of deposit for payment, the certificate redemption is recorded as follows:
1. Accepted for early payment certificate of deposit: Debit 90703; Credit 99999.
2. The amount of accrued interest has been adjusted: Debit 52501; Credit 52503.
3. The certificate of deposit was redeemed ahead of schedule:
- transfer of the nominal value of the certificate for execution: Debit 521; Credit 52403;
- transfer of accrued interest to execution: Debit 52501; Credit 52405;
- actually paid the amount of the certificate of deposit:
● face value: Debit 52403; Credit 405-408, 30102;
● amount of interest: Debit 52405; Credit 405-408, 30102.
4. The amount of interest paid is charged to expenses: Debit 70606; Credit 52503.
5. Redeemed certificate of deposit: Debit 99999; Credit 90704.
The transfer of securities is recorded on account 90705, for example: certificate forms sent from the bank's vault to the branch: Debit 90705; Credit 99999.
Commercial banks issue two types of bills: simple interest and discount.
Simple interest bills they are sold at par, and when they are repaid within the specified period, they are paid par, plus interest.
Discount bills are sold at a price below par, and upon maturity, they are paid at par.
II. The order of reflection in the accounting of operations for the issue and redemption of bills.
1. Forms of bills received from the printing house: Debit 90701; Credit 99999.
2. Interest promissory note sold: Debit 20202, 423,405-408, 30102; Credit 523 ...and Debit 99999; Credit 90701.
3. Discount promissory note sold: Debit 20202, 423, 405-408, 30102 (sale price 920); Credit 523; Debit 52502 (discount amount 80); Credit 523 ... (face value 1000) and Debit 99999; Credit 90701.
4. Interest accrued on promissory notes: Debit 52503; Credit 52501.
5. Own bill repaid on time:
- transfer of the par value of the promissory note to execution: Debit 523; Credit 52406;
- transfer of interest on a bill of exchange for execution: Debit 52501; Credit 52406;
- a bill of exchange was presented for redemption: Debit 90704; Credit 99999.
6. Paid to the owner of the bill: Debit 52406; Credit 20202, 423, 405-408, 30102.
7. Interest or discount is attributed to the bank's expenses: Debit 70606; Credit 52502.
8. The bill of exchange is canceled: Debit 99999; Credit 90704.
Organization and accounting of active operations of a commercial bank with securities
All active transactions with securities of other issuers can be divided into three groups: trading, investment and transactions with bills.
Trading operations are intended to generate income from the resale of securities.
Investment operations are intended to generate income from long-term investments, for example, receiving dividends on shares. If the number of shares in which the funds of a commercial bank are invested make it possible to take part in the management of this organization, then a new type of transactions with securities of other issuers is formed.
All securities in which the bank invests can be combined into three portfolios: trading, investment and controlling participation portfolio.
1. Trading portfolio includes securities that have been purchased for resale.
2. Investment portfolio includes securities that were acquired with the expectation of receiving income in the future.
3. Portfolio of controlling participation includes securities that were purchased in an amount ensuring participation in the management of the issuing organization.
In the accounting of transactions with securities (except for promissory notes), all balance accounts are divided into two groups:
1) accounts for accounting for investments in debt obligations;
2) accounts for accounting for investments in equity securities.
Transactions with forms, securities of other issuers are recorded on account 908 "Securities of other issuers" on active second-order accounts:
- 90801 "Forms of securities of other issuers for distribution";
- 90802 "Securities for sale on commission";
- 90803 "Securities in custody under custody agreements";
- 90804 “Bonds of government loans sold to organizations”.
To account for investments in debt obligations, accounts 501, 502, 503 were opened, for accounting for investments in shares - 506, 507:
- account 501 "Debt liabilities measured at fair value through profit or loss";
- account 502 "Debt liabilities available for sale";
- account 503 "Debt obligations held to maturity";
- account 506 "Equity securities at fair value through profit or loss";
- account 507 “Equity securities available for sale”.
Second-order accounts classify securities by issuers, for example, on account 503, active second-order accounts are opened:
- 50305 "Debt obligations of the Russian Federation";
- 50306 "Debt obligations of the constituent entities of the Russian Federation and local government»;
- 50307 "Debt obligations of credit institutions";
- 50308 "Other debt obligations";
- 50309 "Debt obligations of foreign states";
- 50310 "Debt obligations of non-resident banks";
- 50311 "Other debt obligations of non-residents";
- 50313 "Debt obligations of the Bank of Russia";
- 50318 "Debt obligations transferred without derecognition";
- and passive account 50319 “Provisions for possible losses”.
Settlements on active operations with securities are accounted for on account 504 "Interest income on debt obligations accrued before sale or redemption."
Purchases and sales of listed securities of other issuers are usually carried out on organized securities market (ORSB). A credit institution in the securities market can act as a broker or dealer.
Transactions with securities acquired in the portfolio of controlling participation are recorded on accounts 601 and 602:
– account 601 "Participation in subsidiaries and dependent joint stock companies» ;
- active account 60101 “Shares of subsidiary and dependent credit institutions”;
- active account 60102 "Shares of subsidiaries and affiliates";
- active account 60103 “Shares of subsidiary and dependent non-resident banks”;
- active account 60104 "Shares of non-resident subsidiaries and affiliates";
- passive account 60105 “Provisions for possible losses”;
– account 602 "Other participation" ;
- active account 60201 "Funds contributed to the authorized capital of credit institutions created in the form of a limited (additional) liability company";
- active account 60202 "Funds contributed to the authorized capital of organizations";
- active account 60203 "Funds contributed to the authorized capital of non-joint-stock non-resident banks";
- active account 60204 "Funds contributed to the authorized capital of non-resident organizations";
- active account 60205 "Funds placed for the activities of their branches in other countries";
- passive account 60206 “Provisions for possible losses”.
The costs of transactions with securities are recorded on the active account 50905 "Preliminary costs for the purchase of securities".
The order of reflection in the accounting of active operations with securities.
1. Acquisition of securities for the investment portfolio of the bank: Debit 50205-50211, 50705-50708; Credit 47407, 47408, 30602 (additional costs Credit 47422 and 50905).
2. Accounting for interest or coupon income on debt obligations: Debit 501-502; Credit 50407.
3. Interest paid on outstanding debt obligations: Debit 30102, 20202, 30602; Credit 501-503.
4. Disposal of a debt obligation: Debit 61210; Credit 501-503.
5. The costs associated with the disposal of securities are taken into account by posting: Debit 61210; Credit 47422, 30602.
6. Positive difference from revaluation: Debit 10603; Credit 70602.
7. Negative overestimation: Debit 70607; Credit 10605.
Organization and accounting commercial bank transactions with bills
Bill of exchange – security, a stand-alone document of a strictly prescribed form, performing the following functions:
1) own security, issued to attract customer funds;
2) promissory note;
3) a valuable form for registration of a debt obligation.
The main function of a bill is that it is a written promissory note of a strictly established form, which gives its owner (the holder of a bill) an indisputable right, upon the expiration of the obligation, to demand from the debtor or the acceptor the payment of the amount indicated on the bill. The bill is an instrument of commercial credit. A bill of exchange can be simple and transferable.
Promissory note has the following seven details: 1) a bill of exchange; 2) the amount of the bill; 3) due date for payment; 4) place of payment; 5) the name of the payment; 6) the date and place of drawing up the bill; 7) the signature of the drawer.
Bill of exchange has the following nine details: 1) a bill of exchange; 2) the amount of the bill; 3) due date for payment; 4) place of payment; 5) the name of the debtor; 6) the date and place of drawing up the bill; 7) remitter; 8) the signature of the drawer (creditor); 9) acceptance of the debtor.
The due date for a bill of exchange can be specified in four ways:
1) upon presentation;
2) after a certain amount of time from presentation;
3) in a certain amount of time from compilation;
Considering the procedure for issuing loans and their documentary registration, as well as the formation of a resource base, due to which credit investments are made, it must be said that this procedure is carried out in accordance with the Regulation "On the procedure for issuing a loan to legal entities of OJSC Belinvestbank"approved by the Minutes of the Management Board of OJSC "Belinvestbank" No. 2 dated September 18, 2001, as well as in accordance with "Rules for the placement of funds in the form of a loan by banks of the Republic of Belarus"approved by the Resolution of the Board of the National Bank of the Republic of Belarus dated May 24, 2001 No. 116. In addition, the execution of articles is respected Civil Code Of the Republic of Belarus and other internal orders of the bank. In accordance with the Resolution of the National Bank of the Republic of Belarus dated December 30, 2003 No. 226, the Instruction was approved "On the procedure for the provision (placement) of funds by banks in the form of a loan and their return", in connection with which there have been some changes in the lending policy. For example, the Ordinance does not use the terms “loan account” and “special loan account” as contrary to Chapter 36 of the Civil Code. However, this resolution in connection with the order of the National Bank of the Republic of Belarus comes into force on July 1, 2004, therefore in this work we will refer to regulationsapplied in OJSC "Belinvestbank" and its branches at the present time, and if necessary, refer to the new regulatory document.
OJSC "Belinvestbank" and branches acting on its behalf, issue loans in accordance with current legislation Of the Republic of Belarus and the Bank's Charter on the principles of targeting, urgency, security, repayment and payment in accordance with the bank's credit policy, which is developed on the basis of the bank's general strategy annually for the current year.
In this case, credit investments are made at the expense of:
- - own funds bank;
- - attracted funds from legal entities and individuals;
- - joint lending with other branches of the bank;
- - resources purchased on the interbank market;
- - other funds raised in the manner prescribed by law.
Also, as lending resources, unallocated during fiscal year profit.
Focusing on the comprehensive development program of OJSC Belinvestbank for a period up to 2005, developed to strengthen the reliability and stability of the bank, increase its equity capital, increase the range of banking services, and ensure the growth of a balanced resource base, it should be noted that the bank plans to increase the attracted resource base. At the same time, its growth by 2005 is planned by 3.2 times. The basis for expanding the bank's resource base will be the growth of equity capital, while the share of the authorized capital in the bank's equity capital will be at least 70%. The increase in equity capital is planned to be carried out at the expense of all sources (investor funds, profit and bank funds, issue of bank shares, etc.). The increase in the attracted resource base during this period will be made at the expense of enterprises (an increase of 3.3 times), funds of the population (3.7 times) and non-residents (1.7 times).
The main task of the bank during this period is to increase a high-quality and highly profitable loan portfolio while minimizing credit risks.
The availability of resources at the bank and their structure determine the conduct of credit policy. The priority of the credit policy is the investment of credit resources in effective investment projects aimed at improving the macroeconomic situation in the Republic of Belarus, supporting the introduction of new high technologies, developing science-intensive industries, etc. At the same time, in accordance with the Regulations approved by the Minutes of the Management Board of OJSC Belinvestbank No. 2 dated September 18, 2001 and the Resolution of the Board of the National Bank of the Republic of Belarus No. 116 dated May 24, 2001, creditworthy legal entities (in including individual entrepreneurs) and individuals. In addition, a loan can be issued to non-residents of the Republic of Belarus who are foreign investors, for purposes investment activities on the territory of the Republic of Belarus, if such are provided for by law. So, the branch of the bank, which is the subject of the study, provides loans to legal entities and individuals for financing (Figure 7).
It should be noted that in accordance with the Resolution of the National Bank of the Republic of Belarus dated December 30, 2003 No. 226, at the time of its entry into force on July 1, 2004, loans will be classified as short-term and long-term. Moreover, to short-term loans will include:
- - loans granted for purposes related to the creation and movement of current assets, without any time limit;
- - other loans extended for a period of up to twelve months inclusive, with the exception of loans extended for purposes related to the creation and movement of long-term assets.
TO long-term loans will include:
Figure 7 - Types of loans
- - loans granted for purposes related to the creation and movement of long-term assets, with no time limit;
- - other loans granted for a period of more than twelve months, with the exception of loans extended for purposes related to the creation and movement of current assets.
Let's take a closer look at the process of issuing and processing loans provided legal entities.
As noted earlier (Figure 7), loans to legal entities can be issued to increase circulating (current) assets and to create or increase non-current (long-term assets).
Short-term bank loan.Lending to current assets has always been the main type of loan operations. The need to obtain such a loan is due to the emergence of a temporary need for funds due to the mismatch between receipts and costs in the process of the turnover of the company's mobile assets. This need arises especially sharply for enterprises with a seasonal nature of production.
Previously, the procedure for certain types of loans was established by the instructions of the State Bank of the USSR, and deviations from them were not allowed. At present, the National Bank of the Republic of Belarus determines only the fundamental points of granting loans.
To obtain a loan for current assets, the borrower provides the bank with an application or petition and an accompanying package of documents (Figure 8).
In addition to the above, at the discretion of the bank, other documents can be obtained that reflect the validity and expediency of issuing a loan. For example, individual entrepreneurs need to provide a certificate of income received for the period necessary to determine their financial condition. Enterprises with loans from other banks are required to provide copies of loan agreements and certificates of actual debt on loans from other banks, including overdue loans.
![](https://i0.wp.com/vuzlit.ru/imag_/4/13259/image007.png)
Figure 8 - Package of accompanying documents attached to the loan application
If the applicant applies for a loan in foreign currency, the bank is provided with data on the expected receipt and use currency funds etc. An approximate accompanying package of documents is given in Appendix A.
In the process of considering an application for a loan, before concluding a loan agreement, the bank examines the legal capacity of the future borrower, his reputation in the business world, solvency and the possibility of timely repayment of loans. The bank also checks on the spot with the borrower the state of accounting, the actual availability of the credited valuables, the conditions for their storage and other issues that arose during the study of documents.
The submitted documents are considered by the relevant services within 10 banking days after receiving a full package of documents.
After examining all the documents provided and taking into account the conclusions of the legal, mortgage and information and analytical services, the loan officer serving this borrower draws up an opinion - credit memorandum(Appendix B). It is signed by the executor, the head of the credit department, a lawyer and a specialist in the information and analytical service and is transferred to the bank's credit committee.
A credit committee has been created in the bank's branch, which makes a decision on the issuance of a loan and the conditions for lending to the borrower. Its activities are based on Regulations on the credit commission of the Soviet branch of OJSC "Belinvestbank" (Appendix B). At committee meetings, the state of affairs in the department is analyzed money circulation, the most effective forms of stimulating the initiative of enterprises by credit are considered, the issues of attracting and allocating resources on mutually beneficial terms are being resolved, work with securities is organized, and other functions are performed. The committee consists of 6 people, the chairman of the committee is the manager of the department. The bank has a limit and restrictions on credit transactions, which are established by the decision of the credit commission of the Head Office for the Gomel region and are communicated to the branch.
The meeting of the credit committee of the bank branch is drawn up by an act (minutes of the meeting), which indicates the decisions made there: on the granting or non-granting of a loan (Appendix D).
Loan agreement - is a legal document that regulates the relationship between the bank and the borrower for the issuance and repayment of a loan, defining mutual obligations and economic responsibility of the parties. A written form of his conclusion is obligatory.
The loan agreement requires proper execution in order to avoid all kinds of complications during its implementation, consideration in court or even possible falsification. A sample loan agreement is given in Appendix D.
The terms of the loan agreement are determined for each borrower individually and in such a way that the degree of risk of a loan transaction is minimal. Moreover, the contract is not public. Essential terms of the contract are:
- - targeted use of the loan;
- - loan amount with indication of the loan currency;
- - term and procedure for granting and repaying a loan;
- - interest rate for using the loan;
- - terms and procedure for paying interest for using a bank loan;
- - method of ensuring the fulfillment of obligations by the borrower under the loan agreement;
- - responsibility of the borrower and the bank for failure to comply with the terms of the agreement.
The terms of the credit transaction agreed with the borrower are reflected in loan agreement, which is signed by the heads of the bank and the borrowers. The completed loan agreement must exclude any amendments that make it invalid.
Together with the loan agreement, contracts are drawn up for the accepted forms of securing obligations to repay the loan - pledge agreements, guarantees, sureties(Appendix G). These documents are a mandatory annex to the loan agreement, which indicates the accepted form of securing obligations with reference to the date and number of the corresponding agreement. These documents must comply with legal regulations and not contradict the rights and obligations of the parties.
When granting loans to current assets, as a rule, they use separate loan accounts... One or several such accounts may be opened for the borrower. At the same time, the bank that gives the loan notifies the bank in which the borrower's current account is opened about the amount of the loan to be issued and the timing of its repayment.
The loan is provided regardless of the availability of funds in the current account. The loan can be issued in a lump sum or in parts. Most often, one-time loans are issued to pay for settlement documents for values \u200b\u200bpurchased under contracts, consumer goods and products for industrial and technical purposes.
The loan can be repaid in a lump sum within the period stipulated by the loan agreement. In practice, more often the loan is repaid in installments. In this case, the maturity dates are set based on the terms of use in the production and sale of the credited material assets. In this case, the terms of loan repayment must be specified in the loan agreement. Repayment of debt on a loan and interest accrued for its use is made from the current account of a legal entity on its payment order in the order of the established sequence.
For loans provided for current assets, at least once a quarter, the availability of material security is checked on the basis of reporting data (balance sheet and others)
It is also possible the option of lending by special loan account... This account can only be opened in a bank branch at the location of the borrower's current account.
Lending on a special account is allowed, as a rule, to enterprises engaged in wholesale and retail consumer goods and products for industrial and technical purposes.
To establish the planned loan amount for a special account, the borrower provides the bank with an appropriate calculation with a quarterly breakdown. The projected loan amount (for a year, quarter or month) is calculated:
![](https://i1.wp.com/vuzlit.ru/imag_/4/13259/image008.png)
where are the balances of goods and values \u200b\u200bof own sources of coverage;
Accounts payable.
The issuance of a loan on a special loan account is carried out on the basis of a loan agreement concluded between the bank and a trade organization for up to one year. In this case, the loan officer writes out an order of the accounting department on the amount of the maximum loan, which is signed by authorized persons (Appendix I). Credit is provided by paying payment instructions for goods, including the cost of their transportation and the amount of value added tax. The repayment of such a loan is made from a special loan account at the expense of the proceeds received from the sale of the loaned goods, by the payment order of the borrower.
From the moment of granting a loan to current assets and until its repayment, the bank carries out credit monitoring - monitoring the loan and compliance with the terms of the contract. The bank is developing a set of procedures that are mandatory. They include control:
- - targeted use of the loan;
- - material security of the loan;
- - the state of accounting, its reliability;
- - the creditworthiness of the borrower;
- - condition of the pledge;
- - timeliness of loan repayment and interest on it.
All materials for granting a loan to a borrower are accumulated and formed in credit file, the content of which is regulated.
Long-term bank loan.The need for a long-term loan is due to the circulation of non-current assets, the constituent elements of which are fixed assets, equipment for installation, unfinished capital investment etc. Creation, implementation and recoupment of non-current assets require a significant period of time, so the sources of their financing are long-term.
Projects related to the creation and movement of non-current assets are called investment projects, which are objects of long-term lending.
Investment loans are issued in accordance with The procedure for issuing loans to legal entities of OJSC Belinvestbank, Recommendations of the National Bank of the Republic of Belarus on long-term lending by banks of investment projects, other internal documents.
The procedure for granting a long-term loan is similar to the procedure for granting loans to legal entities for current assets. However, there are also a number of features.
By submitting an application to the bank and required package documents, the borrower must attach a business plan, including the calculation of economic efficiency and payback of the loaned project. If a loan is issued for new construction, expansion, reconstruction, you must also provide the following documents:
- - construction permit;
- - the decision of the local executive and administrative bodies on construction;
- - a copy of the state act on the ownership, possession or use of the land plot;
- - design and estimate documentation;
- - work contract, etc.
Based on the results of consideration of the entire package of documents, a conclusion is drawn up on the investment project, its payback and the possibility of lending. The final decision is made by the credit committee of the bank branch.
In accordance with the current regulatory documents in the Republic of Belarus, a loan is provided for investment projects, the payback period of which does not exceed five years, and the loan is repaid within six years from the date of the first loan amount. The maximum size of an investment loan is determined based on the cost of the project, on the basis of design estimates and the amount of other sources. In this case, preference is given to investment projectsthat ensure the production of export products; create and develop high and new technologies; projects included in government programs.
Long-term character credit relations obliges the bank to more carefully stipulate in the loan agreement its obligations and rights in the process of supporting the loan.
It should be noted that long-term credit is currently not being properly developed. This situation is explained by factors that depend not only on potential borrowers, but also on the creditor bank. Many enterprises cannot readjust to the production of competitive products, products in demand and work at a loss. In conditions of inflation, the cost of long-term assets rises, and, consequently, the payback periods are lengthened and the possibilities of long-term lending are narrowed. In turn, the bank, in order to avoid credit risk, restrains the provision of long-term loans, since it has insufficient own capital, and the resources it attracts are mostly short-term.
Let's take a closer look at the bank lending process individuals.
As noted above, banks, including the Soviet branch of OJSC Belinvestbank, issue credits individuals for consumer purposes and for real estate financing (figure 7) .
In accordance with the Rules for the provision of loans by banks of the Republic of Belarus, it is established that loans to individuals are provided in belarusian rubles for these purposes. The conditions for issuing loans are approved by the Board of a commercial bank and are subject to frequent changes, especially in terms of interest rates, which are linked to the refinancing rate. The terms of loans vary depending on their types and facilities. The size of a loan for consumer purposes is linked, as a rule, with the size of the minimum wages, for real estate financing - with the estimated cost of construction, repair, and reconstruction of the property.
In general, the procedure for obtaining a loan is similar to the one that goes through entityhowever there are some peculiarities.
Along with an application for a loan, an individual provides a passport or a document replacing it, as well as information about income and expenses.
In addition, the main list of documents can be supplemented depending on the purpose of lending. For example, when obtaining a loan for the purchase of a residential house, apartment, garden house or garage, you must submit to the bank a purchase and sale agreement, notarized and registered in the bureau of technical inventory, as well as a certificate of the market value of the object. In order to receive funds for the purchase vehicle: a notarized sales contract. When applying for a loan for study - a copy of the agreement and the invoice of the educational institution, etc.
The main condition for granting a loan is the solvency of the borrower and his guarantors. To find out the degree of sufficiency of these, a rating and expert assessment is used. Such a system enables loan officers to analyze client applications using various factors that help determine the likelihood of debt and interest repayment on time.
Further, after studying the borrower's solvency, the form of securing the obligations to repay the loan and interest on it is determined. As a rule, guarantees of third parties secured by a pledge are provided to secure obligations. The surety agreement is notarized.
After studying all required documents a written opinion is left justifying the possibility of lending. The decision to issue a loan for consumer purposes is taken by an official with the authority to do so, a loan for real estate - by the credit committee. Loan terms are stipulated by the loan agreement. The loan is provided by non-cash transfers. To do this, a loan account is opened on the basis of the order of the credit department, it indicates the account number, the amount of the loan, the timing of its repayment, the amount of interest on the loan, the frequency of their accrual and payment. In exceptional cases, a loan can be provided in cash to pay for goods (works, services) allowed for sale for cash. In this case, the bank is provided with documentary evidence of the intended use of the loan.
When financing individuals for the use of a loan, as a rule, floating rates are established. When it changes interest rate the bank notifies the borrower of this within the period specified in the loan agreement. In case of disagreement, the borrower can terminate the agreement, having previously repaid the loan and interest on it (according to the interest rate specified in the agreement).
The loan is repaid by depositing cash, transfers from your current account on the deposit, from wages, scholarships, pensions, etc. In case of non-payment of overdue debts, measures are taken to repay the debt. After three months, the bank has the right to terminate the contract and foreclose on the property of the debtor and his guarantors. Inspection of the intended use of credit funds is carried out according to the developed plan by credit officers, as a rule, at least once within two years from the date of receipt of the loan.
At the same time, according to the Resolution of the National Bank of the Republic of Belarus dated May 24, 2001 No. 116 and the internal documents of OJSC Belinvestbank, it is not allowed due to a loan:
- - make contributions to the authorized funds of banks and legal entities;
- - buy securities, pay dividends on shares;
- - pay interest on bank loans;
- - pay insurance premiums and payments;
- - repay previously received loans;
- - pay taxes and other payments to the budget; etc.
In addition to the forms of lending indicated in Figure 7 and those considered by us in this part of the work, the department uses overdraft lending, which is linked with the use of debit cards and the opening of card accounts.
It is also necessary to note the high qualifications of loan officers of the bank's branch, attentiveness in the formation of credit dossiers, analysis of the borrower's creditworthiness. This undoubtedly gives a positive result in the overall assessment of the bank's work. However, there are also some unrealized opportunities. For example, in the practice of a bank branch, there was no case of issuing mortgage loans, despite the fact that it is possible to carry out such operations. In addition, the bank and its branches have the right to carry out syndicated lending and lending on a current account. However, this opportunity remains unrealized in the branch until now.
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