Reflection in the bank's accounting of credit operations. Organization and accounting of credit operations of a commercial bank
Accounting for credit and factoring operations
Lending operations are the main active operations of banks. A bank is a credit institution that places funds on its own behalf and at its own expense on the basis of repayment, payment and urgency (FZ "On banks and banking activities"). Payment, 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 digits in the numbers of these accounts reflect the timing of the loans. You should remember the accounts for issuing 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 settlement accounts of clients - legal entities;
2) opening a credit line, on the basis of concluding a loan agreement by opening a credit line;
3) lending under an "overdraft", that is, issuing a loan with a temporary need for funds;
4) participation of the bank in the provision of 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 may 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 in the entry:
D 45204 "Loan granted to commercial non-state clients for a period of 31 to 90 days"
K 40702 "Commercial organizations"
If collateral is provided when issuing a loan, then an off-balance sheet entry is made:
K 91312 "Property accepted as collateral for placed funds"
If the collateral is received by the bank in the form of securities, then the posting is made:
K 91311 "Securities accepted as collateral for placed funds"
If the loan is issued against a guarantee or guarantee, then the following is posted:
D 91414 "Received guarantees and warranties"
When calculating interest on a loan, the bank makes the following entry in accounting:
D 47427 "Requirements for receiving interest"
K 70601 "Bank income"
The specified entry is made by the bank on the basis of the principle of income accounting introduced by the Bank of Russia according to the interest accrual 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 posting will be reflected:
If the interest is not paid on time, then the interest payment requirements will be reflected in the posting:
D 45912 "Overdue interest on loans provided to commercial non-governmental organizations"
K 47427 "Requirements for receiving interest"
Thus, an overdue interest debt arises in the bank's balance sheet, and the income not received by the bank remains in the account, and the bank will eventually pay an additional amount of income tax on this income.
At the same time, interest on loans that are not repaid on time will be reflected in the off-balance sheet account by posting:
D 91604 "Unreceived interest on loans and other placed funds provided to customers"
If the loan is repaid on time, then this will be reflected in the accounting posting:
D 40702 "Commercial clients"
At the same time, the bank returns the collateral received on the loan.
Wiring in progress:
D 91311 "Securities accepted as collateral"
When returning a pledge with property, the following posting is performed:
D 91312 "Property accepted as security"
When repaying a guarantee or guarantee accepted as collateral for a loan, the following entry is made:
K 91414 "Guarantees and warranties received"
If the loan is not repaid on time, then the amount of the debt is reflected by the bank in the account "Overdue loans":
D 45812 "Loans outstanding on time by commercial non-state customers"
K 45204 "Loans issued to commercial non-state customers for a period of 50 days"
A loan issued by a bank in the form of a credit line will be reflected in an off-balance sheet entry:
K 91316 "Unused credit lines for the provision of loans"
When a loan is granted against an open line of credit, a balance sheet 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 on account of an open credit line:
An overdraft loan is also limited for each client, therefore, when the amount of the limit is reflected in the agreement with the client, an entry for the amount of the established limit will be reflected in off-balance sheet accounting:
K 91317 "Unused limits on the provision of funds in the form of "overdraft""
Loans issued by the bank under an overdraft are reflected in the following entry:
D 45201 "A loan provided by a bank with a lack of funds in their current accounts ("overdraft")"
K 40702 (30102)
Simultaneous wiring:
When issuing an interbank loan to another commercial bank, the following entry is made:
D 32003 "Loans and deposits provided to credit institutions for a period of 2 to 7 days"
K 30102 "Correspondent account with the Bank of Russia"
When the loan is repaid on time, the posting is made:
If the loan is not repaid on time, then it is reflected in the account between bank loans outstanding on time, posting:
D 32401 "Overdue debt on provided interbank loans
The bank creates a provision for overdue loans by posting:
D 70606 "Bank expenses"
K 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 an overdue loan will be reflected in the posting:
D 30102 "Correspondent account with the Bank of the Russian Federation"
K 32403 "Interbank loans outstanding on time"
accounting entries, reflecting the accrual of interest on interbank loans and overdue interest on interbank loans, are performed similarly to transactions for customer lending, but overdue interest on interbank loans is reflected in a separate account by the entry:
D 32501 "Overdue interest on interbank loans"
K 47427 "Requirements for the payment of interest"
Repayment of overdue interest on interbank loans will be reflected in the posting:
6.2.The procedure for creating reserves and writing off overdue debts from the balance sheet
IN Russian practice lending to customers, all loans issued by the bank are classified according to five levels of risk.
Standard loans. Provisions for possible losses are not created.
Non-standard loans. An analysis of the activities of this group of borrowers 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 collateral 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, a reserve is created from 21 to 50% of the amount of 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 fulfilling the borrower's debt. In this case, a reserve is created in the amount of 51-100% of the amount of debt not covered by guarantees and pledges.
Bad loans. The borrower is obviously unable or refuses to fulfill its obligations. In this case, the reserve is created in the amount of 100% of the debt amount.
It should be noted that the classification of loans according to the degree of risk is also important for reflecting income on loans in accounting, since in accounting policy the bank indicates how the income on loans for the first three risk groups will be reflected in the accounting. The third group according to accounting policy bank can be identified as one of the most risky groups, and income from 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 a cash basis of income, and not on an accrual basis, as specified in Bank of Russia Regulation No. 302-P.
cash method in the reflection of accrued interest, it 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 in the posting:
D 47427 "Requirements for the payment of interest"
K 61301 "Deferred income from credit operations"
When interest is paid by the borrower, the following posting is made:
D 40702 "Settlement account commercial organization»
The interest received will be reflected in the “Income” account by posting:
K 70601 "Income"
In this way, new order accounting for interest on the most risky groups of loans issued is called: "in the presence of uncertainty in income recognition".
Reserves are created by posting:
D 70606 "Bank expenses"
K 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 account "Bank income" by posting:
K 70601 "Bank income"
If the loan is not repaid on time, then the amount of the reserve is transferred to the account "Provisions for overdue loans" by posting:
D 45215 "Provisions for possible losses"
K 45818 "Provisions for possible losses on overdue loans"
If it is necessary to increase the amount of the created reserve, then the posting is performed:
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 group credit risk. In the process of exercising supervisory functions during inspections, the territorial divisions of the Bank of Russia inspect:
availability and execution 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 motivated judgment of the bank about 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 balances of loans outstanding on time and unrealistic to collect.
Loans that are uncollectible are written off from the balance sheet. Uncollectible loans are those for which the measures taken by the bank for collection are complete, including the sale of collateral, foreclosure of 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, which amounts to more than 1% of the bank's equity capital, must be confirmed by procedural documents in the form of a ruling or decision of judicial and notarial authorities, indicating that at the time of the decision to recover the loan repayment at the expense of funds debtor is impossible.
For other loans with a debt value of less than 1% of the bank's equity, the decision to write off the balance sheet is made by the Board of Directors of the bank.
Write-off from the balance sheet allows you to clear the balance of bad debts. The write-off is made at the expense of the created reserve. Wiring in progress:
D 45818 "Reserve for overdue loans"
At the same time, an off-balance sheet entry is made:
D 91802 "Debt on loans provided to customers, written off at the expense of provisions for possible losses"
If the created reserves are not enough to write off the balance sheet, then the remaining debt is written off to a loss:
D 70606 "Bank expenses"
K 45812 "Loans not repaid on time by commercial customers"
At the same time, a posting is made to off-balance sheet accounts:
D 91803 "Debts written off at a loss"
Thus, the presence in the reporting of accounts 91802 and 91803 shows the amount of write-off from the balance of loans not repaid on time. These accounts are very important for analysis, as they show the extent of asset losses on outstanding loans.
Since the outstanding interest on loans issued was reflected on the off-balance sheet account 91604 "Unreceived 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 "Unearned interest on loans and other placed funds funds provided to customers debited from the balance credit institution", which will be reflected in the wiring:
In this account, the amount of overdue interest debited from the balance will be taken into account in the next five years. Every month, the bank will accrue interest on loans written off the balance sheet. Bank statements for account 91704, together with statements for accounts 91802 and 91803, will be sent to the borrower at least every quarter over the next five years as proof of debt on the loan and interest not paid on time.
If over the next years the borrower repays the debt and pays the interest, then the amounts received in repayment will be reflected in the balance sheet entry:
K 70601 "Bank income"
At the same time, write-offs will be made for the amount of the repaid debt and interest on accounts 91802, 91803, 91704.
If five years after the debts are written off from the balance sheet, the borrower does not fulfill its obligations to repay the principal and interest, then the off-balance sheet accounts are closed with the following entries:
K 91704 - for the amount of outstanding interest on a loan written off from the balance sheet
K 91802 - for the amount of the loan outstanding on time, written off from the balance due to the created reserves
K 91803 - for the amount of the loan written off the balance sheet for loss
At this point, the accounting of funds for loans not repaid on time is terminated.
The obligations of the financial agent under the financing agreement against the assignment of a monetary claim by the financial agent may include for the client maintaining accounting, as well as providing the client financial services associated with the monetary claims that are the subject of the assignment.
In Russian practice, as well as in the world, the mandatory features of a factoring operation are: assignment of a monetary claim by a client; and on the part of the financial agent - advance payment of payment documents on a refundable 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 creditor (financial agent), is a factoring agreement, and the parties that have concluded it become participants in factoring relations. The factoring agreement is the legal basis for the relationship between 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 granting a loan by the supplier to the buyer is the receipt by the supplier of a bill of exchange from the buyer, that is, the buyer becomes a borrower, and the supplier-bill holder receives the right to demand payment from the drawer sum of money by a certain date, that is, becomes a creditor. The right to demand payment on a bill of exchange 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 to the bank against possible losses and insure the bank's losses.
Settlements with clients on factoring operations are recorded on passive account 47401 "Settlements with clients on factoring, forfaiting operations" and on an active account 47402 "Settlements with clients on factoring, forfaiting operations". On the active account 47423 "Requirements for other operations" on a separate personal account“Requirements for factoring operations” are reflected.
When accepting a bill of exchange from a supplier, the bank reflects the bill in the amount of 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 posting:
D 47402 "Settlements with clients for factoring, forfaiting transactions"
K 30102 “Correspondent account with the Bank of Russia” (K 40702 “Commercial clients”)
When a bank creates a provision for a factoring transaction, the following entry is made:
D 70606 "Bank expenses"
K 47425 "Provisions for possible losses"
The amount of the bank's claim will be reflected in the posting:
D 47423 "Requirements for other operations"
K 47421 "Settlements with clients for factoring, forfaiting operations"
When funds are received from the payer to pay off the bill, the following posting is performed:
After that, the amount of the bill is debited from off-balance sheet accounting by posting:
The amount of the reserve created by the factoring transaction is restored by posting:
K 70601 "Bank income"
The amount of the advance payment issued is repaid by posting:
The following is posted for the interest amount:
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 account for commissions received
The remaining amount is sent to the settlement account of the client-supplier by posting:
K 30102 (K 40702) "Commercial clients"
If the bill is not redeemed by the buyer in set time, then the bill is returned to the supplier and debited by the bank from off-balance sheet accounting.
The advance debt is transferred to the personal account "Overdue factoring loan", which is reflected in the posting:
D 47402 on the personal account "Overdue factoring loan"
K 47402 - for the amount of overdue debt
The reserve created by 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 as a loss:
K 47402 on the personal account "Overdue factoring loan"
Lending operations are the main active operations performed by banks. Stability depends on the correct reflection of credit transactions in accounting financial position bank, the reliability of its indicators, the correct reflection of the income received and, in the end result, the bank's profit for reporting period. The reflection of transactions for the transfer of credit claims of the bank to the arrears account shows the real loss of assets by the bank and, in connection with this, the bank's need for additional resources. Credit claims of the bank on client transactions are reflected in the balance sheet accounts 441-457. Loans issued by the bank to other Russian and foreign banks are reflected in active balance 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 that characterizes the risky credit policy pursued by the bank.
Negative phenomena also manifest themselves in the presence in the balance of accounts 459 “Overdue interest on loans and other placed funds” and account 325 “Overdue interest on granted interbank loans”.
The current classification according to credit requirements the degree of risk introduced by the Bank of Russia is rather conditional, since in the practice of Russian banks there were cases of non-repayment of a loan classified as the first category of standard loans. A particularly dangerous trend is the recommendation introduced 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 can distort the real income received from credit operations.
Factoring operations by their nature also refer to operations related to the placement Money 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.
Questions for self-examination
Which main accounts of the current chart of accounts reflect loans issued to banks?
What information does the fourth and fifth digits contain in the loan account numbers?
On which balance sheet is the debt on loans issued to bank customers reflected?
What off-balance sheet accounts reflect the collateral received by the bank to secure the loan?
In what cases should a bank create a reserve for loans issued?
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 according to the degree of risk are distinguished in the practice of banks?
In what cases is it allowed to write off large credit claims from the balance sheet?
Which balance sheet accounts reflect interest that is not paid on time on loans issued?
On which paired balance sheet accounts are accounting transactions for settlements with factoring participants in commercial banks?
What funds are directed by the bank to write off the balance of overdue loans?
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 places funds on its own behalf and at its own expense on the basis of repayment, payment and urgency (FZ "On banks and banking activities"). Payment, 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 digits in the numbers of these accounts reflect the timing of the loans. You should remember the accounts for issuing 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 settlement accounts of clients - legal entities;
- 2) opening a credit line, on the basis of concluding a loan agreement by opening a credit line;
- 3) lending under an "overdraft", that is, issuing a loan with a temporary need for funds;
- 4) participation of the bank in the provision of 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 may 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 in the entry:
D 45204 "Loan granted to commercial non-state clients for a period of 31 to 90 days"
K 40702 "Commercial organizations"
If collateral is provided when issuing a loan, then an off-balance sheet entry is made:
K 91312 "Property accepted as collateral for placed funds"
If the collateral is received by the bank in the form of securities, then the posting is made:
K 91311 "Securities accepted as collateral for placed funds"
If the loan is issued against a guarantee or guarantee, then the following is posted:
D 91414 "Received guarantees and warranties"
When calculating interest on a loan, the bank makes the following entry in accounting:
D 47427 "Requirements for receiving interest"
K 70601 "Bank income"
The specified entry is made by the bank on the basis of the principle of income accounting introduced by the Bank of Russia according to the interest accrual 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 posting will be reflected:
If the interest is not paid on time, then the interest payment requirements will be reflected in the posting:
D 45912 "Overdue interest on loans provided to commercial non-governmental organizations"
K 47427 "Requirements for receiving interest"
Thus, an overdue interest debt arises in the bank's balance sheet, and the income not received by the bank remains in the account, and the bank will eventually pay an additional amount of income tax on this income.
At the same time, interest on loans that are not repaid on time will be reflected in the off-balance sheet account by posting:
D 91604 "Unreceived interest on loans and other placed funds provided to customers"
If the loan is repaid on time, then this will be reflected in the accounting posting:
D 40702 "Commercial clients"
At the same time, the bank returns the collateral received on the loan.
Wiring in progress:
D 91311 "Securities accepted as collateral"
When returning a pledge with property, the following posting is performed:
D 91312 "Property accepted as security"
When repaying a guarantee or guarantee accepted as collateral for a loan, the following entry is made:
K 91414 "Guarantees and warranties received"
If the loan is not repaid on time, then the amount of the debt is reflected by the bank in the account "Overdue loans":
D 45812 "Loans outstanding on time by commercial non-state customers"
K 45204 "Loans issued to commercial non-state customers for a period of 50 days"
A loan issued by a bank in the form of a credit line will be reflected in an off-balance sheet entry:
K 91316 "Unused credit lines for the provision of loans"
When a loan is granted against an open line of credit, a balance sheet 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 on account of an open credit line:
An overdraft loan is also limited for each client, therefore, when the amount of the limit is reflected in the agreement with the client, an entry for the amount of the established limit will be reflected in off-balance sheet accounting:
K 91317 "Unused limits on the provision of funds in the form of" overdraft """
Loans issued by the bank under an overdraft are reflected in the following entry:
D 45201 “A loan provided by a bank with a lack of funds in their current accounts (“overdraft”)”
K 40702 (30102)
Simultaneous wiring:
When issuing an interbank loan to another commercial bank, the following entry is made:
D 32003 "Loans and deposits provided to credit institutions for a period of 2 to 7 days"
K 30102 "Correspondent account with the Bank of Russia"
When the loan is repaid on time, the posting is made:
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 provided interbank loans
The bank creates a provision for overdue loans by posting:
D 70606 "Bank expenses"
K 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 an overdue loan will be reflected in the posting:
D 30102 "Correspondent account with the Bank of the Russian Federation"
K 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 entries on customer lending transactions, but overdue interest on interbank loans is reflected in a separate account by the entry:
D 32501 "Overdue interest on interbank loans"
K 47427 "Requirements for the payment of interest"
Repayment of overdue interest on interbank loans will be reflected in the posting:
The procedure for creating reserves and writing off overdue debts from the balance sheet
In the Russian practice of lending to clients, all loans issued by the bank are classified according to five levels of risk.
- Standard loans. Provisions for possible losses are not created.
- · Non-standard loans. An analysis of the activities of this group of borrowers 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 collateral 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, a reserve is created from 21 to 50% of the amount of 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 fulfilling the borrower's debt. In this case, a reserve is created in the amount of 51-100% of the amount of debt not covered by guarantees and pledges.
- · Bad loans. The borrower is obviously unable or refuses to fulfill its obligations. In this case, the reserve is created in the amount of 100% of the debt amount.
It should be noted that the classification of loans according to 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 for the first three risk groups will be reflected in accounting. The third group, in accordance with the bank's accounting policy, can be defined as one of the most risky groups, and income from loans assigned to the third group will be accounted for in the same way as for the fourth and fifth risk groups, that is, according to the principle of cash reflection of income, and not on an accrual basis, as specified in Bank of Russia Regulation No. 302-P.
The cash method in reflecting 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 in the posting:
D 47427 "Requirements for the payment of interest"
K 61301 "Deferred income from credit operations"
When interest is paid by the borrower, the following posting is made:
D 40702 "Current account of a commercial organization"
The interest received will be reflected in the “Income” account by posting:
K 70601 "Income"
Thus, the new procedure for accounting for interest on the most risky groups of loans issued is called: “if there is uncertainty in income recognition”.
Reserves are created by posting:
D 70606 "Bank expenses"
K 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 account "Bank income" by posting:
K 70601 "Bank income"
If the loan is not repaid on time, then the amount of the reserve is transferred to the account "Provisions for overdue loans" by posting:
D 45215 "Provisions for possible losses"
K 45818 "Provisions for possible losses on overdue loans"
If it is necessary to increase the amount of the created reserve, then the posting is performed:
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 inspect:
- availability and execution by the bank of procedures for the formation and use of the reserve;
- Completeness of consideration of 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;
- the correctness of the creation of a reserve for possible losses and the reflection of the reserve in accounting;
- · legitimacy of write-offs by banks from balance sheets of loans outstanding on time and unrealistic to collect.
Loans that are uncollectible are written off from the balance sheet. Uncollectible loans are those for which the measures taken by the bank for collection are complete, including the sale of collateral, foreclosure of 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, which amounts to more than 1% of the bank's equity capital, must be confirmed by procedural documents in the form of a ruling or decision of judicial and notarial authorities, indicating that at the time of the decision to recover the loan repayment at the expense of funds debtor is impossible.
For other loans with a debt value of less than 1% of the bank's equity, the decision to write off the balance sheet is made by the Board of Directors of the bank.
Write-off from the balance sheet allows you to clear the balance of bad debts. The write-off is made at the expense of the created reserve. Wiring in progress:
D 45818 "Reserve for overdue loans"
At the same time, an off-balance sheet entry is made:
D 91802 "Debt on loans provided to customers, written off at the expense of provisions for possible losses"
If the created reserves are not enough to write off the balance sheet, then the remaining debt is written off to a loss:
D 70606 "Bank expenses"
K 45812 "Loans not repaid on time by commercial customers"
At the same time, a posting is made to off-balance sheet accounts:
D 91803 "Debts written off at a loss"
Thus, the presence in the reporting of accounts 91802 and 91803 shows the amount of write-off from the balance of loans not repaid on time. These accounts are very important for analysis, as they show the extent of asset losses on outstanding loans.
Since the outstanding interest on loans issued was reflected on the off-balance sheet account 91604 "Unreceived 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 "Unearned interest on loans and other placed funds funds provided to customers debited from the balance sheet of a credit institution”, which will be reflected in the entry:
In this account, the amount of overdue interest debited from the balance will be taken into account in the next five years. Every month, the bank will accrue interest on loans written off the balance sheet. Bank statements for account 91704, together with statements for accounts 91802 and 91803, will be sent to the borrower at least every quarter over the next five years as proof of debt on the loan and interest not paid on time. If over the next years the borrower repays the debt and pays the interest, then the amounts received in repayment will be reflected in the balance sheet entry:
K 70601 "Bank income"
At the same time, write-offs will be made for the amount of the repaid debt and interest on accounts 91802, 91803, 91704.
If five years after the debts are written off from the balance sheet, the borrower does not fulfill its obligations to repay the principal and interest, then the off-balance sheet accounts are closed with the following entries:
K 91704 -- for the amount of outstanding interest on a loan written off from the balance sheet
K 91802 - for the amount of the loan outstanding on time, written off from the balance due to the created reserves
K 91803 -- for the amount of the loan written off the balance sheet at a loss
At this point, the accounting of funds for loans not repaid on time is terminated.
Accounting for bank factoring transactions
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, the client, funds on account of the client’s (creditor’s) monetary claim against a third party (debtor) arising from the provision by the client 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 financial agent's obligations under a financing agreement against the assignment of a monetary claim by the financial agent may include accounting 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 features of a factoring operation are: assignment of a monetary claim by a client; and on the part of the financial agent - advance payment of payment documents on a refundable 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 creditor (financial agent), is a factoring agreement, and the parties that have concluded it become participants in factoring relations . The factoring agreement is the legal basis for the relationship between 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 granting a loan by the supplier to the buyer is the receipt by the supplier of a bill of exchange from the buyer, that is, the buyer becomes a borrower, and the supplier-promissory holder acquires the right to demand payment of a sum of money from the drawer by a certain date, that is, becomes a creditor. The right to demand payment on a bill of exchange 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 to the bank against possible losses and insure the bank's losses. Settlements with clients on factoring operations are recorded on passive account 47401 "Settlements with clients on factoring, forfaiting operations" and on an active account 47402 "Settlements with clients on factoring, forfaiting operations". On the active account 47423 "Requirements on other operations" on a separate personal account, "Requirements on factoring operations" are reflected.
When accepting a bill of exchange from a supplier, the bank reflects the bill in the amount of 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 posting:
D 47402 "Settlements with clients for factoring, forfaiting transactions"
K 30102 “Correspondent account with the Bank of Russia” (K 40702 “Commercial clients”)
When a bank creates a provision for a factoring transaction, the following entry is made:
D 70606 "Bank expenses"
K 47425 "Provisions for possible losses"
The amount of the bank's claim will be reflected in the posting:
D 47423 "Requirements for other operations"
K 47421 "Settlements with clients for factoring, forfaiting operations"
When funds are received from the payer to pay off the bill, the following posting is performed:
After that, the amount of the bill is debited from off-balance sheet accounting by posting:
The amount of the reserve created by the factoring transaction is restored by posting:
K 70601 "Bank income"
The amount of the advance payment issued is repaid by posting:
The following is posted for the interest amount:
K 70601 "Bank income" - on 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 account for commissions received
The remaining amount is sent to the settlement account of the client-supplier by posting:
K 30102 (K 40702) "Commercial clients"
If the bill is not repaid by the buyer within the prescribed period, then the bill is returned to the supplier and debited by the bank from the off-balance sheet. The advance debt is transferred to the personal account "Overdue factoring loan", which is reflected in the posting:
D 47402 on the personal account "Overdue factoring loan"
K 47402 - for the amount of overdue debt
The reserve created by 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 as a loss:
K 47402 on the personal account "Overdue factoring loan"
conclusions
Lending operations are the main active operations performed by banks. From the correct reflection of credit operations in accounting depends on the stability of the financial position of the bank, the reliability of its indicators, the correct reflection of income received and, ultimately, the bank's profit for the reporting period. The reflection of transactions for the transfer of credit claims of the bank to the arrears account shows the real loss of assets by the bank and, in connection with this, the bank's need for additional resources. Credit claims of the bank on client transactions are reflected in the balance sheet accounts 441--457. Loans issued by the bank to other Russian and foreign banks are reflected in active balance 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 that characterizes the risky credit policy pursued by the bank.
Negative phenomena also manifest themselves in the presence in the balance of accounts 459 “Overdue interest on loans and other placed funds” and account 325 “Overdue interest on granted interbank loans”.
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 were cases of non-repayment of a loan classified in the first category of standard loans. A particularly dangerous trend is the recommendation introduced 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 can distort the real income received from credit operations.
Factoring transactions by their nature also refer to transactions 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 accrued on all attracted and placed funds, on deposits, loans and other attracted 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 “Requirements for receiving interest”;
– active account 70606 “Expenses”.
Consider the accounting procedure for accrued and paid interest:
Contributors 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 organizations (for deposits) | Debit 70606 Credit 47426 | Debit 47426 Credit 312, 313, 314, 315, 316 |
Our bank (for deposits) | Debit 47427 Credit 70601 | Debit 319, 320, 321, 322, 323 Credit 47427 |
Other credit institutions (for loans received) | Debit 47427 Credit 70601 | Debit 30102, 30109, 30110 Credit 47427 |
Our bank (for loans received) | 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 as a separate amount. Then:
If the bank violates the terms of settlements with customers on deposits and other funds raised, then account 476 “Unfulfilled obligations under contracts for raising customer funds” will be used. Account 476 records the bank's liabilities on deposits and other attracted funds of individuals and legal entities, with the exception of credit institutions and non-resident banks, and on the payment of interest.
The most common deposit transactions:
No. p / p | the name of the operation | Account debit | Account credit |
Accepted in cash on a deposit of an individual for up to 180 days | |||
A part of the amount of the demand deposit owned by a non-resident individual was issued in cash | |||
The amount credited to the deposit for up to 90 days from the current account of a non-governmental commercial organization | |||
The amount credited to the deposit of another credit institution for up to 7 days from the correspondent account | |||
Written off from the state deposit financial organization for up to 30 days the amount to be transferred to another branch of the bank | |||
Credited to the deposit of an individual for up to 1 year the amount of interest accrued in the same month | |||
Credited to the deposit of a non-resident bank for a period of 1 day the amount of interest | |||
Credited to the deposit of our bank for up to 30 days in the Bank of Russia the amount debited from the correspondent account | |||
The amount of interest due on the deposit was credited to the settlement account of the federal non-profit organization | |||
The amount of interest due on the deposit was credited to the correspondent account of our bank in the RCC |
Organization and accounting of credit operations of a commercial bank
Lending is that the bank provides customers with funds under certain conditions. The conditions are determined by the principles of lending:
1) return urgency- the loan must be repaid on time, for violation of the loan repayment terms, the borrower is obliged to pay a fine;
2) payment- the client pays interest for using the loan;
3) differentiation- the bank provides lending on the basis of an individual approach to each client;
4) security– the repayment of the loan must be secured; a guarantee, guarantee of third parties, pledge of securities or other property may be presented as security.
Accounting for credit operations is built on the same principles. To account for operations on lending to individuals and legal entities, accounts were opened in the fourth section of balance accounts 441-457, and for interbank loans - accounts 312, 313, 314, 320, 321 in the third section of balance 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. Typically, such borrowers do not provide documents confirming the legality of their creation to obtain a loan. Credit is granted 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 the documents for obtaining a loan documents confirming the legality of their formation, an extract from a current account in another bank, etc. And they are provided with a loan by transferring through the correspondent account of our bank in another bank.
Accounts 441-453 and 456 were opened to account for loans granted to legal entities, 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 urgency principle of repayment, as they are open to classifying loans by maturity. These accounts are active, therefore, their debits take into account the amounts of loans granted, and the credits take into account the amounts received to repay the loans provided, or the amounts attributed to overdue debts.
Active accounts 45801-45813, 45816 were opened to account for overdue debts of legal entities on account 458 “Overdue debts on extended loans and other placed funds”.
The debit of account 458 takes into account the amounts of loans that have not been repaid on time, and the amounts received for the repayment of overdue loans or written off as uncollectible from the reserve.
Examples of accounting for standard transactions:
– a loan was granted to a legal entity – a client of our bank: Debit 441-453, 456; Loan 405-408;
– a loan was granted to a legal entity – a client of another bank: Debit 441-453, 456; Credit 30102, 30109, 30110;
– a contribution was received to repay a loan provided to a legal entity - a client of our bank: Debit 405-408, 30102; Loan 441-453, 456;
- the amount of the loan provided to a legal entity, not repaid on time and attributed to overdue debt is 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 credit line . 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 within 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 the provision of loans”;
– on the active account 91416 “Unused limits on obtaining loans”.
Collateral for granted loans is taken into account 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 metals accepted as collateral for placed funds”;
– 91314 “Securities received from operations performed on a repayable basis”;
– 91414 “Guarantees and warranties received”.
For the debit of accounts 91311, 91312, 91313 and 91314, the amounts of collateral received at the time of the loan are taken into account, for the loan - the amount of collateral canceled, returned, realized after the full repayment of the loan or writing it off as uncollectible.
All loans granted to individuals can be divided into two groups:
1) loans provided without specifying a specific purpose, they are provided for a period of not more than 2-3 years;
2) targeted loans, they are provided for a long period, 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 submit to the bank: 1) passport; 2) a questionnaire; 3) income statement; 4) documents confirming the security of the loan. At the bank, the client draws up loan application and a loan agreement, an urgent obligation and other documents at the request of the bank.
Loans granted to individuals are accounted for on 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 maturity and allow you to control the effect of the principle of urgency of return. These accounts are active. The debit of these accounts take into account the amounts of loans granted, and for the loan - the amounts received to repay the loans provided, or the amounts attributed to overdue debts. For example:
- granted a loan to an individual: Debit 454, 455, 457; Credit 40802, 20202, 30102, 3010, deposit;
- a contribution was made to repay a loan granted 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 account contains the following information:
1) personal data of the borrower;
2) information on the type and amount of the loan granted;
3) term of the loan;
4) interest rate;
5) the schedule for the receipt of payments for the repayment of the principal debt and the payment of interest.
To account for overdue debt on loans granted to individuals, the following active accounts are opened:
– 45814 “Overdue debt on granted loans and other placed funds to individual entrepreneurs”;
– 45815 “Overdue debt on extended loans and other placed funds to citizens”;
– 45817 “Overdue debt on extended loans and other placed funds to non-resident individuals”.
On the market interbank loans banks operate in two directions in the same way as in the interbank deposit market - they provide loans to other banks and receive loans from other banks.
In accordance with Regulation 385-P, the purpose of accounts 312-314 and 320-321 is universal, they are intended for accounting for both attracted and placed funds, therefore accounting for the amounts on these accounts is partially set out in the seventh question of this section. [But some aspects of the features of accounting for credit transactions will be discussed below].
To account for loans granted to other credit institutions, active accounts are open:
– account 320 “Loans and deposits provided to credit organizations”;
– account 321 “Loans and deposits provided to non-resident banks”.
According to their debit, the amounts of loans granted are taken into account, and according to the loan, the funds received to repay the loan, or the amount of the loan attributed to overdue debts.
To account for overdue debt on interbank loans account 324 “Overdue debt on provided interbank loans, deposits and other attracted funds” was opened. Active accounts of the second order are opened for this account:
– 32401 “Overdue debt on provided interbank loans, deposits and other attracted funds provided to credit institutions”;
– 32402 “Overdue debt on provided interbank loans, deposits and other attracted funds provided to non-resident banks”.
To account for 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 of a passive nature, in their credit they take into account the amounts of loans received by our bank from others, in their debit - the amounts used to repay loans received by our bank, or attributed to overdue debts.
To account for arrears account 317 “Overdue debt on received interbank loans, deposits and other attracted funds” was opened for received loans. Passive accounts of the second order are opened for this account:
– 31701 “Overdue debt on received interbank loans, deposits and other attracted 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 accounted for in 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 guarantees".
Accounts 91411-91413 are active, their debits take into account the collateral transferred at the time of obtaining the loan, for the loan - the collateral returned or sold by the creditor.
Accounting for interest received on loans granted and paid on loans received, are carried out similarly to the accounting of interest on deposit operations. When accruing 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 “Requirements for receiving interest”.
Accounting for interest on placed funds is carried out similarly to accounting for interest on attracted 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 are opened.
In order to reduce possible losses in the event that the borrower fails to repay the loan, credit institutions are obliged to form for each granted loan reserve. The formation of the reserve takes place 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 debt" dated March 26, 2004 No. 254-P.
The reserve is formed by a credit institution in the event of a loan impairment, i.e., in the event of a loss of value by the loan due to the borrower’s default or improper performance of obligations under the loan to the credit institution in accordance with the terms of the agreement, or the existence of a real threat of such non-performance or improper performance.
Estimated allowance for classified loans
The costs of forming a reserve are charged to the active account 70606 "Expenses". To account for the amounts of reserves themselves for each account 455 "Credits provided ..." a passive account of the second order 45515 "Reserves for possible losses" was opened. All accounts for accounting for reserves are passive in nature, 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 amount of the reserve to cover losses on outstanding loan or restoring the amount of the reserve and transferring it to the 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 purpose.
At least once a month, the size of the reserve is adjusted, and if the amount of loan debt has decreased, the reserve is reduced. If the amount of loan debt has increased, the reserve is additionally charged, that is, it is increased:
- a provision for the granted loan was formed:
– the amount of the reserve was adjusted due to an increase in loan debt: Debit 70606; Loan 45515 "Provisions for possible losses";
– the amount of the reserve was adjusted due to a decrease in loan debt: Debit 45515 "Provisions for possible losses"; Loan 70601.
Examples of accounting for credit operations:
No. p / p | the name of the operation | Account debit | Account credit |
A cash loan was provided to an individual for a period of up to 1 year under a guarantee | Debit 45505 Debit 91414 | Loan 20202 Loan 9999 | |
The amount received in cash to repay a loan granted to an individual for a period of up to 1 year | Debit 20202 | Loan 45505 | |
The amount of overdue debt on a loan granted to an individual for a period of up to 1 year is taken into account | Debit 45815 | Loan 45505 | |
A loan was granted to a non-state commercial organization - a client of our bank for a period of 90 days secured by property | Debit 45204 Debit 9998 | Loan 40702 Loan 91312 | |
A provision has been formed for a loan provided to a non-governmental commercial organization | Debit 70606 | Credit 45215 | |
The amount was debited from the current account of a non-state commercial enterprise to repay the loan for a period of 90 days | Debit 40702 | Credit 45204 | |
A loan was granted to another bank for a period of 7 days secured by securities | Debit 32003 Debit 9998 | Credit 30102 Credit 91311 | |
Received a contribution to repay a loan granted 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 | Loan 31203 Loan 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 accounting passive transactions of a commercial bank with securities
security paper– a document certifying compliance with the established form and required details property rights, the exercise or transfer of which is possible only upon its presentation.
With the transfer of a security, all the rights certified by it in the aggregate also pass. According to the Civil Code of the Russian Federation, securities include a government bond, a bond, a bill of exchange, a check, a deposit and savings certificate, a banking savings book bearer, bill of lading, share, privatization securities, as well as a double warehouse receipt (each of its two parts) and a simple warehouse receipt.
Credit institutions work with their own securities and securities of other issuers. Own securities can be divided into two groups: shares and other securities. Stock 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 cash from customers. Credit institutions work with securities of other issuers in order to earn income.
Accounting for transactions with securities is carried out in the fifth section of balance accounts "Operations with securities and derivatives financial instruments", as well as on the accounts of the head IN"Off-balance sheet accounts" and chapters D"Depo accounts". On the balance sheet accounts of the fifth section, the nominal value of the security or its book value(market), that is, the cost at which the security was accepted on the bank's balance sheet. On depo accounts, securities are recorded in pieces and, if necessary, at face value. On off-balance sheet accounts, securities are accounted for at face value or at notional value - one piece corresponds to the value of one ruble.
Commercial banks, carrying out the issue of securities, bear the costs: 1) for the manufacture of securities; 2) for the registration of an issue (except for certificates); 3) for advertising; 4) for shipment and storage; 5) to pay income on securities to their owners. These expenses are recorded on the active account 70606 “Expenses”. The cost of issuing securities is accounted for as follows:
1. The funds of the printing house for the production of securities are listed:
Debit 70606; Loan 30102;
2. Forms of own securities received from the printing house:
Debit 90701; Loan 99999;
– active account 90701 Forms of own securities for distribution.
– active account 30102 “Correspondent accounts of credit institutions with the Bank of Russia”.
The following accounts have been opened to record securities issuance transactions:
– 520 “Issued bonds”;
– 521 “Certificates of deposit issued”;
– 522 “Issued savings certificates”;
- 523 "Issued bills of exchange and banker's acceptances";
– 907 “Unplaced securities”.
Second order accounts have been opened for these accounts, indicating for how long the securities have been issued. For example, passive accounts have been opened for account 520 “Issued bonds”:
– 52001 “With maturity up to 30 days”;
– 52002 “With maturity from 31 to 90 days”;
– 52003 “With maturity from 91 to 180 days”;
– 52004 “With maturity from 181 days to 1 year”;
– 52005 “With maturity over 1 year to 3 years”;
– 52006 “With maturity over 3 years”.
The credit of these accounts takes into account the issue of securities, that is, the nominal value of the issued securities. In the debit of these accounts, the nominal value of issued securities, repurchased and redeemed ahead of schedule and on time, is written off.
Settlements with securities holders for interest and income due to them are carried out on accounts 524 (all accounts are passive) and 525:
– 524 "Obligations on issued securities to be settled":
– 52401 “Issued bonds for execution”;
– 52402 “Interest and coupon obligations on bonds payable”;
– 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 tradable bonds”;
–525 "Other accounts for operations with issued securities" :
– passive account 52501 “Interest and coupon liabilities on issued securities”;
– active account 52503 “Discount on issued securities”.
Accounting records of operations for all debt obligations from issuance to maturity of securities are carried out similarly.
I. The order of reflection in accounting operations from issue to maturity of securities(on the example of deposit certificates).
1. Certificates of deposit issued (sold): Debit 405-408, 30102; Credit 521; Debit 99999; Loan 90701.
2. Interest accrued on certificates of deposit: Debit 52503; Loan 52501.
3. Certificates of deposit redeemed on time:
Debit 521; Loan 52403;
Debit 52501; Loan 52405;
- accepted for payment certificate of deposit: Debit 90704; Credit 99999;
● denomination: Debit 52403; Loan 405-408, 30102;
● interest amount: Debit 52405; Loan 405-408, 30102.
4. Debit 70606; Credit 52503.
5. Debit 99999; Loan 90704.
In case of early presentation of a certificate of deposit for payment, the repayment of the certificate is accounted for as follows:
1. Deposit certificate accepted for early payment: Debit 90703; Loan 99999.
2. The amount of accrued interest has been adjusted: Debit 52501; Credit 52503.
3. Deposit certificate redeemed ahead of schedule:
– transfer of the nominal value of the certificate for execution: Debit 521; Loan 52403;
– transfer of accrued interest to execution: Debit 52501; Loan 52405;
– the amount actually paid on the certificate of deposit:
● denomination: Debit 52403; Loan 405-408, 30102;
● interest amount: Debit 52405; Loan 405-408, 30102.
4. The amount of interest paid has been expensed: Debit 70606; Credit 52503.
5. Redeemed certificate of deposit: Debit 99999; Loan 90704.
The transfer of securities is recorded on account 90705, for example: certificate forms were sent from the bank vault to the branch: Debit 90705; Loan 99999.
Commercial banks issue bills of two types: simple interest and discount.
Ordinary interest-bearing bills they are sold at par, and when they are redeemed on time, they are paid par plus interest.
Discount bills sell at a price below face value, and when redeemed on time, they pay face value.
II. The procedure for reflecting in accounting transactions for the issuance and redemption of bills.
1. Forms of bills received from the printing house: Debit 90701; Loan 99999.
2. Promissory note sold: Debit 20202, 423.405-408, 30102; Loan 523... And Debit 99999; Loan 90701.
3. Discount bill sold: Debit 20202, 423, 405-408, 30102 (selling price 920); Credit 523; Debit 52502 (discount amount 80); Credit 523... (nominal value 1000) and Debit 99999; Loan 90701.
4. Interest accrued on bills: Debit 52503; Loan 52501.
5. Own bill repaid on time:
– transfer of the nominal value of the bill for execution: Debit 523; Loan 52406;
– transfer of interest on a bill for execution: Debit 52501; Loan 52406;
- a bill of exchange presented for redemption: Debit 90704; Loan 99999.
6. Paid to the owner of the bill: Debit 52406; Loan 20202, 423, 405-408, 30102.
7. Interest or discount applied to bank expenses: Debit 70606; Loan 52502.
8. Promissory note redeemed: Debit 99999; Loan 90704.
Organization and accounting of active operations of a commercial bank with securities
All active operations performed with securities of other issuers can be divided into three groups: trading, investment and operations with bills.
Trading operations intended to receive income from the resale of securities.
Investment operations are intended to receive 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 allow you to take part in the management of this organization, then the new kind transactions with securities of other issuers.
All securities in which the bank invests can be combined into three portfolios: trading, investment and controlling interest portfolio.
1. Trading portfolio includes securities that have been purchased for resale.
2. Investment portfolio includes securities that have been acquired with the expectation of receiving income in the future.
3. Portfolio of controlling interest includes securities that were purchased in an amount sufficient to participate in the management of the issuing entity.
In the accounting of transactions with securities (except bills of exchange), all balance sheets are divided into two groups:
1) accounts for accounting for investments in debt obligations;
2) accounts for accounting for investments in equity securities.
Accounting for transactions with forms, securities of other issuers is carried out on account 908 “Securities of other issuers” on active accounts of the second order:
– 90801 “Forms of securities of other issuers for distribution”;
– 90802 "Securities for sale on a commission basis";
– 90803 “Securities in custody under storage agreements”;
– 90804 “Government loan bonds sold to organizations”.
Accounts 501, 502, 503 were opened to account for investments in debt obligations, and accounts 506, 507 were opened to account for investments in shares:
– account 501 “Debt liabilities at fair value through profit or loss”;
– account 502 “Debt obligations 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, active second-order accounts are opened on account 503:
– 50305 “Debt obligations Russian Federation»;
– 50306 “Debt obligations of subjects of the Russian Federation and bodies 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 transactions with securities are recorded on account 504 “Interest income on debt obligations accrued before sale or redemption”.
Buying and selling of quoted securities of other issuers is usually carried out on organized securities market (ORCB). A credit institution may act as a broker or dealer in the securities market.
Operations with securities acquired in the controlling participation portfolio are accounted for in accounts 601 and 602:
– account 601 “Participation in subsidiaries and dependent joint-stock companies» ;
– active account 60101 “Shares of subsidiaries and affiliates of 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 subsidiaries and affiliates of non-residents”;
– passive account 60105 “Provisions for possible losses”;
– account 602 "Other participation" ;
– active account 60201 “Funds deposited in authorized capitals credit institutions established 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 allocated for the activities of its branches in other countries”;
– passive account 60206 “Provisions for possible losses”.
The costs of operations with securities are recorded on the active account 50905 "Preliminary costs for the acquisition of securities".
The order of reflection in the accounting of active operations with securities.
1. Acquisition of securities in 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; Loan 501-503.
4. Disposal of debt: Debit 61210; Loan 501-503.
5. The costs associated with the disposal of securities are taken into account by posting: Debit 61210; Loan 47422, 30602.
6. Positive difference from revaluation: Debit 10603; Loan 70602.
7. Negative Revaluation: Debit 70607; Loan 10605.
Organization and accounting commercial bank transactions with bills of exchange
bill of exchange – security, a separate document of a strictly prescribed form, performing the following functions:
1) own security issued to raise funds from clients;
2) promissory note;
3) a valuable form for registration of a promissory note.
The main function of the bill is that it is a written promissory note of a strictly established form, giving its owner (note holder) an indisputable right, after the expiration of the obligation, to demand from the debtor or acceptor the payment of the sum of money indicated on the bill. The bill acts as an instrument of commercial credit. The bill can be simple and transferable.
promissory note has the following seven details: 1) bill mark; 2) the amount of the bill; 3) payment term; 4) place of payment; 5) 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) bill mark; 2) the amount of the bill; 3) payment term; 4) place of payment; 5) name of the debtor; 6) the date and place of drawing up the bill; 7) the recipient; 8) 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 so much time from presentation;
3) at so much time from compilation;
Considering the procedure for issuing loans and their documenting, as well as the formation of a resource base, through 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 JSC "Belinvestbank" No. 2 dated September 18, 2001, and also in accordance with "Rules for the placement by banks of the Republic of Belarus of funds in the form of a loan", approved by the Resolution of the Board of the National Bank of the Republic of Belarus dated May 24, 2001 No. 116. In addition, compliance with the articles Civil Code Republic of Belarus and other internal orders of the bank. In accordance with the Decree of the National Bank of the Republic of Belarus dated December 30, 2003 No. 226, the Instruction "On the procedure for providing (placement) by banks of funds in the form of a loan and their return", in connection with which there were some changes in the lending policy. For example, the Decree does not use the terms "loan account" and "special loan account" as contradicting 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, so in this work we will refer to regulations currently used in Belinvestbank OJSC and its branches, and, if necessary, refer to the new regulatory document.
JSC "Belinvestbank" and branches acting on its behalf issue loans in accordance with current legislation of the Republic of Belarus and the Charter of the bank on the principles of target orientation, urgency, security, repayment and payment in accordance with credit policy bank, which is developed on the basis of the general strategy of the bank annually for the current year.
In this case, credit investments are made at the expense of:
- - own funds jar;
- - attracted funds from legal and individuals;
- - joint lending with other branches of the bank;
- - resources purchased on the interbank market;
- - other funds attracted in the manner prescribed by law.
Also, unallocated during fiscal year profit.
Focusing on the comprehensive development program of JSC "Belinvestbank" for a period up to 2005, developed in order to strengthen the reliability and stability of the bank, increase equity capital, increase the range of banking services, ensuring 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 by 3.2 times is planned. 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%. It is planned to increase equity capital from all sources (funds of investors, profits and funds of the bank, issue of bank shares, etc.). The increase in the attracted resource base during this period will be carried out 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 the high-quality and highly profitable loan portfolio while minimizing credit risks.
The availability of resources from the bank and their structure determine the conduct of the 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 Board of JSC "Belinvestbank" No. 2 dated September 18, 2001 and the Resolution of the Board of the National Bank of the Republic of Belarus dated May 24, 2001 No. 116, 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 activity 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 Decree 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. At the same time to short-term loans will include:
- - loans granted for purposes related to the creation and movement of current assets, without a time limit;
- - other loans granted for a period of up to twelve months inclusive, with the exception of loans provided 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 provided for purposes related to the creation and movement of current assets.
Let us consider in more detail the process of issuing and processing loans provided by legal entities.
As noted earlier (Figure 7), loans to legal entities can be issued to increase current (current) assets and to create or increase non-current (long-term assets).
Short term bank loan.Current assets lending has always been the main type of lending operations. The need to obtain such a loan is due to the emergence of a temporary need for funds due to a mismatch between receipts and costs in the process of circulation of the company's mobile assets. This need arises especially sharply in enterprises with a seasonal nature of production.
Previously, the procedure for certain types of loans was established by the instructions of the USSR State Bank, and deviations from them were not allowed. Currently, the National Bank of the Republic of Belarus determines only the fundamental points of granting loans.
To obtain a loan in current assets, the borrower submits to the bank 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 may be obtained reflecting 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 that have loans from other banks are required to provide copies of loan agreements and certificates of actual debt on loans from other banks, including overdue ones.
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 at the borrower the state of accounting, the actual availability of credited values, 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 the full package of documents.
After studying all the submitted documents and taking into account the conclusions of the legal, collateral and information and analytical services, the loan officer serving this borrower draws up a conclusion - 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 credit committee of the bank.
A credit committee has been set up in the bank 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 JSC "Belinvestbank"(Appendix B). At the meetings of the committee, the state of affairs in the department on issues of monetary circulation, the most effective forms of stimulating the initiative of enterprises with a loan are considered, issues of attracting and allocating resources on mutually beneficial terms are resolved, work with securities is organized, and other functions are performed. The committee consists of 6 people, the chairman of the commission 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 brought to the branch.
A meeting of the credit committee of a bank branch is formalized by an act (minutes of the meeting), which indicates the decisions made at it: on granting or not issuing a loan (Appendix D).
Loan agreement- this legal document, regulating the relationship between the bank and the borrower for the issuance and repayment of the loan, which determines the mutual obligations and economic responsibility of the parties. Mandatory written form his conclusions.
The loan agreement requires proper execution in order to avoid any kind 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. In addition, the contract is not public. significant the terms of the contract are:
- - intended use of the loan;
- - the amount of the loan, indicating the currency of the loan;
- - term and procedure for granting and repaying the loan;
- - interest rate for using the loan;
- - the terms and procedure for paying interest for using a bank loan;
- - a way to ensure the fulfillment by the borrower of obligations under the loan agreement;
- - liability of the borrower and the bank for failure to comply with the terms of the agreement.
The terms of the loan transaction agreed with the borrower are reflected in loan agreement, which is signed by the heads of the bank and borrowers. A completed loan agreement must exclude any corrections that render it invalid.
Together with the loan agreement, agreements are drawn up for the accepted forms of securing obligations to repay the loan - contracts of pledge, guarantees, guarantees(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 relevant agreement. These documents must comply with legal norms and not have contradictions in the rights and obligations of the parties.
When providing loans in current assets, as a rule, are used separate loan accounts. The Borrower may have one or more of these accounts. At the same time, the bank that gives the loan notifies the bank in which the current account of the borrower is opened about the size of the loan and the terms of its repayment.
The loan is granted regardless of the availability of funds in the current account. Loans can be disbursed all at once or in installments. Most often, one-time loans are issued to pay for settlement documents for valuables purchased under contracts, consumer goods and industrial and technical products.
Repayment of the loan can be carried out at a time in the period stipulated by the loan agreement. In practice, more often the repayment of the loan occurs in installments. In this case, the repayment periods are set based on the terms of use in the production and sale of credited material assets. In this case, the terms of repayment of the loan must be indicated 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 priority.
For loans granted to current assets, at least once a quarter, the availability of material security is checked on the basis of reporting data (balance sheet and others)
There is also the option of lending special loan account. This account can only be opened at a bank branch at the location of the current account of the borrower.
Lending on a special loan account is allowed, as a rule, to enterprises engaged in wholesale and retail consumer goods and products for industrial and technical purposes.
In order to establish the planned amount of a loan for a special loan account, the borrower provides the bank with an appropriate calculation with a quarterly breakdown. The predicted loan amount (for a year, quarter or month) is calculated:
where - the remains of goods and values of own sources of coverage;
Accounts payable.
The issuance of a loan on a special loan account is made on the basis of a loan agreement concluded between a bank and a trade organization for a period of up to one year. At the same time, the credit officer issues an order from the accounting department on the amount of the maximum loan, which is signed by authorized persons (Appendix I). Credit is granted by paying payment instructions for goods, including the cost of their transportation and the amount of value added tax. Repayment of such a loan is made from a special loan account at the expense of the proceeds received from the sale of credited goods, by the payment order of the borrower.
From the moment of granting a loan into 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 of:
- - intended use of the loan;
- - material security of the loan;
- - state of accounting, its reliability;
- - borrower's creditworthiness;
- - collateral status;
- - timeliness of repayment of the loan and interest on it.
All materials for granting a loan to a borrower are accumulated and formed in credit file whose content 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, work in progress capital investments and others. The creation, implementation and payback of non-current assets require a significant period of time, so the sources of their financing are of a long-term nature.
Projects related to the creation and movement of non-current assets are called investment projects, which are the objects of long-term lending.
Issuance of investment loans is carried out in accordance with The procedure for issuing a loan to legal entities of Belinvestbank OJSC, the 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 in 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 economic efficiency and payback of the project being financed. If a loan is issued for new construction, expansion, reconstruction, the following documents must also be submitted:
- - permission to carry out construction works;
- - the decision of the local executive and administrative bodies on construction;
- - a copy of the state act on the right of ownership, possession or use of a land plot;
- - design and estimate documentation;
- - contract agreement, 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 normative 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 repayment of the loan is ensured within six years from the date of issuance of the first loan amount. size limit investment loan is determined based on the cost of the project, on the basis of design estimates and the size of other sources. In doing so, preference is given to investment projects that provide the production of export products; create and develop high and new technologies; projects included in government programs.
Long lasting credit relations obliges the bank to provide more carefully 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 developed properly. This situation is explained by factors that depend not only on potential borrowers but also from the lending bank. Many enterprises cannot adjust to the production of competitive products, products in demand and operate at a loss. In the 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 of a short-term nature.
Let's take a closer look at the bank lending process individuals.
As noted above, banks, including the Soviet branch of Belinvestbank OJSC, issue loans individuals for consumer purposes and real estate financing (picture 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 Management Board of a commercial bank and are subject to frequent changes, especially in terms of interest rates, which are linked to the refinancing rate. Loan terms vary depending on their types and objects. The size of a loan for consumer purposes is usually linked to the size of the minimum wage, for financing real estate - with estimated cost construction, repair, reconstruction of the property.
In general, the procedure for applying for a loan is similar to that entity, however, there are some peculiarities.
Together with the application for a loan, an individual submits a passport or a document replacing it, as well as information about income and expenses.
In addition, the main list of documents may be supplemented depending on the purpose of the loan. 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 contract of sale, notarized and registered with the technical inventory bureau, as well as a certificate of market value object. In order to receive funds to purchase Vehicle: a notarized contract of sale. When applying for a student loan - 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 its guarantors. To determine the degree of sufficiency of these, a rating and expert assessment is used. Such a system makes it possible loan officers analyze customer requests using various factors that help determine the likelihood of debt repayment and interest on it on time.
Further, after studying the solvency of the borrower, it turns out the form of security for obligations to repay the loan and interest on it. As a rule, guarantees of third parties secured by collateral are provided to secure obligations. The guarantee agreement is notarized.
After studying all required documents a written conclusion is left with the rationale for the possibility of lending. The decision to issue a loan for consumer purposes is made by an official authorized to do so, a loan for real estate - by the credit committee. Credit terms are stipulated by the credit agreement. The loan is provided by non-cash transfers. To do this, a loan account is opened on the basis of an order from the credit department, it indicates the account number, the amount of the loan, its repayment period, the amount of interest on the loan, the frequency of their accrual and payment. In exceptional cases, a loan may be provided in cash to pay for goods (works, services) permitted to be sold for cash. In this case, documentary evidence of the intended use of the loan is provided to the bank.
When financing individuals for the use of a loan, as a rule, floating rates are set. 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 may terminate the agreement, having previously repaid the loan and interest on it (according to the interest rate specified in the agreement).
Repayment of the loan is made by depositing cash, transfers from your current account on the deposit, from wages, scholarships, pensions, etc. In case of non-payment of overdue debt, 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. Verification of the intended use of the loan proceeds is carried out according to the plan developed by loan 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 Decree of the National Bank of the Republic of Belarus dated May 24, 2001 No. 116 and internal documents of Belinvestbank OJSC, it is not allowed at the expense of a loan:
- - make contributions to the statutory 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 considered by us in this part of the work, the department uses overdraft lending, which is linked to the use of debit cards and the opening of card accounts.
It is also necessary to note the high qualification of loan officers of the bank branch, attentiveness in the formation of credit files, analysis of the borrower's creditworthiness. This undoubtedly gives a positive result in the overall assessment of the bank's performance. However, there are 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 possibility remains unrealized in the branch so far.
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