Thesis: The deposit policy of a commercial bank on the example of JSC "Bank Petrovsky". Theoretical foundations for the formation of the deposit policy of commercial banks General characteristics of Russian Standard Bank CJSC

The bank's deposit policy (in the narrow sense, an integral part of the bank's credit policy as a whole) is a banking policy for attracting funds to deposits and effectively managing them. The deposit policy of a commercial bank is the strategy and tactics of a bank to attract funds from depositors and other creditors and to determine the most effective combination of sources of funds for a given bank. The purpose of the deposit policy is to meet the bank's liquidity needs by actively seeking borrowed funds as needed. In this regard, the opportunities for making a profit are expanding, but this is also associated with a risk that should be taken into account (basically, these are the ratios between attracted funds and income that can be obtained when using deposits).

In the economic literature of Western countries, a large place is given to issues of monetary policy and, in particular, to the problems of regulating “deposit money”. For effective control and management of money circulation, various methods of planning, forecasting and regulating the state of the money supply in circulation and, as a component, the mass of deposits, are used, various options for structuring the money supply are analyzed. The most common scheme used in the industrialized countries of the West is the definition of the so-called monetary aggregates. Currently, up to 75 monetary aggregates are being designed in the United States, taking into account almost all financial instruments that banks operate. The main principle of including various components in the composition of the money supply is the liquidity of these elements. Liquidity refers to the bank's ability to repay its obligations to customers in a timely manner. The higher the liquidity of a banking asset, the greater the degree of "money" of the corresponding indicator. The M0 indicator (cash) has the highest liquidity. The use in practice of several indicators that characterize various parameters of monetary turnover, the state of the money supply in circulation, allows us to assess the trends in the development of monetary turnover, as well as the pace of information, which undoubtedly has a positive effect on the possibilities of regulating the monetary sphere.

This eliminates the need for government funding. The deposit partly helps to curb inflation, diverts the funds of the economy and the population from commodity circulation, which reduces the pressure of the money supply on the market for goods and services. The problem of attracting free funds of the population is one of the most urgent problems today. The recovery of the economy will largely be determined by domestic investment. The task of banks is to accumulate temporarily free funds of the population for their subsequent investment in the economy. At the same time, it is important to emphasize that the banks themselves are not able to develop sustainably and stably without a reliable resource base. They cannot develop, in particular, credit operations in conditions of limited resources. Therefore, the problem of developing and implementing the optimal deposit policy of banks has become one of the most urgent problems awaiting their solution. So, the bank today must pursue an active policy aimed at raising funds and using them as resources. It should be based on the interests of depositors in order to maximize their interest in keeping funds in bank accounts. And the main incentive, of course, is the deposit fee, the amount of which, of course, should be higher than the inflation rate. The absence of a scientifically based interest rate is the main brake on attracting deposits.

The decisive condition for the successful implementation of the deposit policy by banks is the effective use of mobilized funds.

Loans in the form of deposited funds received from enterprises and the public for a certain fee must be returned by the bank to the depositor. The matter is complicated by the instability of the development of economic relations, so depositors must be insured against losses. This is an additional incentive for the efficient use of this resource, since the bank, having received funds for temporary use, must not only return them, pay interest, but also get the maximum benefit for themselves from their use. In this regard, the issue of optimizing the structure of credit resources and investments in terms of amounts and terms has become particularly acute in recent years, since many banks have a resource part in terms of terms that are much shorter than the terms of their credit investments.

In the conditions of distribution and use of credit resources, their implementation takes place on the basis of obtaining the maximum benefit with the minimum risk (principles of profitability and reliability). The deposit policy of commercial banks should focus on two categories of depositors - individuals and legal entities. At the same time, banks need to take into account the characteristics of each group of customers.

Mutually beneficial relations between the clientele and the bank are a guarantee of the success of the deposit policy. To increase the number of depositors, banks need to more carefully study their interests and the condition of the bank serving them. The West even defines the criteria for the so-called ideal bank, which enjoys unlimited customer confidence. Such a bank must be solid, reliable, prosperous; providing a variety of information and advice; well organized, innovative, reputable, customer oriented; affordable in terms of acceptable interest rates; experienced, highly professional.

The growth of deposits is not a spontaneous process. It depends on many factors and is connected, first of all, with the policy of banks aimed at mobilizing funds to increase the interest of clients in investing. In this regard, banks need to develop a provision on benefits for depositors, provide the most convenient forms of service, and minimize time losses.

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The deposit policy, being an integral part of the general banking policy, has its own content. She defines strategy and tactics of the credit organization in the course of its deposit activities.

In part strategies deposit policy contains such elements as the principles of its formation, priority areas and instruments of deposit activities.

Tactical aspect deposit policy reflects the mechanism for implementing the strategy: the organization of the deposit process (bank units involved in it, their powers), regulatory regulation, the principles of attracting and placing deposits, the organization of control and regulation.

General principles include the principles of an integrated approach, scientific validity, optimality and efficiency, as well as the unity of all elements of the bank's deposit policy.

An integrated approach is expressed in the development of theoretical foundations, priority areas of the bank's deposit policy, both in terms of its development strategy and in terms of determining the most effective tactics and methods of its implementation that are optimal for a given stage of bank development.

The principle of scientific validity implies that the development of a deposit policy strategy should be based on its theoretical foundations, correspond to the external conditions of the bank's functioning, take into account the results of the analysis of the bank's activities in previous periods, and take into account general changes in banking policy.

The specific principles of the deposit policy include the principles ensuring the optimal level of bank costs, security of deposit operations, reliability. The bank, accumulating temporarily free funds for the purpose of their subsequent placement, seeks to receive income not at any cost, but taking into account the realities of the market in which it operates. Attracting deposit resources should contribute to the efficiency of banking activities.

The principle of ensuring reliability means that the purpose of the deposit policy is to attract deposit resources in the amounts necessary for the sustainable development of the bank, and at the lowest price.

The amount, term and cost of deposits in the deposit policy are central. The amount (volume) of deposits is necessary for the bank to ensure its development, to ensure the demand for credit and other banking products desired by customers. At the same time, the term of the deposit, which determines the choice of the sphere and placement instrument, as well as the cost of resources that affect the bank's profit, is of no small importance. In the context of the development of competition in the banking sector, a weak orientation in prices in the deposit market will inevitably lead to the loss of customers and profits, and insufficient linkage of the terms of the deposit with the terms of their placement - to the loss of liquidity.

The principle of security is related to the fact that the deposit activity of the bank is associated with the emergence of a number of risks that the bank must take into account. The main groups of these risks are financial, functional, macroeconomic, etc.

Risk management is based on the study of factors influencing the direction and specific content of the deposit policy.

Macroeconomic factors are singled out, i.e. those that affect all banks, and microeconomic ones that affect the work of a particular bank. Of course, the bank's deposit policy is largely determined by the nature of the monetary and fiscal policy of the state. The regional specificity of the bank's functioning also has a significant impact. An analysis of the factors influencing the organization of the formation of the bank's resources allows us to state that the deposit policy of the bank reflects the priorities of both the national and individual policies of the bank.

Priorities in the deposit policy, they disclose the preference of a particular bank in the field of:

• subjects (legal entities, individuals);
• use of tools.

These priorities are determined by the content of the client-oriented strategy, the state of the bank's profitability and liquidity, the development of deposit products offered by it, and the quality of management.

Tools is a characteristic of the content block of the deposit policy. It includes:

• types of deposits offered by the bank in terms of amounts, terms, order of interest payments;
• types and level of deposit rates used by the bank;
• content of deposit transactions.

It is known that more than 30 different types of deposits are currently used in foreign countries. Moreover, each of them has its own characteristics, which most fully meet the needs of legal entities and individuals when saving money and paying for goods and services.

In Russia, in recent years, there has also been a trend towards the development of various types of deposit services in relation to individuals and legal entities. At the same time, in recent years, complex banking services have been developed with the presentation of specific products, individual for each client.

The deposit policy instruments, as noted above, also include the types of rates applied by the bank for deposit operations.

Interest rates are divided into the following types: fixed and floating - depending on the degree of stability; real and nominal - depending on whether they take into account inflation rates and deductions to reserves or not; positive and negative - depending on the protection of resources and interest from impairment; contractual rates and interbank rates - depending on the sector of the deposit market.

In addition, the deposit policy reflects the policy adopted by the bank pricing model. In foreign countries, there are six models of pricing in relation to the deposit services provided:

• 1) setting interest rates using the "cost plus profit" method;
• 2) a pricing model for deposits to penetrate the market, which means offering high interest rates (above the market level) or low commission rates in order to attract as many new customers as possible;
• 3) pricing of deposits based on market interest rates;
• 4) setting interest on deposits depending on the minimum balance on the deposit account or "conditional" pricing, i.e. depending on the condition for compliance with the minimum deposit level;
• 5) pricing aimed at attracting customers with higher incomes, i.e. VIP-clients, since the strategy of their service is based on assigning a separate bank employee to each of them and providing individual services;
• 6) pricing, depending on the quantity and quality of services provided to customers (multi-factor pricing method), i.e. customers who have two or more services are encouraged by lower tariffs, which ensures that the best customers are assigned to the bank.

Russian commercial banks use different pricing models. For large banks, the first model is available (costs plus profit), for medium and small banks this model is costly, and they are guided mainly by market rates.

Factors affecting the real cost of resources attracted by a commercial bank include:

• the level of operating expenses;
• advertising expenses;
• the norms of deductions to the fund of obligatory reserves established by the Central Bank of the Russian Federation;
• terms and amount of attracted funds;
• mode of accrual and payment of interest;
• time lag between the dates of attraction and placement of funds;
• the cost of creating a provision for possible losses on loans;
• diversion of funds from the turnover for operations that do not generate income. The tactical block of the deposit policy, as noted earlier, covers the mechanism for implementing the deposit policy, on which the efficiency of the bank depends.

Each of the elements of the deposit policy of a commercial bank is closely related to the others and is mandatory for the formation of an optimal deposit policy and the correct organization of the deposit process (Fig. 7.2).

Rice. 7.2.

An important element of the mechanism for implementing the deposit policy strategy is allocation of relevant functional units and management bodies of the deposit process.

In terms of attracting deposit resources, these procedures reflect the following: from whom they come and under what conditions, which characterizes the type of deposit and the structure of the bank's deposit portfolio as a whole.

The formation of the deposit portfolio of each bank is influenced by its policy in the field of liquidity and profitability, therefore, banks constantly maneuver in the formation of the deposit portfolio between maintaining a certain share of demand deposits and low-yield time and savings deposits, which have a significant share of main (stable) deposits, which are practically insensitive to changes in market interest rates. For Russia, the term structure of deposits is important, since it determines the ability to meet the needs of customers for long-term investments.

When forming a deposit portfolio, the bank must first of all decide whether it wants to grow, expand its activities or ensure profit growth. Expansion of activity implies an increase in the volume of deposits with an offer to depositors of a price determined by the market, i.e. possible loss of profit.

In general, the deposit policy of commercial banks is currently not effective enough, it is still characterized by instability and is dependent on potentially volatile sources. Many problems remain in the structure of the resource base of commercial banks. These primarily include the narrowness of the resource base and the predominance of short-term liabilities. In addition, regional banks have limited access to interbank lending resources.

Improving the efficiency of the deposit policy of commercial banks could be facilitated by the implementation of the following measures:

• increase in the level of compensation payments on long-term deposits (over three years) up to 3 million rubles. and shorter - up to 1 million rubles. These measures will help increase the stability of the resource base of banks;
• the introduction of an increased amount of insurance for housing savings and pension deposits, which should stimulate long-term savings;
• increasing the transparency of the tariff policy of credit institutions, which is often criticized by customers (insufficient transparency, the possibility of charging multiple fees for one service, etc.). Perhaps the Bank of Russia should issue a special regulation on the procedure for calculating fees by commercial banks for services provided, similar to the Regulation of the Bank of Russia dated 26.06.1998 No. 39-P on the procedure for calculating interest.

The deposit policy is a set of measures aimed at the mobilization by banks of funds of legal entities and individuals, as well as the state budget in the form of contributions (deposits) for the purpose of their subsequent mutually beneficial use.

The deposit policy involves the development of evidence-based approaches to organizing relations between commercial banks with legal entities, individuals and the state regarding the attraction of their temporarily free funds, as well as the definition of goals and objectives in this area and the implementation of practical measures for their implementation. When conducting a deposit policy, the principles of organizing deposit operations and their relationship with the total cash turnover, the ratio of economic and organizational methods in managing deposit operations, the forms of deposit accounts and their scope, the procedure for opening and closing deposit accounts, the rules for crediting and withdrawing customer funds, the procedure and conditions for transferring funds from one deposit account to another, the deadlines for keeping funds in deposit accounts.

Only a commercial bank that constantly expands the range of services provided to customers, reduces costs, improves the quality of credit settlement and cash services, provides various benefits in servicing customers, offers them various kinds of consultations, etc. will be able to implement this set of measures. Such a comprehensive service plays a significant role in establishing the ratio between the levels of interest rates on credit and deposit operations of the bank. Of particular importance is the level of deposit interest, i.e. interest paid to clients of a commercial bank on attracted deposits (deposits), since the basis of the deposit activity of commercial banks is operations to attract funds.

In world banking practice, deposits are usually understood as entries in bank books that indicate the presence of certain requirements of customers to the bank, or funds that customers deposit with the bank on the basis of agreements, agreements and deposit obligations provided for by law. Therefore, deposit operations are operations related to the accumulation of cash deposits by banks and their placement on the corresponding deposit accounts. On the basis of deposit operations of commercial banks, the vast majority of their resources are formed, used for the purpose of short-term and long-term lending to business entities and the population. The role of deposit operations will be significant enough if they are based on a well-developed theory of deposit policy.

In foreign industrialized countries, the deposit policy has a number of common features, which is due to the common nature of deposit banking operations in countries with market economies. In these countries, deposits make up the bulk of the liabilities of commercial banks, while equity, reserves, other borrowed funds and liabilities occupy an insignificant place. The organization of deposit operations is that:

In many countries, deposit operations of banks are regulated by law, often the most general conditions for depositing funds are fixed in the laws on central banks (England, Germany).

Unification of interest rates is carried out, and in Germany the term for notification of the withdrawal of funds by individual depositors from savings accounts is legally determined. In the UK, a banking institution needs to obtain a license from the Bank of England allowing it to take deposits, and in case of violation of
the offender is subject to a significant fine or imprisonment for up to two years;

Commercial banks in significant volumes attract deposits from both firms and corporations, and non-profit organizations and individuals, which creates opportunities for expanding the lending activities of banks and increasing the liquidity of their balance sheets;

Deposit transactions are accompanied by the provision of a wide range and high quality of additional services, which actually means comprehensive customer service (small depositors are offered financial asset management, maintenance of utility bills, consumer credit settlements, etc., and large depositors are offered leasing and factoring services, consultations on investment issues, assistance in issuing shares, etc.);

When conducting deposit transactions, commercial banks use various agreements, agreements or obligations for depositing funds, on the basis of which relations between the bank and the depositor are regulated (such agreements or agreements may contain special conditions for depositing, returning funds and their use by the bank).

The deposit policy should be based on the objective patterns of formation and use of cash income and savings of legal entities and individuals, as well as the state. At the same time, it is necessary to take into account the most significant features of deposits of legal entities and individuals. Such a feature is that, for example, the deposits of state bodies and legal entities in banks are relatively few, they are large and have a relatively fast turnover. Deposits of individuals, on the contrary, are much more numerous, but smaller in size and turn around much more slowly. Operations to attract deposits from the population are also distinguished by their labor intensity.

When conducting a deposit policy, it is necessary to take into account a number of conditions, among which are such as determining the sources of bank deposits and the structure of bank liabilities and assets, setting deadlines for keeping depositors' funds, achieving maximum income from operations, taking into account centrally determined standards and “rules of the game”. ”in the loan capital market, ensuring full independence and responsibility of the parties involved in deposit transactions, etc.

The deposit policy should take into account the historically established structure of bank liabilities and assets, the dynamics of their ratios. This is important for the analysis of the liquidity of the balance sheets of commercial banks. This will also be facilitated by an optimal combination of different types of deposits. The use of a variety of deposits allows the bank to ensure their most optimal structure and, on this basis, clearly distinguish between credit resources according to their intended purpose and turnover rate, which is important for increasing the level of bank liquidity and strengthening monetary circulation in general. When conducting a deposit policy, it is important to determine the types of deposits of legal entities and individuals, the forms of deposit accounts, the procedure for opening, the mode of operation and closing of these accounts, the retention periods for targeted and term deposits, and the maximum interest rates on deposit operations.

Deposit operations of commercial banks are associated not only with the transfer of funds from legal entities and individuals to deposits, but also with the issuance of cash to customers from the relevant deposit accounts, and in some cases with the transfer of funds from one deposit account to another. Therefore, the mode of operation of various types of deposit accounts should also include the procedure for using bank customers' cash deposits.

So, demand deposits or current deposits are intended for their daily use by customers as a means of payment, are made and withdrawn without specifying a period and can be claimed at any time at the request of the depositor in whole or in part. Demand deposits are placed by customers who wish to have funds in a liquid form, and settlements on such deposits are carried out in cash, checks, transfers or bills of exchange. At the same time, demand deposits should be distinguished from the so-called “day money”, when it comes to a one-day deposit.

However, commercial banks are more interested in expanding the scope of time deposits, as this increases the most stable part of its credit resources. Compared to current deposits of a short-term nature, term deposits are placed for a longer period and can be claimed by depositors after the expiration of the established period. From the side of the investor, the meaning of the long-term placement of temporarily free cash is
earning higher interest rates. The Bank is also interested in such deposits, as it can place them in the form of loans for a longer period and, accordingly, increase interest income. If necessary, the client can withdraw (in whole or in part) the term deposit ahead of schedule, but the bank has the right to significantly reduce the amount of interest payable to the depositor. This condition is specifically stipulated in the term deposit agreement, which is the main document defining the rights, mutual obligations and economic responsibility of the bank and the depositor as two equal partners.

The implementation of a scientifically based deposit policy implies not only the improvement of the current system of deposits as a form of accumulation of funds of business entities, but also the creation of a special system of economic incentives that should encourage enterprises, organizations and the population to keep their current cash income and savings in various deposit accounts, to interest banks in the development of various types of deposits, the introduction of new, more progressive and economical forms of deposit accounts.

The goals of deposit operations are reduced to observing the commercial interests of the bank and improving the liquidity of its balance sheet, which requires knowledge of the basic rules underlying deposit operations:

Deposit operations must be organized in such a way that they contribute to the receipt of bank profits or the creation of conditions for making profits in the future;

In the process of organizing deposit operations, a variety of subjects of deposit operations and a combination of different forms of deposits should be ensured;

When carrying out banking operations, it is necessary to ensure the interconnection and mutual consistency between deposit operations and operations for issuing loans in terms of terms and amounts of deposits and credit investments;

Particular attention in the process of organizing deposit operations should be given to time deposits, which provide the greatest support for maintaining the liquidity of the bank's balance sheet;

When organizing deposit operations, the bank should strive to ensure that the reserves of free (not involved in active operations) funds on deposit accounts are minimal (reserves of free bank resources are defined as the difference between the balances of funds on settlement, current and other deposit accounts and the amount of loan debt) ;

Measures should be taken to develop banking services and improve the quality and culture of service, which helps to attract deposits.

For depositors, one of the most important incentives is the level of interest on deposits. The interest rate policy in the field of deposit operations should take into account the objectivity of the conditions for setting interest on all types of deposits, if the economic feasibility of the relevant interest rates, as well as the need to ensure the linkage of deposit interest with interest rates on active banking operations.

Therefore, interest rates on deposit operations of banks should take into account the real economic processes taking place in cash circulation and non-cash payment turnover, respond to trends in the money supply, and have appropriate mobility. In this case, the deposit interest can act as:

An indicator of the profitable activity of a banking institution;

A tool to preserve the purchasing power of money, especially in conditions of high inflation;

Form of socio-economic protection of depositors from the depreciation of their savings;

An instrument of competition between banks, which is of a macroeconomic nature;

A tool for maintaining the balance of the local money market, carried out at the micro level;

An incentive to create deposits (deposits) of individuals and legal entities.

Based on the above approach to understanding the deposit interest, it can be represented as follows:

P \u003d Pb + I + ED + ED, (16.2)

where Pd - deposit interest; Pb - the base interest rate, calculated taking into account the expected income from active operations; Io - expected (projected) level of inflation; ED. - the amount of percent of possible surcharges for urgency; EDk - the sum of percentages of possible additional payments to ensure the competitiveness of the bank and stimulate deposits.

Formula 16.2 reflects the market approach to the formation of deposit interest. However, in the conditions of market setting of interest rates on active and passive operations, their ratio may develop, which will not allow
read profit. To eliminate this ratio, a sharp decrease in interest rates on deposits or a corresponding increase in interest on loans is not always possible or desirable for the bank. Therefore, in order to stabilize interest rates on passive and active operations, it is necessary to have special reserve or insurance funds that help cover the bank's needs in terms of liabilities and profits in an unfavorable economic environment. Without the creation of such funds, one of the purposes of which is to reimburse the costs of paying interest in the event of an increase in the requirements of depositors or a decrease in income, it is impossible to ensure the stable operation of the bank.

Recalculation of the size of fixed-term cash deposits is connected with the deposit interest. If the principal amount of the deposit and interest on it are subject to inflationary revaluation, then the following formula can be used to determine the amount of the deposit, taking into account inflation:

S=S(1-Sh)(1+I), (16.3)

where Cn is the accumulated amount of money (at the end of the year); Cn - the initial value of the cash contribution (at the beginning of the year); P - deposit interest (without adjustment for the annual inflation rate); Io - the actual rate of annual inflation.

If only the principal amount of the contribution is recalculated, then formula 16.3 can be transformed as follows:

C=Sp(1+P+I). (16.4)

The inflation rate must be calculated on a cumulative basis from the moment the account was opened until the last date prior to its closure. Due to the impossibility of accurately accounting for inflation and other factors of market conditions for a long period (over a year), the interest rate scale cannot be rigidly fixed either. Only the base interest rate and its premiums for maturity can be rigidly fixed, while the other components of the deposit interest must be calculated by the bank periodically.

An increase in the level of interest rates on deposits is objective economically and socially, since in conditions of inflation it is impossible to protect the interests of depositors, as well as to attract interest in placing deposits in a bank for long periods. Under these conditions, banks should intensify their deposit policy and compete for the "liabilities" of business entities, as well as for the deposits of the population. Endure the same
this competition will be able to be achieved by the bank that will constantly expand the range of services provided to customers, reduce their cost, improve the quality of credit settlement and cash services, provide any credit benefits, offer customers various kinds of consultations, etc. Therefore, the transition to a comprehensive customer service is of decisive importance in the competitive struggle of banks.

The means of regulating the deposit policy of banks is the deposit interest on deposits, which takes into account the uniqueness of services and the originality of the conditions for storing funds in this banking institution, the bank's leadership in the market in terms of providing services, the need for the bank to maintain market positions, the interest rate policy of competing banks, methods setting fees for deposits (surcharges, discounts, winnings), etc. The amount of interest on deposit operations is formed under the influence of many factors, which include the term for attracting resources, the state of demand for a loan, the prevailing conditions for the supply of credit resources, the degree of reliability of the client, the level of tax rates on bank income, the nature (individual or legal entity, state or private enterprise, etc.), the level of inflation, the size of the attracted deposit, the bank's costs for conducting operations, and DR-

The deposit interest and the deposit transaction fee do not coincide with each other, since the latter is the bank's commission for conducting the transaction. When setting a fee for a deposit transaction, hidden elements of the loan price can be taken into account, for example, central bank requirements for mandatory deposit insurance, bank fees for opening accounts, etc. Income paid on deposits is a serious incentive for the population and business entities to choose forms of storage and accumulation of funds.

The most common types of deposits at present are (including abroad):

Term deposits, the funds from which cannot be withdrawn earlier than the due date;

Target housing deposits intended for the construction or purchase of housing (the owners of such deposits are granted the right of priority use of a housing loan);

Youth deposits, opened to young people who agree by agreement to make regular monthly contributions to the deposit within a predetermined period;

Winning deposits, the attraction of funds for which is stimulated by their participation in the drawing of cash prizes,
cars, non-food products, building materials, etc.;

Retirement savings deposits.

Interest rates on deposits in some countries depend on the amount of deposits: with their increase, the income on the deposit increases. In order to stimulate savings, especially for a long period, credit institutions of foreign countries pay rather high interest rates to depositors (taking into account low inflation).

In different countries there are peculiarities for current deposits (demand deposits) or current accounts. In most countries, banks do not pay interest on deposits in these accounts, but provide many services to their owners. Some Western European countries (Italy, Great Britain, Spain) pay quite high interest on current accounts, which differ depending on the type of institution and category of clients. There are countries where the payment on current accounts is purely symbolic, in particular, in Germany, Holland, Belgium it is 0.5%. In France, the interest paid by the bank on customer deposits depends on the contract, with the freedom of contract being limited in some cases. In particular, the remuneration of demand deposits is prohibited, with the exception of certain savings accounts. Interest rates are free only for deposits exceeding 500 thousand francs and placed for a period of more than six months. For other types of deposits, an upper limit is set.

For term deposits in most Western European countries, the percentage depends on the terms and size of deposits. For example, in England there is a classic deposit account, which includes a mandatory advance (7 months) notice to the client about the withdrawal of funds from the account. The interest is set at 5% per annum. In Belgium and Italy, a minimum amount of deposits is set, on which, depending on the term, increasing interest is charged.

The absence of a well-thought-out differentiation of interest rates for deposit operations does not sufficiently stimulate the attraction of resources for term deposit accounts in large amounts and for a long period.

More on the topic DEPOSIT POLICY OF A COMMERCIAL BANK AND DEPOSIT INTEREST:

1. Topic 11. Analysis of the financial condition of a commercial bank
2. 5.3. Asset and liability management of a commercial bank
3. CHARACTERISTICS OF THE FUNCTIONS AND OPERATIONS OF A COMMERCIAL BANK

- Copyright - Advocacy - Administrative law -

Deposit policy is a set of measures aimed at mobilizing the funds of legal entities and individuals, as well as state budget funds in the form of contributions (deposits) by banks. The deposit policy involves the development of evidence-based approaches to the organization of relations between commercial banks and clients in terms of attracting their temporarily free funds. Since it is the borrowed funds that form the basis of bank resources subsequently used for lending purposes, they should be given special attention.

When conducting a deposit policy, it is necessary to take into account many positions, for example, what are the sources of bank deposits, what is the structure of bank liabilities and assets, what are the deadlines for keeping depositors' funds, etc.

The main principle of the Bank's work in the course of deposit operations is to ensure the amount of resources required for the normal functioning of the Bank, achieved at minimal cost for their purchase. This is achieved through portfolio diversification.
attracted financial resources by sources of their attraction and structure,
linking the volume and structure of these resources (by currency and maturity) to the volume and structure of assets.

Term deposits are deposits in deposit accounts, from the right to dispose of which the depositor waives for a certain period. Term deposits are deposits related to the attracted capital of banks. Often, they are limited to the minimum amount of the down payment. Term deposits are opened by depositors for any purpose, however, the depositor cannot dispose of them at any time, since the depositor cannot at any time demand the return of term deposits from the bank (the right of the depositor to receive the deposit amount on demand, with loss of interest).

There are two forms of term deposits: a term deposit with a fixed term and a term deposit with advance notice of withdrawal. The client and the credit institution have the right to notify. Term deposits imply the transfer of funds to the full disposal of the bank for the term and conditions under the agreement, and after this period the term deposit can be withdrawn by the owner at any time. The amount of remuneration paid to the client on a term deposit depends on the term, the amount of the deposit and the fulfillment by the depositors of the terms of the agreement. Deposits with prior notification of withdrawal of funds means that the client must notify the withdrawal of the deposit in advance, notify the bank within the period specified by the agreement. Depending on the notice period, the interest rate on deposits is also set, but the bank reserves the right to change the interest rate. This is necessary because it is impossible to predict exactly when the client will make the notification.

An obligatory requirement in determining possible conditions for attracting resources is a preliminary analysis of possible directions for spending attracted resources with an assessment of financial results and structural changes as a result of proposed banking operations.

For successful functioning, a commercial bank must constantly expand the range of services provided to customers, improve the quality and improve the culture of service. And at the same time, the efficiency of the bank's activities also implies a reduction in costs, which means that a very important point is to conduct a balanced interest rate policy. The use of a variety of deposits allows the bank to ensure their most optimal structure and, on this basis, clearly distinguish between credit resources according to their intended purpose and turnover rate, which is important for increasing the level of bank liquidity.