Financial and credit institutions - public and private, commercial organizations authorized to carry out financial transactions for lending, depositing deposits, maintaining current accounts, buying and selling currency and securities, providing financial services, etc. The main financial and credit institutions are banks and financial companies , investment funds, savings banks, pension funds, mutual funds, insurance companies. All financial intermediaries can be divided into four groups: 1) deposit-type financial institutions; 2) contractual savings institutions; 3) investment funds; 4) other financial organizations.
The most common financial intermediaries are deposit-type institutions. IN developed countries Their services are used by a significant part of the population, since the payment of income from deposit accounts is, as a rule, guaranteed by insurance companies, the reliability of which is ensured by the state. Funds raised by depository institutions are used to issue bank, consumer and mortgage loans. The main institutions of this group are commercial banks, savings institutions and credit unions.
Commercial banks, as a rule, offer the widest range of services for raising funds from economic entities that temporarily have them, as well as for providing various loans and credits. Due to the enormous importance of commercial banks in the functioning of the state’s monetary system, they are subject to strict government control.
Savings institutions are specialized financial institutions whose main sources of funds are savings deposits and a variety of time-based consumer deposits. These institutions borrow funds for short terms using checking and savings accounts, and then lending them out over the long term against real estate security.
Credit unions are mutual lending institutions. They accept deposits from individuals and provide loans to members of the union on terms acceptable to them. Credit union liabilities come from savings accounts and checking accounts (shares). Credit unions provide their funds to union members in the form of short-term consumer loans.
Credit unions have a number of advantages over other deposit-type financial institutions. As a rule, they are exempt from paying income (profit) tax; they are not subject to antimonopoly legislation, which allows them to participate in joint ventures.
In Russia, the activities of credit unions have not received sufficient distribution. Their status at the federal level is determined only by clarifications from the Ministry of Justice of the Russian Federation. The special law “On credit consumer cooperatives of citizens (credit consumer unions)” was adopted State Duma, but has not been put into effect. Created in 1994, the League of Credit Unions includes about forty credit unions and four regional credit union associations.
Savings institutions operating on a contractual basis include insurance companies and pension funds. These financial institutions are characterized by a steady flow of funds from insurance policyholders and pension fund account holders. They have the opportunity to invest in long-term, high-yield financial instruments.
Investment funds sell their securities (shares, investment units) to investors and use the funds received to purchase direct financial obligations. As a rule, they are characterized by high reliability and low denomination of the securities sold. Among investment funds, mutual funds stand out primarily. They sell their shares to investors and use the proceeds to buy mostly stocks and bonds. There are various types mutual funds. For all of them, the value of the share changes (usually increases), which allows investors to receive income if the share is sold to a mutual fund.
Mutual fund systems play an active role in financial markets in economically developed countries. In particular, in the United States, one of the most dynamically developing investment funds are money market mutual funds, which first appeared in 1972.
A distinctive feature of these funds is that they invest in short-term securities with a low risk of non-payment and a high face value - from $1 million and above. For many investors, such securities are inaccessible due to their high cost.
Money market mutual funds allow small investors to earn income on their investments at market interest rates without being exposed to significant risk of non-repayment of funds. TO last group financial intermediaries include various types of financial companies, such as financial companies specializing in business lending and leasing operations and financial companies consumer loan, providing loans to households with the right to repay in installments.
These financial institutions receive the bulk of their funds from the sale of short-term obligations in the form of commercial paper to investors. The activities of these companies are regulated by regulations of representative (legislative) and executive authorities.
The volume of financial transactions carried out by financial intermediaries has been increasing in recent decades. At the same time, in developed countries there is a relative change in the volume of services provided by individual financial intermediaries. At the same time, there is a relative change in the volume of assets of individual financial institutions.
Thus, in the United States over the past 30 years, the share of mutual funds and state pension funds has increased significantly, while the share of depository institutions (commercial banks, savings institutions) has decreased. If in 1975 the share of commercial banks in the total financial assets of financial intermediaries was about 40%, then by 1998 it decreased to approximately 27%, and the share of mutual funds accordingly increased from 2 to 19%.
Topic 2. Financial and credit institutions
2.1. Credit institutions (banks; NPOs)
2. 2 Financial non-credit institutions (microfinance organizations, insurance contract institutions, unit (mutual) funds)
2.3. Professional activities in financial markets
Credit institutions
In the banking system of the Russian Federation, in accordance with Federal law dated December 2, 1990 No. 395-1 “On banks and banking activities” all credit organizations are divided into two types: banks and non-bank credit organizations (NPOs). The main criterion that distinguishes a non-bank credit organization from a bank is the list of banking operations that the bank and the non-profit organization have the right to carry out.
Non-bank credit organization– this is a legal entity, a commercial organization that, in order to make a profit as the main goal of its activities, on the basis of a license received from the Central Bank, has the right to carry out certain banking operations; however, it is not provided for granting NPOs the right to open current accounts individuals, making transfers through bank accounts of individuals and for attracting funds from individuals on deposits, in connection with which NPOs do not participate and should not participate in the Deposit Insurance System. From the entire list of banking operations, NPOs also cannot obtain the right to attract deposits and place precious metals - all these are privileges of banks.
Now the law highlights:
1) NPOs that have the right to carry out money transfers without opening an account and conduct other banking operations related to them - such NPOs received the name in the documents of the Central Bank of the Russian Federation and in practice Payment NPOs;
2) Non-profit organizations that have the right to carry out certain banking operations, the combinations of which are established by the Central Bank. The Bank of Russia established these combinations by Instruction No. 135-I, providing for two types of licenses - for the so-called Settlement non-profit organizations And Deposit and credit non-profit organizations.
INTRODUCTION
1. MAIN TYPES OF SCFI
2. MUTUAL INVESTMENT FUNDS
2.1 Essence of mutual funds
2.2 History of Mutual Investment Funds
2.3 Types and types of mutual funds by operating structure
2.4 Regulation and licensing of mutual fund activities
2.5 Organizations servicing mutual funds
2.6 Investment share
2.7 Calculation of share value
2.8 Transactions with investment units: purchase and sale
2.10 Liquidation of a mutual investment fund
2.11 Taxation of transactions with investment units
3. COMMON FUNDS OF BANKING MANAGEMENT
3.1 Essence of OFBU
3.3 Conditions under which a bank can create an OFBU
4. DISTINCTIVE FEATURES OF OFBU AND Mutual Funds
4.1 Differences between OFBU and mutual funds
4.2 OFBU and mutual funds: results of 2007 and forecasts for the functioning
plans for 2008
CONCLUSION
APPLICATIONS
1. Glossary
2. Types of mutual funds by operating structure
3. Comparative characteristics Mutual Funds and OFBU
4. Types of mutual funds
5. Number of mutual funds and OFBU as of 04/06/2008
6. NAV of mutual funds and OFBU as of 04/06/2008
7. Growth in NAV of closed real estate mutual funds for 2007
8. Growth in NAV of the FBU for 2007
9. Growth in NAV of mutual funds for 2007
10. Industry indices of the RTS in 2007
BIBLIOGRAPHICAL LIST
1. INTRODUCTION
IN recent years in the national markets of loan capital of economically developed countries important role began to be carried out by specialized non-banking financial institutions, which took a prominent place in the accumulation and mobilization of monetary capital. These institutions include:
1. Insurance companies
2. Pension funds
3. Savings and loan associations
4. Building societies
5. Investment companies
6. Financial companies
7. Charitable foundations
8. Credit unions
These institutions significantly replaced banks in the accumulation of household savings and became important suppliers of loan capital.
Three main reasons contributed to the growth of the influence of specialized non-banking institutions:
1. Income growth in economically developed countries
2. Active development of the securities market
3. Provision by these institutions of special services that banks cannot provide.
In addition, a number of specialized non-banking institutions (insurance companies, pension funds), unlike banks, can accumulate cash savings for quite long periods and, therefore, make long-term investments.
The main forms of activity of these institutions in the loan capital market come down to the accumulation of savings of the population, the provision of loans through bond issues to corporations and the state, the mobilization of capital through all types of shares, the provision of mortgage and consumer loans, as well as mutual credit assistance.
These institutions are in intense competition with each other both for attracting cash savings and in the field of credit operations.
Insurance companies compete with pension funds to attract retirement savings and invest them in stocks. Savings and loan associations battle insurance companies in the mortgage, real estate and government securities industries. Finance companies compete with insurance companies in the consumer credit industry. Investment and insurance companies, pension funds compete with each other for investments in shares. In addition, all types of these institutions compete with commercial and savings banks to attract savings from all segments of the population. It should be noted that competition both between specialized non-banking institutions and between them and banks is of a so-called non-price nature. This is explained, first of all, by the specifics of passive operations of each type of financial institution. Thus, in banking there is an interest rate on deposits and loans provided, in insurance business- the insurance tariff, which determines the size of the insurance premium and insurance compensation; for investment companies - the exchange rate difference between the shares they issue and purchase. Therefore, non-price competition is determined primarily by the incomparability of operations and prices for them. Comparability is possible only when investing in objects that are homogeneous and identical in nature. In this case, we can talk about comparability in government securities and some types of shares, as well as in mortgage and consumer loans.
All of the above determines the relevance of the chosen topic. course work.
Goals course work:
§ Study the entire range of specialized credit and financial institutions in general and the collective investment market in particular.
§ Analyze the prospects for the development of the collective investment market in the future
To achieve these goals, the following were set tasks:
1. Select, study and systematize economic literature on this topic
2. Consider SKFI using the example of two of its representatives in the collective investment market - Mutual Investment Funds (UIFs) and General Funds of Banking Management (UFBU)
3. Compare these two types of SCFI
4. Analyze the prospects for the development of mutual funds and OFBU
Object studying coursework are specialized credit and financial institutions, and subject– their goals, functions and scope of activity.
The information base for writing was:
1. Regulatory and legal acts of federal government bodies;
2. Specialized economic literature;
3. Educational literature;
4. Resources of the Internet electronic network
2. MAIN TYPES OF SPECIALIZED CREDIT AND FINANCIAL INSTITUTIONS
2.1. Pension funds
The creation and development of pension funds is a new phenomenon in the loan capital market, in the securities market and in general in the credit system of capitalist countries.
Private pension provision arose as a counterbalance to unsatisfactory state social security, as well as as a result of the struggle of workers for their social rights. The development of pension funds was influenced by the desire of corporations and enterprises to attract the most qualified labor force to their side. Pension funds began to actively develop in the West after the Second World War, although the first pension fund was created in 1875 in the USA.
The organizational structure of a pension fund differs from the structure of other financial institutions in that it does not provide for a joint-stock, cooperative or share form of ownership. As a rule, pension funds are created in private corporations, which legally and effectively own them. However, the pension fund is transferred to the trust departments of commercial banks or insurance companies for management. This type of pension fund is called uninsured.
The part of the credit system mentioned above, represented by specialized credit, financial and postal savings institutions, is called the parabanking system (see Fig. 1). Financial organizations of this system are distinguished by their focus on serving certain types of clientele or on providing mainly one or two types of services, most often of a specific nature. Their activities are concentrated for the most part on servicing a small segment of the financial market.
The very name “para-banking system” is rarely used; this peculiar part of the credit system is better known under the name “specialized credit and financial institutions,” which emphasizes special shape activities of these institutions.
Specialized credit and financial institutions are characterized by dual subordination. On the one hand, being associated with the implementation of credit and settlement operations, they are forced to be guided by the relevant Requirements of the central bank. On the other hand, specializing in any financial, insurance, investment or other operations, specialized financial institutions are subject to the regulatory influence of the relevant departments. Thus, they can be under double or even triple departmental subordination. It often happens that the regulatory, mandatory requirements of one agency contradict the guidance of another agency, which allows or forces credit institutions to maneuver using more favorable regulatory guidance.
A special type of specialized credit and financial institutions are postal savings institutions that form the postal savings system. One of the most important and oldest elements of this system are postal savings banks, which historically arose as government agencies to attract funds from small investors. Postal savings institutions, through post offices, accumulate deposits from the population, receive and issue funds. Recently, in most countries, credit and settlement operations of postal savings institutions, characteristic of banks, have become increasingly widespread, and the lines between the provisions of banking legislation and other areas of financial legislation regarding the subject of activity and types of services provided by various credit institutions are becoming increasingly blurred.
Among the institutions of the parabanking system, credit institutions can also include pawnshops, credit partnerships, societies and unions.
Pawnshops are credit institutions that issue loans secured by movable property. Historically, pawn shops originated as private usury lending businesses. In many countries, there has been a tendency to nationalize pawnshops and give them a “state-owned” character. At the same time, the share and form of state participation in the formation of capital and the activities of pawnshops are different.
In most cases, in order to exercise state control over the activities of pawnshops, they are created under some government agency that appoints (for a certain period) a pawnshop manager. Depending on the degree of participation of the state and private capital in the activities of pawnshops, state and municipal, as well as private and mixed types (with the participation of both private and public capital) pawnshops are distinguished.
The specialized function of pawnshops is to provide consumer loans secured by collateral of movable property, including precious metals and stones (usually with the exception of securities). Pawnshops in Russia issue mainly short-term (up to 3 months) loans in the amount of 50 to 80% of the value of the pledged property. Pawnshop operations for storing clients' valuables are practiced, as well as the sale of pledged property on a commission basis. This range of operations determines the specifics of the organizational structure of pawnshops: in addition to branches and branches, large pawnshops may have a network of warehouses and stores. A peculiarity of the organization of credit operations is the absence of a loan agreement with the client and a collateral obligation. Most transactions provide for a grace period, after which the pledged property can be sold.
Credit unions are credit cooperatives organized by certain groups of individuals or small credit institutions. They can be of two types:
1) organized by a group of individuals based on professional or territorial characteristics for the purpose of providing a short-term consumer loan;
2) in the form of voluntary associations of a number of independent credit partnerships, for example, savings and loan partnerships, mutual credit societies.
The capital of credit unions is formed by paying for shares, periodic contributions of their members, and issuing loans. The main operations of such unions: attracting deposits, issuing loans, providing loans secured by their members, accounting of bills, trade intermediary and commission operations, consulting and auditing services for their members.
Mutual credit societies are a type of credit institutions similar in nature to commercial banks serving small and medium-sized businesses. Participants in societies can be both individuals and... legal entities that form the capital of the company through entrance fees.
Credit partnerships are created for the purpose of credit and settlement services for their members: cooperators, rental enterprises, small and medium-sized businesses, and individuals. The capital of credit partnerships is formed by purchasing shares and paying a mandatory entrance fee, which is not returned upon disposal. The main passive operations are attracting deposits and placing loans;
active - loan, commission, trade and intermediary operations.
A variety of credit partnerships - agricultural credit societies (ACS), the founders of which are branches of the central, commercial and specialized banks, government agencies, individuals and legal entities. The main direction of their activity is assistance and credit and settlement services agriculture, lending costs for the purchase of equipment, livestock, seeds, etc. The clients are peasant farms, farmers, and agricultural enterprises. The main operations of partnerships: short- and medium-term loans and acceptance of deposits, intermediary activities. A special feature of USC's activities is its significant tax benefits.
Financial companies are various institutions that provide credit for the sale of goods. The most common form is installment sales finance companies for consumer durables.
They issue loans to various trading companies against sold goods in installments, purchasing customer obligations. Other companies engage in trade lending operations, making loans to industrial firms that ship goods on an installment basis. There are companies that provide loans to the population for various purposes.
Insurance companies (societies) are financial institutions, the peculiarity of which is a unique form of raising funds - the sale of insurance policies. When placing funds, insurance companies compete with other financial institutions. The main item of assets in which they invest are bonds of industrial companies, shares, and government securities. In other words, they provide long-term loans.
Pension funds are credit institutions primarily engaged in the formation of a pension fund and the issuance of pensions. The funds received are invested primarily in securities of industrial companies.
Investment companies place their obligations among small holders and use the proceeds to purchase securities in various industries.
The part of the credit system mentioned above, represented by specialized credit, financial and postal savings institutions, is called the parabanking system (see Fig. 13.4.1). Financial organizations of this system are distinguished by their focus on serving certain types of clientele or on providing mainly one or two types of services, most often of a specific nature. Their activities are concentrated for the most part on servicing a small segment of the financial market.
The very name “para-banking system” is rarely used; this peculiar part of the credit system is better known as “specialized credit and financial institutions,” which emphasizes the special form of activity of these institutions.
Specialized credit and financial institutions are characterized by dual subordination. On the one hand, being associated with the implementation of credit and settlement operations, they are forced to be guided by the relevant requirements of the central bank. On the other hand, specializing in any financial, insurance, investment or other operations, specialized financial institutions are subject to the regulatory influence of the relevant departments. Thus, they can be under double or even triple departmental subordination. It often happens that the regulatory, mandatory requirements of one agency contradict the guidance of another agency, which allows or forces credit institutions to maneuver using more favorable regulatory guidance.
A special type of specialized credit and financial institutions are postal savings institutions that form the postal savings system. One of the most important and oldest elements of this system are postal savings banks, which historically arose as government institutions to attract funds from small depositors. Postal savings institutions, through post offices, accumulate deposits from the population, receive and issue funds. Recently, in most countries, credit and settlement operations of postal savings institutions, characteristic of banks, have become increasingly widespread, and the lines between the provisions of banking legislation and other areas of financial legislation regarding the subject of activity and types of services provided by various credit institutions are becoming increasingly blurred.
Among the institutions of the parabanking system, credit institutions can also include pawnshops, credit partnerships, societies and unions.
Pawnshops are credit institutions that issue loans secured by movable property. Historically, pawn shops originated as private usury lending businesses. In many countries, there has been a tendency to nationalize pawnshops and give them a “state-owned” character. At the same time, the share and form of state participation in the formation of capital and the activities of pawnshops are different. In most cases, in order to exercise state control over the activities of pawnshops, they are created under some government agency that appoints (for a certain period) a pawnshop manager. Depending on the degree of participation of the state and private capital in the activities of pawnshops, state and municipal, as well as private and mixed types (with the participation of both private and public capital) pawnshops are distinguished.
The specialized function of pawnshops is to provide consumer loans secured by collateral of movable property, including precious metals and stones (usually with the exception of securities).
Pawnshops in Russia issue mainly short-term (up to 3 months) loans in the amount of 50 to 80% of the value of the pledged property. Pawnshop operations for storing clients' valuables are practiced, as well as the sale of pledged property on a commission basis. This range of operations determines the specifics of the organizational structure of pawnshops: in addition to branches and branches, large pawnshops may have a network of warehouses and stores. A peculiarity of the organization of credit operations is the absence of a loan agreement with the client and a collateral obligation. Most transactions provide for a grace period, after which the pledged property can be sold.
Credit unions are credit cooperatives organized by certain groups of individuals or small credit institutions. They can be of two types: 1) organized by a group of individuals on a professional or territorial basis for the purpose of providing a short-term consumer loan; 2) in the form of voluntary associations of a number of independent credit partnerships, for example, savings and loan partnerships, mutual credit societies. The capital of credit unions is formed by paying for shares, periodic contributions of their members, and issuing loans. The main operations of such unions: attracting deposits, issuing loans, providing loans secured by their members, accounting of bills, trade intermediary and commission operations, consulting and auditing services for their members.
Mutual credit societies are a type of credit institutions similar in nature to commercial banks serving small and medium-sized businesses. Participants in societies can be both individuals and legal entities who form the capital of the company through entry fees.
Credit partnerships are created for the purpose of credit and settlement services for their members: cooperators, rental enterprises, small and medium-sized businesses, and individuals. Capital of credit partnerships
is acquired by purchasing shares and paying a mandatory entry fee, which is not refundable upon departure. The main passive operations are attracting deposits and placing loans; active - loan, commission, trade and intermediary operations.
A variety of credit partnerships are agricultural credit societies (ACS), the founders of which are branches of central, commercial and specialized banks, government agencies, individuals and legal entities. The main direction of their activity is assistance and credit and settlement services to agriculture, lending for the purchase of equipment, livestock, seeds, etc. The clients are peasant farms, farmers, and agricultural enterprises. The main operations of partnerships: short- and medium-term loans and acceptance of deposits, intermediary activities. A special feature of USC's activities is its significant tax benefits.
Financial companies are various institutions that provide credit for the sale of goods. The most common form is installment sales finance companies for consumer durables. They issue loans to various trading companies against sold goods in installments, purchasing customer obligations. Other companies engage in trade lending operations, making loans to industrial firms that ship goods on an installment basis. There are companies that provide loans to the population for various purposes.
Insurance companies (societies) are financial institutions, the peculiarity of which is a unique form of raising funds - the sale of insurance policies. When placing funds, insurance companies compete with other financial institutions. The main item of assets in which they invest are bonds of industrial companies, shares, and government securities. In other words, they provide long-term loans to the state.
Pension funds are credit institutions primarily engaged in the formation of a pension fund and the issuance of pensions. The funds received are invested mainly in shares of industrial companies.
Investment companies place their obligations among small holders and use the proceeds to purchase securities in various industries.
Topic 11
Specialized credit and financial institutions
- Economic essence and functions of specialized financial and credit institutions
- Modern views SFKUs and their operations
- Characteristic signs and functions of interbank associations
Specialized financial and credit institutions (parabanks)these are financial intermediaries of the money market, who mobilize temporarily free funds and ensure their placement in liquid assets. Specialized financial and credit institutions perform functions similar to banks, but their activities are characterized by narrow specialization and focus on a specific clientele.
The main activities of special financial and credit institutions are:
a) accumulation of savings of the population by attracting them into deposits, issuing shares, bonds, selling insurance policies;
b) lending to certain sectors of the economy and types of economic activities and the needs of certain groups of the population;
c) provision of long-term mortgage loans;
d) organization of pension and social security of the population;
e) carrying out mutual credit assistance operations.
Insurance companiesare formed and act to compensate for possible losses as a result of unforeseen economic and financial risks, natural disasters and other cases at the expense of insurance premiums of citizens and legal entities who have purchased insurance policies. The funds of the insurance fund, as a rule, far exceed the annual payments of insurance compensation. As a result, insurance companies accumulate significant financial resources, which they invest primarily in bonds of industrial companies. Long terms accumulation of funds, sometimes reaching decades, allows insurance companies to attract insurance premiums and invest their own capital in shares and bonds of private corporations and in government debt obligations, in providing long-term loans to enterprises in various sectors of the economy, mainly in the form of mortgage loans and real estate investments.
The main specialized financial institution that accumulates funds for the pension provision of citizens after they reach a certain age is the pension fund.
Pension funds- these are public or private organizations that operate to provide the population with funds during the period after retirement. Pension funds are formed from long-term contributions from workers and employers, which are used for pension payments to participants and are invested in shares and bonds of enterprises and firms. In the structure of the assets of these institutions, the largest part is the share of securities of private enterprises, corporations, and government debt obligations.
Investment companies and investment fundsrepresent a special type of financial and credit institutions that provide specialized intermediary services in the investment process. In particular, investment companies issue and sell their own securities and sell them to small individual investors. The investment company uses the funds received to purchase shares of operating enterprises and banks, dividends on which become the basis for the income of shareholders of investment companies. Investment funds, by issuing and placing their own securities on the financial market, mobilize funds from private investors and even small savings of the population and invest them in shares and bonds of various enterprises in their own country and abroad.
Financial companiesare a type of non-bank credit system institution that specializes in lending for the sale of consumer goods with deferred payment. Funds of financial companies are generated by issuing their own debt obligations - bonds or bills, and obtaining short-term loans from commercial banks.
For mutual assistance in credit and meeting other needs of their members, they are formedcredit societies and credit unions. They unite the general population, cooperatives, rental enterprises of small and medium-sized businesses in order to meet the needs for preferential short- and long-term loans, provide financing and social protection of their members by attracting their personal savings. The resources of credit unions are formed by the purchase of entrance shares by their members, as well as their subsequent periodic contributions, the use of loans from commercial banks and the issue of their own debt obligations. The active operations of credit unions consist of providing loans to their members for a variety of consumer needs and can create an alternative basis for countering the aggressive policies of commercial banks.
Pawnshop organizations - credit institutions that provide cash consumer loans secured by movable property. As a rule, the value of the property pawned in a pawnshop should exceed the amount of the loan provided by 20-50%. The borrower retains title to the foreclosed property for a specified period of time.
Leasing companiesspecialize in the purchase of durable items (machinery, equipment, vehicles and the like) and providing them for long-term lease to those who, using them productively, pay the cost of the leased property.
Factoring companies- financial and credit institutions that specialize in the acquisition accounts receivable clients.
Interbank associationsare formed for the purpose of coordinating actions, increasing the efficiency of operations and protecting the professional interests of participants, developing ethical standards and rules of relationships between banking institutions, banks and clients. Interbank associations can be classified as follows:
a) depending on the composition of the participants - purely banking and mixed type associations;
b) depending on the goals -commercial association And non-profit,that is, for the purpose of providing services to its members;
c) depending on the duration of activity - onunlimited associations And created for a specific period;
d) depending on the level of dependence and subordination of the constituent structures -association voluntary associations and corporate, based on ownership and a system of participation in the capital of the association.
Distinctive features that determine what type of interbank association a given association, cartel or concern belongs to are:
|
Characteristics associations |
Signs of corporate associations |
|
Voluntary nature of membership based on common interests |
Greater dependence and close relationships between participants |
|
Free choice of organizational form of association and withdrawal from membership |
Lack of opportunities and complete freedom to choose partners, because the partner becomes the owner of a share or block of shares that is bought and sold on the market |
|
Delegation of a number of powers to the association on the basis of general decisions |
Significant amount of centralization of management and control functions |
|
The democratic nature of management, especially in non-profit associations |
|
|
Contractual form of organizing relations between participants and the association |
Interbank associations of the type consortium form temporary banking associations that arose on a contractual basis for the general implementation of credit, guarantee and other banking operations and services. As a rule, a consortium is formed on the basis of the largest of the legally independent participants of the bank (chairmen of the consortium), which acts on behalf and in the interests of all participants.
Consortiums are often calledbanking syndicates.
Banking cartel- an association of independent large banks that have entered into a general agreement on the distribution of areas of activity and the coordination of a common policy interest rates and dividend payments, compliance with the same lending conditions, and the like.
Bank holding companiesare formed as a mixed type association of banks and non-banking institutions. The banking holding coordinates and controls the activities of all holding participants in order to maximize profits. Among them, a distinction is made between single-bank and multi-bank holding companies.
An important type of interbank association has becomebank trust,which is formed by combining the ownership of banks.
Included banking concerns,In addition to banks, it may include insurance, leasing, factoring and other joint-stock companies, united under the leadership of a joint-stock company, which is called a bank holding company. The consolidation of bank ownership with the loss of legal and commercial independence and the subordination of management to one body creates a banking trust.
