Resource centers interact not only with ordinary citizens, large companies and officials. They also develop mutually beneficial cooperation with other structures, forming the so-called interbank loan market.
How is the mutual assistance process implemented, what types of refinancing are known, and what are their features? Read the answers to these and many other questions on the topic.
The concept of MBK
Interbank loans are loans that are provided by one authority to another. They are intended to regulate the solvency (liquidity) of the latter. The main sponsor in the Russian economic market is the Central Bank. Other commercial and state organizations are both creditors and debtors.
Interbank deposits (loans) are a fairly large mechanism. The essence of its functioning lies in the execution of debt transactions of a single type, as well as in the placement of loans in other banking institutions. In other words, in the event of a lack of resources, the firm acquires assets for a predetermined period of debt. In the event of their excess, she puts up assets for sale to other representatives.
Usually, interbank loans are provided for a short time. In accordance with the standard line of loans, funds are issued for 1, 2, 9, 14 and even 90 days. It should be borne in mind that, by agreement of the parties to the executed transaction, the loan period may be delayed up to one and a half years.
Practical aspect
An agreement regarding refinancing can be determined both through individual negotiations and through intermediaries. The next step is to conclude a legally certified contract.
Commercial structures of the Russian Federation, which most often come to the Central Bank of Russia to obtain an interbank loan, are sponsored by two methods: the first is to issue funds in a strict queue, and the second is carried out on the basis of bank competitions.
Thus, a mechanism in which several structures take part is a kind of source that allows them to negotiate on a mutually beneficial basis, after which they maintain and maintain their own solvency.
Interbank lending market
One of the main components of the interbank loan market is considered to be the interbank loan exchange. It consists of certain cash transactions implemented by the Central Bank and other bodies. Loans that are issued to bank branches are called managed liabilities. It is worth noting that the organization itself in this case is an active person: it receives funds through a direct appeal to the representative of the financial center.
So, the market of interbank loans (interbank operations) acts as a sponsor for a variety of economic activities. He maintains their liquidity and stability.
Exchange MBK
It is advisable to characterize the SBU exchange operating in the Russian Federation as underdeveloped and narrow. First of all, this can be explained by the distrust that arises between partners.
According to the analysis, 90% of loans issued by state and commercial lenders to each other have a term of up to one week. We can conclude that the interbank loan market is a structure that operates exclusively in the field of correspondent relations. We are talking about absolute short duration. Moreover, the level of trusting relations in this market is minimal.
Mutual revenue exchange should be understood as a significant component of the financial pyramid. You should be aware that it fully ensures the distribution of free cash between credit institutions, and in a timely manner, and also improves the efficiency of the banking mechanism of the Russian Federation. In addition to the fact that refinancing involves supporting the functional state of a particular banking institution, the country's economy is stabilizing, for which the position of each of the companies of such a plan is extremely important.
To account for interbank loans, which differ in the short term of the loan, a special mechanism operates in the territory of the Russian Federation. Its maximum border is determined by the overnight discount percentage, and the minimum - by the sum of the one-day “Tom next” deposits of the Central Bank of the country.
The presented indicators are included in the group of operations of constant access. They are used to absorb and maintain the liquidity of institutions at the proper level. The lower and upper ranges of interest rates for interbank loans can be adjusted by the main banking authority, both individually and through a symmetric shift of the minimum and maximum borders.
Classification
The interbank loan category is a kind of monetary system that allows banking institutions that are partners to develop mutually beneficial cooperation and organize uninterrupted service of their own client bases.
In accordance with the criterion of organizational characteristics of refinancing, interbank loans are classified accordingly. So, urgent loans should be understood as cash loans, the contract of which indicates the final, exact date of repayment of the debt. A demand loan is a type of lending that is a special transaction. According to it, the specific period for the return of the taken money becomes unlimited, in other words, the creditor has the right to demand a refund at any time.
Classification by criterion of payment
In accordance with the criterion of payment, the following varieties are distinguished: with a market, increased and preferential credit rate. The first of them appears on the basis of market supply and demand, which is formed at the time of the loan. The beginning of an increased percentage of an interbank loan is pledged by possible risks associated with the provision of funds to a specific commercial employee. Concessional lending is rarely used. It is considered one of the components of a differentiated solution.
Loan security
Loan security should be understood as a peculiar type of lending based on a pledge of property, in relation to the part that is pledged within the financial center. It is customary to distinguish the following types of loans:
- secured;
- partially secured;
- unsecured.
According to statistics, most interbank loans are unsecured loans.
Documents for applying for a loan
Further, it is advisable to consider the issue of obtaining an interbank loan. It is worth noting that the confirmation of the interaction between the two banking structures is the signing of a general agreement (loan agreement).
So, the bank, which is considered a borrower, must provide the lender organization with the following documents:
- application letter;
- documents that contain information regarding the borrowing bank: its financial situation, assets, and so on;
- a copy of the charter of a banking institution and a license to conduct financial work;
- paper with signatures and seals, which serves as a confirmation of the decision of employees about the loan;
- paper, which characterizes the loss-making or profitability of the banking structure;
- a document confirming the activity of the credit institution, which expects to receive a loan, and notifying the lender of the number of loans issued to customers, also characterizing the number of partners acting as depositors.
Additionally, employees of the structure that issues auxiliary cash resources may require documents with statements about some interbank loan accounts, balance sheet items for the previous year, as well as at the time of application.
Methods of obtaining a loan
Under the loan agreement should be considered a method of processing a loan, which is used in the process of processing one-time transactions. It was then that there was no special trust between the lender and the borrower, because before that they had not yet cooperated.
Here, the refinancing period usually varies from a week to a month. It is worth noting that, in accordance with the results of individual negotiations, it can be more.
Representatives of banking institutions, as a rule, agree on preliminary interaction by telephone or e-mail, after which all agreed details are documented, legally executed and certified.
The interbank loan agreement includes information regarding:
- the size of the loan that the borrower wishes to arrange;
- loan validity period;
- interest rate level;
- responsibility for compliance with the terms of the transaction and so on.
The interest rate specified in the contract is determined directly on the day the document is drawn up, based on the level that had developed in the financial market by that time. The loan agreement, confirmed by seals and signatures, is legal paper. It is used as the basis for court hearings that are related to non-payment of borrowed funds.
The general agreement, which indicates the completion of operations in the financial market, is considered the second method of obtaining a loan. This document is a kind of form, which provides for the technical aspects of the implementation of financial and credit plan operations.
Accounting for interbank loans
Next, it is advisable to consider the issue of accounting. In the banking structure, which is the creditor, the issued interbank loans are accounted for in account 320 “Deposits and loans provided to credit organizations”.
It is worth noting that on the day of debiting funds from the correspondent account of a banking institution that acts as a creditor (if there is no direct correspondence between the banks) or depositing them to the debtor's LORO account, the following transactions are relevant:
- Dt 32001-32010 “Deposits and loans provided to credit organizations”.
- CT 30102 "Correspondent accounts of credit organizations with the Bank of Russia." We are talking about debiting funds from the correspondent account of the creditor institution.
- Dt 32001-32010 “Deposits and loans provided to credit organizations”.
- Ct 30109 "Correspondent accounts of credit organizations of correspondents." It is about crediting money to the LORO account of the debtor.
In the structure that is the borrower, the received interbank type loans are accounted for on account 313 “Deposits and loans received by credit organizations from credit organizations”.
If the borrower receives an interbank loan, the following transactions are relevant:
- Dt 30102 "Correspondent accounts of credit organizations in the Bank of Russia."
- CT 31301-31309 “Loans and deposits received by credit organizations from credit. organizations. "
Over the first thirty days, interest is accrued on the use of an interbank loan both in the bank structure acting as the borrower and in the creditor institution. It is worth noting that accrued interest is reflected on the final business day of this month. The following postings apply:
- Dt 70606 "Costs."
- CT 47426 "Obligations to pay interest." As a rule, the amount of interest that is accrued in the borrowing institution.
- Dt 47427 "Requirements for obtaining interest."
- CT 70601 "Revenues." As a rule, the amount of interest accrued by the institution acting as a creditor.
Final part
So, we examined the concept, definition, conditions for the provision of interbank loans. In conclusion, it should be noted that today the Central Bank of the Russian Federation issues the following types of loans secured by securities to other financial institutions.
So to summarize. The first stage is the submission of securities for interbank lending. After programming the loan application, the creditor bank evaluates the borrower, analyzes its solvency and liquidity at the time of the loan, provides verification of the authenticity of the submitted information, and so on. It is worth noting that a positive reaction is favorably influenced by the presence of close contacts with large, representative economic structures, whose reputation, as a rule, plays the role of collateral. After the borrower receives approval, a loan agreement is drawn up and signed. So, the money goes to the settlement (correspondent) account.
There is a second stage of cooperation. It takes place after the transfer of funds. It is a regular report to the creditor by the borrowing institution. This information applies to the targeted use of refinancing. For the structure that issued the auxiliary loan, it is extremely important that the money taken be invested in the economic and financial field and bring profit as quickly as possible. Only in this way will the debtor be able to recover these financial assets without any special losses of its own liquidity and in the shortest possible time.
It should be noted that the world economic crisis has adversely affected the interbank credit system in the Russian Federation. It was after him that the state of the cash market worsened significantly. Its performance is characterized by rates that are displayed in the economy through special indicators. Among them, it is important to note the following:
- MIBOR is an average indicator characterizing the number of refinancing placement rates provided by financial divisions.
- MIBID - a request for acquisition, in other words, the interest rate at which banking institutions are ready to become owners of an interbank loan.
- MIACR. You should be aware that this indicator indicates the actual average rates on practicing loans.
The borrowed funds are returned in one payment to the creditor bank's correspondent account at the end of the loan term. It must be borne in mind that early repayment of a loan is possible only after the written consent of the institution that issued the cash loan.