Active operations of commercial banks - is the use of own and borrowed resources, carried out by the bank to make a profit. When active operations of commercial banks are carried out, a lot of different investments are made that bring profitability in percent, dividends or participation of income of joint ventures. Active operations of commercial banks have the economic essence of active operations, and these are the following economically interrelated tasks that are solved by banks at all times during which active operations are carried out.
Ultimately, any activity of the bank must be achieved income to cover the costs, payment of dividends on shares, interest on deposits and deposits, and get a certain profit; the bank’s solvency is ensured, and this makes it possible that the bank is timely and fully consistent with its obligation. Turnover and cash provide liquidity, that is, it is possible to quickly (preferably without loss) turn assets into money.
Of greatest importance in the active operations of a commercial bank are credit operations. In the current environment, a commercial bank expands its own services and operations designed to generate revenue. These operations include trust, warranty, plastic card transactions and so on. The purpose of the activity is to deepen the existing active operations of a commercial bank and introduce new ones.
To achieve this goal, the following tasks must be solved: disclosure of the economic essence of the active transaction, its types and structure of the active operation of a commercial bank; show the role of credit operating services in the activities of a commercial bank and their income in the current conditions, as well as the active operations of a commercial bank with securities in stock markets.
Active operations of commercial banks is a banking activity during the placement of their own and borrowed money at a commercial bank in order to make a profit. The economic essence of the active operation of commercial banks is the following economically interconnected tasks that the bank solves during the implementation of active operations: profitability is achieved to cover costs, dividends are paid on shares, interest on deposits and deposits, and they make a profit; Bank solvency is ensured; liquidity is provided. The quality of assets is determined by the following properties: profitability, liquidity, degree of risk. Assets of a commercial bank are managed directly by the bank.
Considering profitability, assets are: assets that do not bring profitability - this is a cash desk, Central Bank reserve fund, money on correspondent accounts; an asset that brings profitability - a credit operation, securities transaction, rental income of a building and construction. assets are: first-class assets - cash on hand, on a correspondent account, government securities; liquid assets - short-term loans, interbank loans, factoring operations, operations with securities; these assets have a longer monetization period; low liquid assets - a long-term loan, leasing transaction; illiquid assets - an overdue loan, insolvent or bankrupt organization's paper. Riskiness is the potential probability of loss during the transformation of assets into money. The main banking risks: credit risks - the principal debt and interest are not repaid; interest-rate risks - loss, due to the fact that the interest on the borrowed resource is exceeded.
Thus, any active operations of commercial banks are an integral part of their daily work, ensuring the movement of funds at their disposal.