A business company that is authorized to carry out a specific list of banking operations, this is a credit institution. There are several forms of companies of this kind. They are endowed with the spectrum of powers that a license allows. Many of us, one way or another, became clients of a credit institution. It is not necessary to act as a borrower, the range of services involves participation as a depositor, investor, shareholder. In this article you can find all the information regarding what types of credit organizations exist, what role they play, and what needs to be done to open this kind of company.
How does the creation process begin?
The concept and types of credit organization are interconnected. The company's goal implies the provision by a legal entity of banking services on the basis of a license and permission to carry out its activities in the form of joint-stock companies, as well as with limited and additional liability. The main purpose of opening such an organization is to generate income (profit). A prerequisite for the creation of a credit organization is the presence of:
- Original logo and title.
- Specific location.
- Print organization.
- Charter and registered capital.
- Names in a foreign language.
The content of the name should not mention such words as a credit institution and a bank, the names of state institutions, countries (in abbreviated form) are not allowed.
What types of similar organizations exist
At the legislative level, the concept of a credit organization is clearly fixed. There are only three types and forms of organization:
- Non-bank credit organization. It has the right to carry out only a number of functions specific to a bank and to perform a limited number of banking operations. It is customary to distinguish between three forms - payment, settlement and deposit-credit. Work with legal entities.
- Bank. Endowed with the greatest authority, provides a full range of banking services. These include: work with accounts of legal entities and individuals (opening, maintenance), raising funds in deposits.
- Foreign bank. It has registration in the territory of a foreign state.
Banking operations are understood to mean raising and placing funds in order to make a profit. This becomes attractive not only due to the interest paid to depositors, but also by providing guarantees for the safety and repayment of funds by a credit institution.
One of the forms of credit organizations is microcredit or microfinance (MFI loans) companies. They differ in the ability to carry out a smaller range of banking operations. As a rule, this is lending for insignificant amounts, receiving funds from the population for placement on a contribution. At the moment, there is a certain restriction on the presence in the name of the abbreviation of MFIs. Loans issued by a company usually do not exceed 1 million rubles. It is allowed to abbreviate the names to MKK - microcredit organization or microfinance.
How to organize
To open such a structure, it is not enough to know only what is meant by the concept and types of credit organization. The main question: how and where to start? The following points are taken as a basis:
- The preliminary process at which the name of the organization is agreed with the Central Bank of the Russian Federation, the signing of constituent documents.
- The process of endorsement by the signatures of the memorandum of association. It is carried out in strict accordance with the Law on Banking.
- Registration with government bodies. The government agency authorized to perform such a function makes an entry in the unified state register of legal entities. This procedure is subject to payment of state duty.
- Registration and obtaining a license, which gives the right to carry out banking operations. It contains information regarding the currency in which the credit institution will conduct settlements, as well as a list of operations performed. There are no time limits for this license.
List of documents and reasons for refusing registration
Having decided on what types of credit organizations are, the concept of the need to collect the appropriate package of documents becomes one of the important events. For the registration process to go quickly, you should prepare for it:
- Draw up a business plan and fill out an application, which will subsequently be submitted to the Central Bank.
- Make payment of state duty.
- To prepare and certify the charter with the head of the organization, information about the chief accountant and decide on the person who will occupy the position of executive director.
- Persons acting as founders must provide income information for the last year in the form of a declaration.
After payment of the authorized capital in full, it is necessary to obtain a license, on the basis of which the credit organization will operate. The term established for the implementation of these actions may not exceed one month from the date of receipt of a positive decision of the Central Bank.
If a negative decision is received, the credit institution may appeal it to the Arbitration Court. The reasons that serve as a denial may be the following:
- A criminal record under articles for economic crimes held by the founder or head of the organization.
- Lack of education or appropriate qualifications of the chief accountant or candidate for the position of manager.
- The submitted documents contain information that is not true.
- Unsatisfactory financial situation, the presence of late payments on loan obligations of the head.
Combined forms
For the purpose of cooperation and development, financial and credit organizations can be combined in the following legal forms:
- Groups. Based on the agreement they may jointly carry out activities, providing banking services.
- Associations and unions do not have the right to form with the goal of generating income. Their main task is to protect interests, to fulfill common tasks to improve joint activities.
- Holding is an association in which managers directly or indirectly influence the work of members of the company and its policies.
Basic principles
The activities of credit organizations is based on a number of principles that determine its further development:
- The exercise of their functions in strict accordance with Russian law.
- Unhindered financial transactions, which is understood as a single economic space throughout the Russian Federation.
- Economic freedom.
- Conscientious performance by credit institution employees of their duties.
- It is strictly prohibited to conduct unfair, unfair competition, the presence of collusion between several similar organizations.
- Organization of a system that protects information and confidential information.
- Regardless of the legal form, the state should provide a single degree of protection of the rights and interests of a credit institution.
Qualified advice on the provision of banking services is a priority in terms of transactions.
Rights and Functions
The basic right and functions vested in banking credit organizations is the implementation of financial transactions, which is possible with the appropriate license. In order to achieve the fulfillment by borrowers of their loan obligations, the organization has the right to apply appropriate measures within the powers given by law.
One of the main rights that affects the profitability of an organization is the ability to sell its securities on financial markets. This allows you to increase the reserve fund, which in turn has a positive effect on profits. It is also worth noting separately that credit organizations are subject to several branches of law: constitutional, civil, and banking.
Undoubtedly, for a non-bank credit organization, formed in the form of a microcredit company, the available sources for profit are high percentages of the loans and borrowings they provide. Unlike a bank, the amount and terms of lending are much lower, however, it is worthwhile to understand that overpayment can significantly exceed the amount provided. Since this type of organization does not have the opportunity to provide guarantees for the safety of funds (deposits are not insured), the depositor assumes responsibility for the risks of the non-repayment of the deposit.
It is also worth noting that since microcredit organizations often provide amounts as a loan, a loan of not more than 50 thousand rubles, a package of documents can be reduced only to the need for a borrower to provide a passport. This right is enshrined in law.
Licensing procedure
The main document that gives the right to carry out its activities to a commercial credit organization is a license. Without its presence, the Central Bank of Russia has the right to appeal to the Arbitration Court of the Russian Federation with a lawsuit on the liquidation of this legal entity. As part of the license issued, operations with precious metals and foreign currency are carried out. In order for the activities to be legal, it is necessary to collect a package of documents in order to obtain the appropriate license:
- The charter of the organization and, if necessary, the memorandum of association.
- An application containing a request for a license, which allows for banking operations and for state registration.
- The minutes of the meeting of the founders, which contains information on the selected candidate for the position of chief accountant and executive director.
- A document confirming the payment of state duty.
Also included in the package of documents are the questionnaires of the chief accountant and the executive staff of the executive body, with information on the availability of the relevant education, absence or existing criminal record. Obligatory submission of tax returns and copies of documents on state registration of legal entities-founders.
The maximum period during which a decision is made to issue a banking license cannot be more than six months. After receiving a positive decision on the issuance of a license and registration with state bodies of a credit organization, it is necessary to pay 100% of the declared authorized capital within three days. If this does not happen, the decision is nullified.
The procedure and causes of bankruptcy and liquidation proceedings
Any crisis can lead to bankruptcy of a financial institution. A similar phenomenon is often found among small structures that do not have a strong position in the financial sector. Bankruptcy is commonly understood as the inability of a legal entity to bear responsibility for payments and debt obligations. The organization itself or the Arbitration Court may announce this financial condition.
At the legislative level, it is stipulated that the rights of a credit institution do not include the independent announcement of their status as a bankrupt. They are required to submit an appropriate application to the judicial authority, which makes the decision.
A credit institution may be liquidated in the event of the full performance of its obligations and the absence of debt. This fact is confirmed during the accounting tax audit. Only then can you file documents with the court to make an appropriate decision. If it is positive, and the credit institution is recognized as subject to liquidation, the company ceases to fully perform its functions. It will not be possible to transfer powers to third parties.
Reasons that serve as the basis for elimination:
- The expiration of the license or its absence, the organization's activities that are contrary to the contents of the charter.
- The expiration of the period for which the enterprise was created, in connection with which the legal entity decides to liquidate the organization, as well as in the case when it has fully completed the tasks, and there is no sense in its functioning in the future.
- Violation of the rights of third parties by the authority, for the restoration of which they had to turn to the judicial authorities.
What are signs of bankruptcy?
It is possible to determine that a credit institution in Russia is subject to bankruptcy by the following criteria:
- Revocation of a license, which gives the right to engage in certain types of activities.
- The total value of the property held by the credit institution is less than the amount of obligations for which it is responsible.
- Lack of ability to pay tax fees and payments on loan obligations.
- Downtime regarding execution of assigned functions exceeds a period of more than one month.
- The total debt is a thousand times (not less) than the minimum wage established in the region.
In order to prevent the onset of bankruptcy, preventive measures are carried out that identify factors that contribute to it. These include monitoring and analysis of financial and economic activities. A regular assessment of the economic situation in the organization is also carried out. In some cases, it is possible to save the situation from bankruptcy and the loss of a credit organization’s license by reorganizing or using anti-crisis management strategies.