Interbank settlements take place in the case when the recipient and the payer are the owners of accounts in different banks. All operations between financial institutions through correspondent accounts are organized in two ways: using centralized and decentralized systems.
Settlement and cash centers
In Russia, the first option is most often used. Responsible for the implementation of centralized settlements are the departments of the CRH - cash settlement centers (RCCs). In order to conduct operations, each banking institution must open a correspondent account in the RCC at its location. All relations between the credit institution and the central bank that serves it during the transfer of funds are carried out in accordance with the law and the correspondent account agreement.
The write-off of funds from the KB sub-account or their crediting to this account is confirmed by an extract in the form of an electronic service document or on paper.
Interbank Settlement System
Transactions through correspondent accounts opened with other banks are carried out as follows: the respondent bank enters into an agreement with another credit institution and opens an account here. The correspondent bank opens it after receiving the relevant documents from the respondent and signing the contract. An account opened by a CB at another banking institution is called NOSTRO. And the one that opens another bank in this organization (KB) is LORO. Settlement between financial institutions is subject to the maintenance of daily equality.
Types of interbank settlements
1. Settlements between banks through the RCC network. This system for transferring funds is the main one. If at least one correspondent account is opened in the RCC, this makes it possible to carry out transactions with any credit organization in the country.
2. Interbank settlements on open correspondent relations. The main advantage here is the absence of intermediaries in the implementation of settlement transactions, which allows them to be made faster and cheaper. Such interbank settlements are carried out on behalf of customers, but without their direct participation.
3.
Interbank settlement transactions in the domestic
banking system - are used by large financial institutions that have a wide network of branches. This type of calculation allows you to rationally allocate resources, maintain the liquidity of small units and increase the profitability of a credit institution.
4. Interbank settlements carried out with the help of clearing centers. Clearing is an interbank system of cashless payments, which is carried out by special clearing houses with the help of mutual offsetting of payments. In this case, only obligations and requirements are taken into account - net settlements. The main advantage of such a system is the acceleration and optimization of interbank operations. But the presence of intermediaries makes this method of payment more expensive.
International Correspondent Commercial Networks
To carry out this kind of calculations, commercial international correspondent networks are created: TARGET - an automated system in real time; SWIFT - community of global financial communications between banks; CHIPS is an electronic system of cashless (clearing) settlements.