Commercial banks are business enterprises that act as financial intermediaries. So, they attract the savings of the population, capital, other free funds that are released in the course of economic activity, for providing them for use by other economic entities temporarily in need of additional funds.
To solve these problems, banks carry out banking operations. The main operations in this area are operations called active and passive.
Passive operations of commercial banks are necessary to attract and concentrate capital as working capital. Active operations are aimed at placing attracted resources for profit. Passive operations of commercial banks are called operations to accumulate their own resources, which are necessary for conducting active operations (including credit).
The formation of the bank’s resources occurs by attracting household funds in deposits, issuing bank securities, obtaining loans from third-party banks and other operations that lead to an increase in the funds available to the banking institution.
Passive operations of commercial banks include accepting deposits; issue of bank securities (bills, bonds, savings, certificates of deposit); maintaining accounts of various clients, including correspondent banks; repo transactions; obtaining interbank loans, including centralized credit resources; Eurocurrency loans.
Commercial banks are specific institutions that, on the one hand, accumulate temporarily free cash resources, and on the other hand, provide the funds available to them to enterprises and people in need of resources for temporary use for a certain fee.
Passive operations of commercial banks determine the size of bank resources and, accordingly, determine the possible scale of their activities. In passive operations, funds are concentrated on passive or active-passive bank accounts . Passive operations help banks acquire credit resources in the free market.
Four main forms of passive operations are distinguished: deductions from own profit for increase or formation of funds; initial issue of bank securities (contributions to the authorized capital); obtaining loans from other legal entities; deposit operations (attracting customer funds).
Passive operations of a commercial bank mediate the attraction of money that is already in circulation. First of all, passive operations include deposit operations to raise funds of legal entities and citizens in deposits, either fixed-term or on demand. It is deposit operations that make up the bulk of the bank's liabilities.
Time deposits are determined by the terms prescribed in the contract. On such deposits a higher percentage of interest is paid than on demand deposits. The latter are funds in accounts that are associated with the implementation of settlements and demand deposits.
Actively passive operations of commercial banks are called commission, intermediary operations that banks perform on behalf of customers for a fee - a commission. These operations are called services. Allocate settlement services for domestic and international payments; trust services, which include the purchase and sale by a bank of foreign currency, securities, precious metals on behalf of customers; intermediation in the placement of bonds and shares; consulting and accounting customer service, etc.