The composition and structure of articles, assets and liabilities of the bank's balance sheet. What is bank assets Bank balance sheet asset

Bank assets, composition of bank assets

Bank assets are objects or resources in which a financial institution invests funds at its disposal. The purpose of their acquisition is to make a profit in the present or future.

The bank's assets have a monetary value and are necessarily reflected in the balance sheet, and the total amount of assets is one of the most important indicators of the bank's activities. It is not surprising that it is on the basis of this parameter that most of the popular and best-known ratings of credit institutions are compiled.

The composition of the bank's assets and the sources of their formation

Most often bank assets are divided into 4 groups. This number includes:

1. Cash in hand. This category includes not only funds that are directly in cash, but also balances on accounts with the Central Bank and other banks, as well as the organization's reserves placed in the Central Bank. The assets of this group do not bring profit to the bank.
2. Issued . The most profitable and at the same time risky part of the assets. It includes loans to individuals and corporate clients. Their ratio is determined mainly by the specifics of the bank and the main focus of its work.
3. . Usually we are talking about securities or foreign currency in such a situation. The profitability of these financial instruments depends on many factors, the main of which are the literacy of investment managers and the general situation on the market.
4. Other assets. They include fixed assets, various tangible assets owned by the bank, as well as intangible assets. This group of assets is capable of making a profit only when they are sold.

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Bank functions

The bank uses several sources of financing to acquire assets. The main of them in most cases are the funds of depositors and other clients of the bank placed on its accounts. In addition, equity capital can be used for the purchase, as well as resources received in the interbank loan market. Another source of financing often becomes the issuance by the bank of its own bonds and other securities.

In practice, several features are used at once, allowing the classification of banking assets. This clearly demonstrates the importance of the parameter under consideration for assessing the financial condition and success of any bank. Most often, assets are distinguished by liquidity, terms of placement, degree of risk, purpose and level of profitability. Some of them are worth considering in more detail.

Liquidity

The most commonly used parameter for classification is liquidity. On this basis, the following types of assets are distinguished:

• highly liquid. Cash on hand, balances in bank accounts, time deposits are most quickly converted into cash;
• liquid. The term for the fulfillment of such obligations, for example, loans or payments to a bank account, should not exceed 30 days;
• with long-term liquidity. This category of assets includes loans with a maturity exceeding 1 year, as well as deposits of the bank itself opened with other financial institutions of a similar duration;
• low-liquid. Such assets are often called distressed or bad. These include: past due, unreliable and unsecured debt, as well as long-term and risky investments.

Most often, when evaluating the performance of a financial institution, the emphasis is on annual profit. But this indicator actually cannot give an operational assessment of activity.

The reporting of a credit institution has its own characteristics. Liabilities and assets of the bank are displayed in the balance sheet as liquidity decreases. This is one of the important indicators that you can and should be able to determine on your own.

How to quickly determine the effectiveness of the bank

When analyzing financial statements, you need to pay attention to the following indicators:

• change in the total income of the bank;
• the ratio of the reserve and the loan portfolio;
• liquidity level.

A bank's net assets is the difference between all assets and liabilities. A financial institution may sell some of them at a lower cost in order to increase profits. But this will have a negative impact on the level of net assets. The ratio of reserves and loan portfolio shows how long the bank can cover losses on its own.

Liquidity is determined by the ability of a financial institution to fulfill its obligations in a timely manner and in full. A lack of cash can lead to insolvency, and an excess of cash indicates that a large amount of money is not working. Based on data from financial statements, you can calculate net liquidity gaps, and then make decisions based on these data.

bank assets

The bank's balance is divided into funds and sources of their formation. The assets of a commercial bank are property objects that have a monetary value. They are divided into groups according to the level of liquidity and profitability. The more money an asset accumulates, the less liquid it is. The bank's assets include: cash, including on accounts with CBs and CBs; investments; loans; tangible assets.

The first group is used for the exchange of deposits, the provision of loans, and the conduct of cash settlements. This article is the most liquid for the bank, but less profitable. Therefore, management tries to keep it at a relatively low level. To meet the demand for cash, investments in the Central Bank are needed. This group provides a low income but can be easily converted into cash.

More than half of the total value of all assets is accounted for by loans. The level of their liquidity depends on the terms, objectives and borrowers.

For the head of a credit institution, the task is to generate high income while meeting the needs of customers.

Therefore, the liquidity of an individual transaction does not matter. The bank's assets have another feature - a large part of the financial requirements and a small amount of fixed assets. Their share should not exceed 10% of the total cost.

Some experts identify another group - non-core assets of banks - the property of credit institutions, which is not used to carry out the main activity. They come to light most often in the process of reorganization. In the case of banks, these include equity participation in the enterprise.

Obligations of banks

Liabilities - denominated in money sources of formation of the bank's funds. Both the ability of a financial institution to ensure the rational allocation of funds and the amount of profit received depend on the timing of attraction and the cost of these indicators. The main sources of financing are deposits, assets of the central bank, attracted loans, interbank short-term loans, bonds, funds in accounts with other organizations. In the Central Bank of different countries, the ratios of own and borrowed funds range from 1:10 to 1:100.

The assets and liabilities of the bank act as an intermediary that attracts temporarily free funds and places them in those business entities that need to finance the production process. The main task of a modern bank is to provide various types of loans. To ensure it, it is necessary: ​​to attract funds from various sources, to carry out cash and settlement transactions and currency purchase and sale operations, various active and passive operations.

Management

The process of asset and liability management (ALM) consists in the formation of strategies and the implementation of measures aimed at improving the structure of the balance sheet. Banks consider portfolios of capital, assets and liabilities as a set of funds aimed at achieving a common goal.

ALM involves the regulation of interest rate risks, liquidity, sources of financing and directions of use of funds. To date, a reasonable ALM is the most effective way to manage KB.

Asset Management

This strategy was used until the 60s of the last century, when bankers believed that they themselves could not regulate the volume of liabilities and capital.

The size of these items of income depended solely on the desire of customers to invest in the bank. The activities of the management were aimed at the optimal placement of assets.

Liquidity was provided by a significant amount of cash and short-term loans.

But in an unstable economic situation, when some loans needed restructuring, it was necessary to look for new sources of funds. This strategy did not bring much profit.

Liabilities regulation

In the 60s and 70s of the last century, banks faced a rapid increase in interest rates. Bankers began to look for new sources. The restructuring of liabilities allowed to increase profits and capital. Regulation of the ratio between the sizes of deposits made it possible to provide long-term loans.

The bank's assets and liabilities require simultaneous regulation. But forty years ago, the heads of credit institutions distinguished between these two areas. Fundraising departments were unaware of how funds were to be used. The work was carried out according to the principle "the more the better".

This approach takes place during the period of economic recovery, when the demand for credit resources is growing. But during a recession, it can harm a financial institution. The advantage of the strategy is the ability to increase revenues, control costs and forecast liquidity needs.

Balanced ALM

Today, a balanced approach prevails in world practice. The assets of the bank and its liabilities are considered as a whole. The main task of the manager is to control the volume, structure, income and expenses for each portfolio. The idea of ​​a balanced ALM is that the price of each operation should cover the costs of its implementation. All bank income is no longer generated by assets alone. Liabilities can also be profitable.

UAP Advantages:

• profit maximization with an acceptable level of risk;
• accurate determination of liquidity needs.

Conditions for applying the strategy:

• the ability to accurately predict the direction, magnitude and speed of changes in interest rates;
• a large number of complex calculation methods;
• availability of highly qualified bank managers.

In countries with high inflation, an unstable economic or political situation, this is almost impossible to do.

Summary

Simultaneous and balanced management of the bank's assets and liabilities allows maximizing profits and reducing costs.

The concept of bank assets includes all the property of the organization, starting with accumulated finances and ending with receivables. The specifics of the work of commercial institutions that operate in the financial services market is considered to be a large number of receivables of various types, which are issued in the form of loans and other types.

The bank's assets are

• property objects that belong to a commercial organization;
• funds of investors that are used to make a profit;
• bank equity.

The bank's assets are growing due to the implementation of measures aimed at placing borrowed and own funds, and more specifically, through investment operations and lending. The main criterion for the quality of a banking asset is the profit it brings.

It is customary to include real estate, securities, investments, loans, as well as all other objects that can be valued in monetary terms, as banking assets.

Assets of Russian banks

Today is not the best of times for the assets of domestic banks. In 2015, a decrease in the growth of assets in the banking system of the Russian Federation as a whole was observed for several quarters in a row. And although this process has slowed down somewhat recently, there are still too few reasons for optimism.

From April to June, the rate of decline in bank assets is fixed at 1.3%, which is somewhat more pleasant than the 4.1% for the first quarter. At the same time, the increase in the second quarter over the previous four years averaged about 5%.

Analysis of bank assets

Of particular interest is the fact that the largest banks in Russia show the worst dynamics of asset growth. In the second quarter of 2015, institutions included in the TOP-10 of the rating showed a decrease in assets by 1.9%, while the remaining 760 banks lost only 0.1% of their assets. As of July 1, 2015, 65.3% of the assets of the entire banking system of the Russian Federation were at the disposal of key players in the banking sector, while at the beginning of the year this value was 66.1%. Despite the negative trend in dynamics over the past few years, the largest banks in the country show a stable increase in assets.

Sale of bank assets

Due to the crisis phenomena in the Russian economy, some foreign banks are curtailing their activities on the territory of our state. According to Bloomber, this is exactly what the Royal Bank of Scotland did. The deal to purchase assets sold today took place not so long ago. In 2007, assets in the Russian Federation were acquired by the Royal Bank of Scotland through the acquisition of the Dutch bank AbnAmro in tandem with Banco Santander and Fortis. The value of the assets at that time was $2.5 billion. Representatives of the Royal Bank of Scotland officially confirmed the information received. Today, the financial institution plans to intensify its activities in Western Europe.

Bank financial assets

The bank's financial assets do not include equipment, buildings, land and other physical, i.e. so-called tangible assets. The category is formed by rights-claims, cash, as well as securities in the form of shares, bonds, promissory notes and other documents that confirm the ownership of a financial or physical asset of a legal entity.

The group of rights and requirements, which are understood by the term financial assets, includes debt obligations of an external and internal nature of companies, individuals and the state. It is customary to include options, derivatives and shares of financial institutions in the same category.

Advice from Sravni.ru: An increase or decrease in the assets of the state banking system is an indicator of the state of the economy of the whole country. Careful monitoring of the state of the assets of companies in the financial sector helps analysts and economists make more accurate forecasts, and traders and brokers make the right decisions in the process of working in the financial markets.

The study of the balance sheet structure of a commercial bank should begin with a liability that characterizes the sources of funds, since it is passive operations that largely determine the conditions, forms and directions for the use of banking resources, i.e. composition and structure of assets. At the same time, it should be noted that passive operations have historically played a primary and decisive role in relation to active ones, since a necessary condition for the implementation of active operations is the sufficiency of the bank's funds indicated in the liability.

The main articles of the liabilities side of the balance of a commercial bank are: capital, reserves, balance of profit and loss accounts and funds attracted to current, deposit, savings and other accounts of customers and correspondent banks. Thus, the liability of the bank's balance sheet reflects all sources of formation of banking resources, which are accumulated by the bank for profitable use.

Both own and borrowed resources of the bank are reflected in the correspondent account of the Bank of Russia No. 30102.

Bank liabilities can be divided into two groups:

• · Equity capital (and items equivalent to it) obtained through the primary issue of securities of a commercial bank and deductions from profits used to form or increase funds;
• · Raised and borrowed funds received from the bank's deposit operations and loans from other legal entities.

Passive operations allow you to attract funds already in circulation to banks. New resources are created by the banking system as a result of active credit operations.

The equity capital of a commercial bank is a source of the bank's financial resources. At the expense of their own capital, banks cover about 12-20% of the total need for resources. The key element of a bank's capital, or basic capital, should be paid-in share capital and declared reserves (Figure 1).

Fig.1. Composition of the bank's share capital

In addition to the basic capital, the overall structure of bank capital should also contain additional elements, the reliability of which is somewhat less.

Own funds of a commercial bank are funds owned by the bank itself. The structure of own funds can be represented as follows:

1. Capital and funds of the bank:

Authorized capital

Own shares repurchased from shareholders

Extra capital

Provisions for possible losses on loans

2. Deferred income:

Revaluation of funds in foreign currency - positive difference

Revaluation of precious metals is a positive difference.

3. Income and profit.

The main items of equity are paid-in capital and reserves. A special item is surplus capital. In some cases, its source is the sale of bank shares at a cost exceeding the face value, i.e. actual profit.

It should be borne in mind that the bank's own funds can be partially invested in long-term assets (land, buildings, equipment) and, in addition, various reserves are created through deductions to the bank's capital.

The assets and liabilities of the balance sheet of a commercial bank are closely related to each other. Entering the credit markets, buying or selling securities, providing customers with a variety of services, banks constantly monitor the state of their liabilities, monitor the availability of free resources, the maturity of deposits, and the cost of attracted capital.

According to the balance sheet asset of a commercial bank, one can trace the distribution of the bank's resources by types of operations. Active operations of the bank are divided into four groups: cash; investments in securities; credit; other assets.

A commercial bank at any time and at the first request of the client is obliged to pay him in full or in part the deposits held on demand accounts. In this regard, the cash desk of the bank must always have a certain amount of cash.

In addition to cash, commercial banks are required to maintain certain balances on their accounts with the Bank of Russia to ensure daily balancing of clearing settlements with other banks.

Commercial banks have a certain stock of Treasury bills as an insurance reserve.

Treasury bills are bills issued by the country's treasury for a period of 91 days, issued into circulation under the guarantee of the government.

The group of credit operations of active operations includes:

• 1. Loans on demand or with short-term advance notice of the need to repay them.
• 2. Loans to clientele and other accounts. This section includes the main sources of the bank's gross income. The main part of the loans is used to form and replenish the working capital of borrowers, lending to enterprises, organizations, as well as housing construction, etc.

Other assets include shares of subsidiaries, affiliated companies and firms, the cost of bank buildings, equipment, etc.

To calculate the balance sheet total for an asset, the following grouping is used:

1. Cash

cash and checks

precious metals and natural gems.

2. Interbank settlements

correspondent accounts (including correspondent accounts of credit institutions with the Bank of Russia)

accounts of credit institutions for other transactions, including required reserves of credit institutions transferred to the Bank of Russia

settlements on the organized securities market

securities settlements

• 3. Interbank loans and deposits.
• 4. Operations with clients

funds in accounts

loans granted

overdue debt on extended loans and other placed funds

overdue interest on extended loans and other placed funds

other allocated funds.

5. Other assets

Settlements for individual transactions, including: settlements with clients for factoring, forfaiting transactions, settlements with currency and stock exchanges

Investments in finance lease operations.

6. Distracted assets.

debtors, including: amounts not collected by the bank under its guarantees

capital investments

leasing operations

requirements for letters of credit on foreign operations

investments

capitalized assets, including tangible investments and intangible investments

financial investments, including direct financial investments and portfolio financial investments

investments and acquisitions of the right to claim

use of profit.

The business activity of banks is analyzed based on the main areas of use of the bank's resources.

Analysis of the composition of the balance sheet and the structure of its assets and liabilities on the example of the balance sheet of OJSC BANK URALSIB www.bankuralsib.ru BANK URALSIB annual report

	Consolidated balance sheet items	Balance balance, thousand rubles	Growth rate, %	Structure of assets and liabilities,%
Data as of the reporting date	Data as of the corresponding reporting date of the previous year	Change			change
	Cash
	Funds of credit institutions in central banks
	Funds in the Central Bank of the Russian Federation
	Required reserves
	Funds in credit institutions
	Net investments in securities at fair value through profit or loss
	Net debt
	Net investments in securities and other available-for-sale financial assets
	Investment in an associate
	Net investment in securities held to maturity
	Good business reputation
	Fixed assets, intangible assets and inventories
	Other assets
	Total assets
II. Liabilities
	Loans, deposits and other funds of central banks
	Loans, deposits and other funds of the Central Bank of the Russian Federation
	Funds of credit organizations
	Due to customers (non-credit institutions)
	Deposits of individuals
	Financial liabilities at fair value through profit or loss
	Issued debt
	Other liabilities
	Provisions for possible losses on contingent liabilities of a credit nature, other possible losses and transactions with residents of offshore zones
	Total liabilities
III. Sources of own funds
	Funds of shareholders (participants)
	Registered ordinary shares and shares
	Registered preferred shares
	Unregistered authorized capital of non-joint stock credit organizations
	Own shares (shares) redeemed from shareholders (participants)
	Share premium
	Fair value revaluation of securities available-for-sale
	Revaluation of fixed assets
	Revaluation of assets and liabilities of group members - non-residents
	Retained earnings of previous years (uncovered losses of previous years)
	Profit (loss) for the reporting period
	Total sources of own funds of the group
	Share of small shareholders (participants)
	Share of equity sources owned by small shareholders (participants)
	Profit (loss) for the reporting period belonging (belonging to) small shareholders (participants)
	Total sources of own funds
IV. Off-balance sheet liabilities
	Total liabilities
	Irrevocable obligations
	Issued guarantees

The structure of assets in 2009 compared to 2008 almost did not change. The first place is also occupied by the net loan debt of 60.77% (2008 - 62.81%).

A significant share of assets belongs to the funds of credit institutions in central banks 8.09%, which significantly increased by 20,142,592 thousand rubles over the year. But the share of securities in 2009 decreased, mainly due to the decrease in net investments in securities at fair value through profit or loss, by 8.31%.

This year the Bank also reduced its required reserves in the Central Bank by 3,487,823 thousand rubles, which amounted to 0.94% of all assets.

The structure of liabilities also did not undergo significant changes. The largest share of all liabilities is occupied by liabilities, which increased by 2.19% and amounted to 80,420,004 thousand rubles, this was facilitated by the appearance in the reporting year of Central Bank loans in the amount of 55,925,425 thousand rubles. rub. But customer accounts, although they decreased by 6.04%, still account for half of all liabilities of the Bank - 52.77%.

In the capital structure, the first place is occupied by shareholders' funds and amount to 20,418,422 thousand rubles. The total capital has decreased compared to the previous year. This was facilitated by a decrease in the revaluation reserve for securities available for sale from 0 to -3,011,465 thousand rubles.

The bank's profit for the reporting year amounted to 2,182,302 thousand rubles, which is 447,364 thousand rubles. less than the previous year.