Banks operate in the securities market as financial intermediaries and professional participants. How financial intermediaries banks acquire securities in order to generate income on them or manage other companies when acquiring a controlling stake in these companies, and also carry out their own issues of securities in order to obtain additional own funds.

As professional participants, banks carry out brokerage and dealer activities; placement and management of securities; depository activities.

In most countries, banks play an important, key role in the securities market. In general, the operations of commercial banks can be represented as follows:

Issuance operations

Banks of the Republic of Kazakhstan carry out emission activities. According to Kazakhstani legislation, banks can issue shares, bonds, certificates of deposit and savings certificates, promissory notes, derivative securities.

Issue of shares and bonds

On the basis of the issue of shares and bonds, the bank's own borrowed capital is formed. Among the bank shares, the most common are ordinary shares. Preference shares are issued less frequently. Bank bonds are even less popular than preferred shares, although in world practice bank bonds occupy a significant place in the financial market.

The instruction regulates the issue of securities, which joint stock bank can carry out in 3 cases:

at its institution;

with an increase in the size of the original authorized capital jar

by issuing shares;

when the bank attracts borrowed capital by issuing bonds or other debt obligations.

Operating regulatory documents it is stipulated that upon the establishment of a joint-stock bank, as well as during its transformation from a share to a joint-stock bank, all shares of the first issue shall be distributed among the founders of the bank. Moreover, the first issue of bank shares must consist of ordinary registered shares.

In the case when, simultaneously with the transformation of the bank from a share to a joint stock, the authorized capital of the bank increases, its growth can occur exclusively at the expense of additional contributions founders.

Re-issue of shares for the purpose of increasing the authorized capital of a joint-stock bank is permitted only after the shareholders have paid for all previously issued shares. It can contain both common and preferred shares.

Preference shares of the same type provide their holders with the same scope of rights and have the same par value. Owners preferred shares participate in the general meeting and have the right to vote: when deciding on the reorganization and liquidation of the company; when deciding issues on amending the charter of the company. The placement of re-issued shares can be carried out by subscription (open or closed), by distribution among the shareholders of the company and by conversion.

Closed subscription to shares is allowed if 2 conditions are met simultaneously:

the number of previously known buyers is not more than 500 persons;

the total volume of the issue is not more than 50 thous. minimum size wages at the date of the decision.

registration additional issue shares must be accompanied by the registration of the prospectus.

A bank can issue bonds to attract borrowed funds only on condition that all shares issued by this bank (if the bank is a joint-stock company) or full payment to the shareholders of their shares in the authorized fund (if the bank is a share bank) and for an amount not exceeding equity capital jar.

Let's take a closer look at the stages of the issue.

The decision to issue securities is made either by the general meeting of shareholders or by the Supervisory Board of the bank. To obtain the right to issue securities, the bank must: be break-even during the last 3 completed financial years; not be sanctioned by government agencies for violation of the current legislation for 3 years; have no overdue debts to creditors and payments to the budget. All data confirming the bank's compliance with these requirements must be contained in the issue prospectus. Also, the prospectus must contain information about the bank, its financial position and information about the upcoming issue of securities. The issue prospectus is prepared by the Bank's Management Board, signed by the Chairman of the Management Board and the Chief Accountant of the bank. For the first issue of shares of a newly established bank, an issue prospectus is prepared by its founders and signed by members of the bank organization body appointed by the founders.

Registration of the issue of equity securities.

To register the issue of securities, the issuing bank submits the following documents to the department for control over the activities of credit institutions in the financial markets of the Bank or to the territorial office of the Bank at its location:

• - application for registration;
• - an extract from the minutes of the meeting of shareholders, in which the decision was made to issue securities;
• - issue prospectus;
• - a document confirming the approval of this issue with the relevant institution of the State Committee of the Republic of Kazakhstan for antitrust policy and support for new economic structures.
• - a copy of the payment order for the payment of tax on transactions with securities.

The documents provided by the bank are considered by the registering authority for compliance with the current legislation, banking regulations and instructions. The registered documents and the registration letter are signed by an authorized person, certified by the seal of the registering authority and issued to the issuing bank. Together with the registered documents, a letter is sent to the bank to the address of the Settlement and Cash Center of the National Bank of the Republic of Kazakhstan at the place of maintaining the main correspondent account about opening a special savings account for him to collect funds received in payment of securities.

If the registration of securities was accompanied by the registration of the prospectus, the issuing bank shall publish the prospectus by publishing the prospectus in the form of a separate brochure. At the same time, the bank informs through the mass media about the issue of securities it is carrying out.

Placement of equity securities - i.e. alienation of their first owners through the conclusion of civil transactions. The placement of the issued securities begins after the registration and publication of the prospectus. It can be done in various ways:

• - The sale of shares can take place through the sale of shares. For this purpose, the buyer concludes a purchase and sale agreement for a certain number of shares. Here the issuing bank can use the services of intermediaries - financial brokers, with whom special commission agreements or orders are also concluded.
• - In payment for shares, contributions from shareholders to the bank's capital may be received material assets, intangible assets, foreign currency. At the same time, only those assets that can be used in the direct activities of the bank should be accepted as payment for the authorized capital. Their share in the structure of the authorized capital should not exceed 20 percent at the time of the bank's establishment. Subsequently, it should be increased to 10 percent (excluding the cost of buildings).
• - It is possible to sell shares by re-registering previously contributed shares into shares - when the bank is transformed from a share to a joint-stock bank.
• - Shares can be sold by replacing them with securities previously issued by the bank, as well as by consolidating and splitting shares.

Regardless of the type of sales, the price of all shares within each type in one issue when sold to the first owners must be the same, incl. when these shares are sold through intermediaries.

Bonds can be sold in two ways:

• - when selling on the basis of an agreement with buyers.
• - when replaced with convertible bonds or other securities previously issued by the bank.

The number of shares and bonds actually sold by the bank should not exceed their number expected to be issued and indicated in the registration documents of the issue. With regard to shares, there is a rule according to which their issue can be recognized as valid only if the actually paid increase in the authorized capital of the bank is at least 50 percent of the amount of the increase in the authorized capital that was supposed to be issued at the beginning.

The registration of the results of the issue occurs after the completion of the process of selling the securities. The issuing bank analyzes the results and draws up a report on the results of the issue, which is signed by the Chairman of the Bank's Management Board and submitted to the registering authority.

The report on the results of the issue of equity securities must contain the following information:

• - the dates of the beginning and the end of the placement of securities;
• - the number of placed securities;
• - actual price placement of securities (by type of securities within the framework of this issue);
• - the total volume of receipts for the placed securities.

The registering body considers the report on the results of the issue of equity securities within 2 weeks and, in the absence of violations related to the issue of securities, registers it. The publication of the results of the issue of securities must be made by the issuing bank in the same press where the announcement of the issue was published.

Banks, the registration of the issue of securities of which was accompanied by the registration of the issue prospectus annually within 2 weeks after the general annual meeting of shareholders, submit to the registering authority a report containing data about the bank, its financial position, as well as information about the shares and bonds issued by the bank , information on other types of securities issued by the bank.

At initial placement shares, the issuing bank has no right to acquire them at its own expense, in the secondary market, banks can act as their own shares, but in cases strictly prescribed by law. Many joint stock banks in order to maintain the market price of their own shares, they are highly active in the secondary market for their own shares.

It is known that the market share price reflects the position of the bank in the market, its stability and profitability. The fall in the exchange rate serves as a signal of emerging unfavorable trends in the development of this bank and can provoke not only the dumping of its shares by shareholders, but also a massive outflow of deposits from the bank, which will have a detrimental effect on it. Therefore, in the event of a decline in the share price, banks not directly, but through investment companies actively buy them in the secondary market, which leads to an artificial increase in their rate and creates the appearance of strengthening the bank's market positions.

Issue of bills

Kazakhstani banks are actively developing the issue of promissory notes as short-term debt obligations. It should be noted that although the issue of promissory notes is an issue operation, the promissory notes themselves are issued without registration of the issue prospectus, therefore, this operation it is legitimate to characterize it as the issue of promissory notes. Banks use the issue of promissory notes mainly in order to raise funds for the active operations of the bank as much as possible for a lower fee and with the lowest overhead costs compared to using traditional credit and deposit forms of investment. Reducing overhead costs is achieved due to the fact that performing the same function as a certificate of deposit, a bill of exchange has a simplified issuance procedure - there is no registration procedure. The current rules presuppose only the notification of the National Bank of the Republic of Kazakhstan on the issue of promissory notes by the bank. At the same time, the current bill of exchange legislation allows issuers to independently establish rules for issuing bills of exchange that do not contradict this legislation, which makes bills of exchange the most attractive for banks. Banks can issue bills of exchange both in series and on a one-off basis. The attractiveness of a single bill of exchange is that the conditions for its issue and circulation can be determined taking into account the interests of a particular depositor. Banks give a clear preference to the serial issue of promissory notes, since in this case a large number of investors and a significant amount of resources are attracted.

Initially, banks began to issue promissory notes at a discount. In this case, the buyer's income is the difference between the face value of the bill and the purchase price. The formula for calculating the discount can be depicted as follows.

where C is the amount of the discount

T - due date

K - the amount of the bill

P - discount rate

But later it turned out that interest-bearing bills are more convenient and profitable for both banks and clients. The calculation uses the following formula:

where P is the amount of interest

N - the face value of the bill

T is the term of the bill in days

Ps - the interest rate for calculating interest on the bill of exchange indicated in the text of the bill.

When raising funds by issuing bills of exchange, banks must deduct a certain percentage of their amount to the fund required reserves Central Bank of the Republic of Kazakhstan (currently this percentage is 7%). Thus, by issuing an interest-bearing bill, the bank immediately receives at its disposal an amount equivalent to the par of the bill, from which the reservation is made. When a discount bill is issued, the bank receives an amount less than par, but is obliged to make a reservation for the full amount of its obligation.

Issue of deposit and savings certificates

The issue of certificates of deposit and savings certificates can be carried out exclusively by banking institutions, pursuing the following purposes:

Attraction of deposit resources for active operations. This is achieved through:

• - advantages in taxation;
• - ensuring the liquidity of investments.

Kazakhstani banks set flexible terms for certificates of deposit from 1 day to 1 year. This is due to the fact that, unlike promissory notes, certificates of deposit can only be urgent, the maximum circulation period of certificates of deposit is 1 year, savings certificates - 3 years.

Reduce investment risk as much as possible.

By carrying out this operation in various banks, the client can reduce the already low risk of purchasing certificates of deposit.

Expansion of the bank's clientele by diversifying the services provided to the client.

Reducing liquidity risk. By issuing certificates of deposit, the bank receives liabilities with a fixed term, which allows it to reduce its liquidity risk.

The procedure for issuing certificates of deposit and savings certificates of commercial banks is less formalized than the issuance of shares and bonds.

The effectiveness of the operation, first of all, depends on how much the bank has studied the situation on the stock market and, in particular, in the sector of certificates of deposit and savings certificates. It is important to choose the right conditions and time of their issue, as well as offer the investor income adequate to the state of the stock market.

The general formula for calculating certificate income is as follows:

where C is the amount received by the investor under the interest certificate;

Н - the nominal value of the certificate;

t is the time of ownership of the certificate;

T is the number of days in a year;

n is the interest rate.

The auction method has proved to be an effective method for the initial placement of certificates of deposit. When conducting it, the bank offers investors the limits of interest rates at which certificates of deposit are offered for placement. First of all, applications for the purchase of certificates are satisfied, which indicate the best conditions from the bank's position - minimum percentage placement.

The secondary market may be supported by the issuing bank. In this case, he must deal with the certificates, offering two-way quotes.

In this case, it is advisable to offer the buyback price according to the formula:

where tu is the time the first investor owned the certificate.

In the event that interest rates in the market went up, buying a certificate from an investor in the secondary market at the interest rate set by the terms of the issue is unprofitable, and n is set at the level of the market value nr.

Repurchase in case of falling interest rates is an efficient operation for a bank, but economically unprofitable from an investor's point of view. That is why certificates sell well during the struggle to reduce inflation, accompanied by a fall in market interest. During the period of gradual unwinding of inflation, it is advisable for banks to abandon certificates in favor of more convenient bills.

The price that the bank sets for the sale of previously purchased certificates is determined based on the time to maturity and the interest rates that will allow the bank to sell the certificate.

where tp is the time until the certificate expires;

nr is the adjusted market interest rate.

The trend of the modern period is the active penetration of commercial banks into the securities market in direct and indirect form. In Japan, the USA and Canada, their place in the stock markets is regulated by law, so banks use indirect ways of participating in investment and intermediary activities (trust companies, cooperation with brokerage firms, lending to investment companies and banks). In countries where it is legally allowed to carry out all types of transactions with securities, banks act as issuers, intermediaries and investors.

In Russia, a mixed model of the securities market has been chosen, i.e. presence on it with equal rights of both commercial banks and non-bank investment institutions. Credit institutions on the securities market can act as issuers of their own issued and non-issuable securities, investors, purchasing securities at their own expense, and intermediaries, performing operations on placement, depository accounting of securities and their management.

The classical operations of banks with securities can be combined into several groups according to the criterion of the goals:

• · Operations to maintain liquidity reserves (issuance of certificates, bills of exchange);
• · Operations with the aim of generating income in a relatively long period (investments in shares and bonds of other issuers);
• · Operations similar to lending to business entities (accounting for commercial bills, factoring);
• · Operations to attract resources through the issue of its own securities (issue of shares and bonds by the bank itself);
• · Operations in which the bank satisfies the needs of customers, acting as their agent (mediation and services in the placement of securities).

The liquidity of the bank's balance sheet and the replenishment of its financial resources can be ensured by the issue of bank certificates.

The certificate is a written certificate of the issuing bank on the deposit of funds, certifying the right of the depositor or his successor to receive the deposit amount and interest on it after the expiration of the specified period (see Table 2).

A certificate of deposit can be issued only to legal entities registered in the territory of the Russian Federation or another state that uses the ruble as an official currency.

A savings certificate is issued only to individuals.

According to the method of release, both are divided:

• · For issued on a one-off basis;
• · Produced in series.

By the way of registration:

• · For registered;
• · Bearer.

By terms of circulation:

• · Urgent;
• · On demand.

The circulation period for certificates of deposit is set within one year, and for savings certificates - within three years.

According to the terms of payment:

• · With a regularly paid interest rate until the expiration of the billing period;
• · With payment of interest on the day of the certificate redemption.

Repayment is done in three ways:

• · New release certificates;
• · Non-cash transfers to other types of deposits or to a demand account;
• · Cash (for individuals).

Mandatory details are:

• · The name "deposit" or "savings" certificate;
• · An indication of the reason for the issue (making a deposit or savings deposit);
• · The date of the deposit;
• · Date of expiry of the certificate;
• · The size of the deposit or contribution;
• · Unconditional obligation of the bank to return the deposited amount;
• · Rate of interest on a deposit or deposit;
• · The amount of due interest;
• · Name and addresses of the issuing bank and registered depositor;
• · Signatures of two persons in charge of the bank responsible for issuing the certificate, sealed by the bank.

A bank bill is a security containing an unconditional promissory note of the drawer (bank) to pay a certain amount to the drawer in a specific place at a specified time. A bank bill can be used by its owner as a means of payment for goods and services, it can be transferred to a third party by endorsing it (see Table 2).

Credit organizations can carry out the following types of professional activities (on the basis of a special license):

• 1) brokerage,
• 2) dealership,
• 3) depository,
• 4) management of securities,
• 5) determination of mutual obligations (clearing),
• 6) maintaining the register of owners of securities.

Brokerage - performing civil transactions with securities as an attorney or commission agent acting on the basis of a commission or commission agreement, as well as a power of attorney for such transactions in the absence of indications of the powers of an attorney or commission agent in the agreement.

The brokers' scope of activity also includes the provision of advice on the placement of securities on the secondary market. Brokers can carry out their activities with a special license.

Banks playing the role of brokers carry out their intermediary activities without obtaining a special license, if the charter provides for brokerage activities. Banks acting as brokers work with their clients on the basis of commission agreements or commission agreements.

Dealer activity - the execution of transactions for the purchase and sale of securities on its own behalf and at its own expense by publicly announcing the purchase or sale prices of certain securities with the obligation to buy or sell these securities at the prices announced by the person carrying out such activities. Various investment institutions act as dealers, however the main role banks play here. Their role increased significantly after government securities entered the financial market.

Large clients can have their own investment advisor in the bank. For especially large clients - investors in the government bond market, there is an opportunity to rent terminals and conduct purchase and sale transactions with the help of an experienced bank specialist.

Under contract trust management one party (the founder of the management) transfers the securities to the other party (the trustee) for a certain period of time in trust, and the other party undertakes to manage them in the interests of the founder of the management or the person indicated by him (beneficiary).

Among the fiduciary operations with securities are:

• · Primary placement of securities (organization of the issue, primary placement of securities on behalf of clients - underwriting);
• · Maintenance of the register of shareholders and registration of transactions with securities;
• Payment of annual income to shareholders (in cash or cashless forms either by reinvesting income from securities);
• · Asset management on behalf of clients (purchase on behalf of the client and at his expense of securities, formation of a portfolio of securities in accordance with the decree, borrowing from the client, sale of securities on behalf of the client);
• · Depository services (maintenance of DEPO accounts, settlements on transactions with securities). Trust operations enable owners of funds and securities to overcome investment uncertainty, reduce investment risk; for banks, they are less risky than operations with securities at the banks' own account.

Securities management activities - implementation legal entity or individual entrepreneur on his own behalf for a fee within a certain period of trust management transferred to him in possession and belonging to another person in the interests of this person or third parties indicated by this person:

• · Securities;
• · Monetary funds intended for investment in securities;
• · Cash and securities received in the process of managing securities.

Clearing activities - activities to determine mutual obligations (collection, reconciliation, correction of information on transactions with securities and preparation accounting documents on them) and their offset for the supply of securities and settlements on them.

Depository activities - provision of services for the storage of securities certificates and / or accounting and transfer of rights to securities. Only a legal entity can be a depositary. The person using the services of the depository for the safekeeping of securities and / or accounting for rights to securities is called the depositor. The conclusion of a depository agreement does not entail the transfer of ownership of the depositor's securities to the depositary.

Various consulting companies operate on the securities market. Banks can act as consultants; they provide a wide range of consulting services:

• · Examination of specific transactions;
• · Study and forecasting of the situation on the stock market;
• · Legal advice;
• · Preparation and organizational and methodological support of the issue of securities;
• · Organization and support of the admission of securities to the exchange;
• · Development of methodological and regulatory documentation for transactions with securities;
• · Evaluation of securities;
• · Assessment of a portfolio (set) of securities, development of a general portfolio strategy, consulting on portfolio management;
• · investment service;
• · Development of draft contracts of purchase and sale, contracts of trust management.

Topic 7. Banks operations with securities

Targets and goals The activities of banks in the securities market can be divided into four types, which reflect the different roles played by banks: Activities related to traditional banking operations. The activities of banks as issuers. Banks' activities as investors. Banks' activities as professional participants in the securities market: dealership; brokerage; depository; clearing; trust management. Each of these types of activities includes a wide range of various operations that mediate both the movement of the securities themselves and the exercise of the rights arising from these securities. The purpose of this topic is to study objects, parties, characteristic features each type of operation.

7.1. Traditional securities banking

Traditional banking operations with securities are operations related to the main banking activity: raising and placing funds, performing payment functions.

TO this kind operations include the following banking operations.

• Credit operations.

The bank grants loans to clients for operations in the stock market. Also, the bank can use securities as collateral for a loan.

• REPO transactions.

A repo is an agreement to repurchase, that is, an agreement whereby a seller undertakes to buy a security back from a buyer at a specified price on a specified date in the future. With the help of repo, banks carry out short-term borrowing of funds in exchange for providing the lender with securities with the obligation to buy them back.

From the point of view of the borrower, such a transaction is called a "repo". From the point of view of the lender, this transaction is called a "reverse repo".

The obligation to repurchase corresponds to an obligation to sell again, which is assumed by the other party. Buybacks are made at a different price from the original sale. The difference between prices is the income that should be received by the party acting as the buyer of securities (seller of funds) in the first part of the repo. In practice, the seller's income corresponds to the loan rate.

• Bill of exchange loans.

Bill credits are subdivided into bill issuer and bearer.

Issuer loans - loan agreement, in accordance with which the borrower receives as a loan a package of own bills of the creditor bank, written out by the bank for him on total amount specified in the contract.

Bearer promissory notes are of two types: accounting and collateral.

A discounted bill of exchange credit (bills of exchange accounting) is a purchase by a bank. Since the holder of the bill, who presented the bills of exchange to the bank for accounting, receives payment on them immediately, that is, before the expiration of the payment period for the bill, for him this actually means receiving a loan from the bank.

A collateralized bill of exchange loan (loans secured by bills of exchange) differs from the accounting of bills, firstly, in that the ownership of the bill of exchange is not assigned to the bank, the bill is only pledged by the bill holder for a certain period with subsequent redemption after the loan is repaid.

• Guarantees for the placement of securities.

This is a kind of insurance against the risks of investment companies that place securities.

Banks acting as guarantors for the issue of securities undertake an obligation to the investment company conducting the placement of securities that in the event of an incomplete placement of shares or a bond loan, they will accept them into their account at a pre-agreed rate. Banks receive a commission and risk reward for a full offering of shares or a loan.

Suppose bank A, acting as an investment company, assumes the obligation to place bonds of enterprise X. Bank B acts as a guarantor for the placement of this bonded loan. If the loan is not placed, then bank B is obliged to accept the bonds not placed by bank A at a predetermined cost.

• Execution of payment functions.

Banks act as payment agents for issuers, carry out settlements based on the results of operations on the securities market.

7.2. Banks as issuers

The activity of banks as issuers is the issuance of their own securities by banks.

The bank's activities in this area include operations:

1. on the issue (issue) of own securities and their initial placement;
2. to ensure the implementation of the rights of investors:
   • payment of interest and dividends;
   • redemption of debt securities at maturity;
   • creating conditions for the participation of shareholders in the management of the bank, including general meetings shareholders;
   • providing information on the activities of the issuing bank, in accordance with applicable law.

Commercial banks, acting as issuers, issue the following securities:

1. emission - shares, bonds;
2. non-emissive - certificates, fun.

Procedure for the issue of shares

Commercial banks issue shares for the purpose of forming their own capital in the form of authorized capital, if they are created in the form of a joint stock company.

The Bank of Russia has established unified procedures for the registration and issuance of securities by credit institutions. These procedures provide, firstly, state registration all issues of securities, regardless of the size of the issue and the number of investors; secondly, registration of securities issues with the Licensing Department of the Bank of Russia or with regional offices of the Bank of Russia.

The procedure for issuing securities includes the following stages:

1. making a decision on the placement of securities;
2. approval of the decision on the issue (additional issue) of securities;
3. state registration of the issue (additional issue) of securities;
4. placement of securities;
5. state registration of the report on the results of the issue (additional issue) of securities.

Credit organizations created in the form of joint stock companies form the authorized capital from the par value of shares acquired by shareholders. Credit institutions can only issue registered shares in documentary and non-documentary form, ordinary and preferred shares.

Shares are deemed to be registered if, in order to exercise the property rights associated with their ownership, it is necessary to register the name of the owner of the share in the books. When a registered share is transferred from one owner to another, appropriate entries must be made in the register.

The first issue of shares must consist entirely of ordinary registered shares. The issue of preferred shares is not allowed. This situation is caused by the fact that the bank in the first year of operation may not ensure the payment of dividends on preferred shares in the established amount.

To increase the authorized capital, a joint-stock bank may issue shares only after the shareholders have paid in full for all the shares previously issued by the bank.

When increasing the authorized capital, banks have the right to issue both ordinary and preferred shares. The share of preferred shares should not exceed 25% of the amount of the authorized capital.

Procedure for issuing bonds

Bonds of commercial banks are securities that certify the loan relationship between the owner of the bonds (lender) and the bank (borrower), bringing the owner income.

The right to issue bonds

Banks are allowed to issue bonds only after they have paid in full for their authorized capital.

Bonds are issued by the decision of the Board of Directors of the bank. Bank bonds are issued on the basis of a special issue prospectus, which must be published in print and registered with the Licensing Department of the Bank of Russia or with a regional branch of the Bank of Russia.

Banks can issue bonds:

• registered and bearer;
• interest and discount;
• with a one-time repayment and with repayment by series within a certain time frame;
• secured and unsecured; when issuing secured bonds, the security may be a pledge of the bank's own property or security provided to the bank for the purpose of issuing bonds by third parties. Bonds without collateral may be issued no earlier than the third year of the bank's existence, subject to the proper approval by that time of two annual balance sheets and for an amount not exceeding the size of the bank's authorized capital. That is, security by third parties when issuing bank bonds is required in the following cases:

• the existence of the credit institution for less than two years (for the entire amount of the bond issue);
• the existence of a credit institution for more than two years when issuing bonds for an amount exceeding the size of the authorized capital (the amount of collateral must be at least the amount exceeding the size of the authorized capital);
• convertible into other securities and non-convertible.

A credit institution established in the form of an open joint-stock company has the right to place bonds convertible into shares by open and closed subscription, and a credit institution created in the form of a closed joint-stock company - only in the form of a private subscription. The shareholders of the credit organization - the issuer have the preemptive right to purchase bonds and other securities convertible into shares placed by means of an open issue. Moreover, these persons must be notified in advance by the credit institution about the possibility of exercising or the preemptive right to purchase such bonds. A person who has the preemptive right to purchase bonds convertible into shares has the right to exercise this right in whole or in part by submitting to the issuing bank a written application for the purchase of such bonds and a document confirming their payment. At the end of the term valid for shareholders who have the right of pre-emptive purchase of bonds convertible into shares, the issuing bank may place these bonds among another circle of persons - investors.

In the Russian Federation, the issue of bonds by joint-stock commercial banks is not widespread. In countries with developed market economy banks issue a large number of bonds that are widely popular with money market investors.

Procedure for issuing certificates

Bank certificates - securities certifying the amount of the deposit made to the bank and the rights of the depositor (certificate holder) to receive the deposit amount and the interest specified in the certificate after the expiry of the specified period, at the bank that issued the certificate, or at any branch of this bank.

A certificate of deposit can be issued only to legal entities, and a savings certificate - only to individuals.

The right to issue certificates

The bank has the right to issue certificates under the following conditions:

• banking activity for at least two years;
• publication annual reporting, confirmed by an auditing firm;
• compliance with banking laws and regulations of the Bank of Russia;
• fulfillment of mandatory economic standards established by the Bank of Russia;
• fulfillment of the mandatory reserve requirements of the Bank of Russia;
• availability of a reserve fund in the amount of at least 15% of the actually paid up authorized capital.

Banks can issue certificates:

• deposit and savings

(certificates of deposit are issued for sale only to legal entities, savings certificates are issued only to individuals);

• in a single order and in series

(one-time certificates are issued in isolated cases, for the needs of a specific client. Serial - as part of the bank's deposit policy in order to attract funds in a certain market segment);

• registered and bearer.

Bank certificates cannot be used as a means of payment in payments for goods and services. They perform only the function of a store of value. However, the holder of a bearer certificate may assign the right to claim the certificate to another person. According to the bearer certificate, this assignment is carried out by simple delivery, and according to the nominal one - by means of a transfer inscription (cession), which is drawn up on the back of the certificate form. This inscription is a bilateral agreement between the person establishing his rights (assignor) and the person acquiring these rights (assignee).

Commercial banks have the right to place their certificates after registration of the conditions for their issue and circulation at the territorial office of the Bank of Russia.

Certificates issued by the bank must be printed.

Certificates of Russian banks can be issued only in the currency of the Russian Federation, and, accordingly, can only be circulated on its territory.

The issuance of certificates to legal entities and individuals is carried out only after they have transferred the appropriate amount to special accounts in the bank, designed to record issued certificates.

Upon the expiration of the certificate's validity period, the bank returns the deposit amount to its owner (holder) and pays income based on the amount established interest rate, term and amount of the deposit. The owner must present the certificate to the issuing bank along with a statement on the withdrawal of funds according to the certificate indicating the account to which they are to be credited.

Advantages of bank certificates:

• the possibility of transferring to another person;
• use as collateral when obtaining loans;
• expanding the circle of potential investors for the bank by attracting intermediaries for the sale of certificates.

Procedure for issuing promissory notes

A bank bill is an unconditional written promissory note of a strictly established form, which gives its owner (holder of a bill) an indisputable right, upon maturity, to demand from the debtor the payment of the amount indicated in the bill.

Banks issue bills on demand or with an indication of the term of presentation.

In addition, there are interest, discount and interest-free bills. Interest bills of exchange give the right to the first bill holder or his legal successor to receive, upon their presentation to the bank for redemption, the bill amount and the interest income due, discount promissory notes - discount income, which is defined as the difference between the nominal amount of the promissory note at which it is redeemed and the price at which it was sold to the first holder of the promissory note. By interest-free the bill holder receives the nominal amount of the bill for which it was sold.

Signs of a bill of exchange as a monetary debt claim:

1. the bill of exchange claim is clothed in the form of a security, that is, it can be carried out only by the holder of the bill of exchange (bill holder) and executed by the debtor only to the extent of this document;
2. a bill of exchange requirement is abstract, it is removed from specific property and legal relations, which served as a pretext for issuing a bill. A bill of exchange claim is based on the text of the bill of exchange, and not on that legal fact (sale and purchase agreement, loan, etc.), which gave rise to the obligation of one person to pay the other a certain sum of money... A bill of exchange is not secured by a mortgage, loan, forfeit;
3. the bill of exchange requirement is strictly formal, it arises only if the formal requirements imposed by the law on the text of the bill of exchange are met. The content of the bill is strictly prescribed by law and other terms and conditions are considered unwritten. It must contain the required details. The absence of at least one of them deprives the bill legal force... Obligatory bill details:
   • bill label - the name "bill" included in the text of the document and expressed in the language in which this document is drawn up;
   • a simple and unconditional offer to pay a certain amount - for bills of exchange. A simple and unconditional promise to pay a certain amount - for a promissory note;
   • the name of the person who must pay (the payer) - only for a bill of exchange;
   • indication of the due date;
   • an indication of the place where the payment is to be made. The bill of exchange may be payable at the place of residence of the third party, or at the same place where the place of residence of the payer, or in any other place;
   • the name of the person to whom or by order of whom the payment should be made. A bill of exchange may be issued by order of the drawer himself, to the drawer himself at the expense of a third party;
   • indication of the date and place of drawing up the bill;
   • the signature of the person who issues the bill (the drawer). The drawer is responsible for acceptance and payment.

   Procedure for payment of a bill:

• upon presentation - payable on the day of presentation for payment. It must be submitted for payment within a year from the date of preparation;

In a bill that is payable on demand or after a certain amount of time from presentation, the drawer may stipulate that interest will be charged on the bill amount. In any other bill of exchange such a condition is considered unwritten;

• in a certain amount of time from presentation (the payment term is determined either by the date of acceptance or by the date of protest);
• in so much time from compiling:

• after a certain number of days - the due date is considered to have occurred on the last of these days, the day of the statement is not taken into account;
• after a certain number of months - the due date falls on that day of the last month, which corresponds to the date of drawing up the bill, and if this last month there is no such date, then on the last day of this month;
• on a certain day - on a certain date, or at the beginning, middle, end of the month. In the latter case, the due date for payment will be accordingly;

a bill of exchange requirement is distinguished by its easy handling: it is transferred from one person to another in a simplified way by means of a transfer inscription (endorsement) on the reverse side of the bill or on an additional sheet;

a bill of exchange claim enjoys priority when satisfied in court.

Advantages of bank bills:

• lack of mandatory registration of the rules and conditions of issue with the Bank of Russia;
• the ability to issue in batches and on a one-off basis;
• use as a means of payment for goods and services by individuals and legal entities;
• transfer by endorsement without restrictions;
• use as collateral when obtaining a loan;
• increased liquidity, secured by the joint and several liability of the endorsers;
• possibility of issue in national and foreign currency.

7.3. Banks' activities as investors

The investment activity of a bank in the securities market is usually understood as its activity in investing in securities: on its own behalf, on its own initiative, at its own expense in order to obtain direct and indirect income.

The bank receives direct income in the form of dividends, interest or profits from resale.

Indirect income is generated by expanding the market share controlled by the bank through subsidiaries and affiliates, and increasing their influence on customers through participation in corporate governance based on the ownership of their shareholdings.

Investment activity involves:

1. carrying out transactions for the purchase and sale of securities in your portfolio;
2. attraction of loans secured by purchased securities;
3. receipt of interest, dividends and amounts due in redemption of securities;
4. participation in the management of the joint stock company - the issuer;
5. participation in bankruptcy proceedings as a creditor or shareholder, receipt of the due share of property in the event of liquidation of the company.

The objects of bank investments are a wide variety of securities. In Russian banking practice, depending on the investment instruments used to form their own portfolio for accounting and reflection in the balance sheet, investments in debentures(bonds, bills, certificates) and investments in shares.

When analyzing a bank's investments in stocks, one should distinguish between direct and portfolio investments.

Direct investments take the form of investments in shares in the case when the bank acquires (or reserves) controlling stake shares of a company in the management of which he is directly involved, exercising the right to vote on the shares owned by him.

Portfolio investments in shares are carried out in the form of creating portfolios of shares of different issuers, managed as a whole. The purpose of such investments by banks is to make a profit on the basis of investment diversification.

Portfolio - an accounting category that unites securities depending on the purpose of their acquisition and quotation on the organized securities market. Distinguish between a trading portfolio, an investment portfolio and a portfolio of controlling participation.

1. Trading portfolio - quoted securities purchased for the purpose of generating income from their sale (resale), as well as securities that are not intended to be held in the portfolio for more than 180 days and can be sold.

Quoted Securities - Securities that meet the following conditions:

• admission to circulation on an open organized market or through a trade organizer holding an appropriate license The Federal Commission on the securities market, and for foreign organized markets or trade organizers - the national authorized body;
• turnover for the last calendar month on the organized open market is at least 5 million rubles. (the amount established for the inclusion of securities in the first level quotation list);
• information about the market price is publicly available, that is, it is subject to disclosure, or access to it does not require special rights.

2. Investment portfolio - securities purchased for the purpose of obtaining investment income (in the form of interest, coupon income, dividends, etc.), as well as in the expectation of the possibility of their value growth in the long or indefinite future.
3. Controlling participation portfolio - voting shares purchased in an amount ensuring control over the management of the issuing organization or significant influence on it.

The investment portfolio provides the bank with profitability, and the trading portfolio provides liquidity. Banks independently determine the procedure for forming a trade and investment portfolio and disclose it in such internal documents as "Investment policy of the bank" and " Accounting policy jar".

The most important component of the bank's investment activities is the management of its own portfolio of securities in such a way as to ensure the creation of a liquidity reserve, objects of collateral for obtaining short-term loans, the opportunity to participate in the management of enterprises (companies) and profit.

The main conditions for effective investment activity for banks are:

1. functioning of a developed stock market in the country;
2. the bank has highly professional specialists who form and manage a portfolio of securities;
3. diversification of the investment portfolio by types, terms and issuers of securities.

One of the most important problems in the formation of an investment portfolio is the assessment investment attractiveness... There are two approaches in banking practice. The first approach is “ technical analysis»- based on market conditions, ie, the dynamics of exchange rates is being investigated; the second - "fundamental analysis" - is based on the analysis of the investment characteristics of a security, reflecting the financial and economic position of the issuer or the industry to which it belongs.

The portfolio management process can be divided into two levels: strategic and operational.

At the strategic level, based on macroeconomic forecasts and taking into account expert assessments, the main guidelines for investment are established: risk limits, portfolio structure restrictions, profitability plans, portfolio maturity, etc. Depending on the method of conducting operations, strategies are divided into:

1. active;
2. passive.

At the heart of active strategy is forecasting the situation in various sectors of the financial market and the active use of forecasts by the bank's specialists to adjust the structure of the securities portfolio. Passive strategies, on the contrary, are more oriented towards the index method, that is, the portfolio of securities is structured depending on the yield. The yield on securities must correspond to a certain index and implies an even distribution of investments between issues of different maturities, that is, the "maturity ladder" must be maintained. In this case, long-term securities provide the bank with a higher income, and short-term securities provide liquidity.

At the operational level, based on the established restrictions and limits, the current management of the securities portfolio is carried out in accordance with the emerging economic situation.

The bank's investment operations are associated with certain market risks. To mitigate losses from impairment of securities, banks should create reserves. For this, on the last business day of the month, a revaluation is carried out at the market price.

To calculate prudential standards, the Bank of Russia has established risk ratios for investments in securities: in bonds of the Bank of Russia - 0%, in debt obligations of the Russian Federation and "a group of developed countries" - 10%, in debt obligations of countries not included in the "group of developed countries" , - 10%, in debt obligations of the constituent entities of the Russian Federation - 20%.

7.4. The activities of banks as professional participants in the securities market

All types of professional activities in the securities market are carried out on the basis of a special permit - a license issued by the Federal Commission for the Securities Market (FCSM of Russia). The activities of professional participants in the securities market are licensed by three types of licenses:

1. license professional participant the securities market;
2. a license to carry out activities for maintaining the register;
3. stock exchange license.

Banks currently can obtain a license of the first type, which is divided into types of professional activities in the securities market: brokerage; dealership; trust management of securities; depository; clearing activities.

• Brokerage - the execution by a bank of civil law transactions with securities as an attorney or commission agent acting on the basis of a commission or commission agreement, as well as a power of attorney for such transactions in the absence of instructions on the powers of an attorney or commission agent in the agreement.
• Dealership - the execution by the bank of transactions for the purchase and sale of securities on its own behalf and at its own expense by publicly announcing the purchase and / or sale prices of certain securities with the obligation to purchase and / or sell these securities at the prices announced by it.
• For the management of securities - the exercise by the bank on its own behalf for a fee within a certain period of trust management of the securities transferred to it and belonging to another person in the interests of this person; funds intended for investment in securities; cash and securities received in the process of managing securities.
• Depository - provision of services for the storage of securities certificates and / or accounting and transfer of rights to securities.
• Clearing - activity to determine mutual obligations (collection, reconciliation, correction of information on transactions with securities and preparation of accounting documents on them) and their offset for the supply of securities and settlements on them.

The activities of banks as professional participants in the securities market are associated with the exchange securities market, which includes:

1. Organizational Securities Market (Organizational Securities Market), that is, the market for state (OFZ), municipal and federal subjects of securities, as well as blue-chip stocks traded in the system currency exchanges(MICEX, SPbVB);
2. the market for corporate securities traded (traded) mainly within the Russian Trading System (RTS), as well as through the Moscow stock exchange(IFE) and other (regional) stock exchanges.

The exchange securities market is characterized by clear rules for organizing trades, concluding and executing transactions for each type of securities listed above. It can be used for both the primary placement of these securities (in the form of auctions) and their secondary trading. This market is represented by trading, settlement and depository systems operating in a single complex mode, which provides dealers with a full range of services from the conclusion of transactions to their execution:

• the trading system implements the very procedure for concluding purchase and sale transactions with securities;
• the settlement system provides settlements and cash payments for these transactions;
• depository system - accounting of the rights of owners on securities accounts and their transfers on the specified accounts.

Moreover, the organizations included in these systems, which form the infrastructure of the exchange market, are interconnected by contracts for the provision of services. As a rule, securities are allowed to trade on stock exchanges and within the framework of the RTS system only in electronic uncertified form, but at the same time they may have paper duplicates.

The principle of execution of transactions on the organized securities market - the procedure for fulfilling obligations for the delivery of securities and cash settlements for transactions concluded during the trading day (session) is called the principle of execution. Distinguish between the gross principle and the net principle:

1. Gross principle - obligations to supply securities and settlements are fulfilled for each transaction.
2. Net principle - the net position for the receipt / delivery of securities and the balance of settlements determined based on the results of the trades are executed. Net position for delivery - the excess of obligations over requirements for the delivery of securities. Net position for receipt - excess of claims over obligations to receive securities. Balance of payments - the difference between claims and obligations to pay / receive funds.

The bank's investments in securities are accounted for taking into account market fluctuations and impairment risks. It is maintained at the purchase price or at the market price:

• purchase price accounting is an accounting method in which the book value of a security does not change while it is in the respective portfolio. For securities recorded at the purchase price, reserves are formed for possible losses in the manner prescribed by the regulations of the Bank of Russia;
• market price accounting is an accounting method in which investments in securities are periodically revalued at market prices. This method does not create a provision for impairment of securities and a provision for possible losses. The market price is understood as the price of a security calculated by the trade organizer.

Cost of securities - the cost of investments in securities upon disposal based on the cost estimate method. Cost estimation method - the procedure for writing off securities upon disposal.

• FIFO method - investments in the corresponding number of the first in the time of crediting of securities are written off to the prime cost.
• LIFO method - investments in the corresponding number of the most recent securities are written off to the prime cost.
• Average cost valuation method - investments are written off to the cost price regardless of the order in which the securities are credited.

Dealer operations

Dealer activity is deemed to be the execution of transactions for the purchase and sale of securities on its own behalf and at its own expense through a public announcement of the purchase and / or sale prices of these securities at the announced prices.

In order to acquire the status of a dealer and carry out dealer activities, credit institutions must simultaneously hold licenses of a professional participant in the securities market in the field of dealer and brokerage activities, and often also for depository activities, as well as meet the requirements of the trading and settlement systems of the corresponding segment of the exchange market (ORS or RTS) ... That is, a certain limited circle of banks can be dealers in the securities market. Other banks, which are not included in their number, can carry out investment operations for themselves and their clients through these dealer banks on the basis of a commission agreement, acting as principals (committees).

A dealer bank, acting as an investor, carrying out investment operations for itself (on its own behalf and at its own expense), when announcing in the media about an auction of certain securities (during their initial placement), it can submit to the trading system (on the MICEX or RTS) orders for their purchase by transferring the corresponding amount to the settlement system of the exchange.

Applications for the conclusion of transactions are submitted to in electronic format and there are two types: competitive and non-competitive:

1. The competitive bid (offer) indicates the price at which the applicant is willing to buy securities and their quantity.
2. The non-competitive offer indicates the number of securities that the buyer is willing to purchase at the auction at the weighted average price.

First, competitive bids are satisfied at a price equal to or higher than the cut-off price, and then, within a predetermined limit, non-competitive bids are executed.

To participate in the secondary auctions for the purchase and sale of securities already in circulation on the days of trading sessions, the dealer bank places its orders in the trading system indicating their direction (purchase or sale). Cash and securities positions are assigned to each trading participant prior to their commencement. Cash positions are determined on the basis of data on the amount of funds reserved by the participant on the corresponding account in the settlement system of the exchange. Positions in securities are established based on the number of securities deposited by the participant on the respective custody accounts with the Authorized Depository. In the future, in the course of trading, this makes it possible to ensure control over the adequacy of collateral to comply with the basic principle of exchange trading: “delivery versus payment”, and, consequently, to protect banks - participants in the stock market and their clients from the risk of losing money and securities.

The conclusion of a transaction in the secondary trading system occurs automatically when the following conditions of two opposite directions of orders coincide: the name of the securities, the number of securities, the price for one security, the rate of fixed compensation, the transaction settlement code (TO, VO-VZO).

In another variant, the order is executed depending on its type: limited or market.

1. A limit order indicates an agreement to buy a certain number of securities (or lots) at a price not higher than that specified in it or sell at a price not lower than the minimum sale price specified in such an order.
2. A market order agrees to buy or sell a certain number of securities (or lots) at best prices or at the rate of electronic fixing.

The document confirming the filing of an application by a member bank of the stock section of the exchange to conclude a transaction is an extract from the trading minutes, which reflects all orders submitted by the bank-member of the section during the trading day.

The document confirming the conclusion of the transaction by a member bank of the stock section of the exchange is extract from the register, which reflects all transactions concluded by a member of the section during the trading day.

Brokerage

Brokerage activity is the execution of civil transactions with securities as an attorney or commission agent acting on the basis of a commission or commission agreement, as well as a power of attorney for such transactions in the absence of indications of the powers of an attorney or commission agent in the agreement.

Under the contract of order a broker (attorney) for a fee makes transactions of purchase and sale of securities on behalf of and at the expense of the client (principal). Within the framework of the commission agreement, the broker (commission agent) performs these transactions at the expense of the client (principal), but on his own behalf.

Banks as brokers make for their clients-investors in the securities market following operations(transactions):

1. purchase of securities at auctions and secondary trading;
2. sale of securities in secondary trading;
3. trust management of securities portfolios.

The conditions for such work of investors with a broker bank is the conclusion of an appropriate agreement between them, as well as the execution of a number of other documents, including those required to open a depo account for a client on the exchange. All transactions concluded by a broker bank with an investor client are made only on the basis of his order. Clients' orders can be executed in various ways: in the form of an application in the established form, an electronic message, a facsimile document, etc. In most cases, registered applications are used. If this order is given for the purchase of securities, then it must be accompanied by the transfer of funds by the investor to a separate account in the bank, and if for the sale of securities, then the application must indicate the client's account to which the bank must transfer the funds owed to him (minus the commission ) facilities. Brokers are required to regularly provide clients with reports on the results of transactions with securities, as well as on operations using client funds for the reporting period (month).

Trust management of clients' securities

According to the trust agreement, one party (the founder of the management) transfers the property to the other party (the trustee) for a certain period of time in trust, and the other party undertakes to manage this property in the interests of the founder of the management or the person specified by him (beneficiary). At the same time, the transfer of property to trust does not entail the transfer of ownership of it to the trust manager. In accordance with Art. 5 and 6 of the Federal Law "On banks and banking»Credit institutions can also act as trustees.

The emergence in the world banking practice of trust (trust) operations as a type of commission and intermediary services provided by commercial banks to their clients, and their rapid development were caused by a number of objective reasons.

Firstly, this is a problem of bank liquidity and a decrease in the profitability of traditional types of loan banking operations as well as the desire of banks to ensure the fulfillment of one of the key tasks - increasing the profitability of operations while maintaining a favorable level of liquidity.

Secondly, growing interest of banking clientele, especially industrial enterprises in receiving an ever wider range of services from the bank.

Thirdly, increased competition in the loan capital market, the struggle of banks to attract customers; the emergence and development of new types of services offered to both individuals and legal entities.

The advantages of trust transactions for banks in comparison with other types of activities are as follows:

1. unlimited opportunities to raise funds; when conducting operations at its own expense, the bank is limited to certain limits, since its own resources are not unlimited, just as potential loans are not unlimited, and when servicing clients on the basis of a trust, the number of the latter is extremely large, and, therefore, the bank's income grows with an increase number of clients;
2. clear structuring in the bank's work: all customer service operations are not scattered among different departments, but are collected in one functional unit (department, department, etc.);
3. relatively low banking costs for conducting trust transactions;
4. expansion of correspondent relations of the bank, improvement of its position in the interbank market, increase of its reputation.

Founders of trust management can only be residents of the Russian Federation: both legal and individuals(property owners, guardians, trustees, executors of wills, etc.).

Trustee- credit organization. In the event that a credit institution itself acts as the founder of the trust management of property, then another credit institution, as well as an individual entrepreneur, or commercial organization(except for a unitary enterprise).

Beneficiary- a person in whose interests the trustee manages the property. The founder of the management or a third party can act as the beneficiary.

Trust facilities for a credit institution acting as a trustee, there may be: cash (in the currency of the Russian Federation and foreign currency), securities, natural precious stones and precious metals, derivative financial instruments owned by residents of the Russian Federation only on the basis of property rights. Currently, in the Russian Federation, mainly securities and funds intended for investment in securities are transferred to trust management.

In accordance with Art. 1012 of the Civil Code of the Russian Federation for the implementation of trust management of property, the parties (the founder of the management and the trustee-credit organization) conclude in writing management contract for a period not exceeding 5 years (unless other deadlines are established by the laws of the Russian Federation). Trust management of securities and funds intended for investment in securities can be carried out by credit institutions either under an individual agreement or on the basis of a collective agreement.

Individual contracts fiduciary management are concluded by the credit institution-trustee with each individual founder of fiduciary management on personal terms for each. The contract of trust management of property should reflect for how long and what property one party transfers to the other in trust, organization of work, procedure for settlements, conditions of confidentiality, technical conditions of communication, rights and obligations of the parties, their mutual responsibility, as well as the contract stipulates restrictions on individual actions of the trustee for property management.

The property transferred by the founder of the management to the trustee must be segregated both from other property of the founder of the management and from the property of the trustee. Trust management operations in trust management credit institutions are accounted for in a separate balance sheet (on trust management accounts) drawn up for each trust management agreement. On the basis of individual balances under trust management agreements, a consolidated balance sheet is drawn up for the bank as a whole, which is submitted to the Bank of Russia along with the main balance sheet.

Collective fiduciary agreement is in the case of creation in the bank by the decision of its board or other executive and administrative body of the general fund banking management- OFBU - by combining, on the basis of common shared ownership of property (cash and securities) of different founders of the management and subsequent trust management in their interests by the credit institution-trustee. The trustee is obliged to issue a share participation certificate to each OFBU founder for the amount of the contributed property, which is not property and cannot be the subject of purchase and sale.

A credit institution can form several OFBUs (by types of founders of trust, by types of property managed, etc.), operations and accounting for which are kept separately.

A trustee credit institution must submit reporting information to each management founder in the OFBU at least once a year.

In the event of the termination of the activities of the OFBU, the founders of the trust management have the right to exchange the certificates of share participation they have for cash in the amount of the existing share in the managed property.

Income (minus the remuneration due to the trustee and compensation of the manager's expenses for managing the OFBU) are divided in proportion to the share of each founder of the trust in the property of the OFBU.

Feature of fiduciary management of securities both under an individual agreement between the bank and the founder of the management, and within the framework of the established OFBU is that the legislation on the securities market contains a number of restrictions on this type of activity. So, a manager in the process of fulfilling his duties under a trust agreement is not entitled to conclude the following transactions:

1. to acquire, at the expense of the funds in his management, securities:
   • owned by it, owned by its founders;
   • issued by its founders;
   • organizations in the process of liquidation;
2. alienate the securities under its management:
   • into their own property, into the property of their founders;
   • under contracts providing for a deferral or payment by installments for more than 30 calendar days;
3. exchange the securities under its management for the securities specified in the previous paragraphs;
4. to pledge the securities under its management in order to secure the fulfillment of its own obligations;
5. transfer the securities under its management for safekeeping with the definition of a third party as the manager and / or recipient of the deposit.

Custody operations

Custody activity consists in providing clients with services for the safekeeping of securities; on accounting and certification of rights to securities and transfer of securities, including cases of encumbrance of securities with obligations.

A professional participant in the securities market carrying out depository activities is called depository... The person using the services of the depositary is called depositor... The depositors, that is, the clients of the depository, can be not only the owners of securities, but also other depositories, issuers who place securities through the depository, holders of pledged securities, and trustees of securities.

Objects of depository activities securities of any form of issue (documentary, non-documentary), issued by both residents of the Russian Federation and non-residents, can be used.

In order to carry out depository activities, the depository is obliged to approve the conditions for its implementation. They must contain information concerning the operations carried out by the depositary; the procedure for the actions of depositors and depositary personnel when performing these operations; grounds for operations; samples of documents to be filled in by the depositary's depositors; samples of documents that depositors receive in their hands; timing of operations; tariffs for depositary services; procedures for accepting servicing and terminating servicing of a securities issue by the depositary; the procedure for providing depositors with extracts from their accounts; the procedure and terms for providing depositors with reports on the operations performed, as well as the procedure and terms for providing depositors with documents certifying the rights to securities. The conditions for carrying out depository activities are open in nature and are provided at the request of all interested parties.

Depository operations in the bank are performed by a special subdivision for which depository activities should be exclusive. To this end, the bank must develop and approve procedures that prevent the use of information obtained in the course of depository activities for other purposes not related to these activities.

On the basis of an agreement concluded between the depositor and the depositary for the provision of depository services, the depository opens a separate custody account for each depositor to record the rights to the securities belonging to him. Accounting is carried out in pieces. Depo account operations are carried out in the depository only by order of the account holder (depositor) or persons authorized by him. The basis for making entries on securities accounts are the client's instructions for the execution of depository operations performed in paper form, as well as documents confirming the transfer of rights to securities in accordance with the current legislation.

Self-test questions

1. Name the types of securities transactions performed by banks.
2. List the types of securities issued by commercial Bank.
3. Compare the procedure for issuing bonds and certificates by banks.
4. What are the advantages of bills issued by commercial banks?
5. The order of management of banking portfolios of securities.
6. What licenses must a commercial bank in the Russian Federation obtain to operate on the securities market?
7. The difference between dealer, brokerage and securities trust management.
8. What is the essence of the bank's depository activities in the securities market?
9. Summarize the need for repo transactions for commercial bank.

Bibliography

1. Civil Code of the Russian Federation. Chapter 53. Trust management of property.
2. Federal Law of 22.04.1996 No. 39-FZ "On the Securities Market".
3. Federal Law of 11.03.1997, No. 48-FZ "On promissory notes and promissory notes."
4. Resolution of the Central Executive Committee and the Council of People's Commissars of the USSR dated 07.08.1937 No. 104/1341 "On the introduction of the provision on promissory notes and promissory notes."
5. Bank of Russia Instruction No. 102-I of July 22, 2002 “On the Rules for the Issue and Registration of Securities by Credit Institutions in the Territory of the Russian Federation”.
6. Letter of the Bank of Russia dated 10.02.1992 No. 14-3-20 "Regulations on savings and deposit certificates of credit institutions".
7. Resolution of the Federal Commission for the Securities Market of Russia dated 11.10.1999 No. 9 "On approval of the Rules for the implementation of broker and dealer activities in the securities market of the Russian Federation."
8. Banking: Textbook / Ed. G.N. Beloglazova. L.P. Krolivetskaya. Moscow: Finance and Statistics, 2005.
9. Banking: Textbook / Ed. O.I. Lavrushin. M.: KNORUS, 2005.
10. Banking: basic operations for clients: Textbook. allowance / Ed. A.M. Tavasieva. Moscow: Finance and Statistics, 2005.

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Banking operations of banks with securities can be both active and passive.

Russian banks are entitled to carry out stock and trust transactions. These operations include: issue and placement of newly issued securities; loans secured by securities; purchase and sale of securities at own expense and on behalf of and at the expense of the client; storage and management of clients' securities.

Thus, depending on the operations, commercial banks can act in the market as an issuer of securities, a financial investor and an intermediary in relations between third-party issuers and investors. The objects of these transactions are securities.

Consider the investment activity of a commercial bank. Commercial bank investments differ from lending operations in a number of ways. Credit loans involve the use of funds for a certain relatively short period of time, subject to their return on time with payment of the loan interest. Investments provide for the investment of the bank's funds for a long-term period of time before these funds return to their owner. In bank lending, the borrower acts as the initiator of the loan. When investing, the initiative belongs to a commercial bank, which seeks to buy assets on the securities market.

Bank lending is directly related to the relationship "bank-borrower". Investing is the impersonal activity of the bank.

The key factors that determine the purpose of the investment activities of commercial banks are the need to generate income and the need to provide liquidity for a certain group of their assets.

By type, securities are divided into: reflecting the relationship of debt (loan) - debt obligations or bonds; reflecting property relations - shares.

Debt obligations are subdivided into government securities (market and non-market) and corporate bonds (corporate). Market ones are freely sold and bought on the open market, non-market ones are issued by the government to attract funds from small individual investors (for example, savings certificates).

Along with the main securities in the stock market, auxiliary ones circulate: bills of exchange, checks and certificates.

The most fully represented on the market are certificates for shares - documents certifying the size of the shareholder's property: - banking - written certificates of the bank about the deposit of funds and the right to receive the deposit amount within the specified period; - insurance - for insurance against accidents.

The operations of a commercial bank related to the placement of resources in securities (CB) form its securities portfolio, which, depending on the acquisition objectives and quoted on the organized securities market, is divided into a trading portfolio, an investment portfolio, and a portfolio of controlling participation.

The trading portfolio includes quoted securities purchased for the purpose of generating income from their sale (resale), as well as securities that are not intended to be held in the portfolio for more than 180 days and can be sold. The investment portfolio consists of securities purchased for the purpose of obtaining investment income, as well as with the expectation of the possibility of growth in their value in the long or indefinite future. The controlling interest portfolio includes securities purchased in quantities that provide control over the management of the issuing entity or significant influence over it. Such securities are shares that give the right to participate in managing the affairs of a joint-stock company, hereinafter referred to as voting shares.

Securities of the same type, issued by one issuer, having equal amounts of assigned rights, are called equivalent.

The basis of the trading portfolio consists of quoted securities, which must meet the following conditions: they must be admitted to circulation on an open organized market or through an organizer of trade on the securities market (including foreign open organized markets or trade organizers), which has a corresponding license from the Federal Commission on the Securities Market. securities (FCSM), and for foreign organized markets or trade organizers - a national authorized body; their turnover for the last calendar month on the above-mentioned organized open market or through the trade organizer is not less than the average amount of transactions per month, which, in accordance with the requirements of the Federal Commission for the Securities Market, is set for the inclusion of securities in the first level copy list; information on the market price of these securities is publicly available, i.e. is subject to disclosure in accordance with Russian and foreign legislation on the securities market or access to it does not require the user to have special rights (privileges). Any securities that do not meet the conditions specified above are not listed.

The securities portfolio of a commercial bank is shown in Figure 2.16.

Income on a security in the form of a discount, interest (coupon) income, dividends is called investment income.

If a commercial bank buys a security and puts it on record in the balance sheet, then it acquires the ownership of this security. A security is written off from the balance sheet accounts as a result of its disposal due to the loss of rights to the securities (including during sale), the redemption of the security, or the impossibility of collecting the rights secured by the security. If the Central Bank ceases to meet the requirements of the portfolio in which it is listed, then it should be moved to another portfolio or to the account of investments in overdue debt obligations.

The actual costs of the purchase of securities, including the costs associated with their acquisition and disposal (sale), and for interest (coupon) debt obligations - also interest (coupon) income paid upon their purchase, are the bank's investments in the Central Bank.

If in the balance sheet of a credit institution securities are accounted for at the market price, then investments in the Central Bank are periodically revalued at the market price. This method does not create provisions for impairment of securities and potential losses. The revaluation of securities is carried out in order to determine the book value of securities held in the bank's portfolio at the end of the working day by multiplying their number by their market price. As market price the market price of the security is recognized, calculated by the trade organizer in accordance with the requirements of the Federal Commission for the Securities Market.

For securities recorded at the purchase price, provisions for impairment and / or provisions for possible losses are formed in accordance with the procedure established by the Bank of Russia.

On the organized securities market, a trade organizer can establish a different procedure for fulfilling obligations for the supply of securities and settlements for transactions concluded during the trading day (session) - the so-called principle of execution of transactions. The following are the options for implementing this principle: gross principle - obligations for the delivery of securities and cash settlements are fulfilled for each transaction; net principle - the net position for the receipt / delivery of securities and the balance of settlements determined based on the results of the trades are executed. The principle of forming a net position is shown in Chart 2.17.

Net position - the difference between the requirements and obligations for the delivery / receipt of securities of one issue, calculated based on the results of the trading: net position for delivery - the excess of obligations over the requirements for the delivery of securities of the same issue, calculated based on the results of the trading; net position to receive - the excess of requirements over obligations to receive securities of one issue; calculated based on the results of the trades held; balance of settlements - the difference between claims and obligations for the payment / receipt of funds by a credit institution based on the results of trades held.

If we consider the passive operations of banks with securities, it becomes obvious: the purpose of such operations is to attract resources and maintain current liquidity.

In the chapter devoted to the formation of the authorized capital of the bank, the operations related to the issue of own shares are discussed in detail.

To attract resources, banks can issue certificates of deposit and savings. For these types of securities, the bank must register and approve at the territorial branch of the Bank of Russia the conditions for their issue and circulation. These certificates must be denominated in rubles, printed on special forms of the established form and must provide for certain terms of circulation.

Certificates can be registered and bearer, owned by residents and non-residents, issued in series and on a one-off basis. The owner of the certificate can transfer it to another person by drawing up the assignment of the claim - cession.

A savings certificate is a security for attracting deposits from the population, so payments on it can be made both in cash and in non-cash forms. A certificate of deposit is a security issued by banks to attract the resources of legal entities, and therefore settlements on it are made only in a non-cash form.

In addition to the listed Central Banks, commercial banks are actively working with promissory notes. A bill of exchange is a debt security that has a written form strictly established by law, which is a financial obligation (often of a long-term nature) confirming the investment or issuance of financial resources for a certain period. It is on the basis of this definition that a bill should be considered as a universal credit and settlement document that performs several functions.

One of them is a security function, i.e. payment for goods delivered on credit, work performed and services rendered, guaranteed by a bill. In this case, the bill of exchange obligation is secondary in relation to the supply contract and ensures proper performance. The second important function is payment and accounting.

The bill becomes an object of bank accounting and payment is made against it before the due date of the bill of exchange.

If the bill is interest-bearing, then it is purchased for face value (bill of exchange), and interest on it is charged and paid only when it is redeemed. In the event that the bill is discount, then the discount of bills is discount percentage charged by the bank when they are recorded, on the basis of which the difference in price between the face value and the amount paid by the bank when buying a bill is determined. The discount charged by the Bank of Russia from banks when rediscounting commercial bills of exchange is the official discount rate.

Bills are simple and transferable (draft). A promissory note is a commitment issued in the name of a creditor. A bill of exchange is intended for transferring valuables from the disposal of one person to the disposal of another. Draft - a written order of the lender (drawer) to the borrower (payer-drawee) to pay a certain amount of money to a third party - the bearer of the bill (remitter).

If we consider promissory notes depending on the purpose of the issue and the status of the issuer, then it is necessary to highlight the following types: - commercial promissory note - issued by the borrower against the pledge of goods in trade transactions; can be accepted by banks as collateral for a loan; - bank - draft, issued by banks of one country to their correspondents from other countries; - Treasury bill - issued by the state to cover its expenses; - financial bill - banks are engaged in issuing and placing it; - a security bill - stored in the deposited account of the borrower, used in the event of a long-term debt of an unreliable borrower, etc.

In the process of circulation, a bill is transferred from one person to another by means of a transfer inscription - an endorsement. There are several types of endorsements: full, blank, collection. Full is a registered endorsement indicating the person to whom or on whose order the payment should be made; blank is a bearer endorsement; collection endorsement - a transfer note, according to which the person receiving the bill of exchange has the right to carry out only collection on the bill. On the basis of such an inscription, bills of exchange are accepted by banks for collection, i.e. to provide services for the collection of payments in favor of clients on accepted bills. In addition to the above, there is also a pledged endorsement, according to which a bill of exchange is pledged as a claim against the person transferring the bill.

If the payer agrees to pay the bill of exchange, he accepts it. When accepting, the date must be indicated. The payer can only accept part of the bill of exchange.

If there is a person who assumes responsibility for the fulfillment of promissory notes, then he must draw up an aval-special promissory note, through which payment is fully or partially guaranteed. Such a person is called an avalist. The portfolio of a commercial bank may contain promissory notes issued or availed by federal authorities, authorities of the constituent entities of the Russian Federation, local authorities, as well as promissory notes issued or avaled by state or local authorities of other countries.

Thus, based on the analysis of the main functions of a bill, it should be concluded: a bill of exchange can be used as a means of payment, as a security for bank loans, as a way to attract bank resources (by issuing and selling their own bills) and as a tool for investing resources in order to generate income through accounting other people's bills.

Commercial banks can act as an agent for the preparation, issue and placement of regional bonds.

For example, Rosbank and Trust and Investment Bank (DIB) entered into an agreement with the government of the Moscow region on the preparation of the Moscow regional internal loan. The bond issue prospectus will be sent to the Ministry of Finance in September. The loan amount will be 1.9 billion rubles, the face value of the bonds is 1,000 rubles, the maturity is 18 months, the yield is 23%.

Thus, banks attract the resources necessary for the development of the region.

Commercial banks also carry out urgent operations with securities, among which it is necessary to mention the following: warrant (order) - the right of the holder to acquire a certain number of shares at a certain price; option - a security that allows its owner to buy or sell a certain number of shares at a certain price during a specific period of time or on a specific date. That is, the option buyer acquires the right to buy or sell a commodity (real commodity, insurance, contract, etc.) under certain conditions in exchange for paying the corresponding premium (price). In addition, banks enter into futures contracts to buy or sell securities after a certain time at a specified price. These transactions are similar to the currency futures contracts described in the section on foreign exchange transactions of banks.

As economic conditions change, the bank's securities policy is reviewed and updated based on periodic reports and projected data.

Stocks and bods market. Cribs Kanovskaya Maria Borisovna

13. Banks operations with securities

Bank operations with securities are divided into 2 types:

Issue of own securities (shares, bonds, bills, certificates of deposit and savings certificates).

Transactions with securities of other issuers.

On the basis of a banking license, banks can:

a) carry out the following operations: issue, purchase, sale, accounting, storage and other operations with securities that serve as a payment document, with securities confirming the attraction of funds to deposits and bank accounts, with other securities;

b) carry out trust management of these securities under an agreement with individuals and legal entities.

Brokerage activity - execution of civil transactions with securities as an attorney or commission agent acting on the basis of a commission or commission agreement, as well as a power of attorney for such transactions in the absence of indications of the powers of an attorney or commission agent in the agreement.

Dealer activity - execution of transactions for the purchase and sale of securities on its own behalf and at its own expense by publicly announcing the purchase or sale prices of certain securities with the obligation to buy or sell these securities at the prices announced by the person carrying out such activities.

Securities management activities - implementation by a legal entity or an individual entrepreneur on its own behalf for a fee within a certain period of trust management transferred to it in the possession and belonging to another person in the interests of this person or third parties indicated by this person.

Clearing activities - activities to determine mutual obligations and offset them for the supply of securities and settlements on them.

Depository activities - provision of services for the storage of securities certificates and / or accounting and transfer of rights to securities.

Only a legal entity can be a depositary.

The conclusion of a depository agreement does not entail the transfer of ownership of the depositor's securities to the depositary.

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