Bank balance

The bank's balance sheet reflects an important economicinformation underlying the organization of banking and improving the management of the bank. With its help, state bodies control the development of the monetary and credit sphere on a national scale. The management of the bank, in turn, evaluates the final results and the effectiveness of the activities carried out on the basis of the balance sheet, outlines further steps to develop banking operations.

Make up the bank's balance sheet as a summary table,created by the principle of grouping operations according to economically homogeneous indicators, which characterize the state of bank accounts on a certain date.

The balance of a commercial bank is an accountingbalance, which reflects the state of its own, lent and attracted funds of the bank, shows how they are placed in credit and other active operations. Practically this is a source of information for monitoring the formation of monetary resources and their placement, the state of credit, cash, settlement and other banking operations, including transactions with securities.

Accounts of the nomenclature of bank balances are divided into balance and off-balance accounts.

The first of them are:

passive are the bank's resources intended forfor lending and other banking operations, they are a reflection of bank funds, individuals' funds of enterprises and organizations, state budget revenues, deposits, funds in settlements, bank profits, accounts payable, other liabilities and borrowed funds, including the refinancing amounts that were received from other banks;
active - debt on them shows howand in which directions these resources were used, cash is kept in the bank's cash desks, long- and short-term loans, state budget expenditures, accounts receivable, and other active assets.

The second, off-balance, are a reflectionthe movement of documents and valuables that go to banking institutions for commission, storage or collection, including payment signs of state duties, stock forms, strict accountability and others.

The bank's balance sheet is grouped according to the degree of liquidity into the articles for the following assets:

cash, funds on accounts in other banks, that is, reflect the "primary reserves" for liquidity;
investments in commercial bills,and long-term securities and others, that is, part of them are "secondary reserves", since they can be promptly converted into cash with little risk of loss;
loans granted to individual borrowers, organizations, enterprises, other banks; since there is a possibility of their late repayment, these assets are classified as low-liquid investments;
investment - investing in real and personal property, establishing joint ventures, branches, etc.

Corresponding to the economic essence of the conducted operations, the bank's balance is grouped into articles on:

Operations with clients, including operations to attract resources and provide loans;
interbank operations, including short- and long-term ones; Other operations involving investing in short-term liquid securities and other securities.

The bank's balance sheet has a standard form approved by the Bank of Russia, and is based on the following principles: