Bank stock

 

Definition of bank as an institution that accumulates surplus funds and place them on a repayment basis, allows you to emphasize in its activities such functions related to the definition of securities. So buy bank shares of industrial companies by the desire of banks to profit. Biggest monopolist banks not satisfy ordinary income from credit operations. As a result, part of the purchase of shares of industrial monopoly profits from the industry goes to the banks by taking their dividends on industrial stocks. In this case, banks act as investors. Banking institutions for seigniorage issue securities.

With the development of the operations of commercial banks, with the need to meet the requirements of the NBU on the minimum size of the authorized capital of commercial banks was necessary to increase the size of the fund. This occurs through the issue.

For registration of the issuing bank of the prospectus. The Bank may issue two types of shares - ordinary and preference shares.

Functions of the bank as an issuer to service its own securities are in

• issue shares;

• organizing their accommodation;

• providing liquidity;

• payment of dividends;

• Maintaining a register of registered securities;

• depository services.

The securities owned by the bank as a savings certificate, certificate of deposit, bank draft.

1. Savings Certificate - a type of security that is written evidence of the bank to deposit funds, certifying the holder's right to receive the certificate of deposit and the interest on them after the deadline.

In Ukraine, there are savings certificates, usually in paper form. The post-Soviet countries, such as Russia, have gone in this direction much further. In 1992, the All-Russian Exchange Bank to issue such a certificate in the form of coins, which gives them more numismatic value. Now this bank is considering issue silver certificates.

The main feature of savings certificates in Ukraine is that this type of securities can be issued only by banking institutions (banks).

The issuing bank shall register issued certificates by writing to the special root or logbook. In the spine of deposit and savings certificates must specify the document number, the deposit amount, the date of issuance of the certificate, the period of his return, the name and signature of the beneficiary.

To determine the interest paid by banks posted net deposit, which is a table that shows the amount of interest payments on the term and amount of the deposit.

2. Certificate of deposit - a written security of the issuing bank for funds, certifying the right of the owner or his successor in title to receive, at maturity, the deposit and the interest on them.

In Ukraine, the most common in bank securities is a certificate of deposit of the NBU.

The Regulation "On the National Bank certificate of deposit" clearly and comprehensively defined the concept and nature of the deposit certificate of the NBU. This is one of monetary instruments, is a debt security of the National Bank of Ukraine in uncertificated form, certifying accommodation in NBU, commercial banks and their right to receive the input amount and interest after the due date. Regulations determine the order of operations with certificates.

The purpose of issuing such certificates:

• the introduction of the instrument, which will replace the T-bills, credibility is undermined;

• The use of a new method of controlling the amount of money in circulation.

NBU certificates issued by a decision of the National Bank of Ukraine periodically in a separate issue, and their nominal value is set according to the needs of the regulation of the money supply.

Recently in Ukraine became common currency savings certificates. They are the written evidence of the bank of deposit in U.S. dollars and affirm the rights of presenters certificates for their value on the quotations for the day of presentment. The nominal value of these certificates in the different banks have different - from 20 to 500 U.S. dollars. The first issue of such certificates, registered or bearer, was carried out in February 1996, the Bank "Nadra".

Typically, certificates are placed at auction, their maturity is 1-180 days and can be the subject of sale, mortgage, and other transactions in the secondary market.

There are the following types of certificates:

By types of investors:

a) Savings (individual);

b) deposit (legal entity).

In form of payment:

a) non-cash (deposit)

b) cash (savings).

On the term of the loan:

a) specific (urgent)

b) unspecified (demand).

By way of recording the motion:

a) without additional entries (bearer);

b) with the registration process (name).

By way of registration of the issue:

a) detachable coupon (with roots)

b) log (without roots).

Among other types of bank securities should be called a bill of the bank. Bank bill designed to attract free of physical and legal persons, has the nature of the deposit. However, unlike the certificate, it can be used as legal tender in payment for goods and services.

 

English