FD-301_vsyo / Subj / 455-Банковское дело и финансы. Часть II

-расширение кредитных операций

-Расчетный центр банка

-современные формы расчетов

-финансовое состояние заемщика

-обслуживание на рынке ценных бумаг

-Правление банка

-в режиме реального времени

-прием и выдача наличных денежных средств

-текущий мониторинг деятельности

-передовые информационные технологии

-требование международных стандартов

-обслуживание расчетных счетов

-инкассация денежных средств

Exercise 3. Find in the text and translate the derivatives from the following verbs

into Russian:
accept	deliver	pay	require
accumulate	develop	perform	settle
collect	invest	remove
compete	maintain	replenish

Exercise 4. Answer the questions:

1.What is the principal district of Chelindbank activity?

2.Why does the Region’s economy require financial resources?

3.What is the main goal of Chelindbank ?

4.What does the Bank Board manage?

5.What is the foundation of banking business?

6.What large enterprises are the customers of Chelindbank?

7.What services does Chelindbank offer to enterprises and organizations?

8.How are settlements between the Bank branches carried out?

31

9.What services are provided for private customers?

10.Does the Bank increase its investments to the Chelyabinsk Region economy?

11.What does the bank usually do before issuing a loan?

12.How many enterprises, firms and individuals are there among the Bank borrowers?

13.What correspondent banks of Chelindbank do you know?

14.What technologies are applied for forex transactions?

15.Is Chelindbank a registered dealer on government securities market?

Exercise 5. Fill in the blanks with the proper words from the list below:

Documentary business

Chelindbank offers a large ___1____ of services for exporters and ___2____. The bank affects foreign ____3___ payment for customers in internationally accepted forms: bank transfer, collection, ____4___ of credit; all handled with statutory foreign currency control regulations. Bank’s officers execute a remote registration of ____5____ on export/import transactions through electronic in the shortest possible channels between the Bank branches and Head office time, mainly in the _____6____ presence. The innovation met the appoval of the customers from the regional cities.

Chelindbank is the only regional bank having credit lines with foreign banks for effecting _____7_____ operations for its customers. The bank has ___8___ lines granted by such first-rate ____9____ as Dresden Bank AG and Commerzbank AG (Germany), Eximbank (USA), Kazcommerzbank (Kazakhstan). The ___10____ of credit line ranges from 500000 EUR to 10 mln USD.

Credit lines utilization is profitable both for importers and _____11____. Importers can effect operations without own funds diverting. Exporters using credit lines of foreign banks can dispose ____12_____ under a letter of credit almost immediately after its issuing, before ____13____ of goods.

currency, exporters, importers, customer’s, banks, shipment, passports, letter, credit, documentary, range, funds, amount

32

Exercise 6. Read the text. Speak about the main risks inherent to the Bank operations

Risk Management

Management of risk is fundamental to the banking business and is an essential element of Bank operations. The Bank Board approves all Bank internal documents regulating risk management procedures. Daily risk level is controlled by the Bank Credit Committee and Assets and Liabilities Committee. The main risks inherent to the Bank operations are those related to credit exposures, liquidity and market movements in interest rates and foreign exchange rates as well as operational, technological and strategic risks.

CREDIT RISK

Exposure to credit risk is managed through two stages.

First stage includes the process of the client's application considering and decision making and is based on the following principles:

∙impartial assessment and analysis of the borrower's business activity, financial condition, provision liquidity and safety, business reputation;

∙joint decision making process of Credit Committees of the Head Office, the Bank branches and the Bank Board on loans granting and limits calculation;

∙reasonable placement of limits on the maximum amount of a loan set jointly by the above bodies.

During the second stage the Bank manages undertaken credit risks as well as credit portfolio through constant borrower monitoring, collecting and interpreting the information on borrower's activity and collateral examining.

LIQUIDITY RISK

The Bank maintains its liquidity by assets management: defines liquidity demand, accumulates optimal liquidity reserve as liquid assets to satisfy its

33

depositors, creditors and borrowers demands and limits investments in time assets operations.

INTEREST RATE RISK

Risk of the interest rates fluctuations is controlled by regular gap calculation (gap between interest-sensitive assets and liabilities) for the period up to 3 months. Interest rates for loans and deposits are based on market rates provided the Bank receives positive interest difference (controlled by the Bank).

CURRENCY RISK

The Bank controls and manages currency risk through open currency position (OCP) sub-limits placed for its internal structural departments by a special center in charge of the Bank OCP general control.

The Bank Board controls the security of all operations on a regular basis. In order to protect the Bank interests as well as the interests of its shareholders and clients, the Internal Control System has been established by means of approved control regulations and procedures setting.

STRATEGIC RISK

Chelindbank exercises strategic risk control by approval of the Bank Strategic target usually for the period of 2 years, based upon the Bank's financial and personnel resources as well as arising risks management possibility. Annually the Bank approves its budget for a year, split by quarters on a rolling basis, where all anticipated income and expenses are classified according to the main directions of the Bank activities and the profit is defined. Expenses for major projects are planned according to the expected recoupment and sources of finance.

TECHNOLOGICAL RISK

Risk related to technical equipment and different technologies application includes high charges for equipment repairs as well as unauthorized database access

34

and loss of information. In order to control and manage technological risk

Chelindbank takes the following measures:

∙reserve servers;

∙reserve and archive data copying;

∙annual investments in equipment technical support, internal and external software

∙single technical and technological policy;

∙constant audit of Automated Banking System (ABS) on different levels;

∙documentary authorization for users database access;

∙external audit of related equipment complexes;

∙FAPSI license on technical services and ciphering facilities utilization.

The Bank Board controls the security of all operations on a regular basis. In order to protect the Bank interests as well as the interests of its shareholders and clients, the Internal Control System has been established by means of approved control regulations and procedures setting.

Exercise 7. Match the English and Russian expressions:

1. limits calculation	a.	риск потери ликвидности
2. internal documents	b.	деловая репутация
3. interest rate risk	c.	положительная процентная разница
4. liquidity demand	d.	внутрибанковские документы
5. liquidity risk	e.	установление лимитов
6. risk management procedures	f.	открытая валютная позиция
7. optimal liquidity reserve	g.	процедура управления рисками
8. open currency position (OCP)	h.	риск изменения процентных ставок
9. business reputation	i.	потребности в ликвидных средствах
10. positive interest difference	j.	оптимальный запас ликвидных
		средств

35

Приложение

Balance Sheet

Join Stock Commercial Bank “Chelindbank”, Chelyabin sk, Russia

Consolidated Balance Sheet as of 1 January, 2003

(in thousand roubles)

	№	Description	Review date	Previous
				date
		ASSETS
	1	Cash and due from the Central Bank of Russia	424 568	258 082
	2	Obligatory reserves in the Central Bank of Russia	306 318	242 065
	3	Due from credit institutions less reserves (line 3.1-3.2)	164 570	53 392
	3.1	Due from credit institutions	164 570	53 392
	3.2	Provision for possible losses	0	0
	4	Net dealing securities investments (line 4.1-4.2)	295 690	189 981
	4.1	Dealing securities	295 690	189 981
	4.2	Provision for securities depreciation and possible losses	0	0
	5	Loans and loan equivalents	2 915 447	2 343 231
	6	Provision for loan losses	316 343	340 903
	7	Net loans (line 5-6)	2 599 104	2 002 328
	8	Loan interest (incl.ovcrdues)	14 516	10 766
	9	Net securities investments (line 9.1-9.2)	71 896	136 671
	9.1	Net securities investments	76 000	136 671
	9.2	Provision for possible losses	4 104	0
	10	Fixed assets and intangibles, consumable materials, low-	348 908	355 235
		value and non-durable articles
	11	Net investments in securities available for sale (line 11.1-	11 333	7 280
		11.2)
	11.1	Investments in securities available for sale	14 389	14 560
	11.2	Provision for securities depreciation and possible losses	3 056	7 280
	12	Advance payments from other operations corrected on	2 872	895
		accrued interest income
	13	Other assets less provision (13.1-13.2)	59 143	59 457
	13.1	Other assets	62 037	62 760
	13.2	Provision for possible losses	2 894	3 303
	14	Total assets: (1+2+3+4+7+8+9+10+11+12+13)	4 298 918	3 316 152

36

Баланс на 1 января 2003 года

кредитной организации АКЦИОНЕРНЫЙ КОММЕРЧЕСКИЙ БАНК «ЧЕЛИНДБАНК»

(открытое акционерное общество) ОАО «ЧЕЛИНДБАНК»

регистрационный номер 485 БИК – Код 047501711 Почтовый адрес: Россия, 454091, г. Челябинск, ул. Карла Маркса, 80

			тыс. руб.
№	Наименование статей	На	На
п\п		отчетную	предыдущую
		дату	дату
	АКТИВЫ
1	Денежные средства и счета в Центральном банке	424 568	258 082
	Российской Федерации
2	Обязательные резервы в Центральном банке Российской	306 318	242 065
	Федерации
3	Средства в кредитных организациях за вычетом резервов	164 570	53 392
	(ст. 3.1 – ст. 3.2)
3.1	Средства в кредитных организациях	164 570	53 392
3.2	Резервы на возможные потери	0	0
4	Чистые вложения в торговые ценные бумаги (ст.4.1-ст.4.2)	295 690	189 981
4.1	Вложения в торговые ценные бумаги	295 690	189 981
4.2	Резервы под обесценение ценных бумаг и на возможные	0	0
	потери
5	Ссудная и приравненная к ней задолженность	2 915 447	2 343 231
6	Резервы на возможные потери по ссудам	316 343	340 903
7	Чистая ссудная задолженность	2 599 104	2 002 328
8	Проценты начисленные (включая просроченные)	14 516	10 766
9	Чистые вложения в инвестиционные ценные бумаги,	71 896	136 671
	удерживаемые до погашения
9.1	Вложения в инвестиционные ценные бумаги,	76 000	136 671
	удерживаемые до погашения
9.2	Резервы на возможные потери	4 104	0
10	Основные средства, нематериальные активы,	348 908	355 235
	хозяйственные материалы и малоценные и
	быстроизнашивающиеся предметы
11	Чистые вложения в ценные бумаги, имеющиеся в наличие	11 333	7 280
	для продажи (ст. 11.1 – ст. 11.2)
11.1	Ценные бумаги имеющиеся в наличие для продажи	14 389	14 560
11.2	Резервы под обесценение ценных бумаг и на возможные	3 056	7 280
	потери
12	Расходы будущих периодов по другим операциям,	2 872	895
	скорректированные на наращенные процентные доходы
13	Прочие активы за вычетом резервов (ст.13.1-ст.13.2)	59 143	59 457
13.1	Прочие активы	62 037	62 760
13.2	Резервы на возможные потери	2 894	3 303
14	Всего активов (ст. 1+2+3+4+7+8+9+10+11+12+13)	4 298 918	3 316 152

37

№	Description	Review date	Previous date
	LIABILITIES
15	Due to the Central Bank of Russia	0	0
16	Due to credit institutions	38 897	22 393
17	Customer accounts	3 351 179	2 512 382
17.1	incl. personal savings	1 664 558	998 265
18	Advance income from other operations	909	465
19	Certificated debts	196 924	141 846
20	Other liabilities	17 737	103 005
21	Provisions for losses on settlements with debtors, risks and	40 160	13 448
	obligations
22	Total Liabilities (line 15+16+17+18+19+20+21)	3 645 806	2 793 539
	CAPITAL
23	Share Capital (Shareholders' Fund. Line 23.1+23.2+23.3),	150 000	100 000
	incl.:
23.1	Registered ordinary shares and parts	147 030	97 030
23.2	Registered preference shares	2 970	2 970
23.3	Non-registered Share Capital of non-stock credit institutions
24	Bank shares redeemed from shareholders	0	0
25	Share premium	0	0
26	Funds and profit retained by the credit institution, difference	388 247	361 890
	between the Share Capital of the credit institution and its
	own capital/equity
27	Revaluation of Fixed assets	26 094	26 282
28	Profit (Loss) for a period under review	150 534	114 569
29	Dividends charged from prol'it of the current year	0	6 500
30	Attributable profit (excl. dividends)	49 797	71 742
31	No distributed profit (line 2S - 29 – 30)	100 737	3 6 327
32	Expenses and risks affecting capital	11 966	1 886
33	Total Capital (line 23-23.3-24+25+26+27+31-32 - for	653 112	522 613
	profitable credit institutions), (line 23-23.3-
	24+25+26+27+28-32 - for non-profitable credit institutions)
34	Total Liabilities (line 22+23.3+33)	4 298 918	3 316 152
	OFF-BALANCE SHEET ITEMS
35	Irrevocable commitments	122 570	111 956
36	Guarantees issued by the credit institution	156 773	40 723

Trust Management operations have not been carried out.

38

№	Наименование статей	На	На
п\п		отчетную	предыдущую
		дату	дату
	ПАССИВЫ
15	Кредиты, полученные кредитными организациями от	0	0
	Центрального банка Российской Федерации
16	Средства кредитных организации	38 897	22 393
17	Средства клиентов	3 351 179	2 512 382
17.1	в том числе вклады физических лиц	1 664 558	998 265
18	Доходы будущих периодов по другим операциям	909	465
19	Выпущенные долговые обязательства	196 924	141 846
20	Прочие обязательства	17 737	103 005
21	Резервы на возможные потери по срочным сделкам и	40 160	13 448
	внебалансовым обязательствам и по расчетам с
	дебиторами по операциям с резидентами офшорных зон
22	Всего обязательств (ст. 15+16+17+18+19+20+21)	3 645 806	2 793 539
	СОБСТВЕННЫЕ СРЕДСТВА
23	Уставный капитал (средства акционеров (участников) (ст.	150 000	100 000
	23.1 + 23.2 + 23.3), в т.ч.:
23.1	Зарегистрированные обыкновенные акции и доли	147 030	97 030
23.2	Зарегистрированные привилегированные акции	2 970	2 970
23.3	Незарегистрированные уставный капитал неакционерных
	кредитных организации
24	Собственные акции, выкупленные у акционеров	0	0
25	Эмиссионный доход	0	0
26	Фонды и прибыль, оставленная в распоряжении кредитной	388 247	361 890
	организации
27	Переоценка основных средств	26 094	26 282
28	Прибыль (убыток) за отчетный период	150 534	114 569
29	Дивиденды, начисленные из прибыли текущего года	0	6 500
30	Распределенная прибыль (исключая дивиденды)	49 797	71 742
31	Нераспределенная прибыль (ст. 28 – ст.29 – ст.30)	100 737	36 327
32	Расходы и риски, влияющие на собственные средства	11 966	1 886
33	Всего собственных средств (ст. 23-23.3 – 24+25+26+27+31-	653 112	522 613
	32 – для прибыльных кредитных организации), (ст. 23-
	23.3-24+25+26+27+28-32 – для убыточных кредитных
	организации)
34	Всего пассивов (ст. 22+ст. 23.3 + ст. 33)	4 298 918	3 316 152
	ВНЕБАЛАНСОВЫЕ ОБЯЗАТЕЛЬСТВА
35	Безотзывные обязательства кредитной организации	122 570	111 956
36	Гарантии, выданные кредитной организацией	156 773	40 723
	Операции доверительного управления не осуществлялись

39

Auditors' Report under RAL

Name of the auditor limited Liability Company	“Petersburg banking au dit”
	(OOO “Petersburgbankaudit”)
License №	006385
License issued on	27 October 1998
Validity of a license	5 years
Name of the issuing authority	Central Bank of the Russian
	Federation Central Committee
	For Accreditation and Licensing

We have audited the financial statements of Chelindbank for the period of 01.01 - 31.12.2002 including the balance sheet as on 01.01.2003, unil the related statements of operations for 2002. of cash flows and of changes in shareholders' equity for the year then ended.

These financial statements are the responsibility of the Bank's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with:

•Federal Law on auditing n 119-f/ dd 07.08.01;

•Federal Standards of auditing approved by the Gov ernment order n 696 dd 23.09.02;

•Auditing standards of 000 "Petersburgbankaudit";

•The Central Bank of Russia normative acts.

The audit was performed to obtain reasonable assurance about whether the financial statements are free of material misstate-menl.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Bank as at 31 December 2002 and the results of its operations and its cash flows for the year then ended in accordance with Russian Accounting Legislation

General Director

000" Petersburgbankaudit"

	A.I. Mikhailov
Manager of auditing
Deputy General Director
000 "Petersburgbankaudit"	N.N.Scheglova

40