Commercial banks
Commercial banks are considered a flagship model for fund companies, where they can not be established unless the commercial bank was originally a joint-stock company
- The definition of commercial banks
The commercial banks or bank deposits as the foundation stone of the banking system
- Work can be summed up in commercial banks that accept surplus funds from the needs of the owners and re-submitted for others they need to finance various their use
- Sources of funds of commercial banks
Can distinguish between two main sources of funds commercial banks resources which are subjective and external sources
- First own resources or internal
It is those financial resources that have come from internal and include:
1) paid-up capital: It represents the value of the shares paid by individuals whom contribution in the bank's capital. And usually does not only constitute a small percentage of the Bank's total resources
- Provided that there is no minimum paid-up capital of any bank for any amount to be determined
- Terms of article of the Law on the eligibility of the Central Bank of banks to raise the amount in accordance with the capital adequacy standards specified by the
2) Reserves: a percentage of the profits are added to the capital and to distinguish two types of reserves:
A - Statutory Reserve: a percentage of annual profits to be compulsively legal text by the central bank which determines the cash reserve ratio and the maximum unit banks have been set by the law of the bank's net profit
B - Special Reserve: It is optional reserves posed by commercial banks freely according to its statute in order to strengthen its financial position
C - the undistributed profits: it usually follows the activity of the profits at the end of the year does not distribute all part of it and the rest is added to the Bank's capital Second external resources
It is those resources that will be sourced from outside the bank include mainly commercial
1) Deposits: It is one of the most important resources of commercial banks, where in normal circumstances constitute a significant proportion of the total resources of the bank.
2) Loans: sources of funds commercial banks find that borrowing are from various private institutions including: the central bank and financial institutions functions of commercial banks
The commercial banks to perform many of the functions according to some researchers, the receipt of deposits, loans and grants to create money deposits, and providing services to its customers, and the provision of services to the capital market, and sell foreign currency, objectives of commercial banks
Commercial banks seek to achieve three key objectives: profitability, liquidity and safety
* Profitability
Management of commercial banks seeking always to achieve the greatest possible profit to the owners of the bank, as the basic criterion for the efficiency of the administration is the size of the profits generated by if the Governing made more profit then it means they are more
efficient than others
* Liquidity
Any liquidity of an asset means how easily converted into cash as quickly as possible and with minimal loss Accordingly, the goods are more liquid than real estate and receivables more liquid than the goods
The liquidity in the banks it means the Bank's ability to fulfill its obligations to the ability confront depositors' withdrawal applications
* Security
Can not for commercial banks to absorb losses than capital property Any losses of this kind means devouring part of depositors' money and therefore bankruptcy Commercial Bank is seeking commercial banks strongly to provide greater security for depositors
Commercial banks are considered a flagship model for fund companies, where they can not be established unless the commercial bank was originally a joint-stock company
- The definition of commercial banks
The commercial banks or bank deposits as the foundation stone of the banking system
- Work can be summed up in commercial banks that accept surplus funds from the needs of the owners and re-submitted for others they need to finance various their use
- Sources of funds of commercial banks
Can distinguish between two main sources of funds commercial banks resources which are subjective and external sources
- First own resources or internal
It is those financial resources that have come from internal and include:
1) paid-up capital: It represents the value of the shares paid by individuals whom contribution in the bank's capital. And usually does not only constitute a small percentage of the Bank's total resources
- Provided that there is no minimum paid-up capital of any bank for any amount to be determined
- Terms of article of the Law on the eligibility of the Central Bank of banks to raise the amount in accordance with the capital adequacy standards specified by the
2) Reserves: a percentage of the profits are added to the capital and to distinguish two types of reserves:
A - Statutory Reserve: a percentage of annual profits to be compulsively legal text by the central bank which determines the cash reserve ratio and the maximum unit banks have been set by the law of the bank's net profit
B - Special Reserve: It is optional reserves posed by commercial banks freely according to its statute in order to strengthen its financial position
C - the undistributed profits: it usually follows the activity of the profits at the end of the year does not distribute all part of it and the rest is added to the Bank's capital Second external resources
It is those resources that will be sourced from outside the bank include mainly commercial
1) Deposits: It is one of the most important resources of commercial banks, where in normal circumstances constitute a significant proportion of the total resources of the bank.
2) Loans: sources of funds commercial banks find that borrowing are from various private institutions including: the central bank and financial institutions functions of commercial banks
The commercial banks to perform many of the functions according to some researchers, the receipt of deposits, loans and grants to create money deposits, and providing services to its customers, and the provision of services to the capital market, and sell foreign currency, objectives of commercial banks
Commercial banks seek to achieve three key objectives: profitability, liquidity and safety
* Profitability
Management of commercial banks seeking always to achieve the greatest possible profit to the owners of the bank, as the basic criterion for the efficiency of the administration is the size of the profits generated by if the Governing made more profit then it means they are more
efficient than others
* Liquidity
Any liquidity of an asset means how easily converted into cash as quickly as possible and with minimal loss Accordingly, the goods are more liquid than real estate and receivables more liquid than the goods
The liquidity in the banks it means the Bank's ability to fulfill its obligations to the ability confront depositors' withdrawal applications
* Security
Can not for commercial banks to absorb losses than capital property Any losses of this kind means devouring part of depositors' money and therefore bankruptcy Commercial Bank is seeking commercial banks strongly to provide greater security for depositors
Comments
Post a Comment