The 3rd cluster is the most representative in terms of the number of banks included – 25.
The 3rd cluster is the most representative in terms of the number of banks included – 25.
However, according to Art. 14 of the Decree of the President of Ukraine “On Measures to Increase Liability for Settlements with Budgets and State Trust Funds” of March 4, 1998, during settlements, no assignment of claims and transfer of debt was allowed, regardless of the existence of agreements or financial obligations also between residents and non-residents. Note that this problem was solved in practice through various schemes, which were based, in particular, on the use of promissory notes and surety agreements.
The relationship between the factoring entities is governed by a written agreement between the factor and the supplier. It provides a list of essential conditions, which, in particular, include those that protect the interests of the parties – mutual obligations and responsibilities of the parties, the amount of credit and fees for factoring services, the type of factoring. Since factoring transactions are risky, before concluding the contract, the factorly thorough studies the financial and economic activities of the customer-supplier. Assessment of the financial condition of the enterprise affects the factor’s positive decision to enter into a factoring agreement and its content.
Factoring transactions can be classified on many grounds. Consider only those that significantly affect the outcome of the factoring operation – will be mobilized by the bank additional resources or will be placed previously mobilized resources by the bank. Depending on whether the client’s debtors are notified of their assignment of debt claims, factoring can be conventional (open) and confidential (closed). In the case of open factoring, the client’s debtors are notified of the conclusion of the factoring agreement and are offered to make payments directly to the factor. Closed factoring does not involve the notification of debtors, none of them knows about the assignment of the supplier’s rights to claim the debt and therefore the funds are transferred to the supplier, who pays the factor independently.
Depending on the nature of the relationship between the factor and the supplier, formed in the case of refusal of the buyer to pay the debt, there are factoring with the right of recourse and factoring without the right of recourse. In the first case, the supplier bears the risks on the debt claims acquired by the factor. The point is that factoring with the right of recourse allows the factor to return the unpaid debts to the supplier and demand from him the return of the factor’s money. Factoring without recourse means that the factor assumes the risk of receiving cash from customers.
For a set of services, factoring can be with a full set of services and with a partial set of services. Full factoring service involves the provision of the provider not only purely factoring services, but also a number of others: audit, legal, debt management on loans, and so on. Factoring with a partial set of services involves the payment of the factor only the invoices of the supplier.
Depending on the extent to which the factoring covers the assignment of debt claims by the supplier, a distinction is made between factoring with the assignment of all debts and with the assignment of only a certain part of them. The assignment by the supplier of debts of all its debtors of the factor allows it to avoid double accounting and credit management for individual debt claims that have not been assigned.
According to the order of payment of debt claims there are:
prepayment factoring – provides for immediate payment of settlement documents of the supplier as soon as they are provided to the factor. In fact, the factor provides credit to the supplier; Factoring without prepayment – means that the factor undertakes to pay the settlement documents submitted to it by the supplier on a certain date fixed in the contract, usually on the day of payment of documents by debtors. As the term fixed in the contract is an average value, it is quite normal that some buyers will make payment earlier than the stipulated term, and others – later.
The advantage for the supplier is that he knows the exact date of receipt of funds and therefore can plan their activities accordingly. For the bank, the receipt of funds from the payers of the previously agreed term means the receipt of additional resources that can be used in its turnover, other things being equal.
Current regulations classify factoring transactions as credit and under which you need to create a reserve to compensate for possible losses from their conduct. In financial accounting, these transactions are recorded in off-balance sheet and on-balance sheet accounts.
Balance sheet accounts (2030 “Ra
Analysis of the structure of balance sheets of the largest banks in Ukraine on October 1, 1998. Abstract
The low level of capitalization of most commercial banks in Ukraine forces them to use a policy aimed at achieving a high level of profit, because the way to ensure the growth of equity through the accumulation of profits is one of the easiest, least expensive and safest
The structure of active and passive components of the bank’s balance sheets is the most generalized characteristic, reflecting the specifics and main areas of the bank’s activity, the state of the loan resources market, the number and quality of customers served, the bank’s policy to attract and place cash resources for profit.
To conduct a structural analysis of the active and passive parts of the balance sheets of any group of banks, the initial set of parameters form the following indicators: UV – statutory fund, SS – own funds, PS – borrowed funds, TRS – current and current accounts, DS – time deposits, MBKP attracted interbank loans, VN – household contributions, PR – income, RA – workers’ assets, VA – highly liquid assets, KP – loan portfolio, MBKA – issued interbank credit, government bonds – government securities and securities – securities transactions. As a result of the procedure of cluster analysis of Ukrainian banks, the whole set of banks was divided into five clusters.
The 1st cluster includes the three largest banks of Ukraine – Prominvestbank, Ukraine, Ukrsotsbank, as well as one of the largest commercial banks – FUIB. The main feature of this structure is the small share of almost all balance sheet items compared to other groups of banks, which is a characteristic feature of a large and developed network of branches.
The Savings Bank, the fourth largest bank in Ukraine, stood out in the 2nd cluster. This is due to the well-known specificity of this bank and, consequently, the special structure of active and passive balance sheet items, which affected the results of the classification.
The 3rd cluster is the most representative in terms of the number of banks included – 25. A characteristic feature of this structure is the large share of working assets and loan portfolio, borrowed funds are several times higher than their own, the share of “cheap “borrowings (TRC) often exceeds the share. the weight of “expensive” borrowings (DS). Such a structure can be called profit-oriented. As a rule, the focus on a high level of profits is associated with a higher level of almost all banking risks.
The 4th cluster includes six commercial banks. Banks in this group mainly work with their own funds, the share of “expensive” borrowings (DS) often exceeds the share of “cheap” borrowings (TRS). Insufficient amount of attracted financial resources, as a rule, has a negative effect on the amount of profit. Therefore, these banks have to choose one of the following alternatives: to submit to low profits (only a large bank can afford it), or to try to raise profitability by working in the interbank credit market, long-term market or corporate securities market , which is inevitably associated with a sharp increase in credit risk.
The 5th cluster was formed by four commercial banks. The main feature of this structure is that the share of current and current accounts is several times higher than the share of highly liquid assets and time deposits. Banks of this group have to solve the problem of liquidity, constantly arising or arising temporarily due to a number of specific features of their banking activities.
Here it is appropriate to make such a remark. Banks make daily decisions on attracting funds to deposits and their placement. In this regard, the instantaneous liquidity ratio calculated on the balance sheet indirectly reflects the state of the bank’s liquidity. The real situation can be assessed only by the results of cash flow analysis.
The most acceptable in terms of the security of loans and borrowed funds are the following ratios: the ratio of borrowed funds to own within 2 – 4, the ratio of the loan portfolio to own funds in the range of 1.4 – 2.5. The maximum allowable values for the same values are 10 and 5.7, respectively. Banks whose positions exceed these limits or are in close proximity to them are exposed to very high risks – even short-term, moderate financial market turmoil can lead to uncontrolled processes with catastrophic consequences.
The regression equation, which restores the dependence of the value of the bank’s profit on the components of the passive part of the balance sheet, which is the basis for active operations, looks like this:
PR = 3371 – 0.00997 * VB + 0.27 * SS – 0.286 * UF + 0.0645 * TRS https://123helpme.me/write-my-lab-report/ + ۰.۴۴۰ * DS + 0.158 * MBKP – 0.421 * VN
Here SS – own funds, PS – borrowed funds, TRS – current and current accounts, DS – time deposits, MBK attracted interbank loans, VN – household contributions.
The interpretation of this regression model is as follows. The average level of bank profits is largely determined by such components of borrowed funds as current and current accounts of customers and time deposits, as well as the amount of own funds, to a lesser extent – the size of the balance sheet currency, the size of the authorized capital, interbank credit and deposits.
The obtained regression model indicates the following.
The structure of liabilities averaged over all banks (share in the currency of the balance of own funds – 8.04%, statutory fund – 2.37%, current and current accounts of customers – 10.15%, time deposits – 7.89%, interbank loans – 3.45% , household deposits – 5.8%, the ratio of borrowed funds to own – 3.78) on average, the model can provide 16435.18 thousand.