Kobulov bahtiyor

2. Activities of a commercial bank
2.1. Principles of operation of commercial banks
The fundamental principle of operation of a commercial bank is the principle of operation within the limits of actually attracted resources.
A commercial bank may make non-cash payments in favor of other banks, provide loans to other credit institutions and receive money in cash within the balance of funds on its correspondent account with the Central Bank. The opportunities to independently create funds on the settlement accounts of their clients in excess of their available resources are extremely limited.
Working within the limits of actually attracted resources means that a commercial bank must ensure not only a quantitative correspondence between its resources and credit investments, but also to ensure that the nature of bank assets corresponds to the specifics of the resources mobilized by it. First of all, this applies to the timing of both. So, if a bank attracts funds mainly for short periods (short-term or demand deposits), and invests them mainly in long-term loans, then its ability to pay off its obligations without delay (that is, its liquidity) will be at risk. The presence of a large number of high-risk loans in the bank's assets requires the bank to increase the share of its own funds in the total volume of its resources. The strict dependence of the bank's assets on the nature of its liabilities should be taken into account when determining the economic standards of banks' activities and when regulating their operations. The possibility of performing certain specific banking operations (mortgage, investment, etc.) is determined by the structure of the bank's liabilities. Therefore, when developing the conditions for these operations and requirements for banks that can carry them out, it is necessary to pay primary attention to the sources of formation of the corresponding liabilities.
The flip side of the principle of working within the limits of actually attracted resources is that within the resources available to it, the bank is free to conduct its active operations (subject to established economic standards), that is, the volume of active operations of the bank cannot be limited by administrative, volitional methods. Administrative restrictions may be of a one-time, extraordinary nature. Their systematic application undermines the commercial foundations of the bank's activities, and therefore priority in regulation, including those with a constructive orientation, should be given to economic methods.
The principle of operation within the limits of actually attracted resources as the foundation of the bank's commercial activity changes all its aspects: the bank's interest in attracting deposits increases, genuine competition for liabilities develops, freeing the movement of credit resources from the administrative fetters of the unified state bank. Under these conditions, there should be a real transfer of bank capital to the most profitable and dynamic industries, and credit planning in banks should change. Commercialization does not mean abandoning credit planning, on the contrary, its importance (both current and prospective) increases immeasurably. But the basis of planning in this case is already the resources of the bank, not its investments.
A commercial bank can only work within the limits of the resources actually attracted, while ensuring the maintenance of its liquidity, having a high degree of economic freedom combined with full economic responsibility for the results of its activities. Therefore, the second most important principle on which the activities of commercial banks are based is the principle of full economic independence, which also implies the economic responsibility of the bank for the results of its activities. Economic independence implies the freedom to dispose of the bank's own funds and attracted resources, the free choice of customers and depositors, the disposal of income remaining after taxes.
The next principle of operation of a commercial bank is its independent credit, interest rate and deposit policy, focused on the state of the financial resources market.
The implementation of an independent, independent credit, interest rate and deposit policy is an indispensable condition for the implementation of the principle of economic independence of the bank. In order to be fully responsible for the results, the bank must be free not only to dispose of its resources, but also to determine the terms and conditions for granting loans, conducting various banking operations, interest on loans, deposits, etc. Commercial banks, as economically independent entities, cannot be guided in their activities by instructions from above that strictly regulate the types of loans allowed, their terms, the procedure for issuing and repayment, the conditions for conducting other banking operations, etc. They cannot proceed from the interest rates fixed by the center for certain types of loans and deposits, the amount of commission on individual transactions, etc. Excessive regulation of credit, interest rate and deposit policy, whatever form it takes, inevitably limits the economic independence of the bank and hinders the free flow of financial resources between industries and spheres within the economic system. The influence of the credit center on the policy of commercial banks should always be indirect and carried out by economic, not administrative methods.
The relationship of a commercial bank with its customers is built like a normal market relationship. This is the fourth principle of their activity. By providing loans, a commercial bank proceeds, first of all, from the profitability of placing its credit resources. The focus on "national interests", on "the great national economic importance of the activities carried out" is incompatible with the commercial nature of the bank's work and will inevitably result in a liquidity crisis and possibly even bankruptcy for it. Commercial banks cannot be an instrument of conducting state-wide control over the economic and financial activities of enterprises.

At the same time, commercial banks cannot be "home", "pocket" banks of various associations and territorial structures, unless this is mutually beneficial cooperation within the framework of the so-called "corporate regulation" model, which we discussed above. Indeed, market orientation makes impossible any liberalism in the approach to customers, dictate and non-economic coercion in relation to the bank. The interest of the bank and all its shareholders in making a profit and maintaining a liquid balance sheet structure encourages the allocation of credit resources on the basis of economic profitability, rather than through administrative distribution.

Consideration of the basic principles on which the activities of commercial banks are based indicates that the driving motive of their activities is to make a profit based on the movement of capital. Commercial banks have independence in actions related to the needs of the market. They are economically responsible for the results of these actions not only with their current income, but also with their capital. All this makes commercial banks a full-fledged subject of market relations.