Theme: Passive and active operations of commercial banks

The passive operations of commercial banks
1.The bank’s loan
2.Loans from Central Bank
3.Loans taken from the interbank market
4. The bank’s capital
Passive operations allow banks to attract funds that are already in circulation.

The bank deposit’s forms

The bank deposit’s forms

without any notice or penalty. They are characterized by their elasticity. For this reason, banks must be cautious when placing such resources into risky actives.
Demand or sight deposits
These are based on contracts with stipulation between the two partners. They have a predetermined maturity date, penalizations being imposed in the case of withdrawals prior to the due date.
Time or term deposits
Advantage of this deposit is that, depositor can add any amount to the deposit at any time.
Savings deposits
In order to ensure the necessary liquidity debts
In order to optimize the structure of their bill portfolios
The loans from the Central Bank refer to refinancing loans. Commercial banks apply for refinancing to the Central Bank for at least 2 reasons:
Contribution to the equity capital
Deductions from the profit of the bank on the establishment
Deposit transactions
Non-deposit operation
Forms of passive operations of commercial banks
Formed by own resources(15%)
Form of borrowed or raised resources(85%)

Capital adequacy of the banking sector
Indicator name	January 1, 2020		June 1, 2020
	billion UZS	share in %	billion UZS	share in %
Regulatory Tier I capital	43 659	83,2%	47 981	87,5%
Main capital stock	43 622	83,1%	47 943	87,4%
Capital surplus	38	0,1%	38	0,1%
Regulatory Tier II capital	8 808	16,8%	6 869	12,5%
Total regulatory capital	52 467	100%	54 850	100%
Capital adequacy ratio	23,5%		20,8%
Ratio of regulatory Tier I capital	19,6%		18,2%

All banks comply with some basic principles of organization of deposit operations. They are as follows:
-deposit operations should contribute to profit or to create conditions for a profit in the future;
-deposit operations should be varied and maintained with various stakeholders;
-emphasis in the organization of deposit operations should be given time deposits;
-should be provided interconnection and coordination between the operations of deposit and credit transactions on the timing and amounts of deposits and loan investments;
-organizing the deposit and credit transactions, the bank should seek to minimize their free resources;
-bank should take measures to develop banking services, helping to attract deposits.
Many Western economists recommend that central banks pay interest on required reserves of commercial banks to encourage the last time and in due measure to meet their reserve requirements. Although this increases the operating costs of central banks in some countries (Sweden, Spain, Italy, Finland) on the part of the reserves accrued interest.
Obligation to fulfill reserve requirements arise from the receipt of the license of the Central Bank the right to perform the relevant banking and is a prerequisite for their implementation. Mandatory reserves deposited at the respective reserve accounts at the
Central Bank, the interest on them are not charged.