Commercial banks and their functions

COMMERCIAL BANKS AND THEIR FUNCTIONS
Sattarov Olimjon Berdimuradovich

Chief Specialist of the Internal Control Department

“O`zsanoatqurilishbank”

According to the laws of the Republic of Uzbekistan, a bank is a commercial institution.To attract free funds from individuals and legal entities and to own it

on behalf of, lending on terms of maturity, maturity, repayment and

performs other operations.Commercial banks are the second tier of the banking system of the Republic of Uzbekistan. Most of the credit resources are concentrated in these banks, and they are legal and provide banking services to individuals. Activities of commercial banks.The legal basis is the Banking and Banking Activity, adopted in 1996.Presidential decrees and other laws.Today, more than 30 commercial banks operate in Uzbekistan shows. He had a solid charter capital, credit resources and clientslarge banks Industrial Construction Bank of Uzbekistan, National Foreign Economic Relations bank, Asaka Bank and others. Commercial banks The amount of authorized capital in the organization from January 1, 2011 is 10 million. euro must have the equivalent amount of funds.

Depending on the characteristics of commercial banks can be divided into the following types:

 - State Bank,

- joint-stock bank

- cooperative,

- private,

- regional,

-mixed is divided into a bank based on ownership.

In highly developed countries, the majority of commercial banks are owned

The shareholder in the form is a bank. Some commercial banks may be established at the expense of shares (contributions).The participants of this type of banks are both legal entities and individuals it can. Private banks - formed at the expense of funds of an individual banks.

 Depending on the operations performed by commercial banks-

- universal

- divided into special banks.

 Depending on the location of commercial banks:

• 
  international,
  
• 
  respublika,
  
• 
  regional,
  
• 
  can be divided into regional banksDepending on the service sector: industry, construction, agriculture, can be divided into commercial and other banks.
  

 The importance of banks in a market economy to their economy The effect is growing. The economic importance of commercial banks is wide in its scope of activities leads to Activities of commercial banks as legal entities include depositors, creditors, in general, because of its serious involvement in the interests of the state and society is a long process. In the meantime the relationship between the founders is established, which is necessary for the authorized capital of the bank funds are prepared, managers, prepare the necessary documents, appropriate

checked, etc.Legal basis for the establishment and liquidation of commercial banks "Banks and Banking Act ”1. Banks have their own territory in the republic carry out its activities on the basis of a license issued by the Central Bank increase.

Licensing of Banks of the Republic of Uzbekistan "Banks and Banking "On the activities of the Central Bank of the Republic of Uzbekistan", On Joint Stock Companies and Protection of Shareholders' Rights laws and other laws, as well as regulations for the bank is carried out on the basis of requirements. Establishment of commercial banks is carried out on the basis of Regulation No. 630.Regulations on registration of banks in the territory of the Republic of Uzbekistan and the procedure and conditions for issuing them licenses are set, commercial establishment of banks in the form of open or closed joint stock companies possible.

The process of establishing a bank can be divided into several stages.

1. Preparatory stage.

2. The stage of state registration of the bank.

To the Central Bank of the Republic of Uzbekistan with an application to open a bank

to apply.

The following documents must be attached to the application:

• 
  Document on establishment of a new bank.
  
• 
  signed by the founders and with their seals
  
• 
  and a notarized memorandum of association. Founders
  
• 
  when they are individuals, their signatures are notarized.
  
• 
  Approved by the founding shareholders meeting and
  
• 
  bank charter signed by the founders in triplicate.
  
• 
  decision on establishment of the bank, amount of authorized capital and
  
• 
  approval of the charter, election of the bank board, audit commission and management by the Chairman of the Board of the Bank, including decisions
  

on minutes of the founding meeting. The draft documents are submitted to the Central Bank signed and approved only after approval by the licensing department.

These documents are also required when establishing a branch of a commercial bank documents).

Preliminary permission of the Central Bank to engage in banking activities

founders of the bank established in the process of resolving the issue of transfer

financial opportunities and prestige, proposed to the bank's management to the professional skills of individuals, business and financial plan indicators, organization and the level of equipment and facilities of the bank in question

draws attention.

After the founders received the initial permission to establish the bank

required to obtain a license and state registration of the bank meet organizational and technical requirements. Central Bank of the Republic of Uzbekistan

The original permit is valid for one year. The founders carried out all organizational preparations during this time and complete the state registration of the bank. State registration and banking operations

The following requirements are set for founders to obtain a license:

• 
  Licensing and state registration of the bank
  
• 
  a representative whose powers are confirmed in writing by the founders
  
• 
  submission of an application signed by;
  
• 
  Issued for state registration and licensing
  
• 
  fulfillment of all requirements
  
• 
  Implement all organizational and technical measures,
  
• 
  preparation of buildings and equipment, automated banking operations
  
• 
  preparation of software and hardware for the purpose of increase, cash register
  
• 
  bring the unit ready in accordance with the requirements of the Central Bank;
  
• 
  Appointed by the Central Bank of the Republic of Uzbekistan
  
• 
  pay the minimum amount of authorized capital and
  
• 
  submit a document confirming the payment of the authorized capital;
  
• 
  For bank registration and banking operations The licensing process is complete with all the documents required by the Central Bank must be resolved within one month from the date of issue. Decision on issuing a license to conduct banking operations
  

The following key factors are considered in the adoption:

• 
  acceptability of the bank's business plan;
  
• 
  adequacy of bank capital;
  
• 
  future earnings prospects;
  
• 
  Qualifications and reputation of the intended manager;
  
• 
  current documents submitted for opening a bank
  
• 
  compliance with the law;
  
• 
  Antitrust measures.
  

The need to license banking operations depends on the country of the bank

affecting economic solvency. Banking operations the transmitter must be executed and registered. Establish a commercial bank After the issuance of a license to him, he conducts banking operations on the basis of a license will have the right to transfer. If the bank is the Central Bank of the Republic of Uzbekistan Register for a banking license specified by these operations are considered illegal and

be held accountable.

The commercial bank is registered with the Central Bank of the Republic of Uzbekistan is considered established and acquires the status of a legal entity.

Legal entities and individuals are the founders of a commercial bank participate in the formation of the bank and its authorized capital. Uzbekistan Bank charter in accordance with the Law of the Republic of Kazakhstan "On Banks and Banking"

public authorities, public associations, community in the formation of capital funds, as well as borrowed funds and mortgages use of funds is prohibited.Like any legal entity, banks have a charter and own must act in accordance with their charters.

The bank's charter includes the following articles:

must reflect:

• 
  Bank name (full and abbreviated) and location (post office)
  

• 
  address;
  
• 
  list of operations provided by the bank;
  
• 
  amount of authorized capital, list of founders and their charter
  
• 
  distribution of shares in the capital;
  
• 
  governing bodies of the bank, the order of their organization, their
  
• 
  information on powers and responsibilities;
  
• 
  Bank audit procedures as well as international accounting
  
• 
  reports and audit programs established in accordance with the standards
  
• 
  purpose instructions.
  

Until the bank is established, that is, until it is registered with the state Bank transactions made on behalf of Bank closure and liquidation of banks "Banks and banking Law of the Republic of Kazakhstan "On liquidation of banks" Regulations. the bank loses its solvency and its liabilities exceed its assets when he leaves;

• 
  The information on which the license is based is true
  

when it is determined that it is not;

• 
  the bank's obligations to its creditors and depositors
  

inability to pass;

• 
  regular misrepresentation of reporting data;
  
• 
  Banking operations violate the law and the terms of the license
  

when done in a manner;

• 
  the bank for more than one year after the license is issued
  

as a result of failure to carry out operations;

• 
  Foreign bank opened by a subsidiary bank in the Republic of Uzbekistan
  

when the license is revoked by the country of call.

Revocation of the license The Central Bank appealed to the court of the commercial bank will be the basis for its compulsory termination. This is the Central Bank the liquidation commission appointed by. They are the essence of commercial banks and the basis of their operation is reflected in the basic principles of organization of activities:

1. Involvement of outsiders in the creation of credit resources of commercial banks

the principle of working based on the resources made;

2. Within the limits of the actual available funds of commercial banks

the principle of service;

3. The principle of full economic independence of the bank;

4. The principle of commercial description of the activities of banks;

5. The principle of protecting the interests of customers;

6. Profitability of banks and universalization of their activities

principle;

Organize credit resources within the funds raised by commercial banks The principle of making and working is the basis of banking, its deposit and increases interest in attracting deposits, attracting liabilities is the basis for a competitive environment. Also attracting from abroad the ratio of funds made and invested to attract deposits in banks it stimulates interest and lays the foundation for the efficient use of these funds. This is one of the second and main principles of a commercial bank is to provide services within the limits of available funds. A commercial bank is another bank make a cashless payment to a correspondent account, credit to others cash in the balance of the balance of the service and proxy account can perform paid transactions. Commercial banks actually exist to operate within the limits of funds means that the bank has only its own resources and

the proportion of credit investments, but also its involvement with the bank's assets

is understood to provide a balance between the funds made. Bunda first of all, the uniformity of the maturities of liabilities and assets should be taken into account.

So, if a bank raises funds for a short period of time, that's it in the case of long-term loans, the bank's obligations there are some problems with being able to make payments on time which in turn negatively affects the financial condition of the bank possibleIn addition, the principle of proportionality of funds raised and invested to increase the interest in attracting deposits in banks and from these funds

aimed at more efficient use. Commercial banks operate on this principle helps increase liquidity.

The third principle is the full economic independence of the bank. This is the principle mainly the bank's independent use of its own and borrowed funds, customers and to choose depositors independently, to formulate credit policy independently and independently set and change interest rates, income independently distribute and independently perform other activities possible.

References

1. 
   Kaplan S. The Words of Risk Analysis//Risk Analysis. 1997. N17(4). P. 400-417.
   
2. 
   Борис Паньшин “экономика: Понятия и направления развития”. Наука и инновации №3(193) Март 2019.
   
3. 
   www.gazeta.uz
   
4. 
   www.hse.ru
   
5. 
   www.worldbank.org