Below is personal narrative speech topics the structure of the balance sheet of a commercial bank.

Below is personal narrative speech topics the structure of the balance sheet of a commercial bank.

attract deposits from individuals, open new deposit accounts and replenish existing ones; provide guarantees, sureties, blank loans, as well as provide all soft (unprofitable) loans to the bank, including bank employees; accrue and pay interest on loans granted by institutions of one bank.

The National Bank of Ukraine revokes the license of a commercial bank, which has been transferred to the financial recovery regime, to conduct operations on cash execution of the state budget, including maintaining budget accounts of clients and accounts of state extrabudgetary funds, and may revoke the license to conduct certain banking operations.

If the main financial indicators of a commercial bank, especially those pointed out by the National Bank of Ukraine, have not improved or deteriorated and the financial recovery program has not been implemented during the established financial recovery regime, the National Bank of Ukraine, on taking appropriate measures for early repayment of the stabilization loan and applies the following additional actions:

in order to ensure the interests of clients prohibits active operations on the correspondent account of a commercial bank, except for settlement and cash operations of clients provided that there are funds in their current, current accounts, operations to make payments to the state budget and pay salaries; removes the bank’s management from management; appoints a temporary administration to manage the bank; revokes the license to perform some or all banking operations; decides on the reorganization or liquidation of the bank and exclusion from the Republican register of banks, currency exchanges and other financial institutions.

In case of effective implementation of the measures provided by the program of financial recovery, improvement of financial condition and observance of economic indicators to the commercial bank which is transferred to the mode of financial recovery, the general mode of its activity is restored.


Regulation and economic analysis of a commercial bank. Abstract

The main aspects of economic analysis of the bank. Balance sheet of the bank and its analysis. Analysis of the bank’s profits and losses. Formation and observance of obligatory reserves by a commercial bank

The main aspects of economic analysis of the bank

Analysis of the bank’s activities is one of the most important areas of economic work. Without the correct organization of analytical work both at the micro level (ie in a separate bank) and at the macro level (in the banking system as a whole), the National Bank of Ukraine will not be able to determine:

main directions of monetary policy; the forecasted situation on the country’s credit markets; conclusions about the stability and reliability of the banking system as a whole; compliance by banks with established economic standards.

The main object of analysis is the commercial activity of each individual bank.

The subjects of the analysis are both commercial banks and the National Bank, audit firms, real and potential clients. In this regard, there are different areas and criteria for analysis:

for a shareholder – the opportunity to receive maximum dividends on invested capital; for the enterprise – the bank’s ability to quickly make payments, provide quality services; for an individual – to safely maintain their savings, protect them from inflation and get a certain amount of income.

However, the method of balance analysis should be the only one to compare the results. The well-known rating system CAMEL and others are used for this purpose.

The purpose of the analysis is to determine the financial condition and results of the bank, the feasibility and prospects for its further activities.

The tasks of the analysis are:

determination of sources, quality and stability of bank income; compliance with all liquidity requirements; maintaining the state of capital adequacy and sufficiency; comparison of the financial condition and results of the bank with the results of other banks; summarizing the results of the analysis and preparing recommendations for management decisions aimed at improving the performance of an individual bank.

Balance sheet of the bank and its analysis

The main source of information for the analysis is the balance sheet of a commercial bank.

A balance sheet is a statement of a bank’s financial position that reflects its assets, liabilities and equity in monetary terms at a particular date.

The balance sheet consists of two parts. The left part shows the assets, and the right part shows the liabilities and equity of the bank. Assets and liabilities are presented in the balance sheet in descending order of liquidity.

Below is the structure of the balance sheet of a commercial bank.




Primary reserves (money in time, correspondent accounts with the NBU and other banks)


Liabilities to other banks (correspondent accounts of other banks)


Secondary reserves (government securities)


Interbank loans received


Loan portfolio


Demand deposits


Investment portfolio (corporate part)


Time deposits of legal entities and individuals



Savings deposits



Total commitments

Fixed assets, capital expenditures and other assets


Level I capital


Level II capital


Total equity




The display of information in the balance sheet is achieved using the method of double entry, due to the accounting equation:

A = P = C + K,

where: A – assets, P – liabilities, C – liabilities, K – capital.

This equation is known as the classical accounting equation, or functional accounting model. Both parts must be equal.

This equation reflects the financial condition of the bank. The financial condition is understood as the availability of economic resources belonging to the bank and all the capital that opposes them at a certain point in time.

Assets are resources controlled by the institution that are acquired as a result of previous transactions and that are expected to generate income or other economic benefits in the future. In other words, these are economic resources available to the bank, the use of which is likely to bring future income.

In the bank’s balance sheet assets are in the form of fixed assets, cash in national or foreign currency at the bank’s cash desk, debt on loans, securities in the bank’s portfolio and others.

Liabilities (borrowed capital) are accounts payable of the bank, which arose as a result of previous operations and which must be repaid within a specified period. The bank’s liabilities include a decrease in income related to the acquisition of assets or the receipt of services from others as a result of previous transactions. Liabilities include: current account balances, deposits, bank liabilities (promissory notes, bonds issued by the bank) and others.

Equity is the difference between assets and liabilities, ie the part of assets that is formed from the bank’s own sources. It shows the owner’s share in the bank’s assets: for the company it is the capital of the partners, for the joint-stock company it is the share capital. Capital accounts include paid-in registered authorized capital of the bank, issue differences, bank reserves and others.

The use of this equation allows to visually, according to the general data of the balance sheet, to determine the solvency of the bank. Proof that the bank is solvent is the predominance of its total assets over total liabilities. The difference between a bank’s assets and liabilities is the real amount of a commercial bank’s equity.

Capital = Assets – Liabilities

A commercial bank is solvent if the value of its equity is greater than 0. An insolvent bank is a bank that has zero or negative equity.

The difference between assets and liabilities is also defined as net assets. The change in net assets for the reporting period reflects the change in the financial condition of the bank. The increase in net assets is achieved in the case of the bank’s profit, ie by increasing the bank’s equity:

CHA1 – CHA0 = K0 + P,

where: ЧА0 – net assets at the beginning of the reporting period, ЧА1 – net assets at the end of the reporting period, К0 – equity at the beginning of the reporting period, P – profit received for the reporting period.

The main types of analysis of the bank’s balance sheet are:

1. Structure analysis – allows you to assess changes in the structure of assets and liabilities over time, to compare with other banking institutions. Analysis of the structure of active operations is divided into qualitative and quantitative. Qualitative analysis is to determine the list of operations at the time of analysis. Quantitative analysis is to determine the proportion of a particular type of operation in their total amount.

2. Coefficient analysis of the balance sheet. It is performed using three main coefficients:

liquid assets ratio. This is the liquidity ratio, which is calculated by adding to the cash and cash equivalents of interbank assets minus interbank liabilities and loans from the central bank. It can also be calculated as a percentage of total (or working) assets. loan-to-deposit ratio. This ratio is determined by the sum of all assets with normal risk (discounts, loans and notices), divided into basic deposits (including „demand“ time and savings deposits except for short-term money market and long-term borrowings). This ratio characterizes the bank’s ability to attract deposits from society to support its lending operations and its ability to lend these deposits. A higher ratio is traditionally associated with a higher risk element because it may reflect lower liquidity (and vulnerability to creditors), adverse economic conditions, or the consequences of an outflow of deposits.