Precious metals - bars of gold, silver, platinum and palladium, as well as coins from precious metals(gold, silver, platinum and palladium), excluding coins that are currency Russian Federation.
Banking operations with precious metals - operations to attract deposits and place precious metals.
Metal accounts are accounts opened by a credit institution to carry out transactions with precious metals.
Metal safekeeping accounts are customer accounts for recording precious metals transferred for safekeeping to a credit institution while preserving their individual characteristics (name, number of valuables, fineness, manufacturer, serial number, etc.).
Unallocated metal accounts (UMA) are accounts opened by a credit institution to record precious metals without indicating individual characteristics and carrying out operations to attract and place them.
Thesis on the topic: “Operations of commercial banks with precious metals: problems and prospects for development (using the example of the Miass branch No. 4910 of Sberbank OJSC)” Completed by: Amineva A.R. Group: MF-502 Scientific supervisor: Khakimova E.A. Slide 1 Object Commercial banks Subject Features of operations of commercial banks with precious metals Purpose Identification of problems and ways to improve the organization of activities of commercial banks in the precious metals market Objectives 1. Study theoretical aspects banking operations in the precious metals market. 2. Reveal the features of legal regulation of the activities of commercial banks with precious metals. 3. Research technologies for conducting banking operations with precious metals and identify risks when carrying out these operations. 4. Characterize the operations of commercial banks with precious metals using the example of Miass branch No. 4910 of Sberbank OJSC. 5. Analyze the investment attractiveness of investments in precious metals in a commercial bank using the example of Miass branch No. 4910 of Sberbank OJSC. Slide 2 Structure of the precious metals market in Russia Precious metals market Primary Secondary Direct internal Interbank Intermediary internal Wholesale Direct export Retail Exchange Export Slide 3 Classification of banking operations with precious metals Banking operations with precious metals Profit generation and risk insurance Securing a loan Speculative operations Gold hoarding Metal accounts Pledge of gold arbitration Purchase of gold bars Gold certificates Pledge of silver swap Purchase of gold coins Federal loan bonds secured by gold Pledge of platinum Pledge of palladium Slide 4 Risks arising when carrying out operations with precious metals and methods of managing them Credit risk Market risk Operational risk Management methods: 1. Creation of reserves to cover losses; 2. The procedure for covering losses with the bank’s own capital; 3. Determination of the scale of different types of margin based on the degree of risk; 4.Control over the quality of the loan portfolio; 5.Tracking critical indicators by type of risk; 6. Transactions with derivative financial instruments; 7. Motivation of business units and personnel associated with risky operations of the bank; 8.Pricing (interest rates, commissions) taking into account risk; 9. Setting limits on risky transactions; 10. Hedging of individual risks. Liquidity risk Slide 5 Volume of each type of transactions with precious metals in Miass branch No. 4910 of Sberbank OJSC bullion coins 3% 11% loans 13% Compulsory medical insurance 73% Slide 6 Advantages and disadvantages of investing in precious metals in Miass branch No. 4910 of Sberbank OJSC View investments in precious metals in the Miass branch No. 4910 of Sberbank OJSC Advantages Disadvantages 1. Opening of impersonal metal accounts (OMS) - when opening an OMS, VAT is not charged; - no commission for opening, closing and maintaining compulsory medical insurance; - precious metal can be bought and sold any day. - VAT payment upon closure of compulsory medical insurance with receipt of real metal; - presence of a spread, i.e. the difference between the lowest selling price and the highest purchase price of the product; - increased risk. 2. Buying physical precious metal in bullion - psychological comfort; - a beautiful and prestigious gift. - VAT is added to the cost of the bullion; when reselling the goods, VAT is not returned to individuals; - when selling an ingot to a bank, the sale price should not be lower than the sale price plus 18% VAT, plus the bank will take its commission for processing the transaction; - when buying back with physical damage to the metal, the bank may require a discount - a discount to the market price; - additional costs for mandatory examination, which confirms the authenticity of the metal in the ingot. 3. Purchase of coins - when purchasing investment coins, the transaction is not subject to VAT; - demand for investment coins is increased, and supply is limited => gradual rise in prices. - fairly high spreads for investment coins; - if coins are damaged, their price decreases greatly. Slide 7 Calculation of the client's profitability when investing gold on compulsory medical insurance Dynamics of profitability of investments in gold on compulsory medical insurance for clients of Miass branch No. 4910 of Sberbank OJSC from 01.01.2006 to 01.05.2008 80.000 40.000 20.000 01.05.2008 01.03.2008 01.01. 2008 01.11.2007 01.09 .2007 01.07.2007 01.05.2007 01.03.2007 01.01.2007 01.11.2006 01.09.2006 01.07.2006 -40.000 01.05.2006 -20.000 01.03.2006 0.0 00 01/01/2006 Profitability,% 60.000 -60.000 date for 0.5 year r(09 .01 .08 .9 .05 .08) r(17 .01 .08 17 .03 .08) for 1 year for 1.5 years (purchase 09.05.2008 sale 09.01.2008) 366,100 (09.05 . 2008 09 . 01 . 2008) sale 09 . 01. 2008 (purchase 03/17/2008 sale 01/17/2008) 366,100 (03/17/2008 01/17/2008) sale 17. 01. 2008 for 2 years (653,82,713,80) 365,100 121,713,80 (737,28,704,12) 366,100 60,704,12 25,35% 28,73 Slide 8 Gold purchase and sale quotes by Miass branch No. 4910 OJSC "Sberbank" from 01/09/2008 to 05/12/2008 1200.00 London fixing, Bank of Russia rate. RUB/year $US/tr. oz 1000.00 600.00 05/07/2008 04/30/2008 04/23/2008 04/16/2008 04/02/2008 03/26/2008 03/19/2008 03/12/2008 03/05/2008 02/27. 2008 Purchase rate by Miass branch No. 4910 of Sberbank OJSC, rubles/year 02/20/2008 02/13/2008 01/23/2008 01/16/2008 0.00 02/06/2008 200.00 01/30/2008 Sales rate by Miass branch No. 4910 of Sberbank OJSC, rub/y 04/09/2008 400.00 01/09/2008 rub/y 800.00 date Purchase Sell Central Bank L. Fixed. (pm) Slide 9 Problems Solutions Expected result 1. Risks arising when carrying out transactions with precious metals - constant improvement of the risk management system, based on the principles of risk awareness, delimitation of powers for assessing and accepting risk, uniform approaches to assessment and the establishment of limits and restrictions, control of accepted risk; -prohibition of carrying out new banking operations that are subject to risks in the absence of regulatory documents or relevant decisions of collegial bodies regulating the procedure for their implementation; -use of modern information technology allowing you to quickly respond and eliminate the source of the risk or minimize its impact. - compliance with the main standards of the Bank of Russia, - ensuring a positive financial result, - improving the quality of operations, - timely prevention of consequences in the event of a risk event. 2. Collection of VAT on the sale of bank bullion and coins made of precious metals to real investors - removal of VAT from transactions with measured bullion; -removal of VAT from transactions with commemorative coins made of precious metals, based on the experience of Western countries. -increased liquidity of the market for bullion bars made of precious metals, -increased profitability from transactions with precious metals in the asset structure, -development of impersonal metal transactions on accounts, paper certificates with metal backing, metal shares in investment funds, etc. 3. The need to increase the competitiveness of Sberbank of Russia in the precious metals market - the introduction of multimetallic impersonal accounts and deposits, which provide for the possibility of the bank, at the client’s request, converting gold into another metal; - introduction of credit lines in gold for specialized participants in the gold market, similar to foreign exchange ones, providing for the reservation of funds for the consistent development of a loan; - introduction of gift measured gold bars from 1 to 50 g. - increasing the competitiveness of a commercial bank in the precious metals market; - strengthening the bank’s image; - increasing the interest of citizens with average and high income levels in coins and bars, not only as investment objects, but also as newfangled gifts. Slide 10 Slide 11
Sections: Economy , Competition "Presentation for the lesson"
Presentation for the lesson
Back Forward
Attention! Slide previews are for informational purposes only and may not represent all the features of the presentation. If you are interested in this work, please download the full version.
Activities of banks in the precious metals market and precious stones is becoming increasingly active, which indicates the relevance of research on this topic at the present time.
A new market for precious metals has formed in Russia today.
There is no doubt about the need to maximize the involvement of the human factor in solving the problem of reducing the shadow circulation of precious metals and precious stones. At the same time, it is also important to take into account the historical features that stimulate shadow turnover in the Russian economy. All this, one way or another, predetermines the goal setting for analyzing the current problem situation and finding ways to solve it. A significant reduction in shadow turnover is achieved not only through changes in legislation, but also as a result of the application of new financial schemes by banks and regions.
When students study this issue, the objects of research are banking transactions with precious metals and precious stones.
To achieve the goal, the following tasks are set:
- Study the theoretical foundations of banking operations in the market of precious metals and precious stones;
- Identify the features of legal regulation of the activities of commercial banks with precious metals;
- Determine the role of commercial banks in the market of precious metals and precious stones;
- Consider the types of banking operations with precious metals;
- Study the accounting of precious metals and natural precious stones in the Bank of Russia;
- Analyze the operations of the Bank of Russia in the market of precious metals and precious stones;
- Consider the problems and prospects for organizing the activities of commercial banks in the precious metals market;
- Study the current position of banks in the market of precious metals and precious stones;
- Assess the economic efficiency of investing in a bank.
Precious metals and precious stones are subject to special regulation. According to the law, precious metals are gold, silver, platinum and the platinum group metals (palladium, iridium, rhodium, ruthenium and osmium). Precious metals can be found in any condition, in raw materials, alloys, semi-finished products, industrial products, chemical compounds, jewelry and other products, coins, scrap and industrial and consumer waste.
The legal basis for banks to carry out transactions with precious metals and precious stones are the following basic documents:
Federal Law "On Currency Regulation and Currency Control" dated December 10, 2003 N 173-FZ,
Federal Law "On Precious Metals and Precious Stones" dated March 26, 1998 No. 41-FZ,
Regulations of the Central Bank of the Russian Federation "On the performance of transactions with precious metals by credit institutions on the territory of the Russian Federation and the procedure for conducting banking transactions with precious metals" dated November 1, 1996 No. 50.
“Operations of commercial banks with precious metals:
problems and development prospects
(using the example of Miass branch No. 4910
"Sberbank")"
Completed by: Amineva A.R. Group: MF-502 Scientific supervisor: Slide 1
Object
Commercial banks
Features of commercial banks' operations with precious metals
Identification of problems and ways to improve the organization of activities of commercial banks in the precious metals market
1. Study the theoretical aspects of banking operations in the precious metals market.
2. Reveal the features of legal regulation of the activities of commercial banks with precious metals.
3. Research technologies for conducting banking operations with precious metals and identify risks when carrying out these operations.
4. To characterize the operations of commercial banks with precious metals using the example of Miass branch No. 4910 of Sberbank OJSC.
5. To analyze the investment attractiveness of investments in precious metals in a commercial bank using the example of Miass branch No. 4910 of Sberbank OJSC.
Market structure
precious metals in Russia
Precious metals market |
|
Primary |
Secondary |
Direct internal |
Interbank |
Intermediary internal |
|
Direct export |
Retail |
Exchange |
|
Export |
|
operations with precious
metals
Banking operations with precious metals
Making a profit |
Loan collateral |
Speculative |
Hoarding of gold |
|
and risk insurance |
operations |
|||
Metal |
Pledge of gold |
arbitration |
Buying gold |
|
Silver Pledge |
Buying gold |
|||
certificates |
||||
Bonds |
Platinum pledge |
|||
federal loan |
||||
secured |
||||
Palladium pledge |
carrying out operations with precious metals and methods of managing them
Credit
Control methods: |
|
1.Creation of reserves to cover losses; |
|
2. The procedure for covering losses with the bank’s own capital; |
|
3. Definition of the scale of different types of margin, |
|
based on the degree of risk; |
|
4.Control over the quality of the loan portfolio; |
|
5.Tracking of critical indicators by section |
|
types of risk; |
|
6. Transactions with derivative financial instruments; |
|
7. Motivating business units and personnel, |
|
related to risky operations of the bank; |
|
8.Pricing (interest rates, commissions) |
|
taking into account risk; |
|
Market |
9. Setting limits on risky transactions; |
10. Hedging of individual risks. |
|
Operating
liquidity
The volume of each type of transaction with
precious metals in Miass branch No. 4910 of Sberbank OJSC
"Sberbank"
Demand for investment coins is increased, but supply is limited => gradual increase in prices.
- VAT payment upon closure of compulsory medical insurance with receipt of real metal;
- the presence of a spread, i.e. the difference between the lowest selling price and the highest purchase price of the product;
- increased risk.
- VAT is added to the cost of the bullion; when reselling the goods, VAT is not refunded to individuals;
- when selling an ingot to a bank, the sale price should not be lower than the sale price plus 18% VAT, plus the bank will take its commission for processing the transaction;
- when buying back with physical damage to the metal, the bank may require a discount - a discount to the market price;
- additional costs for mandatory examination, which confirms the authenticity of the metal in the ingot.
- fairly high spreads for investment coins;
- When coins are damaged, their price is greatly reduced.
Calculation of client profitability when investing gold in compulsory medical insurance
(purchase 05/09/2008 sale 01/09/2008) 366,100 |
|||||
(05/09/2008 01/09/2008) sale 01/09/2008 |
|||||
(purchase 03/17/2008 sale 01/17/2008) 366,100 |
|||||
(17.01.08 17.03.08) |
(03/17/2008 01/17/2008) sale 01/17/2008 |
||||
Slide 9
documents or relevant decisions of collegial
bodies regulating the procedure for their commission;
Use of modern information technologies,
allowing you to quickly respond and eliminate the source
risk occurrence or minimize its impact.
2. Collection of VAT on the sale of bank bullion and coins made of precious metals to real investors
3. Necessity
promotion
competitiveness of Sberbank of Russia in the market
precious metals
Removal of VAT from transactions with measured ingots;
Removal of VAT from transactions with commemorative coins made of precious metals, based on the experience of Western countries.
- introduction of multi-metallic impersonal accounts and deposits, providing for the possibility for the bank to convert gold into another metal by order of the client;
- introduction of credit lines in gold for specialized gold market participants, similar to foreign exchange ones, providing for the reservation of funds for the consistent development of a loan;
- introduction of gift measured gold bars from 1 to 50g.
Expected result
Compliance with the main standards of the Bank of Russia,
Ensuring a positive financial result,
Improving the quality of operations,
Timely prevention of consequences in the event of a risk event.
Increased liquidity of the precious metal bullion market,
Increase in profitability from operations with precious metals in the asset structure,
Development of impersonal metal transactions on accounts, paper certificates with metal backing, metal shares in investment funds, etc.
- increasing the competitiveness of a commercial bank in the precious metals market;
- strengthening the bank's image;
- increasing the interest of citizens with middle and high income levels in coins and bars, not only as investment objects, but also as newfangled gifts.
From a functional point of view, the market for precious metals and precious stones is a trade and financial center in which trade in them and other commercial and property transactions with these assets are concentrated. From an institutional point of view, the precious metals market is a collection of specially authorized banks and precious metals exchanges.
Problems Despite the fact that the Kyrgyz Republic is a gold-mining country, the volume of investment savings in precious metals is practically zero. In Kyrgyzstan, the domestic active market for precious metals is underdeveloped and practically absent, and therefore the savings of the population and enterprises are mainly invested either in foreign currency or in real estate or movable property.
An analysis of the situation in the field of mining of precious metals shows that about 17 tons of gold and 5 tons of silver are mined annually in Kyrgyzstan and almost all of them are exported, without accumulating or remaining on the country’s domestic market. Considering that during periods of instability in currency markets, most investors prefer to invest their funds in a more stable metals market, as well as in conditions of increased global demand for gold, a developed domestic market for precious metals is needed in Kyrgyzstan.
Solution It is necessary to create conditions for the further development in our country of the industrial potential of the gold mining industry for the purposes of long-term economic growth of the republic; accordingly, it is necessary to create conditions for the circulation in the financial market of Kyrgyzstan of refined standard and measured bars, as well as investment coins made of gold and/or silver.
