This is a legal entity that, in order to make profit as the main purpose of its activities, on the basis of a special permit (license) of the Central Bank Russian Federation(Bank of Russia) has the right to carry out banking operations provided for by the Banking Law. Distinctive features credit institutions are:
status of a legal entity, i.e. an organization that has separate property and is liable for its obligations with this property, which can, on its own behalf, acquire and exercise property and personal non-property rights, bear responsibilities, be a plaintiff and defendant in court,
The main goal of the activity is to make a profit, i.e. operates as a commercial organization;
the need to obtain a special permit for the right to carry out banking operations - a license from the Bank of Russia;
carrying out its activities mainly at the expense of funds raised in accounts and deposits.
There are two types of credit institutions: banks and non-bank credit institutions.
The main type of credit institution is a bank. Legal definition bank is also given in Art. 1 of the Banking Law.
More on the topic Credit institution:
- 14.1. Types and role of non-banking financial institutions
- 5.5.2. REGULATION OF THE PROCEDURE FOR CREATION OF BANKS AND NON-BANKING FINANCIAL ORGANIZATIONS
- 5.5.3. ESTABLISHING PRUDENTIAL RULES FOR THE ACTIVITIES OF CREDIT AND FINANCIAL ORGANIZATIONS
- Chapter 6. BANKS AND NON-BANKING FINANCIAL ORGANIZATIONS IN THE REPUBLIC OF BELARUS
- In the Russian Federation, a credit organization can be formed on the basis of any form of ownership as a business company. Business companies, and therefore banks, can be created in the form of joint-stock companies, limited liability companies and additional liability companies.
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Any business starts with the goal of making a profit, because... this is essential to the survival and growth of the company. From point of view economic theory generation cash flows(i.e. making a profit) should be considered as the main goal of any business unit.
The need for profit is determined by the need to cover production costs, as well as the expansion and development of the enterprise. It will simply be impossible for a business to survive without profit.
Some economists believe that profit maximization should not be the dominant goal in a company's development strategy, because this leads to unnecessary exploitation of not only labor, but also consumers. Other theorists, on the contrary, argue that profit should be main goal the company, since it is the entrepreneur’s monetary reward for the risks taken and, accordingly, a motivating factor for further growth and development.
IN Lately Among the largest businessmen there has been a tendency to adhere to the view that business should, first of all, be socially responsible. Improving the quality of life of people, society as a whole, environment, participation in solving acute problems social problems- here is a list of tasks facing a socially responsible business.
One of richest people British businessman and bestselling author of Losing My Virginity, Sir Richard Branson, believes that at the heart of any enterprise there should be a fundamental idea of benefiting others, and profit will take care of itself.
IN modern world Success is achieved by those companies that not only offer the market a high-quality product or service, but demonstrate to potential consumers a sincere social responsibility.
However, profit is important to business for a number of reasons:
1. Profit is necessary for the growth of the company. Profit acts as the main source of financing the activities of the enterprise (purchases of raw materials, supplies, equipment, salary payments).
2. Profit is necessary for the survival of the company. In order to cover production and other expenses, the company must have a source of income. This becomes especially critical during economic downturns.
3. Profit is necessary to satisfy the individual and social needs of the entrepreneur.
4. Profit is the most important economic indicator of business success. The enterprise profitability indicator acts as a litmus test for assessing the prospects, attractiveness and rationality of the functioning of a business unit. This valuation indicator becomes especially important for analysts when a company enters an IPO. stock market, traders, investors.
Opponents of profit maximization cite the following facts as arguments:
1. It leads to exploitation of workers and consumers. Companies, in pursuit of increasing profits, strive to reduce expenses (employee salaries) and increase income (aggressive advertising, aggressive methods promotion and sales of their products, attempts to manipulate the minds of consumers).
2. This leads to increasing social inequality, with the rich getting richer and the poor getting poorer.
3. This leads to an increase in cases of corruption.
4. It reduces the morale of society and increases the degree of materialism.
Credit organisation- a legal entity that, in order to make profit as the main purpose of its activities, on the basis of a special permit (license)) The Central Bank of the Russian Federation has the right to carry out banking operations provided for by the law on banks.
The specified wording and the legal basis of credit institutions have been established. Federal Law of December 2, 1990 No. 395-1 (as amended on July 27, 2010) “On Banks and Banking Activities”.
Credit organizations can be formed on the basis of any form of ownership as a business company.
The Law on Banks provides for the creation of two types of credit organizations: banks and non-bank credit organizations.
Bank- is a credit institution that has the exclusive right to carry out the following banking operations in total: attracting deposits Money individuals and legal entities; placement of these funds on your own behalf and at your own expense on the terms of repayment, payment, urgency; opening and maintaining bank accounts for individuals and legal entities.
A non-bank credit organization has the right to carry out certain banking operations, the permissible combinations of which are established by the Bank of Russia. To non-bank credit organizations In particular, these include organizations created to carry out settlements on the securities market and clearing institutions.
Clearing institution- this is an organization that is a legal entity under the legislation of the Russian Federation, which has declared itself as a center for mutual settlements, which, on the basis of a license issued by the Central Bank of Russia, is granted the right to carry out settlement (clearing) operations, as well as limited quantity banking operations supporting clearing.
The list of banking operations and other transactions that credit institutions have the right to carry out is determined by Art. 5 of the Banking Law:
Attracting funds from individuals and legal entities into deposits;
Placement of these raised funds on your own behalf and at your own expense;
Opening and maintaining bank accounts for individuals and legal entities; . making payments;
Collection of funds, bills, payment and settlement documents and cash services for individuals and legal entities;
Purchase and sale of foreign currency in cash and non-cash form;
Issuance of bank guarantees, etc.
A credit organization is prohibited from engaging in production, trade and insurance activities.
State registration and maintaining the Book of State Registration of Credit Institutions, licensing of banking activities is carried out by the Bank of Russia in the manner prescribed by law.
A license to carry out banking operations is issued to a credit organization after its state registration. Credit organizations receive the right to carry out banking operations from the moment they receive a license. The license specifies the banking operations that the credit institution has the right to engage in, as well as the currency in which these banking operations can be carried out. The license is issued without limitation of its validity period.
The law also defines control and supervision measures over the activities of credit institutions, carried out by the Bank of Russia, means of ensuring the stability of the banking system, protecting the rights and interests of depositors and creditors of credit institutions. Thus, in order to ensure financial reliability, a credit institution is obliged to:
Create reserves (funds), including for the depreciation of securities;
Classify assets, highlighting doubtful and bad debts, and create reserves (funds) to cover possible losses;
Comply with mandatory regulations numerical values which are established by the Bank of Russia;
Organize internal control that ensures an appropriate level of reliability corresponding to the nature and scale of operations;
Deposit required reserves with the Bank of Russia.
In case of violation of banking legislation, the Central Bank of the Russian Federation may revoke the license, which means termination of the activities of the credit institution.
Credit organization It is prohibited to engage in production, trade and insurance activities.
Credit organizations are divided into two groups:
- banks;
- non-bank credit organizations.
Bank
- attracting funds from individuals and legal entities into deposits;
- opening and maintaining bank accounts for individuals and legal entities.
Non-bank credit organization
Non-bank credit organizations- these are credit institutions that have the right to carry out certain banking operations provided for by law. The combination of these operations establishes .
In addition to banks and other credit organizations, the Federal Law “On Banks and Banking Activities” provides for the functioning of:
1. unions and associations credit organizations that do not pursue the goal of making a profit, but are created to protect and represent the interests of their members, coordinate their activities, develop interregional and international relations, satisfy scientific, information and professional interests, develop recommendations for the implementation of banking activities and solving other joint problems of credit organizations. They are prohibited from conducting banking transactions. Unions and associations of credit organizations are created and registered in the manner established by the legislation of the Russian Federation for non-profit organizations (Federal Law "On non-profit organizations"). Unions and associations of credit organizations notify the Bank of Russia of their creation in month period after registration;
2. groups of credit institutions, created to solve joint problems (joint implementation of banking operations) by concluding an appropriate agreement between two or more credit institutions. A banking group is an association of credit institutions that is not a legal entity, in which one (parent) credit institution directly or indirectly (through a third party) has a significant influence on decisions made by the management bodies of another credit institution (credit institutions). The parent credit institution of a banking group is obliged to notify the Bank of Russia in the prescribed manner about the formation of a banking group;
3. bank holdings. representing a non-legal entity association of legal entities with the participation of a credit institution (credit institutions), in which a legal entity that is not a credit institution (the parent organization of a banking holding company) has the ability to directly or indirectly (through a third party) have a significant influence on decisions, adopted by the management bodies of the credit organization (credit organizations). Significant influence is understood as the ability to determine decisions made by the management bodies of a legal entity, the conditions for its conduct entrepreneurial activity due to participation in its authorized capital and (or) in accordance with the terms of the agreement concluded between legal entities that are part of the banking group and (or) the banking holding company, appoint a sole executive body and (or) more than half of the collegial body executive body legal entity, as well as the ability to determine the election of more than half of the board of directors (supervisory board) of the legal entity.
The parent organization of a bank holding company, in order to manage the activities of all credit institutions included in the bank holding company, has the right to create a management company of the bank holding company and determine the decisions of this company on issues within the competence of the meeting of its founders (participants), including its reorganization and liquidation. A management company is a business company whose main activity is the management of credit institutions that are part of a banking holding company. The management company of a bank holding company does not have the right to engage in insurance, banking, manufacturing and trading activities. The parent organization of a bank holding company is obliged to notify the Bank of Russia in accordance with the established procedure about the formation of a bank holding company.
Thus, banking system The Russian Federation is two-tier, in which the upper level is represented by the Central Bank of the Russian Federation; it is entrusted with the functions of regulation and management of the second level - banks and other credit organizations. It is worth noting that the bulk of credit institutions (95%) are represented by banks.
Legal basis for the activities of credit institutions
Concept and legal status of a credit organization
Credit organizations occupy a significant place in the credit system. The legal status of a credit organization in the Russian Federation is determined by the Constitution of the Russian Federation. federal laws“On banks and banking activities”, “On the Central Bank of the Russian Federation (Bank of Russia)”, other federal laws and regulations Central Bank of the Russian Federation.
In accordance with the Federal Law “On Banks and Banking Activities” (Article 1) credit organisation- this is a legal entity that, in order to make a profit as the main goal of its activities, on the basis of a special permit (license) of the Central Bank of the Russian Federation, has the right to carry out banking operations. TO banking transactions according to Art. 5 of this Law include:
- attracting funds from individuals and legal entities to deposits (on demand and for a certain period);
- placing raised funds on your own behalf and at your own expense;
- opening and maintaining bank accounts for individuals and legal entities;
- carrying out settlements on behalf of individuals and legal entities, including correspondent banks, on their bank accounts;
- collection of funds, bills, payment and settlement documents and cash services for individuals and legal entities;
- purchase and sale of foreign currency in cash and non-cash forms;
- attraction of deposits and placement of precious metals;
- issuance of bank guarantees;
- making money transfers on behalf of individuals without opening bank accounts (except for postal transfers).
In addition to purely banking operations, credit institutions have the right to carry out certain deals specified in the Federal Law “On Banks and Banking Activities”. These include:
- issuance of guarantees for third parties providing for the fulfillment of obligations in monetary form;
- acquisition of the right to demand from third parties the fulfillment of obligations in monetary form;
- trust management of funds and other property under agreements with individuals and legal entities;
- carrying out transactions with precious metals and stones in accordance with the legislation of the Russian Federation;
- leasing to individuals and legal entities special premises or safes located in them for storing documents and valuables;
- leasing operations;
- provision of consulting and information services;
- other transactions in accordance with the legislation of the Russian Federation.
It should be noted that credit institutions are prohibited from engaging in production, trading and insurance activities.
Organizational and legal form of credit organizations
A credit organization, in accordance with the Federal Law “On Banks and Banking Activities” and the Civil Code of the Russian Federation, is formed on the basis of any form of ownership as a business company, i.e. in the form of limited liability companies (Article 87-94 of the Civil Code of the Russian Federation, Federal Law of February 8, 1998 “On Limited Liability Companies”), additional liability (Article 95 of the Civil Code of the Russian Federation) and joint-stock companies (Article 96-104 Civil Code of the Russian Federation and Federal Law of December 26, 1995 “On joint stock companies»).
Credit institution in the form limited liability companies A company established by one or more persons, the authorized capital of which is divided into shares by certain constituent documents, is recognized. The founders of such a company are not liable for its obligations and bear the risk of losses associated with the activities of the company, within the value of the contributions they made. At the same time, the participants of the company who have not fully made their contributions bear joint liability for its obligations to the extent of the value of the unpaid part of the contribution of each participant.
Additional liability company It is not very common in the Russian Federation and practically does not occur as a form of ownership of credit institutions. This is primarily due to the fact that it provides for a completely different responsibility of the founders, who are jointly and severally liable on a subsidiary basis in a multiple of the value of their contributions. The main debtor in this case will be the society itself. But if its assets turn out to be insufficient for settlements with creditors, the balance of the debt is assumed by the founders in amounts that are a multiple of the authorized contribution. The multiplicity is determined by the constituent agreement.
Joint Stock A company is recognized whose authorized capital is divided into a certain number of shares. Participants in a joint-stock company (shareholders) are liable for its obligations and bear the risk of losses associated with the activities of the company, within the limits of the value of the shares they own.
If the shares of a company are distributed among its founders or a predetermined circle of persons, then the credit organization is registered as closed joint stock company. Such a company does not have the right to conduct an open subscription for issued shares or otherwise offer them for acquisition to an unlimited number of persons. Shareholders of a closed joint stock company have preemptive right acquisition of shares sold by other shareholders of this company.
A joint stock company, the participants of which can alienate shares belonging to them without the consent of other shareholders, is recognized open joint stock company. Such a company has the right to conduct an open subscription for the shares it issues and their free sale under the conditions established by law, for example, the Federal Law “On Joint Stock Companies” or other legal acts. The responsibilities of such a company include the annual publication for public information of an annual report, balance sheet, and profit and loss account.
Founders of the credit organization in accordance with Instruction No. 109-I “On the procedure for making decisions on state registration of credit organizations and issuing licenses for banking operations,” they can be both individuals and legal entities. The founders are legal entities, must have a stable financial position during the last 6 months preceding the date of submission of documents for state registration, it is sufficient own funds for contribution to the authorized capital of a credit organization; carry out activities for at least 3 years; fulfill obligations to all types of budgets for the last 3 years. The founders of the bank do not have the right to withdraw from the bank's membership during the first 3 years from the date of its registration.
For successful work credit organization founders must form authorized capital, which is created on the basis of the sale of shares or shares. A contribution to the authorized capital of a credit organization can be made in the form of: funds in both national and foreign currency; building (premises) owned by the founder, or other property in non-monetary form, which must be assessed and reflected in the balance sheet of the credit institution in national currency. To form the authorized capital of a credit organization, funds from the budgets of constituent entities of the Russian Federation can also be used, local budgets, available funds and other property owned by the authorities state power subjects of the Russian Federation and local governments, on the basis, respectively, of a legislative act of a subject of the Russian Federation or a decision of a local government.
At the same time, it is legally prohibited to use borrowed funds, as well as funds, to form the authorized capital of a credit organization. federal budget and state extra-budgetary funds, free funds and other property under the jurisdiction of federal government bodies, except for cases provided for by federal laws.
The Bank of Russia provides for control over the formation of authorized capital, the minimum size of which is established in accordance with Art. 62 Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”, art. 11 of the Law “On Banks and Banking Activities” and amounts to 5 million euros. The decision of the Bank of Russia to change the minimum amount of authorized capital comes into force no earlier than 90 days after the day of its official publication. For newly registered credit organizations, the Bank of Russia applies the minimum authorized capital standard that is in effect on the day of submitting documents for registration and obtaining a license. The Bank of Russia does not have the right to demand that previously registered credit institutions change their authorized capital, except in cases established by federal laws.
In addition, the Bank of Russia sets maximum amounts of non-monetary contributions to the authorized capital of a credit organization, which cannot exceed 20% of the authorized capital of a credit organization, as well as a list of types of non-monetary property contributed to pay for the authorized capital.
Constituent documents of a credit organization
The main provisions for the formation of both a limited and additional liability company, as well as a joint stock company, are enshrined in the constituent documents. The main ones are memorandum of association, concluded between the founders and determining the procedure for their implementation joint activities on the creation of a company, the size of the authorized capital, categories of shares issued and the procedure for their placement, as well as other conditions and charter society.
The charter of a credit organization implements the legal status of a credit organization as an independent legal entity.
In the charter in accordance with Art. 10 Federal Law “On Banks and Banking Activities” stipulates:
- corporate (full official) name;
- organizational and legal form of the credit organization;
- information about the location of management bodies and separate divisions;
- list of ongoing banking operations and transactions;
- the amount of authorized capital;
- number of shares (shares);
- par value of one share (monetary amount of the share);
- information about the system of management bodies, including executive bodies, and internal control bodies, the procedure for their formation and their powers;
- mechanisms for adoption of basic management decisions and their implementation, as well as other important provisions.
The Charter acquires the force of an official legal document from the moment of its registration with the Central Bank of the Russian Federation. At the same time, the credit institution is obliged to register with the Bank of Russia all changes and additions made to the charter. The Bank of Russia, within one month from the date of submission of all properly executed documents, must decide to register changes and additions to the charter of the credit institution.
Legal status of a credit institution, as independent legal entity, provides it with autonomy and independence in its operational financial and economic activities from higher state and local authorities. In accordance with Art. 9 of the Federal Law “On Banks and Banking Activities”, a credit institution is not liable for the obligations of the state and the Bank of Russia. The state or the Bank of Russia, in turn, is not liable for the obligations of a credit organization, except in cases where they themselves have assumed such obligations. Legislative and executive power and local government bodies do not have the right to interfere in the activities of credit institutions, except in cases provided for by federal laws.
However, in order to reduce the risk of monopolization of the banking system and the increasing influence of individual oligarchic groups, the Bank of Russia is entrusted with the responsibility of monitoring the acquisition by legal entities and individuals of shares or interests in a credit institution in an amount exceeding the optimal value established by law. In particular, the acquisition and (or) receipt in trust as a result of one or more transactions by one legal entity or individual or a group of legal entities and (or) individuals related by agreement, or a group of legal entities that are subsidiaries or dependents of each other to a friend, more than 5% of the shares (shares) of a credit institution require notification of the Bank of Russia, more than 20% - the preliminary consent of the Bank of Russia. Regulations of the Central Bank of the Russian Federation dated March 26, 1999 No. 72-P “On the acquisition by individuals of shares (shares) in the authorized capital of a credit organization” establishes that when an individual acquires shares (shares) in the authorized capital of a newly created credit organization or when acquiring more 20% of shares (shares) of an operating credit institution, the credit institution must submit to the territorial institution of the Bank of Russia that supervises its activities, a petition and documents necessary to verify the legality of payment of the authorized capital of the credit institution at the expense of the specified individual and confirming his satisfactory financial position . According to Instruction No. 109-I, certified copies of documents confirming the state registration of acquirers, or documents containing such information, extracts from the relevant state register must be submitted; certified copies of constituent documents of legal entities - acquirers; documents allowing to assess the financial position of the acquirers;
copies of documents confirming the acquirer's ownership of property in non-monetary form, intended to be made as a contribution to the authorized capital of the credit organization; copies of all agreements on trust management of shares (stakes) of a given credit institution, previously concluded by the same trustee; a list of participants in a legal entity that acquires shares (stakes) in a credit institution (open and closed joint-stock companies with more than 50 shareholders provide a list of participants owning more than 5% of the shares); conclusion of the federal antimonopoly authority.
The Bank of Russia reviews these documents and no later than 30 days from the date of receipt of the application informs the applicant in writing about its decision - consent or refusal. The refusal must be motivated. If the Bank of Russia did not report the decision taken during the specified period, the acquisition of shares (shares) of a credit organization is considered permitted. The procedure for obtaining the consent of the Bank of Russia for the acquisition of more than 20% of shares (stakes) of a credit organization and the procedure for notifying the Bank of Russia of the acquisition of more than 5% of shares (stakes) of a credit organization are established by federal laws and regulations of the Bank of Russia adopted in accordance with them 1 .
The Bank of Russia has the right to refuse to give consent to the acquisition of more than 20% of shares (shares) of a credit organization if it establishes unsatisfactory financial situation acquirers of shares (stakes), violation of antimonopoly rules, as well as in cases where in relation to the person acquiring shares (stakes) of a credit organization, there are court decisions that have entered into force, establishing the facts of the said person committing unlawful actions during bankruptcy, intentional and (or) fictitious bankruptcy and in other cases provided for by federal laws. The Bank of Russia refuses to give consent to the acquisition of more than 20% of the shares (stakes) of a credit organization if the court previously established that the person acquiring the shares (stakes) of the credit organization was guilty of causing losses to any credit organization while performing his duties as a member of the board of directors ( supervisory board) of a credit organization, the sole executive body, his deputy and (or) a member of the collegial executive body (board, directorate).
In addition, the Bank of Russia is entrusted with other functions to regulate the activities of credit institutions, which were mentioned above.
At the same time, credit organizations, due to their special position in the Russian economy and special legal status, have certain advantages and guarantees from government regulatory bodies, primarily the Central Bank of the Russian Federation, compared to other financial intermediaries:
- a refinancing system is being created for credit institutions by the Central Bank of the Russian Federation, which it performs in accordance with the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” assigned to it as a lender of last resort;
- In order to guarantee the return of raised funds and compensation for depositors' losses, deposit insurance is mandatory. For this purpose, the Deposit Insurance Agency is being created, which is a state corporation created by the Russian Federation, the status, purpose of activity, functions and powers of which are determined by the Federal Laws “On Insurance of Individual Deposits in Banks of the Russian Federation” and “On Non-Profit Organizations”;
- To ensure financial reliability, credit organizations are given the right to create mandatory reserves (funds) through deductions from pre-tax profits, while the amounts of these deductions are established by federal tax laws;
- credit institutions have the right to carry out professional activity on the securities market in accordance with federal laws without obtaining a special license. Such activities include: issue, purchase, sale, accounting, storage and other operations with securities those involved in attracting funds to deposits and bank accounts; with other securities, as well as the implementation of trust management with these securities under an agreement with individuals and legal entities (Article 6 of the Federal Law of the Russian Federation “On Banks and Banking Activities”).
Banks and non-bank credit organizations
Credit organizations are divided into banks and other credit organizations.
Bank A credit institution is recognized that has the exclusive right to carry out in aggregate the following banking operations:
- attracting funds from citizens and legal entities into deposits;
- placement of these funds on your own behalf and at your own expense on the terms of repayment, payment, urgency;
- opening and maintaining bank accounts for citizens and legal entities.
Commercial banks are inherently not homogeneous and are divided depending on the field of activity into specialized and universal.
Specialized Commercial banks specialize in one or two banking operations or serve a specific category of clients.
Universal commercial banks are credit organizations that have the exclusive right to carry out, in aggregate, such banking operations as: attracting funds from legal entities and individuals on deposit; placing funds on your own behalf and at your own expense on the terms of repayment, payment, urgency; opening and maintaining bank accounts for individuals and legal entities. However, this is not the only activity commercial bank, he carries out transactions with securities and currency, provides various economic consulting services, performs a variety of Financial services. All these operations and transactions are characterized by: a permitting procedure, which consists of the bank’s obligation to provide clients with a license to conduct banking operations, information about its financial statements(balance sheet and profit and loss account) and auditor's report for the previous year and monthly balance sheets behind this year(Article 8 of the Federal Law of the Russian Federation “On Banks and Banking Activities”); the need to license activities related to their implementation; establishing supervision and control over the legality of their commission.
The peculiarity of banks is expressed in the legislative recognition of two features for banking operations: 1) the extension of banking secrecy to banking operations. In accordance with the Civil Code of the Russian Federation (Article 857), the bank guarantees the secrecy of a bank account and bank deposit, account transactions and information about the client, at the same time, the Federal Law “On Banks and Banking Activities” (Article 26) implies a guarantee of secrecy about transactions , about the accounts and deposits of their clients and correspondents. In this case, the obligation to maintain bank secrecy rests with all bank employees. At the same time, the legislation clearly defines the responsibility of banks and other credit institutions, as well as their officials, for their disclosure of information constituting bank secrecy, which consists, in particular, of compensating the client for losses caused, or paying a fine in the amount of 100 to 200 times the minimum amount. wages, or in the amount wages or other income of the convicted person for a period of 1 to 2 months, or imprisonment for a term of up to 2 years (Article 857 of the Civil Code of the Russian Federation; Article 183 of the Criminal Code of the Russian Federation); 2) the presence of a special source of law, as well as large number regulations of the Bank of Russia. Other credit organizations can perform one or more banking operations in aggregate, except for the combination specific to the bank indicated earlier. At the same time, another credit organization should not register as a bank, but must obtain a license to carry out a specific banking transaction or several operations. Other credit organizations primarily include collection organizations, settlement organizations, etc.
Profit is an economic value defined as the difference between total revenue and total costs, the difference between income and expenses. Profit is an indicator that most fully reflects production efficiency, the volume and quality of products produced, the state of labor productivity, and the level of costs.
For an enterprise, profit is the main source of replenishing its own working capital, material incentives for employees, financing social sphere etc.
Characterizes economic effect, obtained as a result of the activities of the enterprise;
Is the main element financial resources enterprises;
It is a source of generating revenue for budgets of different levels.
In terms of commercial calculation, the profit of an enterprise acts not only as the main result (main indicator, evaluation criterion) of the financial and economic activities of the enterprise, but also as a source of its development, financing of innovation and investment projects, satisfaction of other needs, including material ones, as members of a given labor force. the collective and the owner, and society as a whole. Therefore, the main thing in the system of its distribution should be the combination of interests of business entities, society as a whole and specific workers. The implementation of this requirement determines the basic principles of its distribution: priority fulfillment of financial obligations to society as a whole (represented by the state), maximum provision of the needs of expanded production at the expense of profits, its use for material incentives for workers, direction for the development of the non-productive sphere.
In countries with market economies, profits are taxed. Taxable profit is gross profit minus deductions to reserve funds, income from types of activities exempt from taxation, and deductions for capital investments. As a result, the enterprise retains the so-called net profit.
Net profit is that part of the profit that remains at the disposal of the enterprise after payment established by law taxes.
The net profit of the enterprise is used for its own economic purposes. Net profit is the only source of funds for paying dividends in joint stock companies, distribution among participants in proportion to their shares in limited liability companies.
In conditions of market relations, each enterprise strives to increase the volume of profit, which would allow it to firmly maintain its position in the market for its products and ensure the dynamic development of its production in a competitive environment. Measures to increase profits include: increasing production output; increasing product quality; selling or leasing excess equipment and other property; reducing production costs through more rational use of material resources, labor and working time; expansion of the sales market, etc.
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