The current state of development of the interbank credit market
Interbank market in Russia is traditionally considered to be heterogeneous and volatile market segment. This is a very personalized, "legible" and self-contradictory market. Banks, especially those working in the same region or in the same sectors of the financial market, are each other's natural rivals, always ready to help "drown your neighbor." But, on the other hand, interbank loans and deposits they are objectively interested. As a result, in practice the banks together watching one another, as well as for loans they give out is not for everyone and is always in limited quantities. The main participants of the interbank market than people are also operators (organizers) of this market: banks, dealers and operating systems. For non-core participants in the Russian interbank market include: banks, whose operations in this area are intermittent, local and international news and analytical (including rating) agencies and services that serve this market. Dealer bank as the organizers of the market: they take and make loans (and take, as a rule, for resale), are engaged in currency conversion work in the stock market, acting on its own behalf, at your own risk (full responsibility to its creditors and turn require borrowers unconditional fulfillment of their commitments) are paid to the difference in prices (interest rates), the purchase and sale of financial resources for the organization of its operations using a network of correspondent relations (in the case of insufficient funds in the correspondent account of a bank the latter may urgently need to get a loan from the bank, the dealer). Under the operating systems (credit sites) understand specialized NGOs to be licensed by the Bank of Russia, which have a purely interbank market participants mediation - "reduced" client banks directly. Operating System: provides a common information environment, and provides customers with standard information from other market participants (current quotes, additional terms, background information) allows customers to conduct transactions with a broader range of assets and a wider range of maturity; generates revenue primarily from commissions borrowing from banks (there is also a form of subscription fees for the service credit area). The most famous Russian operating systems are Moscow International Currency Exchange (MICEX) and the Interbank Financial House (IFH). Conducting operations on the interbank market involves good information support and networking in each bank sound technologies decisions relating to activities on MBC. This refers to the three types of information. General - is the news that may affect the state of the money market and therefore requires employees of banks for an adequate assessment of the prospects of entering into transactions. Analytical information is the result of operational (current) analysis of financial markets, including the assessment of short-term trends. It is desirable that this information has been possible visibility. Situational information is of particular participants and market operators, ie one that reflects the current offer of credit and their quotes, results at different sites, shows the financial and economic situation of the banks - participants of the market. This information allows you to quickly (although not always adequately) to assess situation on a specific market (the device that assessment must be included in the analytical unit of information). Market information is collected, created and propagated the bullion banks, and operating systems (usually those dealing with their special units) and specialized agencies or service. Each bank also collects and generates this information for their needs. The most important market information of interest to all banks and their customers - is the current rates at which the interbank market are provided and to obtain loans (deposits). These rates, if they are consistent and recognized by all parties to the interbank market, are a key objective indicator of its current state. It should only be kept in mind that these indicators are real instruments operating banks is not at any stage of development of the financial market, but only when it is at least relative maturity. In the market of developed countries, there is a wide variety of current interest rates, which can be divided into several levels.
• official rate (synonyms: the discount rate, the refinancing rate) - they set the central banks on loans granted by them to commercial banks (such credit operations in several countries for a long time took the form of a purchase or registration, central bank rediscounting commercial paper, hence the name "discount rate");
• inter-bank offered rate credit (LIBOR, PI-BOR, etc.) - the rates at which major banks give loans to first-class banks Eurocurrency by placing their deposits (these rates are usually higher than the interest rate);
• rate of a "prime rate" ("prime rate", "first-class rate") - the rate at which commercial banks lend to prime borrowers are not credit institutions (it is usually above the first two rates).
LIBOR (London interbank offered rate - the London Interbank Offered Rate) - the interest rate at which the most reputable banks in London lend to first-class banks in the euro currency and the average interest rate on these first bank (calculated as the arithmetic mean). LIBOR rates are displayed: the currencies of several of the economically advanced countries, for several periods (one week, one, two, three, six, nine and 12 months). Usually, the term "LIBOR" means the rate on three-month (the mass) sterling deposits. The second in importance - the interest rate on dollar deposits (dollar LIBOR). Over LIBOR is not worth the value fixed by any official, so each interbank lending contract stipulates a specific rate. Every major London bank announces its rate depending on the money market. A tradition of self-locking LIBOR at 11:00 am (London time) on each day that the lead ("background") banks. Determining role in the international market LIBOR developed historically after the Second World War. However, it soon emerged rates similar to LIBOR: Pibor (Paris) TIBOR (Tokyo); FIBOR (Frankfurt), Sibor (Singapore); Kibora (Kuwait); LYUKSIBOR (Luxembourg), etc. The methods of calculation, there are some differences. Technology for making rational decisions in the interbank market Development and application of technologies for making rational decisions in the interbank market include addressing the following major tasks:
• Building your own policy on the interbank market;
• the correct pricing of banking products - the task appropriately addressed based on the methodology of operational and cost analysis;
• streamlining the organizational structure of the bank. It should be such that the appropriate components to effectively solve the first two problems.
The interbank market in recent years, trying to find a guarantor on behalf of public and private institutions - Central Bank, ARCO, ARB, etc. However, there is reason to believe that their participation would not solve the main problems of the interbank credit market. They can and should be dealt with first by creating a modern and efficient technological structure of interbank lending. Portfolios requirements for counterparty banks - part of the portfolio of assets of the bank, so the risks assumed by the Bank to work with other financial institutions, can not be viewed in isolation from the other risks to which the bank is exposed during operation. Consequently, risk management policies in the market, interbank and other markets must be linked with the whole system of risk management at the bank. This, in turn, makes it necessary to review approaches to minimize credit risks arising from transactions with the counterparty banks. Therefore, the main bottleneck is the limit counterparty risk. They can be installed as follows.
1. In accordance with the level of creditworthiness of the counterparty bank (compared to other banks) must be attributed to a particular risk. The banks in the group with the highest risk, the limit is not set (ie the bank with such banks should not interact).
2. The maximum amount of requirements for counterparty bank (limit) should be determined on the basis of its risk, the maximum limit for a single borrower - the counterparty bank and the size of the counterparty bank. The value of the maximum limit per counterparty banks - a parameter that is formed on the basis of a common policy of risk management in the bank, and it depends on many factors, such as the value of the portfolio proposed placement of excess (or raise the remaining), liquidity, the number of dealers, historically existing mutual limits established with certain permanent counterparts, the number of regular contractors, the level of portfolio diversification MBC required to place the risk management policy of the bank, etc.
3. As a result, a system of limits would look something like this (counterparty bank assigned risk group - from 1 st to 5 th in the order of ascending): Group 1 - banks with solvency, no doubt, Group 2 - banks with above-average creditworthiness, the third group - the banks with high credit quality, Group 4 - banks with satisfactory creditworthiness, group 5 - banks with poor credit standing. Counterparty banks are usually evaluated on several groups of factors. Each group of factors is evaluated on a 100-point scale and has its own weight, which determines the importance of the group in the overall assessment. Total number of points obtained in the analysis is determined by the sum of products of points scored for each group of factors, the weight of the group. As a result, each bank is assessed on a 100-point scale. According to this assessment, it is included in a particular risk group. Rules for assignment to a particular risk, depending on the number of points based on the risk management policy of the bank. The above factors evaluations are divided into the following groups: "political" (all the factors that may have a direct impact on the ability of the counterparty to repay the loan, which are produced by the state, through its institutions, including the Central Bank: monetary policy, taxation, expenses that arise for banks through contacts with these institutions), systemic (factors produces the banking industry), group (their source is a group of companies to which the bank belongs or with which it is associated certain obligations), factors arising from the contractor himself (his policies, management Risk management and staff qualifications, the existing relationship managers and employees), credit history, the presence and magnitude of turns of a correspondent account in the analyzing loro banks etc. The analysis of the financial condition of the counterparty bank in stages. Stage I - Structural analysis of the balance and turnover on balance sheet accounts. Stage II - calculation capital. Sage III - rating of balance.
The essence of it - positioning the counterparty bank in the banking industry. In this case, the bank's rating is calculated separately for the standard group of indicators (liquidity, capitalization, profitability, asset quality, the state of the resource base, the business activity). The bank's rating for each of these groups of indicators is the deviation of individual values of the relative ratios of the average. Ratings of the bank in each group of indicators over a period measured on a 100-point scale. After that scores of indicators are weighted to give an opportunity to assess the state of the bank's 100-point scale. Rating of this kind has a number of features, including the following: financial ratios are calculated on the basis of indicators of "purification" of the amount of artificial increases and hidden immobilization capital to select the average indicators of relevant information (financial statements) on a broad range of banks (several hundred ) weight coefficients in each group are determined by mutual comparisons. After the bank fully prepared the above methods to meet with potential counterparties in the interbank market, the direct selection of the counterparty to the transaction can occur in two basic forms. 1. In the form of participation in the auction, held by either the lending bank (this option uses the Bank of Russia) or the dealer bank or credit platform itself is not a party transactions, but only acting at the request of customers. 2. In the form of direct interbank transactions that may be carried out either directly to the banks themselves, going for it in direct contact with the banks, which are not included in their "black list", or operating systems, which are serviced by banks. The deal provides for the establishment of mutual obligations of counterparties. The more developed the market, the usually less individualized formalities required to perform this procedure. In countries with a rich tradition of banking, it is so standardized, which often does not require registration of credit relations between creditor banks and bank-borrower by signing the loan agreement. Bank borrowing and lending bank, knowing and trusting each other, can advance to define all terms and conditions of future transactions in the general framework agreement, whereby in the future will be made all the specific purchase and sale of IBC between. In the current work of the parties may be limited to forwarding protocols and regular registration and information documents. There have already been applied, including Russian banks, technology transactions via electronic document, based on e-mail and electronic signatures. An important role is played by the legal support of electronic documents, including the registration of signing, signature verification, archiving, and dispute resolution for transactions. Getting information about the market and negotiate the terms of the transaction primarily (50-75% of transactions depending on the bank) is done through a "direct access" to the counterparty bank (a bank, which is open to the appropriate limit and / or who has opened a counter limit ) via phone or information system "Reuters". In this case, because of the significant costs to service terminals "Reuters" they are just large Moscow and major regional banks. The rest of the interbank money market transactions (or 25-50%) is a "voice" (telephone) brokers, who monitor the interbank market and provide information service banks, carried out on behalf of the search for contractors (with knowledge of limits) and agree on terms transactions. However, they receive a commission on each side of the transaction, depending on the individual terms of the contract with the bank and lending rate. In addition to the telephone broker, intermediary services to conclude transactions interbank lending have also some currently existing electronic platforms, which, however, do not provide market participants with sufficient advantages over existing technologies and to ensure that the small number of transactions compared to the total volume of the market. Therefore, these electronic platforms can not provide the creation of a single organized interbank market based on them. Given the above, it can be noted that all the existing technologies inherent in the interbank market is more or less the following shortcomings that prevent the development of the market: 1. transactions can take place only within the insufficient volume and the number of mutual limits; 2. low liquidity, efficiency and transparency of the market - there was no significant "hard" quotations for a long time to meet the application and the like; 3. absence of a credible legal framework, ie reliable and well-known rules of financial market participants, establishing the order of transactions ICB, documenting them, the responsibility of the parties to the transaction and dispute resolution; 4. dependence on the good faith of phone brokers, lack of reliability and flexibility of electronic systems. In addition, the functioning of the Russian interbank market during the last years was characterized by two specific features: First, the Russian interbank market was and is segmented. A significant part of the operations performed in the MBC so-called "credit clubs," that is, between banks, connected to each other by common business interests. This practice reduces the credit risk in the interbank market, but at the same time slow down its development. In case of problems such market segmentation becomes a catalyst, accelerating the development of the negative effects Second, in 2003, Russian banks are net borrowers in the international market. In recent years, the volume of foreign liabilities of domestic banks far exceeded the volume of their foreign assets. On the one hand, it gives them new sources of capital, on the other - creates a dependency on these sources of funding, thus increasing the vulnerability of the Russian banking sector to the global economic shocks. In 2008, all we have seen this scenario. Existing technology and infrastructure interbank market are currently at a low level and do not expect the formation of a single development of the money market, which is an important objective of the Bank of Russia and the urgent need of the participants. Currently, the market for interbank lending small, but there is upward trend in the Russian financial market in general, and the interbank market in particular. Thus, the inter-bank credit plays a specific role in the economy: it not only ensures the continuity of production, but also accelerates it. Credit helps save distribution costs. This is achieved by reducing the costs of production, recording and storage of money, since some cash is unnecessary, accelerate circulation of money, re-use available funds, the reduction of reserve funds. The role of interbank lending in the different phases of the economic cycle is different. With the economic recovery of sufficient economic stability of credit is a factor of growth. And redistributing huge amounts of commodities, credit feeds banks with additional resources. Its negative impact, however, can occur in overproduction. Especially noticeable is the impact in terms of inflation. New payment tools provided through a loan into circulation, increasing the already overweight money needed for treatment.
