POPULATION AND BANKS: TYPES OF BANK OPERATIONS

All operations of commercial bank can be divided into two principal types – passive and active. Passive operations allow credit institutions to generate their own and attracted resources that are further used for active operations. Thus, the main feature of the bank business is that the credit organization is functioning basically by means of the attracted funds. Active operations of the credit organization is placing of attracted and own money resources for the purpose of getting profit. Not only the level of financial result of the bank activity, but also the profit level and safety of its clients depend on the effective and qualified management of the bank assets and liabilities, since the major part of resources of the credit organization is made by the attracted funds.

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