SWIFT- is a society for international interbank financial telecommunications. This system was created in 1973 in Brussels by representatives of 240 banks from 15 countries. The goal is to simplify and unify international payments, speed up the transfer of large volumes of information while reducing the likelihood of errors. Now there are more than 3,700 financial institutions from 92 countries in the system, the daily volume of transmitted information is about 2 million messages. Messages are delivered anywhere in the world in 5-20 minutes. The system is characterized high degree confidentiality and reliability. General development strategy of SWIFT: multiprocessing; Possibility of integration into other networks; transmission of graphic information; model software; compliance with open systems standards.
In addition to the SWIFT system, there are also other payment systems:
"Fedwire" is a translation system Money And valuable papers for large sums. The system is owned and operated by the US Federal Reserve. This system connects 12 Federal Reserve Banks. Fedwire money transfers are used primarily to make payments related to interbank next business day loans, interbank settlement transactions, payments between corporations, and settlement of securities transactions.
CHIPS- a private computerized network for dollar transfers operating in “on line” mode. This system belongs to the New York Clearing House Association and has been operating since 1971. CHIPS, like Fedwire, is a credit transfer system. Unlike Fedwire, CHIPS payment transactions are settled on a multilateral basis and obligations are settled at the end of the day.
Western Union- American private money transfer system.
It was founded in 1851. Now the company provides services in 195 countries and territories of the world (including Russia). Western Union services are available to more than 80 percent of the world's population. For more than 130 years, millions of people have trusted Western Union to send money home every year - a Western Union partner will help make this transfer securely and quickly.
In Switzerland it operates 24 hours a day Swiss interbank clearing system(SHMKS) . It makes final and irrevocable payments using funds deposited with the Swiss National Bank. This system is the only system that makes payments electronically between Swiss banks. All payments are settled on participants' accounts on an individual basis. Purpose of operation of ShMKS:
Reducing credit risks;
Elimination of overdrafts on giro settlements (a type of non-cash payments through settlement checks) in the Swiss National Bank;
Speeding up settlements and making it easier for banks to manage cash.
Thus, the advantages of the clearing settlement system are obvious. Consequently, without its introduction into the structure of national interbank settlements, integration into the system of international financial transactions. However, due to the fact that the clearing system, in essence, is completely new for the Republic of Belarus, it makes sense to thoroughly study foreign experience in the formation and development of the interbank clearing system.
The wide scale of interbank clearing abroad is due to the practical impossibility of carrying out the ever-increasing non-cash payment turnover through individual settlements between financial institutions. For example, in Germany, non-cash payment turnover amounted to 1.3 trillion in 1960. marks, in 1970 - 4.5 trillion. marks, and in 1980 - 11.7 trillion. brands (growth by 3.5 and 2.6 times, respectively). In the USA this figure is estimated at 1970. - 12.3 trillion. dollars, in 1979 - 64.2 trillion. dollars, and in 1986 - 125 trillion. dollars.
The organization of interbank offset varies depending on whether the banks participating in mutual offsets are independent legal entities or they are part of the same bank. In the first case, banks usually exchange checks, bills and other debt obligations of clients with each other, paying only the difference to organizations specially created for settlements. This is actually interbank clearing (clearing in the broad sense). In the second case, i.e. with intrabank clearing (interbank clearing in its narrowed sense), all settlements associated with the payment of money by a client of one bank branch to a client of another branch of the same bank using various settlement and payment documents (checks, giro checks, etc.) are made by attributing these settlements to the board (head office) of this bank. Typically, the clearing department of the head office brings together all the settlements of the branches of its own system. Accordingly, differences payable or received by branches are not repaid in cash, but are reflected in the passive or active part of the branches’ balance sheet, either as a debt of the branch to the board, or as a debt of the board to the corresponding branch. The problem of organizing intrabank clearing is especially relevant for large banking monopolies with a widely ramified branch network.
Depending on the scope of application, interbank clearing can be: local - between banks of a particular region, or between banks of a certain banking group and (or) between branches of the same bank; and national - within the entire country. In turn, the specificity of these types of interbank clearing is manifested in the methods of their implementation. Based on the last criterion, we can distinguish the clearings carried out: through special interbank organizations - settlement (clearing) chambers and girocentrals; through central bank institutions or major commercial banks; and for intra-bank clearing, for settlements between departments (branches) - through the clearing department of the bank's head office. All these methods of conducting interbank clearing settlements are closely interrelated. The final balance of settlements in any case is paid from correspondent accounts of commercial banks opened with the central bank. The choice of clearing method is determined by considerations of speed and efficiency. Banks are interested in completing settlements as quickly as possible, since delays in collection lead to loss of bank income and, in some cases, to inconvenience for depositors.
Clearing houses, the main function of which is settlement, have become widespread abroad. monetary claims and obligations. To date, the activities of most clearinghouses have been automated. First of all, it should be noted that these chambers carry out local clearing of settlement and payment documents. Clearinghouses play the greatest role in the UK, USA and other countries where check circulation is developed. A special place among them is occupied by the London Clearing House, through which 7 million checks for more than 27 million pounds sterling are processed daily, as well as 2.35 million other payments worth 790 million pounds sterling. For example, in the USA, each Federal Reserve Bank (there are 12 of them) is also the clearing house of its district. In total, there are 32 automatic chambers of the Federal Reserve System (Federal Settlement Network) in the United States and, in addition, the New York clearing house. In addition to the Federal Reserve, private networks such as Deluxe Data System, VISA, and Chase Manhattan Bank also provide similar services. Clearinghouse services eliminate the need for commercial banks to clear checks through a central bank or correspondent bank, speeding up the collection process. Acceleration, in turn, helps to increase the availability of funds. This factor is the main reason why commercial banks use the services of clearing houses. In addition, the use of clearing houses reduces settlement costs, since they are required to record only either active or passive clearing balances of member banks, which is reported to the central bank or correspondent bank.
The essence of settlements through the clearing house is as follows. Each bank, a member of the clearing house, prepares daily statements of checks and bills handed over to it for collection by clients, separately for each such bank. The specified statements, together with checks and bills of exchange, are sent to the clearing house. There, on the basis of this, a general payroll statement is drawn up, in which the final balance of the exchange of settlement and payment documents is determined and it is revealed which of the banks is the debtor and which is the creditor. The general payslip is then sent to the central bank, and the checks and bills of exchange are sent to the banks to whose clients they are issued. According to the received statement, the issuing bank writes off the corresponding amounts from the correspondent accounts of correspondent banks opened with it. Not accepted settlement and payment documents are crossed out from the payroll sheet and returned directly to the bank that presented the checks and bills of exchange along with the reasons for refusal to pay.
If the bank is not a member of the clearing house, then the compiled settlement statements, together with checks and bills of exchange, are submitted to the issuing bank, which in this case performs the functions of the clearing house. Upon receipt of the statements, the central bank carries out appropriate operations on the correspondent accounts of debtor banks and creditors. The checks and bills themselves are sent to debtor banks to write off money from clients’ current accounts, i.e. direct debtors, according to settlement and payment documents.
Local clearing also includes the so-called GIRO systems (girocentrals), which are widespread in a number of Western European countries (Austria, Hungary, France, Germany, Switzerland). They are most typical for Germany. Zhirocentrals not only conduct non-cash payments, but carry out passive and active operations. Thus, in Germany they attract funds from savings banks and other credit institutions, the state, states and local governments. The allocation of resources of zhirocentrals is carried out by providing long-term loans to savings banks, the state, lands and local authorities in the form of utility and mortgage loans. In practice, girocentrals often perform the functions of municipal savings banks. Girocentrals are created by commercial banks, usually in the form joint stock company open type. The country's central bank is also, as a rule, one of the founders of GIRO systems. Its share of participation in the capital of the central bank is proportional to the amount of information that the central bank receives from such a system from commercial banks in accordance with the legislation of a particular country.
To make international payments, a number of commercial banks resort to the services of international automated systems. The largest and most famous among them is SWIFT (SWIFT - Society for Worldwide Interbank Financial Telecommunications) - the Association of International Interbank Financial Communications, which is an automated system for making international payments through a network of computers. This system was created in 1973. representatives of 240 banks and began functioning in 1977. Currently, the world's leading companies are connected to this system; they account for 90% of all global payments. Through SWIFT, such types of banking operations are carried out as money transfers, information on the status of bank accounts, confirmation of foreign exchange transactions, settlements for collections, letters of credit, trading in securities, coordination of controversial financial issues, maintaining electronic accounts of clients and managing their funds. The main advantages of the SWIFT system are the speed of operations, protection against abuse and errors using ciphers, and reduced cost of banking transactions.
Using the achievements of scientific and technological progress, the largest banks began to create various automated systems to obtain operational information about account transactions and manage them within the framework of correspondent relations. Such systems are used, for example, by counterparties and clients of First Bank of London (MYSIS), Bankers Trust Co. (Cash Connector), "Morgan Guarantee Trust Co." (M.A.R.S.) Bank of America (BAMTRAC), Chemical Bank (Chemlink) and a number of other banks in various countries. A number of European and Russian banks have also begun to create and implement similar automated systems.
The Reuters system, which provides up-to-date information on the state of affairs on international exchanges and exchange rates, has become widely recognized in banking circles. Also, at present, the global computer network(WWW - World Wide Web) Internet, which also provides a wide range of opportunities for exchanging information and obtaining the necessary data.
Some banks, including medium-sized ones, began to specialize in transferring funds between their clientele and correspondent banks. An example is the French bank "l Europeenne de Banque", which, as a member of the SWIFT organization, has taken over transfer services for international transactions of a number of French and Italian banks and firms.
The widespread introduction of computer systems into banking practice is also dictated by the fact that competition among banks maintaining correspondent accounts is largely based on how prompt and complete the information provided is, which modern conditions has become a commodity in the banking services market and is used to achieve optimal conditions maintaining accounts.
The problem of account balances is closely related to the issue of the cost of banking services provided to correspondents. Typically these balances (a minimum non-interest bearing balance may be specified) are placed on the market by the account bank to cover operating expenses and generate a profit. In conditions of low interest rates, there is a certain mutual benefit of the relationship: one bank receives funds that it could use to its advantage, the other receives the services of its correspondent, the cost of which was acceptable to the banks and which could be reduced by increasing the volume of transactions on the account. However, during the period of sharp increases in interest rates in the mid-1980s, maintaining non-interest bearing balances became unprofitable for banks and an outflow of funds from correspondent accounts began.
As a result, banks began to revise the basis for constructing the profitability of their operations on correspondent accounts, adding commissions to it. Despite the subsequent decrease in market rates, the trend towards transferring operations on correspondent accounts to a commission basis continues.
Commissions have the advantages that they are paid immediately, are stable and are not subject to changes due to fluctuations in rates and exchange rates. Some banks carry out 80-90% of transactions on correspondent accounts based on commissions. The commission basis is also increasingly used by banks in Holland, Sweden, Belgium, Great Britain and Russia. It should be noted, however, that a number of banks in Germany and Switzerland still mainly use a system of minimum balances and only 30% of them have begun to apply commissions.
In modern conditions, it is of great importance, on the one hand, to increase the efficiency of using its own branch network of branches, representative offices, agencies and subsidiaries (for example, the English Midland Bank has a network of more than 200 such institutions) and, on the other hand, to optimize the correspondent network . Divisions responsible for correspondent relations must constantly monitor the feasibility of maintaining relations with one or another correspondent and avoid non-payments and overdrafts, if the latter are not provided for by correspondent agreements, the presence of a sufficient number of accounts in different currencies (this avoids costs associated with currency conversion and exchange rate differences, provided there is no commission for maintaining an account and a sufficient volume of transactions), optimal distribution of funds between accounts in different banks of the same country.
Mutual settlements between banks, for example, in France and Great Britain, are carried out by the country's central bank or, as in Russia, by its on-site cash settlement centers. In a number of countries there are several automated settlement systems, which are organized by large banks with their branches. A striking example is Germany, where the settlement systems of Commerzbank, Deutsche Bank, Berlinerbank, Dresdenbank, etc. operate simultaneously. Each settlement system takes into account the interests of a given credit financial organization, its functional goals. Any bank, any credit partnership, etc. can join any such system. Each organization, if it does not create its own clearing system, chooses the one that is suitable for itself. There may be several such systems in a country. For example, in the USA there are more than thirty of them. All regional clearing systems are united by two national ones: federal (Fedwire) - for domestic payments and international (CHIPS). - network of the Federal Reserve Banking System (The Fedwire system is owned and operated by the Federal Reserve System of US banks. This system is used to transfer funds between 6,000 banks , organized into 12 reserve districts with 12 Central Regional Banks. Central Regional Banks and some other large banks - members of the Federal Reserve System have their own servers. Smaller banks have Fedwire terminals. A third group of banks - the so-called "independent" members of the Fedwire system operate in off-line mode and carry out interbank transactions via dial-up telephone lines with Central Regional Banks or transmit information directly through another Federal Reserve Bank; (Clearing House Interbank Payment System) - an interbank payment network. The CHIPS telecommunications system was created in the 1970s in the USA to replace the paper check settlement system with an electronic settlement system between New York banks and foreign clients. All banks are divided into head banks, settlement banks and banks participating in the CHIPS system. In total, 140 banks are connected to the system, and it works with approximately 10,000 accounts. The CHIPS system operates in off-line mode. The accumulation and subsequent sending of messages is provided, while maintaining the integrity of the data in the central database. Currently, the Fedwire and CHIPS systems service up to 90% of US interbank domestic settlements.
In France, interbank settlements are based on the telecommunications clearing system S.I.T. S.I.T system project was developed in 1982-1983 by the largest banks in France. Interaction of banking systems in the S.I.T. system occurs on the basis of dedicated channels of the public Transpac network. Distinctive feature This network is that the fee for providing the channel does not depend on the distance between the subscriber banks. S.I.T. system interacts with payment systems VIZA and MasterCard.
In the UK, the HAPS (Clearing Houses Automated Payment System) and BACS (Bankers Automated Clearing Services) systems are used. Telecommunication system B.A.C.S. was created in 1968 and, as of 1988, had 16 shareholder banks. The system was later converted into the BACSTEL system. The system provides two types of services for subscribers: “scheduled service” (transmission of messages in off-line mode) and “on-demand service” for the transmission of short messages via public telecommunications networks.
London Clearing House Automated Payment System CHAPS is a one-day credit transfer system linking 12 settlement banks, including the Bank of England. Banks receiving instructions to transfer funds through this system are required to provide funds to the credited party within a day. This aims to increase the effectiveness of CHAP for business and financial communities. The transfer of funds through CHAPS is unconditional and irrevocable.
In small countries of Western Europe (Austria, Switzerland, Hungary, etc.) there are so-called GIRO systems. They are created by commercial banks, usually in the form of an open joint stock company, by combining technical means, technologies, organizational measures and, most importantly, financial resources. The systems provide GIRO settlements between participants and accumulate funds for these settlements. The central bank of the country is, as a rule, one of the founders of the clearing system.
IN banking system In Belgium, a clearing system of non-cash payments is widely used, based on the offset of mutual claims of participants through the exchange of payment instruments for the transfer of funds or securities. There are 18 clearing houses operating in the country. Settlement is carried out at the Belgian Computing Center in Brussels. The electronic payment system is used for credit and payment transactions, as well as monitoring the status of bank accounts through the transmission of electronic signals without the participation of paper media. Information is processed around the clock. International payments also pass through the Center. The most common international payment instruments are bank transfers and checks.
The SIC interbank settlement system has been operating in Switzerland since 1987 and is owned by the Swiss National Bank.
It processes final and irrevocable payments in Swiss francs 24 hours a day. This gross settlement system, without central bank lending, is the only one in the country that allows electronic payments between domestic banks. The system assumes computer processing each order in real time and control over balances on clients’ deposit accounts.
Local clearing also includes the so-called GIRO systems (girocentrals), which are widespread in a number of Western European countries (Austria, Hungary, France, Germany, Switzerland). They are most typical for Germany. Girocentrals not only carry out non-cash payments, but also carry out passive and active operations. Thus, in Germany they attract funds from savings banks and other credit institutions, the state, states and local governments. The allocation of resources of zhirocentrals is carried out by providing long-term loans to savings banks, the state, lands and local authorities in the form of utility and mortgage loans. In practice, girocentrals often perform the functions of municipal savings banks. Railway centrals are created by commercial banks, usually in the form of an open joint stock company. The country's central bank is also, as a rule, one of the founders of GIRO systems. Its share of participation in the capital of the central bank is proportional to the amount of information that the central bank receives from such a system from commercial banks in accordance with the legislation of a particular country.
To make international payments, a number of commercial banks resort to the services of international automated systems. The largest and most famous among them is SWIFT (SWIFT - Society for Worldwide Interbank Financial Telecommunications) - the Association of International Interbank Financial Communications, which is an automated system for making international payments through a network of computers. This system was created in 1973. representatives of 240 banks and began functioning in 1977. Currently, the world's leading companies are connected to this system; they account for 90% of all global payments. Through SWIFT, such types of banking operations are carried out as money transfers, information on the status of bank accounts, confirmation of foreign exchange transactions, settlements for collections, letters of credit, trading in securities, coordination of controversial financial issues, maintaining electronic accounts of clients and managing their funds. The main advantages of the SWIFT system are the speed of transactions, protection against abuse and errors using ciphers, and reduction in the cost of banking transactions.
Activities of clearing houses
Let us consider in more detail all aspects of the emergence and existence of the main element of the multilateral interbank netting mechanism - the clearing house.
In most countries, the main means used to settle financial obligations, as well as purchase goods and services, is cash. However, as a percentage, they represent a relatively small portion of the total payments. Modern non-cash instruments account for a significantly smaller number of payments, but for significantly larger amounts. As a result of the widespread use of such instruments, financial circles are faced with a serious problem associated with the emergence of certain difficulties in making payments. When using cash, final payment occurs immediately. Non-cash forms of payments are prone to delays. Clearing houses began to play a major role in reducing the intervals between payments and settlements. They can be divided into three categories:
regional
national
Local clearing houses are made up of institutions that serve the population of a given area. This includes small community banks, savings banks, savings and loan associations, credit unions, local branches of banking groups, and possibly small independent organizations that process payments on behalf of third parties. The purpose of such local associations is to facilitate transactions while minimizing costs for their members. Most of work related to the operations of local clearing houses is performed by their members on a voluntary basis. There is therefore no participation fee, although small annual fees may be charged to cover administrative overhead costs. Local clearing houses generally deal with payments that originate and are receivable within the relevant area. The most common type of settlements is associated with the processing of payment orders, the receipt period for which can be reduced to one day or less. Depending on the size of the region, the number of participants in local clearing houses can range from two to twenty.
Members of regional clearing houses consist primarily of large regional banks, large independent third party payment processors, national banks, and, in some cases, large local or thrift banks. The number of members and frequency of settlements may necessitate the use of full-time staff and permanent facilities to perform administrative functions related to settlements. The costs of operating such systems are covered by collecting fees from participants and annual membership fees.
Members of national clearing houses tend to be the largest and most technologically advanced banks. Typically, such systems are used to make payments in large amounts. The activities of national clearing houses are associated with significant costs to ensure a guaranteed level of service for members of the chambers, as well as costs for maintaining the necessary equipment and personnel. These costs are usually covered by market-determined fees for participation and services provided, which may include access to international payment systems.
1.3.2. The emergence of clearing houses.
Most clearing arrangements arise when two or more credit institutions in the same city or area find it advantageous to exchange payment instruments. A bipartisan working group or commission is then formed to conduct a preliminary study to analyze the viability of a clearing house mechanism. In this case, the main attention is paid to determining the possible number of payment orders that are the object of offset. If, as a result of such a study, a conclusion is made that the work of a clearing house is profitable, then the organizers begin to survey other institutions regarding their interest in participating. One of the most important issues that arise in the process of organizing a clearing house is related to the composition of its members. Depending on a number of factors, members may be classified into one or two categories. Under a single membership category, all members are considered “permanent members” with the right to vote and amend bylaws. In the case of distribution into two categories, the second category includes the so-called “associate members”, who can participate in the settlement process, but do not have voting rights. Clearing houses that settle only payment orders generally classify all participants as voting members. This is because a change in the rules or bylaws affects all members of the clearing house, and therefore each of them must be able to represent their interests.
The need to introduce a category of associate members arises in cases where some participants in the clearing system needed to make investments in material and technical assets that are vital for the activities of the clearing house, or when such assets are in their ownership. An example is the interbank telecommunications switching network. Its creation and operation may require capital investments from several banks. Banks that make investments will be classified as voting members, and other users of the network may be classified as associate members. This assignment of a certain status to members of the clearing house ensures the protection of capital owned by the founding banks. At the initial stages of the formation of a clearing house, it is extremely important to develop rules for accepting into its members institutions whose activities are associated with increased risk. There are several ways to solve this problem.
Depending on the level of solvency of such institutions, maximum permissible limits are established for them on the amount of payments, settlements for which are made within one billing cycle. While this does not eliminate risk completely, it does reduce the level of potential losses that may occur at any given time.
The risk minimization mechanism also provides for the mandatory payment of collateral by participants in the mutual netting system to the account of a third party or a financially reliable member of the clearing house. In this case, only settlements are allowed for an amount not exceeding the amount of the deposit paid.
The last and least desirable option is to deny admission to the clearing house to those institutions that are associated with increased risk.
1.3.3. Clearing settlements.
Clearing houses settle transactions on both a debit and credit basis. As alternative forms of payments have developed, the share of credit-based payments (especially electronic ones) has increased dramatically. This includes transactions such as salary payments, interest payments on debt obligations, payments for services, etc. When using paper documents in transactions, clearing houses usually distinguish between debit and credit payment instruments. However, when making payments electronically, debit and credit payment instruments are often not differentiated and settlements for them are carried out simultaneously.
There are two possible options for the final settlement of accounts under multilateral net clearing:
classic version
option based on the “advance” method
The classic option provides for the settlement of the final balance of each of its members, calculated by the clearing house, according to the books of the Central Bank. In this case, each bank participating in the mutual netting system in the clearing house opens transit account positions, in which there is actually no money. Balances on such accounts are always zero. A transit account exists to record obligations and is maintained for each bank on the basis of incoming and processed documents. Based on the data in this account, the final balance of the bank is displayed (it can be either debit or credit), which is then transferred to the main correspondent accounts of the clearing house members located in the Central Bank. This system has a number of advantages. First of all, it greatly simplifies the calculation process. In addition, the Central Bank can help reduce risk for the clearing house by ensuring that there are sufficient balances in the accounts of participants whose situation is unstable or whose activities are related to high level risk.
The second option for final settlement of accounts is based on the “advance” method. The clearing house is created in the form of a joint stock company by banks in a given region and acts as a special clearing bank. Banks participating in the mutual netting system open correspondent accounts with the clearing house, to which they transfer part of their funds, which form the initial capital of the clearing house. In turn, the clearing house opens its correspondent account with the Central Bank. In addition, banks participating in the clearing system create an insurance (reserve) fund in the clearing house for the continuous implementation of mutual settlements. The clearing house has the right, if any of its members have a debit balance, to issue him a short-term loan at the expense of the specified fund. Based on the netting of credit and debit turnovers, the clearing house daily makes appropriate changes to the balance sheet of each participating bank. Information on changes in the balances of the clearing house's funds based on the results of the day's work is received by the Central Bank and transferred to the correspondent account of the clearing house, and information on correspondent accounts of banks is transmitted to members of the clearing system. Thus, in this case, the functions of the clearing house and the settlement agent are carried out within the same institution. The disadvantage of this method is that settlements on the books of a commercial bank involve greater risk than settlements on the books of the Central Bank.
usually called an endorsement; the person transferring the bill of exchange to another is an endorser, and the person to whom the bill is transferred is an endorser.
The essence of the endorsement is that by placing an endorsement on the reverse side of the bill of exchange along with the bill of exchange, the right to receive payment is transferred to a third party. The act of transferring a bill of exchange is called endorsement (endorsement) bills.
There are two types of endorsements:
1) personal signature – requires, in addition to the signature of the person transferring the bill, to indicate the name of the new purchaser of the bill (endorser).
2) blank signature – consists of only one signature of the person transferring the bill of exchange –
endorser.
In order to increase the reliability of bills of exchange, it is used promissory note - aval, which represents bank guarantee , expressed in the form of a signature on the front side of the bill. The avalist (who gives the instruction) is liable to the same extent as the person for whom he vouched.
If the drawer of a bill wants to ensure that the drawee will pay the payee when due, he presents the bill to the drawee or through the bank for acceptance. Thus, a bill of exchange as such does not have the force of legal tender, but is only a “representative” of real money, therefore, the debtor (drawee), confirming in writing his agreement to make payment on the bill, accepts the draft (writes the word “accepted” and signs and dates it). In this case, the drawee becomes the acceptor of the bill.
3. Since the 60s of the XX century. Credit cards are actively used in international payments. Credit card- a personal monetary document giving the owner the right to purchase goods and services using non-cash payments. Credit cards of American origin predominate (Visa-international, MasterCard, American-Express, etc.).
At the end of the 20th century. 21.6 thousand banks from approximately 200 countries and territories issued more than 300 million Visa credit cards, 29 thousand banks from more than 70 countries - 150 million MasterCard, the American-Express system services about 100 million credit cards around the world. Computer, electronic and space communications are used to process them. Computers in banks and shops are connected via telephone to the central computers of the system, which process information.
4. SWIFT payment system
SWIFT is a society for international interbank financial telecommunications. This system was created in 1973 in Brussels by representatives of 240 banks from 15 countries. The goal is to simplify and unify international payments, speed up the transfer of large volumes of information while reducing the likelihood of errors. Now there are more than 3,700 financial institutions from 92 countries in the system, the daily volume of transmitted information is about 2 million messages. Messages are delivered anywhere in the world in 5-20 minutes. The system is characterized by a high degree of confidentiality and reliability. General development strategy of SWIFT: multiprocessing; Possibility of integration into other networks; transmission of graphic information; modeling software; compliance with open systems standards.
In addition to the SWIFT system, there are also other payment systems:
Fedwire is a system for transferring funds and securities in large amounts. The system is owned and operated by the US Federal Reserve. This system connects 12 Federal Reserve Banks. Fedwire money transfers are used primarily to make payments related to interbank next business day loans, interbank settlement transactions, payments between corporations, and settlement of securities transactions.
CHIPS is a private computerized network for dollar transfers operating online. This system belongs to the New York Clearing House Association and has been operating since 1971. CHIPS, like Fedwire, is a credit transfer system. Unlike Fedwire, CHIPS payment transactions are settled on a multilateral basis and obligations are settled at the end of the day.
Western Union- American private money transfer system. It was founded in 1851. Now the company provides services in 195 countries and territories of the world (including Russia). Western Union services are available to more than 80 percent of the world's population. For more than 130 years, millions of people have trusted Western Union to send money home every year - a Western Union partner will help make this transfer securely and quickly.
In Switzerland it operates 24 hours a daySwiss Interbank Clearing System (SICS). It makes final and irrevocable payments using funds deposited with the Swiss National Bank. This system is the only system that makes payments electronically between
Swiss banks. All payments are settled on participants' accounts on an individual basis. Purpose of operation of ShMKS:
- reduction of credit risks;
- elimination of overdrafts on giro settlements (a type of non-cash payments through settlement checks) in the Swiss National Bank;
- speeding up settlements and making it easier for banks to manage cash.
IN Japan since 1988 Bank of Japan Financial Network System (BSF-BN) with
for the purpose of carrying out electronic money transfers between financial institutions, including the Bank of Japan, which manages it. Money transfers carried out by the FSBY are mainly credit transfers.
3.1.6. Currency clearings as a form of government intervention in the sphere of international payments
State intervention in the sphere of international payments is manifested in the periodic use of currency clearings- agreements between the governments of two or more countries on mandatory mutual offset of international claims and obligations . Foreign exchange clearing differs from domestic interbank clearing. In-
First, offsets for internal clearing between banks are made on a voluntary basis, and for currency clearing - mandatory: if there is a clearing agreement between countries, exporters and importers do not have the right to evade clearing settlements. Secondly, according to internal clearing, the offset balance immediately turns into money, and with foreign exchange clearing, the problem of repaying the balance arises.
The reasons for the introduction of currency clearings in the 1930s were: economic instability, unbalanced balances of payments, uneven distribution of gold and foreign exchange reserves, abolition of the gold standard in domestic monetary circulation, inflation, currency restrictions, and increased competition.
The objectives of currency clearing vary depending on the monetary and economic situation of the country:
1) alignment balance of payments without spending gold and foreign exchange reserves;
2) receiving a preferential loan from a counterparty who has an activepayment balance;
3) a response to the discriminatory actions of another state (for example, the UK introduced clearing in response to Germany stopping payments to British creditors in 30s);
4) irrevocable financing by a country with an active balance of payments to a country with a passive balance of payments.
A characteristic feature of currency clearings is the replacement of currency turnover with foreign countries by settlements in national currency with clearing banks, which carry out the final settlement of mutual claims and obligations. Post-war currency clearings differed from pre-war ones in that clearing banks did not control every transaction, but only accepted national currency from importers and seized foreign exchange earnings from exporters in exchange for national currency. Mutual offset of demands and obligations did not ensure equalization of mutual supplies. Therefore, bilateral clearing was associated with an increase in loan debt, which hampered the development of foreign trade in Western Europe.
Clearing is the main, but not the only type of payment agreement. Payment agreements between states regulate various issues of international payments, in particular the procedure for using foreign exchange earnings, the state of the balance of payments and its individual articles, the mutual provision of currencies for current payments, the regime of limited currency convertibility, etc.
The clearing currency can be any. Sometimes two currencies or an international unit of account are used. From an economic point of view, it does not matter in which currency clearing settlements are carried out, as long as one currency is used. When making payments through currency clearing, money performs the functions of a measure of value and a means of payment. With mutual offset of claims without the formation of a balance, money acts as ideal.
Currency clearing has two effects influence on foreign trade. On the one hand, they soften Negative consequences currency restrictions, allowing exporters to use foreign currency earnings. On the other hand, it is necessary to regulate foreign trade turnover with each country separately, and foreign exchange earnings can only be used in the country with which a clearing agreement has been concluded. That's why For exporters, currency clearing is unprofitable. In addition, instead of revenue in convertible currency, they receive national currency and, as a rule, look for ways to bypass currency clearing. These include price manipulation in the form of understating the contract price in the invoice
invoice (double contract) so that part of the foreign exchange earnings is at the free disposal of the exporter, bypassing the authorities exchange control: shipment of goods to countries with which no clearing agreement has been concluded; lending to a foreign buyer for a period calculated for the termination of the clearing agreement.
Multilateral currency clearing differs from bilateral in that the offset of mutual claims and obligations and the balancing of international payments are carried out between all countries covered by the clearing agreement. For the first time in history, such clearing in the form European Payments Union functioned from June 1950 to December 1958. 17 countries of Western Europe participated in it.
In 1977, as part of Caribbean Common Market multilateral clearing with settlements was created
V national currencies through the Central Bank of Trinidad and Tobago.
Multilateral settlements in transferable rubles were carried out on the basis of the intergovernmental Agreement of the member countries Council for Mutual Economic Assistance
(1963-1990) using a collective currency. This system was preceded by bilateral currency clearings. Settlements between the two countries were carried out by mutually offsetting counterclaims and obligations with the balance being repaid with commodity supplies. Before 1950, various currencies were used as clearing currencies, mainly US dollars, after 1950 - the Soviet ruble.
Chapter 3.2. Currency operations
3.2.1. The essence of foreign exchange transactions. Currency position of banks.
3.2.2. Currency transactions with immediate delivery of currency
3.2.3. Futures transactions
3.2.4. Arbitration
3.2.1. The essence of foreign exchange transactions. Currency position of banks
Currency operations- these are operations on the foreign exchange market for foreign trade settlements, tourism, migration of capital, labor, etc., involving the use of foreign currency by buyers, sellers, intermediaries, banks, and firms.
Currency transactions are separated into interbank transactions - carried out between banks and exchange transactions, carried out on currency exchanges.
Besides, everything currency operations can be divided into
9 Cash (overnight) - when the supply of currency by banks is carried out at the time of the transaction or a few days later
9 Urgent – there is a time gap between the date of the transaction and the date of its implementation
The ratio of the bank's claims and obligations in foreign currency determines its currency position. If they are equal, the currency position is considered closed, and if they do not match, it is considered open.
Open currency position can be long if the amount of currency purchased is greater than the amount sold, that is, requirements exceed obligations.
Short open currency position - if more currency is sold than purchased, that is, obligations exceed requirements.
At the time the bank opened, its currency position was closed. A client wants to buy $100,000 using Japanese yen. The bank sells him dollars at the market rate of 1 dollar = 1.4010 JPY. As a result of this operation, the bank has an open currency position. The bank sold $100,000 and received 140,100 JPY for it. In US dollars, this open currency position will be open and short, since the liability for the currency sold exceeds the requirement for the purchased one, and in JPY, the currency position will be open and long.
To close a currency position, the bank can choose the following strategies:
1) The bank can close the position by buying dollars at the same rate as it sold, that is, without risk, but without making a profit.
2) The bank may try to buy dollars cheaper, for example, at the rate of 1 dollar = 1.3998 JPY. Thus, the bank will close its foreign exchange position. He will buy 100,000 dollars, paying 139,980 JPY for it, and he will make a profit of 120 JPY.
The limit on an open currency position is usually 10% of the bank’s own funds for each type of currency.
3.2.2. Currency transactions with immediate delivery of currency
A “spot” operation is the supply of currency by banks on the second business day from the date of conclusion of the transaction at the rate fixed at the time of its completion, that is, this is a condition for urgent, immediate delivery.
These operations are the most common in banking practice and account for up to 90% of the volume of foreign exchange transactions.
The currency delivery time is called " value date", i.e. this is the date when the relevant funds should actually become available to the parties to the transaction. This allows you to document these transactions in a timely manner and actually carry out settlements.
If the next day after the transaction date is a non-working day for one currency, then the delivery time for the currencies is increased by 1 day. If the next day is a non-working day for another currency, the delivery time is extended by another 1 day.
Setting an exact date is very important to ensure compensated cost principle, but on the basis of which the foreign exchange market operates. The essence of this principle is that neither party involved in an exchange transaction extends credit to the other party. Those. on the day that, for example, a bank in Germany pays out euros, the American bank must pay out the equivalent in US dollars.
However, in reality it is very difficult to guarantee the simultaneous receipt of currency by partners, especially for payments between countries located in remote time zones. The bank, when making a payment, is not sure that its counterparty has fulfilled its obligations, resulting in credit risk, to limit which the bank should strive to carry out its transactions primarily with first-class partner banks.
In the interbank short-term market the following are carried out:
9 Today transactions at the Today rate with currency delivery on the day of the transaction; These transactions are widely used in ruble/dollar transactions on the Russian domestic foreign exchange market between commercial banks.
9 Tomorrow transactions – at the Tomorrow rate with the condition of currency delivery the next day after the transaction is concluded.
Application of Spot transactions:
1. For immediate receipt of currency for foreign trade settlements (accounting for more than 60% of the total volume of the interbank market).
2. To generate additional income due to exchange rate fluctuations
3.2.3. Futures transactions
Urgent trading in last years is the most important segment of the development of financial markets. When characterizing derivatives markets, we can highlight:
- forward market
Futures market
Options market
Forward transactions
Forwards are one of the first forms of futures contracts to emerge as a response to significant price volatility.
Forward contract is an agreement between two parties about the future delivery of the subject of the contract, which is concluded outside the exchange.
As the subject of the agreement may act:
Currency
Goods
Stock
Bonds
Dr. types of assets
The main purpose of forward transactions– insurance against possible price changes. A forward transaction for the sale (purchase) of currency includes the following conditions:
- the transaction rate is fixed at the time of its conclusion;
- the transfer of currency is carried out after a certain period, the most common terms for such transactions are 1,2,3,6 months, and sometimes 1 year;
- No deposits or other amounts are usually transferred at the time the transaction is concluded.
Despite the obvious advantages, the forward contract also has a number of disadvantages. Since the forward contract is concluded outside the exchange and is not subject to control over its execution by exchange supervisory authorities, responsibility for its execution
rests entirely with the transaction partners. In addition, there is no standardization of forward contracts, which often makes them difficult to work with.
Forward transactions are concluded at forward rate, which characterizes the expected value of a currency after a certain period of time and represents the price at which a given currency is sold or bought, subject to its delivery at a certain date in the future.
Theoretically, the forward rate can be equal to the spot rate, but in practice it is always
turns out to be either higher or lower. Respectively |
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Forward rate = spot rate + premium (report) or - discount (deport) |
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Rf = Rs + FM |
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Forward rate |
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Spot rate |
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FM - forward margin value |
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Thus, the forward rate is calculated by adding the premium or subtracting |
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discounts from the current spot rate. |
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Let’s assume that the spot rate $/JPY and premiums are known for maturities of 1, 3 and 6 months. |
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spot, $/JPY |
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Premium at maturity: |
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6 months |
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Since the value of the forward margin for the purchase rate is less than for the sale rate, then to satisfy the condition that the purchase rate is less than the sale rate, the forward margin must be added, i.e. JPY is quoted at a premium. Thus
Spot rate, $/JPY |
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Forward rate at maturity dates: |
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Accordingly, if |
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Spot rate, $/JPY |
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Discount on maturity dates: |
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then the forward rate at maturity dates: |
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The forward rate usually exceeds the spot rate by the amount that bank rates on the quoted currency are lower than the interest rates on the counterparty currency.
Rule of thumb: Currency with a higher interest rate will trade in the forward market at a discount to a currency with a lower interest rate;
The lower interest rate currency will sell at a premium to the higher interest rate currency in the forward market.
This is due to the fact that when setting the forward rate, it is taken into account that during the period before the transaction is executed, the owner of the currency can receive more in the form of interest on the deposit. Therefore, to equalize the positions of transaction participants, the difference in interest rates on deposits of the currencies used should be taken into account. In addition, in international practice, interest on deposits on the interbank London market is used, i.e. LIBOR rate.
As a basis for calculating the forward exchange rate, their
theoretical (unconditional) forward rate , defined as follows.
Suppose that an amount of currency B, borrowed for a period of t days at the annual interest rate iB, is exchanged for currency A at the spot rate RS, giving the amount
PA = PB/RS
The amount PA placed on deposit for a period of t days at the rate iA will result in the amount SA = PA * (1 + iA t / 360), where 360 is the estimated number of days in a year.
Refundable amount with interest in currency B
SB = PB * (1 + iB t / 360)
To receive this amount in exchange for an amount with interest in currency A theoretical exchange the forward rate must be drawn up.