He gives it to another entrepreneur, and at the same time he is not at all sure that the borrower will pay it back - a bank guarantee is issued. That is, the bank issues funds to the borrower, but at the urgent request of the one who lends the money. The risk of non-repayment is minimized, and the bank acts as a guarantor that the debt will be repaid.
At the beginning of the article it was said that a bank guarantee is a transaction. Its legal basis is civil law and legislation. But on the other hand it is - Bank operation, which was legally justified regulations the bank itself. If we consider the algorithm for issuing a bank guarantee in total, it will look like this:
First of all, an agreement is created in which the borrower and the lender (here they are called the same as the principal) stipulate the procedure for issuance and payment Money. The term, scope, rights and conditions must also be indicated. The beneficiary (or borrower) can put forward special conditions, and if the lender agrees to them, the agreement will be signed.
The creditor contacts banking institution in order to obtain a guarantee that he will repay the debt. In this case, it is this participant who pays this procedure, because it is not free.
Next, you need to collect a package of documents to receive a bank guarantee. All parties to the agreement take an active part here. The number and necessity of certain documents depends on the basis of this agreement.
What is required to obtain a bank guarantee?
1) It is necessary to open a current account specifically for this procedure.
As you know, credit cooperatives provide savings and loan services to their members, attracting personal savings of shareholders at certain interest rates and providing them with loans. At the same time, in their daily work, cooperatives face two main risks, which, if managed ineffectively, can lead to default. We are talking about the risk of non-repayment of savings to shareholders and the risk of non-repayment of issued loans. The first leads to an increase in the population's distrust of credit cooperatives and, accordingly, a decrease in their authority. And the second one threatens the very existence of the credit cooperative. Two financial instruments allow you to minimize these risks: a bank guarantee and insurance. How they differ, what are the advantages of each, says the director of the insurance agency "SME Insurance" Amir Zagidullin.
Amir Rifkatovich, how a bank guarantee can provide increased credibility and influence financial indicators work of cooperatives?
Preserving and increasing the savings of its members is the main task of a credit cooperative. As practice shows, a bank guarantee issued to a cooperative to ensure the safety of the personal savings of its members copes with this task perfectly. Shareholders whose safety of savings is ensured by a bank guarantee are much more willing to bring their savings to the cooperative without fear of losing them. After all, they are confident that if the cooperative goes bankrupt, they will get their savings back. The cooperative no longer makes empty promises about the safety of savings and backs them up with a really existing document. All this undoubtedly increases confidence in the cooperative and ensures the growth of its authority.
- Tell us in more detail how a bank guarantee works?
According to civil law, a bank guarantee is one of the ways to ensure the fulfillment of obligations - in our case, the obligations of a credit cooperative to its members to return their savings. Speaking in simple language, the guarantor is responsible with his property to the shareholders, obliging to return their savings if the credit cooperative is unable to pay itself as a result of bankruptcy. According to Article 368 of the Civil Code of the Russian Federation, guarantors can be commercial banks or insurance companies. The advantages of using a bank guarantee are obvious to both parties. Shareholders receive a guarantee of the safety of their savings and can count on greater income from their investments by increasing the amount of savings transferred to the credit cooperative offering savings programs secured by a bank guarantee. For cooperatives, in my opinion, the main advantage lies not so much in increasing the savings attracted, but in strengthening confidence among shareholders and, as a result, strengthening their competitive advantages over commercial banks. After all, credit cooperatives attract savings at more high percent than commercial banks, and having at its disposal an even more modern financial instrument In order to ensure the safety of these savings, credit cooperatives undoubtedly look preferable.
- Why then do you need insurance in a credit cooperative?
With the help of insurance, the credit cooperative solves the second issue - minimizing the risks of non-repayment of issued loans due to the death of borrowers, as well as their loss of ability to work. As you know, the majority of shareholders are pensioners, so insurance of credit cooperative borrowers in the event of death or disability is the most relevant. Naturally, insurance does not eliminate the entire risk of not repaying the loan, because a lot depends on the quality loan portfolio and from efficient work security services with “problematic” loans.
The procedure for insuring borrowers against accidents is as follows: to minimize labor costs and speed up the insurance process, a group insurance agreement for borrowers against accidents is used. In this case, borrowers are included in the list of insured persons at the time the loan is issued based on their written application. This eliminates the need to issue insurance policies for each borrower and simplifies the insurance process itself. Such a borrower receives protection against the risks of death and disability of 1-2 groups as a result of an accident. Sum insured for each borrower included in the list of insured persons is established in the amount of the loan, and the credit cooperative is appointed as the beneficiary under the insurance agreement. Therefore, when insured event, the borrower's debt to the credit cooperative is paid by Insurance Company. For the remainder of the payment, the beneficiary is the borrower himself or his legal heirs. I believe that borrowers insurance credit cooperatives from accidents is the main tool for diversifying the risks of a cooperative, because As a result of the death of borrowers, the credit cooperative does not lose financial stability due to non-repayment of loans.
What can you say about mutual insurance societies (MIS) as an alternative to the instruments described above?
If we compare insurance in OBC and the system of providing a bank guarantee from an insurance company, it should be noted that on average, contributions from OBC participants for insurance amount to about 0.4% per year of the total portfolio of savings of credit cooperative shareholders. Let's do a simple calculation. Let’s take an average credit cooperative in Russia with a total portfolio of shareholders’ savings of 10 million rubles. His regular contributions to the OVS fund will be only 40,000 rubles per year, and in the event of a credit cooperative's default, the company will have to pay an insurance premium of 10 million rubles. Those. in order to provide real protection to such an OVS cooperative, it is necessary to attract 250 of the same members with regular contributions. And if default befalls not one, but two or even three members of the OVS, in this case the number of members of the company should be 2-3 times larger. There are no such OVS in Russia this moment probably doesn't exist. Therefore, if we compare the protection of OBC and the protection of a classic insurer, I would give preference to the insurer. When choosing between the services of OBC and the services of an insurance company under a group insurance agreement for borrowers against accidents, I would also choose the latter. I'll explain why. The fact is that OVS simply form an insurance fund that can only cover single insured events, but not multiple and regular ones. At the same time, all members of the OBC bear joint responsibility, and in the event of a lack of funds insurance fund insurance payment will be incomplete, or for the insurance payment to be paid in full, members of the OVS will have to pay the missing amount before own funds for insurance payment.
How can credit cooperatives obtain a bank guarantee or issue an insurance contract? And they are most likely not cheap?
On the contrary, the cost of these tools is quite reasonable considering their usefulness. Cooperatives can contact the SME Insurance LLC agency and purchase a bank guarantee or enter into a collective insurance agreement.
Summing up the results of our conversation, it turns out that a bank guarantee and insurance play a very significant role in the development of credit cooperation?
I would say that credit cooperation will develop without a bank guarantee and insurance, but with the help of these tools, credit cooperatives can take a very serious step in their further development. It is these tools that make it possible to increase the authority of credit cooperatives among the population and achieve financial growth.
According to the definition given in Civil Code Russian Federation, a bank guarantee can be issued not only by credit organizations, but also by insurance organizations. But it is worth considering the fact that bank guarantee from insurance companies characterized by certain nuances, which we will discuss below.
What is a bank guarantee from insurance companies?
The most correct name for guarantees from insurers is payment guarantees. After all The federal law"About banks and banking» quite clearly states that the issuance of a bank guarantee is an operation that can only be carried out by a credit institution that has a license for the corresponding type of activity from the Central Bank.
Meanwhile, insurance companies still have the right to issue payment guarantee certificates. But in the text FZ-44 it is stated that these guarantees cannot be accepted as security government contracts. But government procurement is the most profitable and sought-after layer of tenders for electronic platforms. Therefore, immediately after the publication of this law, bank guarantee from insurance companies, having lost its main purpose, began to rapidly lose its popularity, and today it is practically not used as a method of security, even in the context of commercial relations.
It is also important that insurers very often issue illegitimate bank guarantees, because there are simply no funds in the turnover of insurance companies to cover multimillion-dollar risks in the event of an insured event.
How to obtain a quality bank guarantee
To begin with, you should understand that a reliable and universal bank guarantee can only be issued by a serious and reputable bank, and not by insurers. There are about fifty such banks in the country, and all of them are our regular partners.
This fact allows us to offer our clients completely unique conditions:
- prompt receipt of approval and issuance of a bank guarantee in one day;
- lowest interest rates;
- lowest amounts bank commissions- from 1%;
- our support, comprehensive consultations, collection of documents, as well as courier services are absolutely free.
A bank guarantee from insurance companies today is a throwback, and to achieve success in the modern business world, you only need modern credit and financial instruments, which we will be happy to help you arrange
Bank guarantee, as a financial instrument of domestic and international business relations, can be insured. In this case, the possible costs of covering the guarantor's risks are borne by the insurance company. Bank guarantees are a necessary condition for large transactions. A bank guarantee transaction is valid between the guarantor (bank or credit institution), the principal (debtor) and the beneficiary (creditor) under the main agreement.
Bank guarantee insurance is a form of protecting the effectiveness of the guarantee itself in the event of possible risks. A bank guarantee insurance contract can be considered as special kind a guarantee agreement, in which the debtor is the bank and the principal, the insurance company is the guarantor, and the creditor is the beneficiary of the guarantee.
Types of insured risks
There are several types of bank guarantee insurance issued for the following purposes:
- redemption of bonds and valuable papers;
- short-term and long-term loans;
- fulfillment of lease obligations;
- payment guarantees for leasing equipment and machinery;
- payment for export of equipment;
- loans for the purchase of cars.
A bank guarantee insurance contract is concluded for a period from several months to 30 years. Insurance protects the interests of the guarantor bank and ensures that it carries out transactions with minimal losses.
Benefits of guarantee insurance
What advantages does it have? insurance bank guarantee?
- The bank shifts its responsibility to the insurer;
- BG insurance is a guarantee of the unchanged value of the insured securities;
- the liquidity of insured securities increases;
- the insurance premium ranges from 0.25 to 2.0% of the guarantee amount.
Bank guarantee insurance can only be obtained large companies. In any case, the bank first carefully checks credit history and documents financial statements candidate and only after that makes a decision. If insurance is used, the bank guarantee becomes more effective; it saves both the bank itself and the principal from loss of funds. The risk is minimized by the insurance company.
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Bank guarantee, contract
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Accounting for bank guarantees
The accounting for independent guarantees is different for principals, guarantors and creditors. Recommendations for accounting and accounting entry operations with guarantees credit institutions for each side are given in this article.
Bank guarantee as a form of loan
Bank guarantees refer to credit products banks offered to clients. Compared to loans, they are cheaper and are in great demand. Registration of bank guarantees differs little from the procedure for concluding loan agreements.
