Clearing of interbank payments within deposited balances – this is the main income of institutions, and not from transaction fees, but from depositing these free balances left after clearing. But more and more institutions are refusing these actions, telling clients that after clearing, their money is not being placed anywhere.
The international clearing model was first proposed by Keynes in 1943. Now in Russia, approximately 600-700 banking institutions participate in clearing houses, systems, have their own small interbank networks as part of an overnight overdraft lending agreement. The collapse of the well-known clearing platform, Cash Union, in 1993 greatly undermined confidence in clearing. The Cash Union, which united more than 200 banks, mainly the leading banks of the Moscow region, located in the mayor’s office, collapsed with the track, as it “played around” with the placement of balances on the one hand, and won the right to directly write off from the accounts of its members those payments that were required. Several fraudulent transactions big banks eventually ruined this system. A typical domino began, then they began to sort it out, payments stopped, the Cash Union collapsed, a number of comrades fled with money. That. this situation undermined confidence in such private independent settlement sites, and this has not received much development in Russia since then - only at the level of interbank cabals.
Nevertheless, in most countries of the world, clearing is a highly developed private, independent, but controlled either by the Ministry of Finance, or the Central Bank, or a special supervisory authority. Often, the Central Bank nevertheless participates in one or another of the competitive networks, either as a shareholder, or by providing its settlement capabilities, communication channels, and information about market participants. In general, one way or another it is affiliated with the Central Bank, although by no means all and far from always. There are 104 special clearing houses in France, in 102 of them the Bank of France participates as a shareholder or co-owner.
There are private clearing systems that you need to know - these are like a snack:
CHAPS - English clearing system– Clearing House Automated Payment System.
CHIPS - American clearing system - Clearing House Interbank Payment System.
They operate within the country, but banks from all over the world operate in them if it is necessary to make settlements with British or American partners. They all have gateways - they interact with each other, but they play the role of ensuring settlements within the region, the country.
There is also a large private system SAGITTAIRE is the largest French private clearing system. Zen Grin is the corresponding system, which is supported by the Association of Japanese Banks. This is a private clearing system that exists in Japan. There are large clearing systems that are completely state-owned or controlled by the Central Bank. This is primarily SIC (Swiss Interbank Clearing) - the Swiss system of clearing payments, which is under the auspices of the Bank of Confederations - the Swiss national bank. And two large systems gross settlements operating on the basis of the Central Bank system: this is the Japanese BOJ-NET - the network of the Bank of Japan, exists along with Zen Grin, but implements gross settlements, and Fedlbire is the American system, the oldest state system gross settlement, created by the Federal Reserve System on the basis of 12 large settlement centers in each reserve bank, has been operating since the end of the 19th century. There are also gross private payment systems, of the largest is ACCESS, which is the English system, the largest settlement system in the UK, which is supported by the three largest English banks - the “big three”, these are National Westminster, Lloyds’ and Middle Bank (bought by the Chinese). Not so long ago, they were joined by a fourth largest bank- Barclays', which had previously tried to develop its payment system in the UK. Other private gross systems include Cirrus Maestro, a Spanish-French-Swiss system, BANCOMAT, a private trans-European electronic gross payment system, Cityplus, which evolved from the CityCorp settlement system, now trans-European, but originally originated in Belgium. One of the new systems is the Euroclearing System, which emerged on the basis of the Central European Bank in Frankfurt, - TARGETT, belongs to the member countries of the eurozone, is made on the basis of SWIFT and is located in the building of the Central European Bank in Frankfurt.
That. developed to carry out both gross and clearing settlements, and clearing settlements are more expensive - they take longer to complete, because longer accumulation time. So, payment systems are gross, clearing, private, semi-private and non-private. In general, clearing houses are more often made private, because it is indeed a service for optimizing calculations. In addition, in clearing settlements, it is not required to deposit all the funds for which payment is required, i.e. the limit of balances that must be kept in the system is lower. But clearing is more expensive, so it is private, and most often clearing houses are run by banking associations, banking authorities, as, for example, in Japan. By the way, CHAPS and CHIPS are also under the auspices of the banking associations of the respective countries. There is also a Mr. Cash, developed in Europe, originally Belgian.
Fedwire is a communications system owned and operated by the US Federal Reserve. To carry out operations on this system, 12 federal reserve banks are united among themselves and function as a single entity. Funds transfers through FedWire take the form of real-time gross settlements when the sender of the funds initiates the transfer. Fed Wire members may transfer funds to another institution's account at the Federal Reserve Bank either to the beneficiary institution or to a third institution (correspondent institution, corporation, or individual).
It is necessary to pay attention to the US CHIPS interbank clearing settlement system and the technology for making settlements through this system. CHIPS is an interbank payment system in which payment transactions are carried out on a multilateral basis, and net liabilities are settled at the end of the day.
CHIPS members can be commercial banks, corporations, investment companies in accordance with the laws of the State of New York banking, banking branches of any banking institution with an office in New York.
A bank that is not a member of the system must apply to the services of a member of the PNS as its correspondent or agent. Payments under the NPV system are mainly associated with interbank transactions of an international nature, including dollar payments for transactions with foreign exchange, with the placement and payment of income on securities in Eurodollars. The New York Clearing House Association is made up of the 11 largest banks in New York, each of which is a representative on the clearing house committee that establishes the rules for the functioning of the NHS. A mandatory requirement for the admission of institutions that are not members of the association to participate in the CHS system is their agreement to abide by the rules of the system.
It is important to know the essence automated system UK clearing settlements CHAPS (CHAPS), its functioning and the procedure for making settlements. CHAPS - an electronic interbank system for the transfer of irrevocable, guaranteed and unconditional credit transfers in pounds sterling from one clearing bank to another clearing bank within one day. The system makes settlements throughout the UK and unites 16 London banks, including the Bank of England, into a single network. The CHAPS system is a distributed network in which electronic payment messages are transmitted directly from the sender settlement system member to the recipient settlement system member without passing through a central processing point or clearing house.
It should be noted the importance of familiarization with the Swiss Interbank Clearing System SHMKS (SIC), for the purpose of its operation and with the technology of settlements. SHMKS makes final and irrevocable payments in Swiss francs using funds held at the Swiss National Bank. The purpose of the functioning of the SHMKS is:
Reduction of credit risks;
Elimination of overdrafts on accounts with the Swiss National Bank;
Acceleration of calculations;
Simplification of the cash flow management process.
Studying the topic requires highlighting the basic principles of organization and types of operations of the TARGET international automated settlement system. Central banks countries of the European Economic Union to meet the needs of a single monetary policy created the TARGET system, which allows you to quickly and safely carry out payment transactions between the European Central Bank and the banking system.
The focus should be on the use of check clearing in US clearing houses. When using the local clearing mechanism, banks exchange checks through the clearing house and make one final payment based on the results of the settlement balance per day.
Need to know general information about the system of urgent international money transfers "Western Union" (Western Union). Western Union was founded in 1851 in New York and provides money transfer services. This system performs quick transfer funds using modern means connections. Transfers are made between individuals without opening bank accounts. In many countries when sending money transfer For an additional fee, the client can use the following types of services of his choice:
Delivery of the check to the address;
telephone message;
Message (up to 20 words) with translation;
Control questions (no more than four words).
In our country, the company "Western Union" began its active work in 1994. Sending and payment of money transfers is carried out in US dollars. Payment for the money transfer is carried out by the sender in accordance with the tariffs.
commonly called an endorsement; the person transferring the bill to another is the endorser, and the person to whom the bill is transferred is the endorser.
The essence of the endorsement is that by affixing an endorsement on the reverse side of the bill of exchange, together with the bill, the right to receive payment is transferred to a third party. The act of transferring a bill is called endorsement (endorsement) bills.
There are two kinds endorsements:
1) nominal signature - requires, in addition to the signature of the person transferring the bill, to indicate the name of the new purchaser of the bill (endor).
2) blank signature - consists of only one signature of the transferor of the bill -
endorser.
In order to increase the reliability of bills, it is used bill of exchange guarantee aval, which is bank guarantee expressed in the form of a signature on the face of the bill. The avalist (who gives the order) is liable to the same extent as the person for whom he vouched.
If the drawer of a bill wants to be sure that the drawee will pay the payee on time, 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 consent to make payment on the bill, makes an acceptance of the draft (writes the word “accepted” and signed with the date). 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- nominal money document, which gives 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 XX century. 21.6 thousand banks in approximately 200 countries and territories issued more than 300 million credit Visa cards, 29 thousand banks in more than 70 countries - 150 million MasterCard, American-Express system serves over 100 million credit cards around the world. For their processing, computer, electronic and space communications are used. The computers of banks and shops are connected via telephone to the central computers of the system, which process information.
4. SWIFT payment system
SWIFT (SWIFT) is a society of 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 settlements, speed up the transfer of large amounts of information while reducing the likelihood of errors. Now there are more than 3700 in the system financial institutions from 92 countries, the daily volume of transmitted information is about 2 million messages. Message delivery anywhere the globe happens in 5-20 minutes. The system is characterized by a high degree of confidentiality and reliability. General SWIFT development strategy: multiprocessing; integration into other networks; transfer 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 System. This system interconnects 12 Federal Reserve Banks. Fedwire money transfers are used primarily to make payments related to international bank loans until the next business day, interbank transactions, inter-corporate payments and securities settlements.
CHIPS is a private computerized network for on-line dollar transfers. This system belongs to the New York Association of Clearing Houses and has been operating since 1971. CHIPS, like Fedwire, is a credit transfer system. Unlike Fedwire, payment transactions in CHIPS are multilaterally credited and liabilities are settled at the end of the day.
Western Union (Western Union)- American system of private money transfers. 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 you make such a transfer reliably and quickly.
Switzerland operates around the clockSwiss Interbank Clearing System (SIC). It makes final and irrevocable payments using funds held in the Swiss national bank. This system is the only system that makes calculations in in electronic format between
Swiss banks. All payments are settled on the participants' accounts on an individual basis. The purpose of the functioning of the SHMKS:
- reduction of credit risks;
- elimination of giro overdrafts (a type of non-cash payment by settlement checks) at the Swiss National Bank;
- speeding up settlements and making it easier for banks to manage cash.
AT Japan has been operating since 1988 Bank of Japan Financial Network System (BOJ-BJ) with
the purpose of making electronic money transfers between financial institutions, including the Bank of Japan, which manages it. The money transfers made by the SCSF are mostly credit-based.
3.1.6. Currency clearing - as a form of state intervention in the field of international settlements
State intervention in the sphere of international payments is manifested in the periodic use currency clearing- agreements between the governments of two or more countries on the mandatory mutual offset of international claims and obligations . Currency clearing differs from internal interbank clearing. In-
First, offsets for internal clearing between banks are made on a voluntary basis, and for currency clearing - in a mandatory manner: 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 in foreign exchange clearing, the problem of repaying the balance arises.
The reasons for the introduction of foreign exchange clearing in the 1930s were: the instability of the economy, the imbalance of payments, the uneven distribution of gold and foreign exchange reserves, the abolition of the gold standard in the domestic money circulation, inflation, currency restrictions, increased competition.
The goals of currency clearing are different depending on the monetary and economic situation of the country:
1) alignment balance of payments without spending gold and foreign exchange reserves;
2) receiving preferential loan from a counterparty with an activepayment balance;
3) response to discriminatory actions by another state (for example, the UK introduced clearing in response to the termination of payments by Germany to British creditors in 30s);
4) irrevocable financing by a country with an active balance of payments of a country with a passive balance of payments.
A characteristic feature of currency clearing is a replacement currency turnover with foreign settlements in the national currency with clearing banks that carry out the final offset 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 withdrew foreign exchange earnings of exporters in exchange for the national currency. The mutual set-off of claims and obligations did not ensure equalization of mutual deliveries. Therefore, the growth of debt on loans was associated with bilateral clearing, which hindered 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 settlements, in particular, the procedure for using foreign exchange earnings, the state of the balance of payments and its individual items, 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 currency unit are used. From an economic point of view, it makes no difference in which currency the clearing settlements are made, as long as one currency is used. When settling through currency clearing, money performs the functions of a measure of value and a means of payment. With a mutual offset of claims without the formation of a balance, money acts as ideal.
Currency clearings have a dual effect Influence at foreign trade . On the one hand, they soften Negative consequences foreign exchange restrictions, enabling exporters to use foreign exchange earnings. On the other hand, in this case, 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 earning in convertible currency, they receive the national currency and, as a rule, look for ways to bypass currency clearing. Among them are manipulations with prices in the form of an underestimation of the contract price in the invoice.
invoice (double contract) so that part of the foreign exchange earnings is at the exporter's free disposal, bypassing the authorities currency control: shipment of goods to countries with which there is no clearing agreement; 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 created multilateral clearing with settlements
in national currencies through central bank 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 mutual offset of counterclaims and obligations with repayment of the balance by commodity deliveries. Until 1950, various currencies were used as the clearing currency, 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. Urgent deals
3.2.4. Arbitration
3.2.1. The essence of foreign exchange transactions. Currency position of banks
Currency operations are operations on foreign exchange market on foreign trade settlements, tourism, migration of capital, labor, etc., involving the use of foreign currency by buyers, sellers, intermediaries, banks, firms.
Currency transactions are separated on interbank - carried out between banks and exchange, performed on currency exchanges.
In addition, all 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 after a few days
9 Urgent - there is a time gap between the date of the transaction and the date of its implementation
The ratio of the requirements and liabilities of the bank in foreign currency determines its currency position. If they are equal, the currency position is considered closed, if they do not match - open.
Open currency position can be long if the amount of currency bought is greater than the amount sold, that is, the requirements exceed the obligations.
Short open currency position - if more currency is sold than bought, that is, the obligations exceed the requirements.
At the time of opening the bank, its currency position was closed. A customer wants to buy $100,000 for Japanese yen. The bank sells him dollars for market rate 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 JPY 140,100 for it. In US dollars, this open currency position will be open and short, since the obligations for the sold currency exceed the requirement for the bought 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 currency position. He will buy $100,000 for 139,980 JPY and he will make a profit of 120 JPY.
The limit of an open currency position is usually 10% of the amount own funds banks for each type of currency.
3.2.2. Currency transactions with immediate delivery of currency
The "spot" operation is the supply of currency by banks on the second business day from the date of the 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 most common in banking practice and account for up to 90% of the volume of foreign exchange transactions.
The delivery time of the currency is called " value date”, i.e. this is the date when the relevant funds should actually be at the disposal of the parties to the transaction. This allows you to document these transactions in a timely manner and actually carry out the calculations.
If the next day after the date of the transaction is non-working for one currency, then the delivery time for 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.
Establishing 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 lies in the fact that none of the parties involved in the exchange transaction provides credit to the other party. Those. on the day when, for example, a bank in Germany pays out euros, American bank must pay the equivalent in US dollars.
However, in reality it is very difficult to guarantee the simultaneous receipt of currency by partners, especially for settlements between countries located in remote time zones. The bank, when making a payment, is not sure that its counterparty has fulfilled its obligations, as a result, credit risk, to limit which the bank should strive to carry out its operations mainly with first-class partner banks.
In the interbank short-term market, the following are carried out:
9 Today deals at the Today exchange rate with currency delivery on the day of the deal; these transactions are widely used in ruble/dollar transactions on the domestic foreign exchange market of Russia between commercial banks.
9 Tomorrow deals – at the Tomorrow rate with the condition of currency delivery on the next day after the conclusion of the deal.
Application of Spot transactions:
1. For immediate receipt of foreign currency for foreign trade settlements (more than 60% of the total volume of the interbank market).
2. For additional income due to currency fluctuations
3.2.3. Urgent deals
Futures trading in last years is the most important segment of development financial markets. When characterizing derivatives markets can be distinguished:
- market forward contracts
Futures market
Options Market
Forward transactions
Forward transactions are one of the first forms of futures contract that arose in response to significant price volatility.
forward contract- this is an agreement between two parties on the future delivery of the subject of the contract, which is concluded outside the exchange.
as the subject of an agreement may perform:
Currency
Products
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 a currency includes the following conditions:
- the transaction rate is fixed at the time of its conclusion;
- the transfer of currency is carried out through certain period, the most common terms for such transactions is 1,2,3,6 months, and sometimes 1 year;
- at the time of the transaction, no deposits or other amounts are usually transferred.
Despite the obvious advantages, the forward contract is fraught with a number of disadvantages. Since the forward contract is concluded outside the exchange and does not fall under the control of its execution by the exchange supervisory authorities, the responsibility for its execution
lies entirely with the partners in the transaction. In addition, there is no standardization of forward contracts, which often makes it difficult to work with them.
Forward transactions are forward rate, which characterizes the expected value of the currency after a certain period of time and represents the price at which this currency is sold or bought, subject to its delivery on a certain date in the future.
Theoretically, the forward rate can be equal to the spot rate, but in practice it is always
is 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 |
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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 say we know the $/JPY spot rate and premiums at maturities of 1.3 and 6 months. |
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spot, $/JPY |
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Maturity premium: |
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6 months |
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Since the value of the forward margin for the buy rate is less than for the sell rate, then in order to fulfill the condition under which the buy rate is less than the sell rate, the forward margin must be added, i.e. JPY is quoted at a premium. In this way
Spot rate, $/JPY |
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Forward rate at maturity: |
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Accordingly, if |
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Spot rate, $/JPY |
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Discount at maturity: |
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then the forward rate at maturity: |
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The forward rate usually exceeds the spot rate by as much as bank rates quoted currency is lower than the interest rates of the counterparty currency.
Rule of thumb: currency with a higher interest rate will be sold on the forward market at a discount to the currency with the lower interest rate;
The currency with the lower interest rate will be sold in the forward market at a premium to the currency with the higher interest rate.
This is due to the fact that when setting the forward rate, it is taken into account that for the period before the execution of the transaction, the owner of the currency can receive more in the form of interest on the deposit. Therefore, in order to equalize the positions of the participants in the transaction, one should take into account the difference in interest on deposits of the currencies used. Besides, in international practice interest on deposits in the interbank London market is used, i.e. LIBOR rate.
As a basis for calculating the rate of forward currencies, their
theoretical (unconditional) forward rate defined as follows.
Suppose that the amount in currency B, borrowed for a period of t days on annual rate percent iB, exchanged for currency A at the spot rate RS, which gave the amount
PA=PB/RS
The amount PA deposited for a period of t days at the rate iA will result in the amount SA = PA * (1 + iA t / 360), where 360 is estimated quantity days 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 must make up a course.
1. Check - type of security, monetary instrument statutory form containing a written order of the owner of the current, settlement or other account (drawer) credit institution, in which the account is located, pay the check holder a certain amount of money specified in this document. Usually the payer of the check is the bank. A bank may not pay money on a check if the signature on the check is not legible enough or if the check is drawn to an unsecured bank account. Usually a check is issued on a special form received by the depositor from the bank.
There are several types of checks :
- bearer ( issued to the bearer; its transfer is by simple delivery);
- nominal issued to a specific person with the proviso "not to order", it cannot be transferred in the usual way to another person;
- order- is issued in favor of a certain person or by his order. Thus, the holder of a check has the opportunity to transfer it to a new owner by means of an endorsement on the reverse side. This is the most convenient and common type of check, because. transmitted over in a simple way, how personal check and at the same time guarantees that it cannot be used by a random person.
- travel (tourist) check- payment document, monetary obligation(order) to pay the amount of currency indicated on it to its owner. Traveler's checks discharged big banks in national and foreign currencies of different denominations. The sample signature of the owner is affixed at the time of the sale of the check to him.
- eurocheque- a check in Eurocurrency - issued by the bank without a preliminary payment of cash by the client and for larger amounts on account bank loan up to a month; paid in any country that is a member of the Eurochek agreement (since 1968). A single form of Eurocheques, their payment only upon presentation of guarantee cards by the owners, control over the processing of Eurocheques with the help of a computer contribute to the improvement of international tourism settlements.
According to the payment method, there are:
- simple check, when payment is made in cash;
- settlement check- while using it sum of money not paid in cash, but transferred from account to account. Thanks to this, a settlement check provides security: it guarantees that only the organization to which the check amount was intended will receive money on it. Therefore, a settlement check is very often used in business. Usually a settlement check is crossed out on the front side with two oblique or transverse lines. These checks are called crossed. Purpose of crossover- reducing the risk factor of erroneous payment of a check to the wrong person by limiting the circle of possible check holders who have the right to present it for payment to only banking institutions.
The check does not serve the purposes of financing, but is used in the system of cashless payments, therefore, short terms for presenting the check are provided. The check is used not only as a means of settlement within the country, but also in international settlements. The procedure for issuing, paying and transferring a check as one of the means of international settlements is regulated by the Geneva Check Convention of 1931, ratified by many countries.
Settlements can also be made using a bill of exchange.
2. Solo bill (simple)- a simple and unconditional obligation in writing of the drawer (debtor) to pay a certain amount of money in certain period and in a certain place to the holder or his order.
In international settlements, bills of exchange issued by the exporter to the importer are more often used. Draft (bills of exchange) - one person's order drawer addressed to another person - drawee pay a certain amount to a third party at the appointed time - the recipient.
In other words, draft is a written order from a lender to a borrower to pay a certain amount money to a third party. This means that the drawer is both a creditor in relation to the drawee and a debtor in relation to the receiver.
The obligation of the drawee under this order comes into force only from the moment when he confirms his consent to payment on the document itself. The issuance of a bill of exchange is intended to settle both debt claims.
The acceptor, which is the importer or the bank, is responsible for paying the bill. Drafts accepted by banks are easily converted into cash by accounting. The form, details, terms of issuance and payment of bills of exchange are regulated by bill legislation, which is based on Uniform bill of exchange law, adopted by the Geneva Bill of Exchange Convention of 1930. The prototype of the draft were appeared in the XII-XIII centuries. cover letters requesting that the sender (usually the merchant) be paid the appropriate amount in local currency. With the development of commodity-money relations and the internationalization of economic relations, the bill became a universal credit and settlement document.
The use of a draft in addition to collection and letter of credit gives the right to receive a loan and foreign exchange earnings.
Bills of exchange as securities have the ability to transfer.
The use of a bill as a means of payment implies that the first acquirer of the bill has the right to transfer it to the ownership of another person, and each subsequent acquirer has the same right. The transfer of a bill of exchange into ownership (as well as a check) is usually called endorsement; a person who transfers a bill of exchange to another - endorser, and the person to whom the bill passes - endorsee.
The essence of the endorsement is that by affixing an endorsement on the reverse side of the bill of exchange, together with the bill, the right to receive payment is transferred to a third party. The act of transferring a bill is called endorsement (endorsement) bills.
Exists two types of endorsements:
1) nominal signature - requires, in addition to the signature of the person transferring the bill, to indicate the name of the new purchaser of the bill (endor).
2) blank signature - consists of only one signature of the transferor of the bill - the endorser.
In order to increase the reliability of bills, it is used bill of exchange guarantee aval, which is bank guarantee expressed in the form of a signature on the face of the bill. The avalist (who gives the order) is liable to the same extent as the person for whom he vouched.
If the drawer of a bill wants to be sure that the drawee will pay the payee on time, 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 consent to make payment on the bill, makes an acceptance of the draft (writes the word “accepted” and signed with the date). In this case, the drawee becomes the acceptor of the bill.
3. From the 60s of the XX century. credit cards are actively used in international payments. Credit card - a nominal monetary document that gives 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 XX century. 21.6 thousand banks in approximately 200 countries and territories issued more than 300 million
Visa credit cards, 29 thousand banks in more than 70 countries - 150 million MasterCard, American-Express system serves _______ about 100 million credit cards worldwide. For their processing, computer, electronic and space communications are used. The computers of banks and shops are connected via telephone to the central computers of the system, which process information.
5. Payment system SWIFT
SWIFT (SWIFT)- it is a society of 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 settlements, speed up the transfer of large amounts 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 SWIFT development strategy: multiprocessing; integration into other networks; transfer 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 System. This system interconnects 12 Federal Reserve Banks. Fedwire money transfers are primarily used for payments related to interbank loans through the next business day, interbank transactions, corporate payments, and securities settlements.
CHIPS- a private computerized network for dollar transfers operating in the "on line" mode. This system belongs to the New York Association of Clearing Houses and has been operating since 1971. CHIPS, like Fedwire, is a credit transfer system. Unlike Fedwire, payment transactions in CHIPS are multilaterally credited and liabilities are settled at the end of the day.
Western Union (Western Union)- American system of private money transfers.
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 you make such a transfer reliably and quickly.
Switzerland operates around the clock Swiss Interbank Clearing System (SIC) . It makes final and irrevocable payments using funds held at the Swiss National Bank. This system is the only one that makes electronic payments between Swiss banks. All payments are settled on the participants' accounts on an individual basis. The purpose of the functioning of the SHMKS:
Reduction of credit risks;
Elimination of overdrafts on giro accounts (a type of non-cash payment by settlement checks) at the Swiss National Bank;
Accelerating settlements and making it easier for banks to manage cash.
In Japan since 1988 Bank of Japan Financial Network System (BOJ Financial Network System)) for the purpose of making electronic money transfers between financial institutions, including the Bank of Japan, which manages it. The money transfers made by the BOJ FSB are mostly credit-based.
In addition to SWIFT, settlements can also be carried out through interbank systems, for example, through the Fedwire system (USA), CHIPS (USA), SHMKS (Switzerland), SPS-BOJ (Japan).
Fedwire is a system for transferring funds and securities in large amounts. It is owned and operated by the US Federal Reserve System. For Fedwire purposes, the 12 Federal Reserve Banks are interconnected and operate as a single entity. Transfers of funds and securities through the Fredwire system occur as follows.
Funds transfers through Fedwire take the form of real-time gross settlements where the sender of the funds initiates the transfer (Fedwire is a credit transfer system). In general, depository institutions (including U.S. branches and agency offices of foreign banks) that maintain a reserve or clearing account with a Federal Reserve Bank can directly use Fedwire to send and receive payments.
Fedwire members may transfer funds to another institution's Federal Reserve Bank account, whether for the benefit of the receiving institution or for the benefit of a third party such as a correspondent institution, corporation, or individual. Fedwire Money Transfers are used primarily for payments related to interbank loans through the next business day, interbank transactions, corporate payments, and securities settlements.
The Fedwire money transfer system operates from 8:30 a.m. until 18h. 30 minutes. US Eastern Standard Time. The Board of Governors of the Federal Reserve System decided to set the opening time of the Fedwire money transfer system at 0:30 from the beginning of 1997. night. Each transfer is settled separately during processing and the transfer becomes final when it is received.
Funds can only be sent through Fedwire at the request of the sending institution (payer). The sending institution irrevocably authorizes the Federal Reserve Bank at which its account is held to debit that account for the amount of the transfer. The receiving institution authorizes the Federal Reserve Bank at which its account is held to credit that account for the amount of the money transfer. In the event that funds transferred are payable to a third party, the receiving institution agrees to the immediate crediting of such funds to the account of the third party.
Fedwire's payment messages are sent over a network of 12 Reserve Banks and depository institutions with accounts to the Reserve Bank. Depository institutions send payment instructions to their local Federal Reserve Bank for processing. If the payment is intended for an institution that has an account with another Federal Reserve Bank, it is sent over the communications network to that Reserve Bank and ultimately reaches the receiving depository institution.
Since Fedwire money transfers become final the moment they are received by the recipient institution, the Fed effectively guarantees their payment. Therefore, any intraday overdraft on a Federal Reserve Bank account authorized by a Fedwire money order sender is confirmed by the Fed at credit risk from this institution.
Overdraft is negative balance on the bank's customer's current account and acts as a bank loan to the customer.
The Federal Reserve is the depository of all outstanding US Treasury securities, securities of many federal agencies, and certain mortgage-backed securities issued by government-backed firms. These papers almost exclusively exist in the form accounting records. Depository institutions may maintain securities accounts with the Fed in the form of accounting records in which they hold both their own and their customers' securities.
Most government securities are settled through Fedwire's securities transfer system in the form of ledger entries. The Fedwire Securities Transfer System is a real-time delivery versus payment settlement system that transfers securities for immediate payment. Transfers are initiated by the sender of securities and lead to simultaneous debits and credits, respectively, of the securities account in the form of accounting entries and the sender's cash account, and credits and debits, respectively, of the securities account and the recipient's cash account. The Fedwire Securities Transfer System typically operates from 8:30 a.m. to 2:30 p.m. EDT.
In the United States, the system of interbank clearing settlements and CHIPS payments is actively functioning.
CHIPS (Clearing House Interbank Payments System) is a private computerized network for on-line dollar transfers.
"On-line" (English on line - on the line) means real-time mode, i.e. the time of sending funds in the place where the starting point of the transfer is located. It is owned by the New York Association of Clearing Houses (NACHP).
The CHIPS electronic system became operational in 1971, replacing the existing paper-based clearing mechanism.
Here are the following definitions of clearing: 1. a system of non-cash payments for goods, securities, based on the offset of mutual claims and obligations; 2. the procedure for settlements through the clearing house, acting as a consolidated seller to all buyers in exchange transactions, thereby guaranteeing the execution of concluded contracts and insuring their participants against possible financial losses; 3. mutual set-off of payments on checks within one state.
CHIPS, like Fedwire, is a credit transfer system. However, unlike Fedwire, payment transactions in CHIPS are multilaterally offset and net liabilities are settled at the end of the day.
CHIPS members may be commercial banks, Edge Law corporations, investment companies as defined by New York State banking laws, or bank branches of any commercial banking institution with an office in New York City.
A bank that is not a CHIPS member must use the services of a CHIPS member as its correspondent or agent.
Payments made through the CHIPS system are primarily related to interbank transactions of an international nature, including dollar payments on foreign exchange transactions, as well as the placement of securities in Eurodollars and the payment of income on them. Payment instructions are also sent through the CHIPS system to settle obligations under other payment or clearing systems, adjust correspondent account balances and make payments in connection with commercial transactions, bank loans and securities transactions.
CHIPS participants are supervised by state or federal bank inspectors, and the CHIPS system itself is subject to annual audits by the authorities. banking regulation both at the state and federal levels. The New York Clearing House Association is made up of the eleven largest banks in New York, each of which is represented on the clearing house committee that establishes the rules for the operation of the CHIPS. A prerequisite for admission to participation in the CHIPS system of institutions that are not members of the association is their agreement to abide by the rules of the system.
Typically, CHIPS operates from 7:00 am to 4:30 pm EST, and settlements are usually completed by 6:30 pm. The CHIPS communication network is a single node, all its members are connected directly to single center message switching. CHIPS has a primary and backup data center. Participants in the system are directly connected to both the main and backup centers. In case of emergency situations, all connections are duplicated by switched lines. CHIPS participants must have data transmission networks and two computer processing complexes in New York - the main and the backup.
During the working day, CHIPS functions as a payment message switching center and accounting transactions between participants in the system. Each participant starts the working day with a zero balance. Therefore, participants provide each other with a loan to pay off among themselves. However, each CHIPS participant limits its exposure to credit risk from any other participant by setting a limit on the net amount of credit it is willing to extend to another participant in the process of sending and receiving payments (so-called bilateral credit limit). The participant can set this limit to zero and change its value at any time.
Throughout the day, CHIPS continuously calculates the net position of each participant in relation to each other participant from sent and received payment messages. Payment messages may require funds to be credited on the same day or one of the following days. Messages of the first kind are processed immediately upon receipt from the sender, unless they cause the sender to exceed its credit limit or the net receivable position limit. Once a payment message has been transmitted to the recipient, it cannot be revoked by the sending institution.
In Switzerland, the Swiss Interbank Clearing System (SIC) operates around the clock. It makes final and irrevocable payments in Swiss francs using funds held at the Swiss National Bank (SNB).
SHMKS is the only system that makes electronic payments between Swiss banks. All payments are settled on the participants' accounts on an individual basis (by debiting the account of the bank instructing the payment and crediting the account of the receiving bank). SHMKS is a system of both large and small retail payments; payments are not limited.
The purpose of the functioning of the SHMKS is to reduce credit risks, eliminate overdrafts on giro accounts in the SNB, speed up settlements and make it easier for banks to manage cash.
Giro (Italian giro - circle, turnover) is a type of non-cash payments carried out by means of settlement checks. Such calculations are made in the form of a system of offsetting mutual claims and obligations. The unit of account in giro calculations is fat, i.e. document confirming the withdrawal of money from the account national system giro accounts.
A giro system is a system of payments through giro accounts, i.e. through accounts in post offices operating in many European countries and in Japan. Any person can open an account and transfer funds from it to other owners of such postal accounts. The system usually has a central link, which allows you to speed up the calculations.
Members of the SIC must be located in Switzerland and be banks within the meaning of Swiss banking law. In addition, they must have a current account with the SNB.
Only credit transfers in Swiss francs can be made through the SHMKS, i.е. payments are always initiated by the paying bank. SHMKS can be used to credit bank customers' payments to any bank account, execute payment orders in favor of third parties, provide coverage and make interbank payments. In addition, transfers of funds to postal accounts or money transfers (the transfer amount is delivered by the postman to the beneficiary's house) can be sent to the payment system of mail, telegraph and communications (PTS) through the SHMKS. Conversely, payments initiated through the PTN branch to account holders are transferred from payment system PTS in ShMKS.
On bank working days, SHMKS operates around the clock. Settlements are made within approximately 22 hours. The day starts at 18:00 (Zurich time) on the eve of the banking business day in question with the transfer of giro account balances from the main accounts at the SNB to the clearing accounts at the SHMKS.
Japan operates the Bank of Japan Financial Network System (BOJ-JPS). It was established in 1988 for the purpose of making electronic money transfers between financial institutions, including the Bank of Japan (BOJ), which manages it. SPS-BOJ works in the "on-line" mode.
Financial institutions must have an account with the Bank of Japan in order to access the BOJ FSB remittance services.
The BOJ-SPS system is used to implement:
money transfers between financial institutions associated with interbank money market and engaged in transactions with securities;
money transfers within the same financial institution (intracompany money transfers);
settlements on positions that are formed as a result of the functioning of clearing systems that are in private management;
money transfers between financial institutions and the Bank of Japan (including treasury money transfers).
BOJ FSB money transfers are usually credit, but for intercompany transfers, they can also be debit. The sending bank may send a payment instruction containing information about the clients of the sending bank and/or the receiving bank.
System participants make money transfers from one BO account to another by sending payment instructions from BOJ SPS terminals installed in the premises of individual participants. Money transfers are settled, at the option of the participant, either on a real-time gross basis (9:00 a.m. to 5:00 p.m. Tokyo time) or at a set time. There are four fixed billing periods: 9:00 a.m., 1:00 p.m., 3:00 p.m., and 5:00 p.m. Payment instructions may also be sent on the eve of settlement, with such settlement ending at 17:20.
Money transfers made using the BOJ-SPS are final. When settling at a specified time, payment instructions may be withdrawn before they are executed. Real-time gross payments become final immediately.
The Bank of Japan does not provide loans during business hours. If any BOJ FSB participant does not have sufficient funds in their account to make a real-time money transfer, the payment order is automatically rejected.
