Bank Operations, Lending, and Financial Stability

Operations of Banks

1. Collection

Receiving deposits and current account contracts.

• a. Overnight Deposits

  The bank receives money, and the owner can withdraw without any restriction.

• b. Current Accounts

  A contract where the bank pays for funds from the account of third parties the account holder has available.

• c. Collection Period

  Similar to deposits but with different terms and conditions for termination.

2. Loans

Financial resources that are taken up by banks to provide loans through mutual use of natural and legal persons.

• a. Simple Credits

  Where the bank, through mutual agreement, gives money to individuals.

• b. Revolving Credits on Current Account

  If the customer's account is insufficient to pay, the bank provides a loan of money.

• c. Issuance of Credit Cards

  A tool that allows the holder to use in payment for services or procurement.

• d. Discount of Bills of Exchange

  The bank acquires the bills, paying and deducting the value of interest.

• e. Secured Loans

  Loans for which the bank requires the applicant to provide security (guarantee, pledge, mortgage).

• f. Mortgage Loans

  The bank issues mortgage credit points as the basis of this and delivers them to the construction company.

• g. Mutual Equity Mortgage

  Banks make loans for the purchase of general-purpose housing, which cannot be less than one year nor more than 40 years.

Limits on Bank Loans

Banks move the resources they receive from depositors through bank placement to those who require it.

• a. Qualitative Limits

  Prevent and reduce credit concentration risks in loans.

• b. Substantive Limits

  Issuance of certain documents that support the placement.

Other Operations

• Collection: payments, transfer payments, transport of valuables.
• Constitution of subsidiaries
• Acquisition of foreign banks
• Foreign exchange
• Provision of Guarantee
• Accept and execute trust operations
• Financial agents and trading of securities
• Acquire, assign, and transfer commercial effects.

Measures to Stabilize Financial Instability

Measures to stabilize the financial instability of the banks and their enforced limitations.