MECHANISM OF PERFORMANCE OF BANKING SERVICES AND OPERATIONS IN BANKS OF THE COUNTRY

Abstract

The general description of banking services is given in the article. Their features, classification, features, properties are considered. The reasons for the emergence and development of non-traditional banking operations and services have been identified, namely: a decrease in the level of profitability of traditional banking operations, an intensification of competition between participants in the financial services market; the need to improve the quality of customer service; the need to increase the bank's liquidity and solvency; diversification of bank income; attracting new clients in order to expand the structure of the resource base; reducing the risks associated with traditional operations. It has been proved that banking services are characterized by the following features: the provision of banking services does not require additional resources, and the fee for the services provided by banks is paid as a commission. It is found that an important feature of banking transactions is their productive nature. The mechanism of providing various types of banking services: cash-settlement operations, leasing operations, factoring and forfeiting operations, guarantee operations of banks is also investigated. It is noted that factoring is a specific complex of financial services, which is mainly provided by commercial banks to clients, small and medium-sized businesses in exchange for a receivable. It is stated that the content of factoring is revealed in its functions: financing, administrative management of accounts receivable, assessment of solvency of buyers of the supplier, insurance of risks. It is substantiated that in a forfeiting transaction, a banking institution assumes the following risks: default risk, currency risk, interest rate risk, money transfer. It has been established that forfeiting enables the exporter to reduce receivables at the expense of additional funds raised. It is noted that the guarantee is a way of ensuring the fulfillment of obligations and is not dependent on the underlying obligation. It is revealed that conducting trust operations requires bank professionals with a broader range of professional skills than other types of banking operations.