The currency position of the bank as a guarantee of its reliability

The result of the bank's work is primarily associated with a competent "game" at exchange rates. And since this is a game, then always someone is a loser. However, in the case of the bank, not only he suffers, but also his clients. Therefore, the depositor, like no other, should be interested in what the bank's currency position is, because it will determine the possible losses or losses associated with the change in the exchange rate. And on this depends his whole future fate!

So what is the currency position, and how does it affect the efficiency of the bank's activities?

First of all, this is the ratio of the requirements and liabilities of the bank, calculated on a separate currency, the operation with which it produces. In this case, it can be open and closed. An open currency position means that the amounts of claims and obligations for a given particular currency do not coincide, i.e. In case of a change in its rate, the bank will have a profit or loss. There are long and short open currency positions. If the currency position is long, then the bank's accounts receivable exceed the creditor's debt, i.e. He will win with the appreciation of the foreign currency exchange rate, but will lose - if it decreases. Short position, in turn, assumes completely the opposite: the obligations of the bank to its creditors exceed the requirements for its debtors, so it is beneficial not to increase, but fall.

Many, of course, now thought that it was much better for the currency position to be closed: and there was no need to worry about any risks, however, how then to get such a desired high profit? Of course, this is a speculative profit, behind which is a skilful game at exchange rates and which is not stable. However, do not rush to worry, because the state regulates the maximum size of the bank's open position, depending on the amount of its assets. In addition, the bank itself is interested in the correct definition of currency risk, and, consequently, it monitors the changes in market conditions.

In fact, even the worst scenario for the bank will not affect you in any way as its client and depositor, because even then your deposit would have been paid to you by the reserve or statutory fund of the bank. Moreover, the bank constantly monitors the forecasts of the dynamics of the exchange rates with which it operates. There is also a constant recalculation of open positions in closed positions by transferring obligations and claims first into one of the freely convertible currencies, and then the national currency. In 2012, the Central Bank of the Russian Federation established that the open currency position can not exceed the bank's capital by more than 10%, and the amount of open positions - 20%.

As can be seen, from these figures, the currency position of the bank is tightly regulated by the state, and the situation when the assets and liabilities in a particular currency are not equal to each other, is under special attention, therefore the customers of banks do not have cause for excitement. However, at the leisure time, you will definitely not be afraid of banking activities, currency risks and types of currency positions of the bank!