What are credit organizations for?

Credit institutions are considered to be integralpart of the modern world, because to buy an expensive product here and now, most people can not do without a loan. Indeed, the purchase of large goods in debt daily occurs in our country. It so happened that the standard of living of the population is not high enough, so you can afford, for example, to buy a car only with the help of loans.

It is not surprising that every day there ismore specialized institutions. Before borrowing money thoughtlessly, you should learn more about what credit organizations are and what their types are. Any such institution is registered in special state bodies as a legal entity of a specific organizational and legal form. The main task of his activity is to maximize profits by spreading certain banking products. A permissive document indicating the list of possible operations that an organization will perform is a license. It is issued by the Central Bank of the country, and is only withdrawn if the bankruptcy of credit institutions is declared.

It should be noted that according to the canons of the currentlegal norms such institutions should not carry out business activities related to trade, production or insurance of citizens. Banking and non-banking credit organizations distinguish among all the variety. The first type includes only those institutions that specialize in providing three basic types of transactions:

• deposit (accumulation of funds from the population and their use as resources for loans);
• credit (borrowing the required amount of cash to the client);
• settlement (transfer of amounts from the client's current account to the beneficiary's account).

And from each type of these operations, the bankbenefits. But the largest share of the income falls on loans and loans, because for the use of temporarily free funds the client is obliged to pay a percentage.

In essence, all credit institutions areintermediaries between subjects of economic activity, as they accumulate finances from investors, that is, entrepreneurs who want to invest available resources, and redistribute them to needy enterprises. Non-banking institutions concentrate on the performance of individual operations. To this kind can include pension funds, brokerage and insurance companies, pawn shops and so on.

Accounting in credit organizationsis conducted with special attention, because all their activities are connected with money, which means that the stability and reliability of a particular company depends on their accounting. The government also monitors the accuracy and accuracy of the information provided in the financial statements. To this end, mandatory external audits are conducted annually by an external organization.