Credit institutions in the precious metals market presentation. Presentation on the topic “Operations with precious metals. According to the terms of operation, metal accounts are divided

23.04.2022

From a functional point of view, the market of precious metals and precious stones From a functional point of view, the market of precious metals and precious stones is a trade and financial center, where trade in them and other commercial and property transactions with these assets are concentrated.

Current trends in the precious metals market: the investment attractiveness of precious metals is growing due to the presence of positive price dynamics; precious metals in their perspective do not tend to depreciate completely, unlike currencies; The "top four" of the precious metals market are gold, silver, platinum and palladium; gold - the leader of the precious metals market, despite the recent disappointing quotes, still retains its position and does not lose its investment attractiveness; silver has a high volatility, which leads to a significant difference between the upper and lower price limits of its value; platinum and palladium are industrial metals, this sector is characterized by relatively low growth rates and significant prospects for medium and long-term investments.

Thesis On the topic: "Operations of commercial banks with precious metals: problems and prospects for development (on the example of the Miass branch No. 4910 of Sberbank OJSC)" Completed by: Amineva A.R. Group: MF-502 Scientific adviser: Khakimova E.A. Slide 1 Object Commercial banks Subject Features of operations of commercial banks with precious metals Purpose Identification of problems and ways to improve the organization of commercial banks in the precious metals market Objectives 1. To study the theoretical aspects of banking operations in the precious metals market. 2. To reveal the features of the legal regulation of the activities of commercial banks with precious metals. 3. Research technologies for conducting banking operations with precious metals and identify risks in the implementation of these operations. 4. Describe the operations of commercial banks with precious metals on the example of the Miass branch No. 4910 of Sberbank OJSC. 5. To analyze the investment attractiveness of investments in precious metals in a commercial bank using the Miass branch No. 4910 of Sberbank OJSC as an example. Slide 2 The structure of the precious metals market in Russia Precious metals market Primary Secondary Direct domestic Interbank Intermediary domestic Wholesale Direct export Retail Exchange Export Slide 3 Classification of banking operations with precious metals Banking operations with precious metals Profit making and risk insurance Credit collateral Speculative operations Gold hoarding Metal accounts Pledge of gold arbitrage Purchase of gold bars Gold certificates Pledge of silver swap Purchase of gold coins Federal loan bonds backed by gold Pledge of platinum Pledge of palladium Slide 4 Risks arising from transactions with precious metals and methods of managing them Credit risk Market risk Operational risk Management methods: 1. Creation of reserves to cover losses; 2. Procedure for covering losses with the bank's own capital; 3.Determination of the scale of various types of margin based on the degree of risk; 4.Control over the quality of the loan portfolio; 5.Tracking critical indicators in the context of risk types; 6. Operations with derivative financial instruments; 7. Motivation of business units and personnel associated with risky operations of the bank; 8. Pricing (interest rates, commissions) taking into account risk; 9. Establishment of limits on risky operations; 10. Hedging individual risks. Liquidity risk Slide 5 The volume of each type of transactions with precious metals in the Miass branch No. 4910 of Sberbank OJSC bullion coins 3% 11% loans 13% Compulsory medical insurance 73% Slide 6 Advantages and disadvantages of investing in precious metals in the Miass branch No. 4910 of Sberbank OJSC View investments in precious metals in the Miass branch No. 4910 of Sberbank OJSC Advantages Disadvantages 1. Opening of depersonalized metal accounts (OMS) - VAT is not charged when opening OMA; - no commission for opening, closing and maintaining CHI; - precious metal can be bought and sold on any day. - payment of VAT upon closing the CHI with the receipt of real metal; - the presence of a spread, i.e. the difference between the lowest selling price and the highest buying price of a product; - increased risk. 2. Buying a physical precious metal in an ingot - psychological comfort; - a beautiful and prestigious gift. - VAT is added to the cost of the ingot; when reselling the goods, VAT is not returned to individuals; - when selling an ingot to a bank, the sale price should not be lower than the sale price plus 18% VAT, plus the bank will take its commission for processing the transaction; - in case of repurchase with physical damage in the metal, the bank may require a discount - a discount to the market price; - additional costs for the mandatory examination, which confirms the authenticity of the metal in the ingot. 3. Purchase of coins - when buying investment coins, the operation is not subject to VAT; - the demand for investment coins is increased, and the supply is limited => a gradual increase in prices. - fairly high spreads for investment coins; - if the coins are damaged, the price of them is greatly reduced. Slide 7 Calculation of the client's profitability when investing gold in UMIs Dynamics of profitability of investments in gold on UMIs of clients of the Miass branch No. 4910 of Sberbank OJSC from 01.01.2006 to 05.01.2008 80.000 40.000 20.000 01.05.2008 01.03.2008 01.01.2008 01.1107 .2007 01.07.2007 01/01/2007 03/01/2007 01.01.2007 01.11.2006 01/01/2006 01.07.2006 -40 -40 -40.000 01.01.000 03.03.2006 0 .01.08.9.05.08) r(17.01.08 17.03.08) for 1 year for 1.5 years (purchase 09.05.2008 sale 09.01.2008) 366,100 (09.05 2008 09 01 2008) sale 09 . 01 . 2008 (purchased 17.03.2008 sold 17.01.2008) 366,100 (17.03.2008 17.01.2008) sold 17.01.2008 01 . 2008 for 2 years (653.82 713.80) 365,100,121,713.80 (737.28,704.12) 366,100 60,704.12 25.35% 28.73 Slide 8 OJSC "Sberbank" from 09.01.2008 to 12.05.2008 1200.00 London fixing, Bank of Russia exchange rate. RUB/yr USD/tr. UNC 1000.00 600.00 05.07.2008 04/30/2008 04/23/2008 04/16/2008 02/02/2008 03/26/2008 03/19/2008 03/2008 02/27/2008 The purchase course of the Miassic department No. 4910 Sberbank OJSC, RUB/G 20.02.2008 02/13/2008 01/23/2008 01/16/2008 0. 00 06.02.2008 200.00 30.01.2008 Selling rate by the Miass branch No. 4910 of Sberbank OJSC, rub/year 04/09/2008 400.00 01/09/2008 rub/year 800.00 date Purchase Sale of securities L. Fix. (pm) Slide 9 Problems Ways to solve Anticipated result 1. Risks arising from operations with precious metals - continuous improvement of the risk management system based on the principles of risk awareness, delimitation of powers to assess and accept risk, unified approaches to assessing and establishing limits and restrictions, control of accepted risk; - prohibition of conducting new banking operations subject to risks in the absence of regulatory documents or relevant decisions of collegiate bodies regulating the procedure for their performance; - the use of modern information technologies that allow you to quickly respond and eliminate the source of the risk or minimize its impact. - fulfillment of the main standards of the Bank of Russia, - ensuring a positive financial result, - improving the quality of operations, - timely prevention of consequences in the event of a risk event. 2. Collection of VAT on the sale to real investors of bank ingots and coins made of precious metals - removal of VAT from operations with measured ingots; -removal of VAT from operations with commemorative coins made of precious metals, based on the experience of Western countries. - an increase in the liquidity of the market for bullions made of precious metals; 3. The need to increase the competitiveness of the Savings Bank of Russia in the precious metals market - the introduction of multi-metal unallocated accounts and deposits, providing for the possibility of the bank converting gold into another metal at the request of the client; - introduction of credit lines in gold for specialized participants of the gold market, similarly to foreign exchange ones, providing for the reservation of funds for the consistent development of a loan; - introduction of gift measured gold bars from 1 to 50g. - increasing the competitiveness of a commercial bank in the precious metals market; - strengthening the image of the bank; - increasing the interest of citizens with medium and high income levels in coins and bullion not only as investment objects, but also as newfangled gifts. slide 10 slide 11

slide presentation

Slide text: The activities of Russian commercial banks in the market of precious metals and precious stones Completed by a student of group 181 Kopaneva Olga Supervisor: Doctor of Economics, Professor Ekaterina Mikhailovna Popova

Slide text: Objectives: to justify the expediency of banks operating in the precious metals and stones market, to confirm the prospects of this area of banking activity to find out what causes the fact that less than half of all banks licensed to carry out these operations actually work with precious metals

Slide text: Tasks:

Slide text: Basic concepts: Precious metals - bars of gold, silver, platinum and palladium, as well as coins made of precious metals (gold, silver, platinum and palladium), with the exception of coins that are the currency of the Russian Federation. Banking operations with precious metals - operations to attract deposits and placement of precious metals. Metal accounts - accounts opened by a credit institution for carrying out operations with precious metals. Metal accounts for safekeeping - customer accounts for accounting for precious metals transferred for safekeeping to a credit institution while maintaining their individual characteristics (name, number of valuables, sample, manufacturer, serial number, etc.). Impersonal metal accounts (OMS) - accounts opened by a credit institution for the accounting of precious metals without specifying individual characteristics and carrying out operations to attract and place them.

Slide text: The main operations of banks in the precious metals market

Slide text: Advantages of banks in the precious metals market

Slide text: Precious metals in the balance sheets of Russian banks, million rubles Operating credit institutions with licenses granting the right to conduct operations with precious metals

Slide text: Problem Possible solutions Lack of financial resources Instead of working with chain enterprises, do everything else (CHI, loans, storage and transportation, etc.) For those banks that already work there, ways to increase activity: participation in exports, changing conditions cooperation, flexible interest rates on loans. The trust of the heads of enterprises in the mining-processing-export chain is focused on a few largest banks Taxation Remove VAT on the sale of physical metal Investment demand of Russians is directed towards jewelry stores Educate the population about the services of banks with precious metals Weak interest of the population in compulsory health insurance and deposits in precious metals Reduce the minimum lot size Implementation insurance systems for such deposits

Slide text: The structure of the precious metals market The precious metals market is a set of various economic relationships between participants in transactions with precious metals, precious stones, securities quoted in gold, including gold certificates, bonds, futures, etc.

Slide #10

Slide text: Precious metals market example: Gold market Gold supply (tonnes) Top five gold producing countries (2010): China (345 tons) Australia (255 tons) USA (230 tons) South Africa (207 tons) Russia (190 tons)

Slide #11

Slide text: Prospects for investing in precious metals (gold) Gold has no government, but currencies have The safety of investments in precious metals is maximum relative to any other assets Low risks of changes in the value of gold as a separate instrument Gold is the leading investment asset for investing in most states Investments in silver, platinum and palladium diversify investments in precious metals

Slide #12

Slide text: Thank you for your attention

Precious metals - ingots of gold, silver, platinum and palladium, as well as coins made of precious metals (gold, silver, platinum and palladium), with the exception of coins that are the currency of the Russian Federation.

Banking operations with precious metals - operations to attract deposits and placement of precious metals.

Metal accounts - accounts opened by a credit institution for carrying out operations with precious metals.

Metal accounts for safekeeping - customer accounts for accounting for precious metals transferred for safekeeping to a credit institution while maintaining their individual characteristics (name, number of valuables, sample, manufacturer, serial number, etc.).

Impersonal metal accounts (OMS) - accounts opened by a credit institution for the accounting of precious metals without specifying individual characteristics and carrying out operations to attract and place them.

Operations of commercial banks with precious metals:

problems and development prospects

(on the example of the Miass branch No. 4910

"Sberbank")"

Completed by: Amineva A.R. Group: MF-502 Supervisor: Slide 1

An object

Commercial banks

Features of operations of commercial banks with precious metals

Identification of problems and ways to improve the organization of the activities of commercial banks in the precious metals market

1. To study the theoretical aspects of banking operations in the precious metals market.

2. To reveal the features of the legal regulation of the activities of commercial banks with precious metals.

3. Explore the technologies for conducting banking operations with precious metals and identify risks in the implementation of these operations.

4. To characterize the operations of commercial banks with precious metals on the example of the Miass branch No. 4910 of Sberbank OJSC.

5. To analyze the investment attractiveness of investments in precious metals in a commercial bank on the example of the Miass branch No. 4910 of Sberbank OJSC.

Market structure

precious metals in Russia

Precious metals market
Primary	Secondary
direct internal	Interbank
Mediation internal
Direct export	Retail
	Exchange
	Export

operations with precious

metals

Banking operations with precious metals

Receiving a profit	Loan security	Speculative	Gold hoarding
and risk insurance	Loan security	operations	Gold hoarding
and risk insurance		operations
metal	Pledge of gold	arbitration	Buying gold
	Pledge of gold	arbitration

	Pledge of silver		Buying gold
certificates	Pledge of silver
certificates
Bonds	Pledge of platinum
federal loan,	Pledge of platinum
federal loan,
secured
	Pledge of Palladium

carrying out operations with precious metals and methods of their management

Credit

	Control Methods:
	1. Creation of reserves to cover losses;
	2. Procedure for covering losses with the bank's own capital;
	3.Determining the scale of different types of margin,
	based on the degree of risk;
	4.Control over the quality of the loan portfolio;
	5.Tracking critical indicators in the context
	types of risk;
	6. Operations with derivative financial instruments;
	7.Motivation of business units and staff,
	associated with risky operations of the bank;
	8.Pricing (interest rates, commissions)
	taking into account the risk;
Market	9. Establishment of limits on risky operations;
	10. Hedging individual risks.

Operating

liquidity

The volume of each type of transactions with

precious metals in the Miass branch No. 4910 of Sberbank OJSC

Sberbank

The demand for investment coins is increased, and the supply is limited => gradual price increase.

- VAT payment upon closing the CHI with the receipt of real metal;

- the presence of a spread, i.e. the difference between the lowest selling price and the highest buying price of a product;

- increased risk.

- VAT is added to the cost of the ingot; when reselling the goods, VAT is not returned to individuals;

- when selling an ingot to a bank, the sale price should not be lower than the sale price plus 18% VAT, plus the bank will take its commission for processing the transaction;

- in case of repurchase with physical damage in the metal, the bank may require a discount - a discount to the market price;

- additional costs for the mandatory examination, which confirms the authenticity of the metal in the ingot.

- fairly high spreads for investment coins;

- if the coins are damaged, the price of them is greatly reduced.

Calculation of the client's profitability when investing gold in OMS

		(purchase 09.05.2008 sale 09.01.2008) 366 100
		(09.05.2008 09.01.2008) sale 09.01.2008
		(09.05.2008 09.01.2008) sale 09.01.2008
		(purchase 17.03.2008 sale 17.01.2008) 366,100
(17.01.08 17.03.08)		(17.03.2008 17.01.2008) sale 17.01.2008
		(17.03.2008 17.01.2008) sale 17.01.2008

Slide 9

documents or relevant decisions of collegial

bodies regulating the procedure for their commission;

Use of modern information technologies,

to quickly respond and eliminate the source

risk or minimize its impact.

2. Levying VAT on the sale of bank bars and coins made of precious metals to real investors

3. Necessity

raise

competitiveness of Sberbank of Russia in the market

precious metals

Removal of VAT from operations with measured ingots;

Removal of VAT from operations with commemorative coins made of precious metals, based on the experience of Western countries.

- the introduction of multi-metal unallocated accounts and deposits, providing for the possibility of the bank, at the request of the client, converting gold into another metal;

- introduction of credit lines in gold for specialized participants in the gold market, similar to foreign exchange ones, providing for the reservation of funds for the consistent development of a loan;

- introduction of gift measured gold bars from 1 to 50g.

Estimated result

Compliance with the main standards of the Bank of Russia,

Ensuring a positive financial result,

Improving the quality of operations,

Timely prevention of consequences in the event of a risk event.

Growth of liquidity of the market of measured bullions from precious metals,

Increase in profitability from operations with precious metals in the asset structure,

Development of depersonalized metal transactions on accounts, paper certificates with metal backing, metal shares in investment funds, etc.

- increasing the competitiveness of a commercial bank in the precious metals market;

- strengthening the image of the bank;

- increasing the interest of citizens with medium and high income levels in coins and ingots, not only as investment objects, but also as newfangled gifts.