Specifically, depositing interbank funds usually has the following characteristics:
1. Long term
The deposit period of interbank funds is generally longer, mostly several months or even more than one year. This is because when banks deposit interbank funds, they usually cooperate with reputable interbank institutions to ensure the safety and liquidity of funds. At the same time, banks also need to pay higher deposit reserve for holding interbank deposits, and a longer term can effectively reduce the cost of capital.
2. Higher interest rates
Compared with other deposit methods, the interest rate of interbank funds is usually higher. Due to the competitive relationship between peers, banks will raise the deposit interest rate to attract funds entrusted by other banking institutions in order to seek higher capital utilization efficiency.
3. Low risk
Generally speaking, it is a low-risk project to deposit interbank funds for risk assessment. This is because when banks deposit interbank funds, they usually choose reputable interbank institutions. Such assets have high liquidity and transaction activity, so the risk is low.
It should be noted that banks must abide by relevant laws, regulations and regulatory provisions when depositing interbank funds, especially when conducting interbank business, large deposits need to be declared and submitted, and must not violate the relevant provisions of the state on foreign exchange management and anti-money laundering.
In addition, in the low interest rate environment, banks need to carefully evaluate the balance between income and risk of depositing interbank funds, ensure the safety of funds, and safeguard the bank's own reputation and stable operation. Interbank fund deposit usually refers to the collection of funds between banks, which belongs to the fund management business of banks.
For interbank deposits, subjects can be divided from the following two aspects:
1. Banking business category
According to the classification of banking business, interbank deposits belong to the subject of "debt securities investment" in "operating assets". When depositing interbank funds, banks usually choose to cooperate with reputable interbank institutions to ensure the safety and liquidity of funds.
Therefore, in the risk assessment of banks, depositing interbank funds is a low-risk project, which is one of the important reasons why banks choose this business.
2. accounting classification
From the accounting classification, interbank deposits mainly belong to "long-term debt investment" among "non-current assets". Because interbank deposits are usually long-term capital exchanges between banks and cannot be redeemed in advance, they are regarded as long-term creditor's rights investments of banks.
In addition, in bank accounting, interbank deposits can be divided into several sub-items such as 1 year or more, 1-3 years or more.
It should be noted that banks need to abide by relevant laws, regulations and regulatory provisions when depositing interbank funds, especially when conducting interbank business, large deposits need to be declared and submitted, and cannot violate the relevant provisions of the state on foreign exchange management and anti-money laundering.
Therefore, when depositing interbank funds, banks need to conduct strict risk assessment and fund management, abide by relevant regulations, ensure the safety and liquidity of funds, and set up accounting subjects in financial statements. This will help to maintain the bank's own credibility and steady operation.