Treasury department of the bank maintains money flows by conducting inter-bank transactions and making settlements on domestic and foreign markets of money and capital.

When carrying out treasury transactions the bank is governed by the following principles:

• control over observance of prudential regulations for the bank’s activity established by NBU, including reserve requirements;
• control over payment discipline;
• support of positive image of the bank on open currency markets;
• provision of optimal balance between risk, profit and liquidity;
• planning and prediction of money flows and financial results;
• constant development and improvement of procedures, professional development of personnel;
• maximum pooling of interests of the bank, its shareholders and customers.

TRANSACTIONS ON INTER-BANK MARKET

The bank carries out transactions connected with attraction and placement of loans and deposits on inter-bank market which gives an opportunity to provide observance of the required liquidity level and compulsory reserve requirements in the cheapest way, to enable the bank to diversify portfolio of asset transactions, to reduce financial risks, to form certain part of own attracted funds at the expense of inter-bank deposits. Also, the bank carries out conversion inter-bank transactions with foreign currency and SWOP transactions in which banks exchange with credits (deposits) in different currencies to approximately equivalent amount with the same repayment period.

The bank is an active operator of inter-bank resource market and acts both as creditor, and borrower. To minimize risks appearing when carrying out inter-bank transactions, the bank carries out general analysis of situation on inter-bank market, determines range of banks – counteragents in which investment of bank’s funds stipulates the lowest risk, and establishes operating margins for counteragent banks.

CORRESPONDENT RELATIONS

JSB BROKBUSINESSBANK cooperates both with domestic, and foreign banking institutions. On mutually beneficial terms the bank carries out transactions with foreign banks having spotless reputation and significant experience in international and inter-bank settlements, financing of international trade and documentary business.

The bank has correspondent relations such as NOSTRO with 27 banks in 9 countries - USA, Great Britain, Germany, Austria, Japan, Russia, Ukraine and others. The bank settles accounts in foreign currency by customer’s proxy for 44 correspondent accounts such as NOSTRO, including 27 accounts in hard currencies and 17 accounts in soft currencies. Correspondent accounts such as LORO are also opened in 5 hard currencies and in Russian roubles. Total number of LORO accounts makes up 20, including 13 accounts in hard currencies and 7 accounts in soft currencies.

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