Modern Paradigm of Commercial Bank Funding: Socio-Economic Aspects

The subject of this research is the study of resources attracted by banks as the main source of funding for developing fundraising. The author has developed a methodological approach to the study of the theoretical and practical foundations of attracted resources as part of the bank’s resource base. Special attention is paid to conventional sources of funding that influence the structure of bank deposits, debt instruments and interbank loans. Bank resource base formed by household deposits what certainly emphasizes the significance of the source in terms of socio-economic aspects. The amounts and terms of savings directly demonstrate the quality of life in the country and the level of confidence in the banking system. Mobilizing temporarily free funds is one of the main functions of commercial banks. A special feature of the bank is operating primarily on the basis of attracted resources. Free funds accumulated by banks form the basis for active transactions; therefore, their volume and nature depend on the structure of attracted resources. Hence, an effective policy of attracting resources is the most important condition for its successful functioning. The instability of the country’s economy, the volatility of the national currency, the tensions between countries, the weakening of the banking sector, coupled with high competition, undoubtedly have an impact on banking. Objective: to study the conceptual and practical aspects of a commercial bank’s funding policy. The methodological foundations for this study are general, statistical and special research methods. The use of these methods allowed us to understand the issues being analyzed in more depth, to identify the specific structure of the bank’s attracted resources as a basic source of funding. Main results: 1. The role of funding in the bank’s activities has been determined. 2. The structure of banking resources and its main components have been considered. 3. Different conceptual approaches to the classification of attracted resources have been studied. 4. The relationship between the individual elements of the attracted resource base of the bank has been studied. 5. The modern preconditions for changes in the field of bank funding at the present stage have been identified. Key findings of the study: 1. The theoretical issues of the formation of bank resources have been considered. The resource base is the subject of debate among researchers. Different points of view on the classification of attracted resources have been identified. 2. The analysis of the individual components of attracted funds was carried out; the specifics of organizing and using each type of sources of attracted resources were identified. 3. The specific features and issues of the policy for forming and managing attracted funds of a commercial bank in the economic conditions of Russia have been defined. Two problematic aspects were identified: firstly, the policy for managing attracted resources should be aimed at maintaining and improving the bank’s liquidity indicators; secondly, the efforts of the bank should also be aimed at a constant expansion of the attracted resource base in order to increase opportunities for active transactions associated with the bank’s growth. Keywords-funding, deposit transactions, attracted funds