Improving methods for accounting and evaluating financial results of commercial banks' conversion operations[Совершенствование Методов Учета И Оценки Финансовых Результатов Конверсионных Операций Коммерческих Банков]

Conversion operations (cash and non-cash) are a source of commission income for a commercial bank. Depending on the size and structure, the bank chooses different approaches to the organizational form, implementation mechanisms, and ways of developing this type of business. In addition, banks use different approaches to calculating the financial result of conversion operations. There is no single methodology, although there is a traditional approach, regulated by the Central Bank's regulatory doc-uments, and a modern approach, used mainly in management reporting. In addition, some credit insti-tutions use the result of currency revaluation in their calculations of the financial result from conversion operations, while some do not use it. However, in some banks, revaluation accounts for up to 90 % of operating income and, accordingly, has a significant impact on the Bank's total profit or loss from its operations as a whole. In this regard, the question arises, what criteria will help to evaluate the work of the Bank's divisions responsible for forming the revaluation and its contribution to the final financial result? How can the head of a credit institution evaluate the effectiveness of the relevant departments, if the value of the matter in dispute is so high?First, having studied the regulatory framework governing the procedure for determining the account-ing financial result from conversion operations, we identified restrictions that do not allow us to get more accurate and up-to-date information about this indicator. Secondly, all aspects of the formation of the Bank's open currency position, its impact on currency re-valuation and ultimately on operating income and the final financial result of the credit institution's activities were studied. Third, a list of criteria was formulated that can be used to evaluate the effectiveness of credit institutions in the field of conversion operations. We also analyzed Reports on the financial performance of various branches by size and number, as well as their regional representation of credit organizations. Based on the analysis, the main errors of the relevant departments in controlling and regulating the Bank's open currency position were identified in order to prevent the formation of negative results from currency revaluation, hence, negative operating income and negative final financial result.