Overnight represents. What is overnight. Information about the concept of overnight, overnight credits

The overnight rate is the interest rate for a loan for one day

Information about the concept of overnight, overnight loans, overnight deposits, overnight loans

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The overnight rate is the definition

Overnight bet is interest rate on ultra-short-term loans (for one day, or from evening to morning, or for the weekend), which are provided between commercial banks or provided to commercial banks by the central bank of the country, for the operational regulation of the financial balance, as a rule, without collateral.

Overnight bet - eng. Overnight Rate is the interest rate at which depository institutions raise immediately available funds from other depository institutions as overnight loans. In countries where the banking system presupposes the presence of a central bank, banks participating in the system can receive an overnight loan from the central bank, which will issue it at the expense of its reserves. Since the central bank has a significant influence on the overnight rate, it is a good indicator to predict changes in short-term interest rates.

The target interest rate for overnight loans is the level of interest that the Bank of Japan (BoJ) wants to see as the average in the market for short-term deposits. It is the main interest rate in Japan. The Bank of Japan influences the level of this rate through operations with government securities. The Monetary Policy Council consists of nine members, including the Governor of the Bank and two of his deputies. Any changes in monetary policy must be approved by the board. The Governor must submit a proposal to change the monetary policy, reflecting the consensus of the board members.

The target overnight interest rate is the level of interest that the Bank of Canada wants to see as the average in the market for short-term deposits. The Bank of Canada overnight interest rate target is the main interest rate in the country. To control the level of interest rates in the overnight market, the Bank of Canada sets a so-called operating range of 0.50% width, the middle of which is always the target overnight interest rate.

rates

Overnight is one of the types of short-term deposit that allows you to place free funds in rubles or foreign currency for a period of one business day or one night at rates set by the bank daily.

Overnight is the standard term for attracting or placing credit resources is one day.

Overnight credit (English overnight - for the night) is ultra-short-term credit used in the interbank credit market, for a period of 24 hours or for weekends - from Friday evening to Monday morning.

Overnight is, as a rule, an overnight loan, repurchase agreement, etc. In banking, the use of the term is widespread as a designation for overnight loans, usually interbank. In transactions with assets, overnight REPO agreements are also used, that is, REPO agreements concluded for 1 day.

Overnight loan (eng. Overnight - for the night) is an ultra-short-term loan used in the interbank loan market for a day or weekend - from Friday evening to Monday morning. It is mainly used in the system of interbank lending, for the prompt settlement of the balance of a particular bank.

Overnight loan is a short-term loan provided "from evening to morning" to regulate the balance of commercial. Bank and a reserve position in the central bank. Common in interbank lending between long-term financial partners within predetermined lending limits, as a rule, without the use of debt collateral.

Overnight loan is ultra-short-term loan, for a period of a day or a weekend - from Friday evening to Monday morning; is widespread in the interbank loan market.

Overnight loan is a loan from the Russian Central Bank provided to a bank at the end of the day of operation of a subdivision of the settlement network of the Russian central bank/authorized RNKO (at the end of the time of acceptance and processing of settlement documents presented to bank accounts of clients of the Central Bank of the Russian Federation/authorized RNKO) in the amount of the intraday loan not repaid by the bank.

Overnight bet is interest rate for carrying over an open position to the next day.

Overnight is rollover of an open position to the next business day…

OVERNIGHT (English overnight) is an overnight transaction, that is, with a validity period from the current trading or banking day to the next, and during weekends (weekends) - from Friday to Monday.

An overnight transaction is transaction for the period until the beginning of the next business day (at the end of the week - from Friday to Monday).

Target overnight interest rate in Canada

The overnight interest rate is the percentage that is optimal for a Canadian bank, and represents a certain average value that is most suitable for the short-term deposit market.

That is, the Canadian overnight rate is the main interest rate of Canada, based on this rate, all the interaction of the financial institutions of this country is built.

In order to somehow control the overnight interest rate, the Canadian central bank has set a special "operating range", the width of which is 0.5 percent. And in the middle of this range - there is always a target overnight interest rate.

Mechanism of influence: high rates reduce the growth rate of consumer lending and stimulate the growth of savings, which leads to a slowdown in economic growth. An increase in rates usually leads to an increase in capital inflows into the country and the growth of the national currency in the medium term, however, if the increase in rates is not based on high economic growth rates, this can lead to economic stagnation and a negative impact on foreign exchange markets in the long term.

In other words, if this interest rate increases, then this can only lead to one thing: banks will issue less consumer loans, and the population will have more savings. This, in turn, is leading to a slow but steady slowdown in the Canadian economy. When interest rates start to rise, capital flows into Canada from abroad. This, in turn, leads to the fact that the Canadian dollar begins to grow in the medium term. It should also be said here that with the interest rate, not everything is so simple. Because if the increase in the interest rate is not supported by the high rates of economic development (and there are such situations), then the Canadian economy can go into a period of stagnation, and this circumstance can negatively affect the Forex currency market, and this impact can be very, very long.

As you might guess, the Central Bank of Canada publishes this most important interest rate. The frequency of publication of this interest rate is 8 times during the year, the publication schedule is announced by the Bank of Canada in advance.

A less significant rate, but also widely used by the Bank of Canada, is the bank rate.

Overnight interest rate target in Japan

In Japan, the target interest rate is approved by the Governing Council of the Bank of Japan, which also makes decisions on changing it.

These decisions are made at meetings of the bank's management on monetary policy issues. The Council also provides the results of monthly meetings every month, the results become known immediately after the meeting, on the day of its holding. The Bank of Japan can influence the size of the rate by conducting transactions with government securities.

In addition to the target interest rate, Japan also uses a discount rate, but its significance is secondary to the target rate for overnight loans.

Instruments of the banking system of the European Union.

The main investment operations of credit institutions are mainly aimed at providing the banking system of the European Union with sufficient liquidity. For this purpose, the following tools are used:

Main operations for additional capital investment (MROs - main refinancing operations) for up to 14 days;

Long-term investment investments (LTROs - longer-term refinancing operations) from one to three months;

Collateralized loans (REPO class operations);

Loans "overnight" (one-day loans), etc.

Liquidity management plays an important role in the implementation of the single monetary policy of the Central Bank of Europe. It depends on an assessment of the liquidity needs of the banking system, which arise from reserve requirements, excess reserves and other autonomous factors. The latter refer to certain items on the central bank's balance sheet, such as cash (banknotes) in circulation, government funds, and net foreign assets.

At the same time, to regulate liquidity in the banking system, the ECB and national central banks attract funds from credit institutions to their deposit accounts if these funds are excessive, and credit institutions, in turn, attract temporarily free funds of firms and households to deposits.

Open market operations (as understood and practiced by the European Central Bank) are operations initiated by the central bank in financial markets.

Under this auction, bids above the marginal bids (truncation rates set by the Board of Governors) are satisfied in full and first at the bidders' bids, while bids at the marginal bids are satisfied last and proportionately.

The trends are such that the average number of bidders in short-term incremental capital investments (MROs) is declining. In 2002 alone, the number of counterparties decreased by 25%. Although at the same time the total amount of trades (purchase of short-term loans from commercial banks and other credit institutions) doubled.

It's not that fewer banks need to be refinanced directly from the Eurosystem to maintain their liquidity. In fact, competition for short-term loans (MROs) as well as in the overnight market (overnight loans) remains high level. In this case, the reduction in the number of participants in short-term refinancing (MROs) is explained by the ongoing consolidation of the banking industry in the Eurozone, the increase in the concentration of activity in managing portfolios of treasury and other securities within banking groups, and, finally, the increased efficiency of the money market, which cut off part of the counterparties who want to borrow liquidity directly from the Eurosystem. It should also be noted that the rates of the Eurosystem and the money market are almost identical, which indicates a high level of competition in the financial markets of the European Union.

The practice of long-term reinvestment of capital shows that the average annual number of banks participating in these auctions is also declining, mainly for the same reasons as the number of participants in short-term refinancing (MROs).

Operations class "overnight" the European Central Bank conducted twice and in large amounts, in order to provide the banking system of the Eurozone with additional liquidity. these transactions were carried out at the beginning of 2002 immediately after the introduction of the euro cash due to the fact that the demand for euro cash turned out to be much higher than the forecast value. Overnight rates were 3.25%. More than 120 Eurozone commercial banks were involved in these two transactions, and the total amount of "overnight" amounted to an impressive amount - more than 65 billion euros. As regards REPO operations with the use of transactions with the right to repurchase, during the entire existence of the European Central Bank they were carried out once - at the end of 2002 for a period of six days at a minimum rate of 2.75%. This operation (fine-tuning operation), the purpose of which was again to provide the banking system with liquidity, involved 50 commercial banks; the amount of transactions amounted to 10 billion euros at a marginal rate of 2.80%, and the weighted average rate was 2.82%.

Deposit overnight

“Overnight deposits” make it possible to place funds in rubles and foreign currency for a period of one business day at rates set by the bank daily. Unlike other types of deposits, overnight funds are actually placed for 1 night.

“The main difference of this type of deposit is that the deposit allows you to quickly manage the free liquidity of the enterprise with additional income. As a rule, funds accumulated on the current account during the day, or large amounts of funds that the company plans to spend in the near future, are placed in overnight.

The company, placing funds overnight, has the opportunity to use them in full the very next day.

“In this deposit, funds can be placed both in rubles and in foreign currencies - US dollars and euros.

This product allows clients - legal entities and individual entrepreneurs - to quickly manage the organization's finances, influence the liquidity of the enterprise, and receive additional income on a daily basis.

“Overnight funds are placed by clients, as a rule, at the end of the working day. On the morning of the next day, the overnight deposit funds are returned to the client's account along with the accrued interest. If funds are deposited on a Friday weekend or holidays, then interest is calculated for the actual number of days, which is very convenient for customers. The client is resting, and his funds are working, generating income.

“The deposit is placed for a period of 1 business day (when funds are placed on Friday, the return is made on Monday, interest is calculated for the actual number of days), the possible deposit amount is from 1 million rubles. up to 1 billion rubles The interest rate is set daily and changes depending on the market situation.

Replenishment, early termination and prolongation of the deposit are not provided.

“Overnight deals are concluded with clients in the amount of 10 million rubles, 200 thousand USD/EUR. The placement of funds is carried out on the basis of an agreement concluded with the bank on the general conditions for raising funds through the exchange of confirmations. The confirmation shall indicate the essential terms of the transaction agreed upon by the parties: amount, rate. Interest rates are set daily and depend on the market situation. As of November 08, 2013, the rates, depending on the amount of the deposit, range from 5.14 to 3.38 percent per annum. Transfer of funds to the deposit is possible from any current account of the client. If the account is opened at the branch of Sberbank where the deposit is placed, the bank, on behalf of the client (indicated in the confirmation), can independently transfer funds to the deposit account - no payment order from the client is required. The exchange of confirmations is carried out via remote banking systems, or on paper.

“When placing funds on a deposit on an overnight basis, a General Agreement is concluded with the client, under which the client has the opportunity to place daily the balance of free funds that he has at the end of the day. The minimum amount that can be placed overnight with VTB Bank is 1 million rubles or the equivalent in US dollars and Euros. Funds can be placed both from customer accounts opened with VTB Bank and from accounts with other credit institutions. Rates, as I said, are quoted daily in VTB Bank.

“The Bank of Moscow provides an opportunity to place funds overnight without opening a bank account, which is quite convenient for customers served by third-party banks that do not provide this banking product.

The funds placed on deposit with interest are returned to the client's current account from which they were transferred to the bank on the morning of the day following the day of placement.

“Sberbank, along with overnight transactions, offers customers to place funds for 1 day on a minimum balance on their current account. The rates for these transactions are exactly the same as for overnight deposits, but there is no need to open a deposit account and transfer funds from the current account to it. The difference between deposit transactions and VAT for 1 day is that interest on deposit transactions is accrued and paid to the client at the end of each transaction, and on VAT transactions, interest on all transactions concluded during the month is accrued and paid at the end of the month.

“By placing funds in a deposit on an overnight basis, the client does not have to worry that if an urgent payment is necessary, he will face the problem of terminating the agreement as with a regular term deposit, and will lose the interest due to him. The disadvantage is that the “overnight” rate is always lower than for regular deposits.”

“The main advantages of this type of deposit are:

Possibility of short-term placement of free funds at money market rates;

The ability to quickly manage free liquidity, which is in great demand among enterprises with a significant cash turnover on current accounts. At the same time, the company has the opportunity not to divert cash from circulation.

Among the advantages of providing this service by the Bank of Moscow are:

Possibility of placing funds on deposit under a simplified registration procedure: within the framework of the general agreement concluded between the client and the Bank of Moscow, the client can place funds on the basis of a Confirmation (Application) on any day, while opening a bank account is not required;

Confirmation of the placement of funds in the overnight deposit can be sent via the remote banking system.

“The main advantage of placing funds in overnight is the ability to manage liquidity and receive additional income. This product is characterized by simplicity and efficiency of processing transactions. The conditions are agreed on-line, there is no need to conclude bank deposit agreements, and bank customers do not need to transfer funds to the deposit. At the same time, funds are not excluded from the economic turnover of the organization, since the next morning they are returned to the client's current account. There are no shortcomings."

Overnight credits. Bank of Russia lending to commercial banks

Banks are refinanced by the Bank of Russia by providing intraday loans, overnight loans and pawnshop loans, including by expanding the list of territorial institutions of the Bank of Russia providing such types of loans. In addition, there is a practice of providing Lombard loans at a fixed interest rate.

intraday loans. The mechanism for providing them is very simple: during the working day of the payment system of the Bank of Russia in the absence (insufficiency) of funds on the correspondent account / sub-account credit institution in the Bank of Russia (hereinafter referred to as the account, account of a credit institution), payment of settlement documents submitted to the account of a credit institution is allowed within the limit of intraday credit and overnight credit established for the account, thereby providing a credit institution with an intraday credit. The intraday and overnight credit limit is calculated and promptly adjusted during the day depending on the collateral held by the credit institution - securities accounted for in a separate section of the credit institution's depo account with the Depository. A credit institution may change the amount of the limit set on the account by performing actions with the collateral at any time, for example, instructing the Depository to depo and adding or submitting an application to the Bank of Russia and reducing the number of securities recorded on a separate section of its depo account. What assets can serve as collateral for Bank of Russia loans will be discussed later. During the working day of the payment system of the Bank of Russia, the intraday loan is repaid from current receipts to the account of the credit institution.

Intraday loans of the Bank of Russia for a credit institution are absolutely free, since the fee for the right to use intraday loans of the Bank of Russia is set at zero.

If by the end of the working day of the payment system of the Bank of Russia (in the Moscow region it is about 21:00) the intraday loan is not repaid by the credit institution, the Bank of Russia automatically (within the powers that it received from the credit institution in advance) provides the credit institution with an overnight loan for the amount of the outstanding at the end of the day intraday credit. An overnight loan is provided at a time when no financial market is already working and it is no longer possible to get a loan on the interbank market. The term of the overnight loan is one business day.

There is no alternative to overnight loans from the Bank of Russia on the market, so the rate on them is quite high and is currently equal to the refinancing rate, which today is 16% per annum. But, as statistics show, over the past five years, credit institutions generally prefer to receive intraday loans: at the beginning of the day, starting settlements, they allow the execution of their own settlement documents or documents of their clients presented to the account of a credit institution, at the expense of an intraday loan, waiting for day of receipt to the account. The overnight credit is used as insurance - if the planned receipts do not come to the account.

In order to use the mechanisms for obtaining intraday loans and overnight loans from the Bank of Russia, a credit institution must conclude with the Bank of Russia an open-ended general loan agreement in a standard form, according to which the Bank of Russia assumes the obligation to monitor the credit institution’s need for intraday loans on-line daily and overnight loans, that the credit institution has sufficient collateral for loans and, if necessary, promptly provide them. Thus, a credit institution can use the assistance of the Bank of Russia at any time: promptly transfer securities to a separate section of its custody account and promptly receive an intraday or overnight loan. Statistics show that some credit institutions, having concluded a general loan agreement with the Bank of Russia back in 1998, applied for refinancing loans only a few times. However, such a credit institution always has insurance - if necessary, it can block papers within an hour and receive any of the loans offered by it on its account with the Bank of Russia.

Today, the Bank of Russia has established operational communication in all regions of the country, firstly, with payment system Bank of Russia, in which payments are made to a credit institution, and, secondly, with the all-Russian depository system - NP National Depository Center. This allows the Bank of Russia to receive on-line and promptly use for the purposes of refinancing credit institutions information from the National Depository Center on how many securities a credit institution has blocked on a separate section of its depo account with the Depository.

Credit institutions have the opportunity to receive intraday and overnight loans to an account opened with the Bank of Russia in any region of Russia: the account of the head office of the credit institution - the correspondent account of the credit institution, as well as any sub-account of the credit institution. commercial bank when the balance of money and the amount of current receipts do not allow all settlements to be completed by the end of the trading day.

Unlike pawnshop loans, an overnight loan is issued without prior submission of an application. Provided by the Russian Central Bank for the bank to complete settlements at the end of the trading day by crediting the loan amount to the correspondent account of the bank and debiting funds from its correspondent account on unexecuted payment documents located in the settlement division of the Central Bank of the Russian Federation (Bank of Russia). overnight loan is provided subject to general principles lending: urgency, payment, repayment and security.

Grounds for granting an overnight loan by the Central Bank of the Russian Federation to a bank.

The basis for the provision of an overnight loan by the Central Bank of the Russian Federation to a bank is:

1. Presence at the end of the trading day of unexecuted bank orders and other payment documents and / or the presence of an outstanding intraday loan provided to the bank in accordance with the general loan agreement.

2. At the time of granting the loan, the bank has government securities accounted for in the "blocked by the Russian Central Bank" section of its depo account opened with a depository, the value of which is sufficient to receive a certain overnight loan amount, taking into account accrued interest on it.

At the same time, it is not required to submit a bank application to the Russian Central Bank for an overnight loan, loans are provided if the bank meets the established conditions.

For the issuance of an overnight loan, the day the loan amount is credited to the bank's correspondent account in the settlement unit of the Central Bank of the Russian Federation.

overnight loans are provided by the Russian central bank for a period calculated from the beginning of the credit operation to its completion.

The fact that the Central Bank of the Russian Federation provided an overnight loan to the bank is confirmed by the following documents:

Correspondent account statement of the bank, officially confirming the transfer of funds to the correspondent account. bank account;

Bank loan statement;

Notification of the provision of a loan by the Central Bank of the Russian Federation (Bank of Russia), secured by the debt of government securities, which are an integral part of the general loan agreement. These documents are transferred to the borrowing bank in the prescribed manner.

The amount of interest rates on overnight debts is set by the Board of Directors of the Central Bank of the Russian Federation and officially published in the Bulletin of the Central Bank of the Russian Federation.

In 1998 the mobility of market rates has sharply increased and, accordingly, the responsiveness of individual instruments of independent investment. Thus, the Russian Central Bank promptly made decisions that changed not only the level of rates, but also their ratios, changed the mode of setting individual rates: it switched to daily setting rates on overnight loans. The need for this loan arises from a commercial bank when the balance of money and the amount of current receipts do not allow all settlements to be completed by the end of the trading day.

Unlike pawnshop loans, an overnight loan is issued without prior submission of an application.

Overnight loans are provided by the Central Bank of Russia to banks located in the regions, the settlement system of which makes settlements taking into account the receipts of the current business day, by debiting funds from the correspondent account of the bank according to payment documents, in the absence or insufficiency of funds on the bank account of the settlement division of the Russian Central Bank.

Overnight loans provided by the Central Bank Russian Federation for the bank to complete settlements at the end of the business day by crediting the loan amount to the correspondent account of the bank and debiting funds from its correspondent account according to unused payment documents located in the settlement division of the Russian central bank.

Requirements for a bank to receive an overnight loan

To receive an overnight loan, the bank must meet the following requirements:

Have a license from the NBKR to conduct banking operations;

Not be in interim bank management or conservation mode;

Have a correspondent account in the national currency with the NBKR;

Have the Master Agreement on overnight loan signed with the NBKR;

Have no outstanding monetary obligations to the NBKR on previously received overnight loans and interest on them, the repayment of which is carried out on the day of filing an application for an overnight loan;

Have no overdue monetary obligations to the NBKR on other loans and interest on them;

Have sufficient collateral that meets the requirements established by the NBKR;

Be connected to the interbank communication network;

Have a workable AIC EDS available;

Submit to the NBKR a list of responsible persons of the bank authorized to sign on behalf of the bank electronic documents in AS ETS for obtaining an overnight loan and reserving government securities.

Calculation of the amount of interest on an overnight loan

The size of the overnight loan rate is brought to the attention of the bank through the electronic trading systems of the NBKR and published on the NBKR Web page.

Interest on the overnight loan amount is calculated according to the simple interest formula for the period of actual use of the overnight loan, based on the number of 360 days in a year, according to the following formula:

P = (C x I x T)/360/100 where:

P - accrued interest;

C – overnight loan amount (som);

I – overnight rate (in % per annum);

T is the term of the loan (in days).

Securing an overnight loan

In addition to the requirements for the type of collateral established by the Board of the NBKR in accordance with clause 2.4 of this Regulation, government securities provided as collateral for an overnight loan must meet at the time of transfer from the investment subaccount of the depo account to the reserve (collateral) subaccount of the depo account in the Depository to the following requirements:

belong to the bank on the right of ownership;

be stored and accounted for on the investment sub-account of the bank's "depo" account with the Depository;

not be burdened with other obligations.

The non-compliance of collateral with the requirements set by the NBKR for collateral is the basis for refusal to provide the bank with the requested overnight loan amount.

The subject of debt collateral in the form of a mortgage is considered transferred by the bank into the possession of the NBKR from the moment the NBKR provides the bank with an “overnight” loan.

The repayment of the principal amount of the overnight loan and accrued interest on it is made on the next business day after the day the loan was issued, by the end of the business day, as follows:

If an overnight loan is received through AS ETS, repayment of the principal amount of the overnight loan and accrued interest on it is carried out by the bank through AS ETS;

If an overnight loan is received on the basis of an Application for an overnight loan provided by the bank on paper, the repayment of the principal amount of the loan and accrued interest on it is made by the bank on the basis of the EPD.

If it is impossible to repay through AS ETS for technical reasons, the bank must repay the overnight loan and accrued interest on it on the basis of the EPD.

An overnight loan issued as a result of prolonging an outstanding intraday loan shall be repaid in accordance with these Regulations and the Overnight Loan Master Agreement.

The overnight loan and accrued interest on it must be repaid in full, partial repayment is not allowed.

In case of timely and complete fulfillment by the bank of its obligations under the overnight loan and accrued interest on it, the NBKR transfers government securities provided as security for the debt in the form of a mortgage from the reserve (collateral) subaccount of the depo account to the investment subaccount of the depo account of the bank in the Depository before the end of the working day of repayment of the overnight loan.

an overnight loan is considered overdue if the bank fails to fulfill its obligations to repay the principal amount of the overnight loan and / or interest on it within the period specified in clause 6.1 of these Regulations.

If the overnight loan is overdue, the payment is not deferred and a one-time penalty is charged in the amount of 1% of the amount of the overnight loan issued to the bank.

The NBKR, if the overnight loan provided to the bank in accordance with this Regulation is overdue, may:

write off without acceptance from the correspondent account of the bank funds to repay the loan in an amount sufficient to repay the principal amount of the overnight loan, interest accrued on it and a fine;

repay the overnight loan, interest accrued on it and a fine by foreclosing the subject of a mortgage in accordance with the Legislation of the Kyrgyz Republic.

The procedure for repayment of overdue obligations of the bank on the principal amount of the loan, interest accrued on it and a fine are determined by the General Agreement on the overnight loan.

Reasons for issuing overnight loans.

Short-term (corrective) loans are provided, as a rule, to adjust the financial position of the bank in the event that financial problems arose as a result of the following circumstances:

A sharp, unpredictable decrease in deposits;

Temporary difficulties in obtaining loans from ordinary sources;

Increased demand for bank loans during periods of credit "hunger";

Special circumstances affecting the financial condition of the bank.

Corrective loans may not be used to carry out speculative transactions or finance dubious investments: for example, for the purchase of securities, repayment of debt to private borrowers, and other similar loans are provided under the guarantee of securities, mainly government ones. They are sometimes referred to as "term loans" (for example, in Italy, where they can be obtained for a period of 1 to 22 days to meet unforeseen financial requirements).

A special place in the practice of central banks is occupied by ultra-short-term one-day loans issued for the daily adjustment of bank balance sheets. This type loans is expensive because overnight loans are provided at higher interest rates.

Overnight loans have been provided by the Russian central bank since June 19, 1998. These are secured loans that replace the earlier overnight settlement debts. They can be received by banks located in regions with a modern settlement system, which allows making settlements taking into account the receipts of the current business day. A loan is provided by debiting funds from the correspondent account of the bank according to payment documents in the absence or insufficiency of funds on the bank account in the settlement division of the Central Bank of Russia.

The purpose of overnight loans is to ensure the smooth functioning of the settlement system. In order for the bank to complete settlements at the end of the operating day, the loan amount is credited to the correspondent account of the bank and the funds are debited on outstanding payment documents. Such loans are provided to banks with which the General Loan Agreement has been signed, which provides for the right to receive an overnight loan.

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in the unpredictable and mysterious life, sometimes there are situations when money is needed urgently and for a short time, for example, for one or two days. It is for such unforeseen situations that the credit program "Overnight" was created.

Definition of overnight

According to the official definition, the overnight credit system is a loan or loan issued for a day or a weekend.

What is overnight in a bank?

Overnight in a bank is a special credit system that mainly applies to fast, instant repayment of any debts, settlement of the balance of any other banking institution.

This type of lending is quite relevant for interbank loans.

Credit funds for the Overnight system are issued by the Central Bank, and if they go under the weekend system, they are distributed from Friday evening to Monday morning. Thus, we can say that Overnight is an ultra-short-term loan.

Operations Overnight

Among the most common operations that are included in Overnight are:

Standard Overnight, which is mainly issued to one company or one to an individual, is a daily loan up to 100,000 euros;
Corporate Overnight, which can be issued for a group of companies, with a minimum amount per day of up to $ 250,000.

All interest rates on credit amounts are calculated for each day of use and are regulated by interbank market rates.

Features Overnight

To receive credit funds under the Overnight program in any financial institution, at the end of the trading day, it is necessary to provide, as executive payment documents, a certificate and outstanding internal loans.

In addition, the banking company itself must have guarantee papers or bonds, the price of which at the time of issuance by the courts must be equal to the amount of the loan and the total amount of interest rates.

To obtain an overnight loan, it will be necessary to prepare and form the following documents:

reporting data on the account, which can confirm the transfer of money;
a general summary of the borrower's loan account;
notice of the company issuing the loan, which in turn is guaranteed by securities or bonds.

The presence of securities and their redemption under state conditions is necessary in without fail, while increasing the debt crisis. All kinds of force majeure situations can arise when conducting a soft monetary policy, which in turn entails an increase in the level of liquidity.

It is loans under the Overnight system that mainly stimulate growth and increase the level of liquidity, and vice versa - sufficiently high rates reduce the relevance of lending and slow down the development of the economy's GDP. But, nevertheless, high rates are quite relevant for investors and depositors.

Many banking organizations offer such a popular service today as an overnight loan, which is quite affordable, both for an individual and for a legal entity.

The Overnight Lending System makes it possible to very advantageously apply the loan amount during non-working hours and at the same time. Virtually eliminate the risk of non-return. This is provided through a short-term deposit. At the same time, clients themselves can place funds without opening a current account.

Advantages of Overnight

Overnight lending has many advantages for both individuals and legal entities, such as:

use of open assets of the company for one day;
use of money, without the need to open a current account;
simple and convenient measures for opening a deposit, which are concluded between the client and the financial institution, by means of a formal agreement.

Overnight credits

The need to obtain a loan under the Overtime program may arise in any unforeseen situations when a certain amount of money is not enough to complete the settlement at the end of the trading day.

Thus, we can conclude that Overtime funds help to perform financial maneuvers smoothly and inextricably.

At the same time, it should be borne in mind that the Overtime court is a limited unit, for example, the maximum amount of cash payments is the debt on the bank's internal loan.

A financial institution can obtain such a loan even without submitting a preliminary application. A direct loan can be provided by transferring the declared amount of money to the correspondent account of the organization and withdrawing funds, if necessary.

Overnight loan rate

All bets on loan program Overtime is set by the Center Bank and published in the Bulletin.

The interest rate on the Overnight loan program is mandatory, in case of registration for two days, recalculated every day, depending on the fluctuations in the interbank market.

At the same time, it is worth noting a very important fact - "%" for Overnight is always lower than for other standard programs for legal entities. and physical persons.

Overnight deposits

Funds, under the terms of Overtime lending, are deposited to the correspondent account at the end of the working day, and the next morning they should, together with the calculated interest rates, return to the current account of the financial institution.

It is according to such a simple procedure that credit funds are issued according to the Overtime system. In addition, Overtime may be open during weekends or holidays.

The cash given to the company as a loan can help increase the level of profits, in a short period of time, while they are in demand.

Deposit Overnight

The overnight deposit is issued according to almost the same scheme and can be opened in any required currency.

It must be taken into account that the minimum deposit amount for such a system is 1 million rubles or more.

Many companies and organizations use Overtime loans and deposits, with the possibility of transferring funds, not only from the company's current account, which was previously opened with a financial institution, but also from an account in any other bank.

Today, many banks offer their customers to open deposits on deposits without personal participation, remotely.

The assets of the enterprise, on the Overtime deposit, are placed in any Bank of the city, or a financial institution.

Overnight postings

When repaying the Overtime loan and the resulting interest, some postings are used:

31201 "Loans and deposits issued to financial organizations from the Central Bank";
30102 "Accounts of banking companies with the Bank of Russia" - for the amount of the main active debt;
70606 Expenses" under the symbol 21101 "Interest rates on credit funds issued by the Central Bank";
30102 "Accounts of financial institutions with the Central Bank" - for the amount of interest generated for the use of funds issued;
91411 "Pledge papers or bonds that were transferred as a guarantee."

From time to time, Tinkoff Investments clients receive a message stating that they have accrued overnight interest. Since the tariffs do not say anything about this, a logical question arises: what is the interest for overnight in Tinkoff, how and for what they are charged, and are there any risks for customers?

What is overnight interest in Tinkoff

When you buy securities on the stock exchange, you become the owner of them. The broker has no right to dispose of them. The information that you are the owner of Apple or Gazprom shares is stored in the depositary, the broker simply makes the appropriate entries (or deletes them when you sell securities).

He has the right to manage only your money, but in practice he does not touch them, since their volume is usually small. But he is more interested in assets. But without a special order from the client, he cannot use them - for violating the rule, he faces criminal liability.

Therefore, overnight was invented. It literally means "through the night". Having received permission from the client for a loan, the broker takes his shares from the depository in the evening and undertakes to return them tomorrow. Thus, he can dispose of them.

Why at night is easy to explain: the stock market works around the clock, and when it is night in Russia, it is the middle of the day in the USA. Consequently, having borrowed securities, the broker can speculate with them in other trading sections.

For allowing the use of your shares at night, the broker pays you, as their owner, a fee. This is the very interest for overnight in Tinkoff. In other words, this is an additional bonus for using your assets.

Since clients purchase shares and bonds in Tinkoff through BCS, in fact, interest for overnight is paid by BCS. However, for convenience, they are displayed in the bank's personal account.

Terms of accrual

So, now it’s clear what overnight interest is in Tinkoff, more precisely in BCS. The conditions for their accrual are determined in Appendix 13 to the service agreement and are listed on the website of the brokerage company.

Basic provisions:

the holder of securities provides cash or financial assets in the form of a short-term loan to BCS for a fee;
the loan is provided for one day, so the client can dispose of them at his own discretion during the entire trading session without restrictions;
BCS acts as a guarantor for the borrower, who becomes the actual owner of the assets, and undertakes on its own behalf to compensate for all costs, regardless of financial result transactions;
for the use of assets and money, the broker pays a fee - interest for overnight in Tinkoff (the specific fee depends on the amount of borrowing and is determined by tariffs);
the shareholder will receive dividends if the borrower purchases the securities on the closing day of the register (ie the dividends will be transferred to the owner of the securities, not to the broker).

In a word, overnight helps the client earn additional funds at a time when he does not use his assets, that is, at night after the close of the Russian trading session.

Possible risks

It can be assumed that the transfer of an asset in a trust loan to another legal entity carries risks. In fact, interest will be transferred even if the broker suffers a financial loss. In any case, he will fulfill his obligations and return both the papers and the interest for their use. Therefore, a minus on the client's account will not appear in any case.

The only significant risk is the bankruptcy of the broker. If BCS closes, then clients will lose their overnight securities. The probability of this is determined financial condition company, which is currently quite stable.

How to disable overnight in Tinkoff

Despite the fact that in general overnight allows you to get additional profit, some customers prefer to turn it off for various reasons. For example, they were not really explained what the interest for overnight in Tinkoff is, and they are afraid of possible risks.

The overnight service is activated by default when signing an agreement for brokerage services in BCS.

To opt out, you must:

contact the nearest BCS office with an agreement;
file an application to turn off overnight;
expect service shutdown within 3 days.

There is no point in contacting Tinkoff directly - it is BCS that is servicing investors, and it also receives financial benefits from overnight.

Overnight credits called loans that the Central Bank provides to other banks for a period not exceeding a day. This type of lending can also be provided on weekends (Friday evening - Monday morning). On the territory of Russia, it is engaged in setting interest rates within the framework of this type of lending. The rates can be found on the pages of the Bulletin of the Bank of Russia. The need for such loans in most cases arises when there is not enough cash to complete the settlements before the end of the day. It turns out that such a system of loans maintains continuity and continuity in the functioning of the settlement system.

Under the overnight credit limit, it is customary to understand the amount of the maximum amount of debts (internal credit). It is possible to obtain such a loan by a banking institution without submitting a preliminary application. The required amount will be transferred to the account of the correspondent type of the bank with further withdrawal of funds from this account (unexecuted payment documents received by the settlement division of the Central Bank).

What documents must a private bank provide to obtain a loan?

Payment documents (unexecuted) must have an internal (outstanding) document available. Without the provision of government securities, the cost of which should cover the loan amount and interest payments, it will not be possible to get an overnight loan.

When the Bank of Russia decides to provide an overnight loan, they conclude a package of documents that contains:

Reporting on a correspondent account, officially confirming the fact of crediting funds.
Report on the loan account of borrowers.
Notice that the Bank of Russia has provided a loan, it has been secured with the proper amount of securities (according to the general loan agreement).

Redeemed state in most cases due to the fact that the growing debt crisis. The conduct of a loose monetary policy leads to an increase in , which is also affected by the loans in question. The presence of high rates leads to a general decrease in the popularity of loans, the economy slows down its growth, and GDP is declining.

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It is important for a modern person to know about different areas of life. This applies especially to banking operations and legal transactions. If you know at least the basics of these areas, then you can safely conclude contracts. Often you have to deal with such a thing as overnight. What it is? This is a special operation, which will be discussed in the article.

Operations

Overnight operations deserve special attention. What it is in simple words? This is a transaction that is concluded for 1 business day. If it is issued on Friday, then it is transferred to Monday. What is the essence of overnight? What is it in modern world? This is a one-time transaction concluded for a short period.

If a bank client wants to get a loan, funds are credited to his account. Within a few hours a person can use the money. Refunds must be made on the next business day. Clients pay interest for this service. They are listed together with the principal amount.

Common operations include:

Standard overnight. It is provided to a company or an individual, the amount is up to 100,000 euros.
Corporate. Issued for a group of companies with an amount up to $ 250,000 per day.

Rates are charged for each day of use. They are regulated by interbank market rates.

Peculiarities

In the banking sector, you can often find such a thing as "overnight". What is it according to experts? This is the same loan, but with a short repayment period. The service is fast financial assistance with low interest. If a bank client needs cash for a short time, he can use this service.

When concluding a transaction, the employee determines the return date, which cannot be postponed or extended. In case of non-return, fines will be charged, which increase every day. To avoid this, you should pay the debt on time. In addition, many banks issue an overnight deposit. The debt is returned within 24 hours, but non-working days are not taken into account.

Advantages and disadvantages

In banks, overnight is considered in demand. And in terms of both credit and contribution. Registration requirements may vary, but in general, this procedure is the same. Overnight has the following advantages:

Use of open assets of the firm for one day.
You do not need to open a checking account.
Convenience of opening a deposit.

If a deposit is opened, then the following benefits await the client:

Getting income.
Money Back Guarantee.
Capitalization.
Interest on balance.
Opening a deposit in any currency.
Placement of different amounts.

If you open deposits overnight, then the following disadvantages are possible:

Low percentage.
Difficulties in drafting an agreement.
Amount restrictions.
Funds are placed within 1 night.
Minimum limit.

Although overnight has some drawbacks, this type of loans and deposits is still in demand. Many large banks work with such a service that allows them to make a profit.

Loans

What does overnight credit mean? The transaction is concluded for 1 business day. Such loans are provided by the central bank of the country. Service rates are beneficial because they are used in the efficient functioning of the settlement system. Many people are helped by an overnight loan. The definition of this terminal makes it clear that this is an urgent service.

Loans have a limit, which is approved based on the maximum debt in domestic loans. Funds are transferred to the client's account, after which they can be withdrawn. To receive money at the end of the working day, the client provides Required documents and reports. An overnight loan means urgent financial assistance. Such services attract customers due to much lower rates compared to conventional loans. An overnight loan from the Bank of Russia is considered a profitable service. With it, you can get funds for a small overpayment.

Rates

There are rates not only for ordinary loans, but also for overnight loans. What it is? This is an overpayment for the use of money. The rate is a fee for the service. It is determined by the Central Bank of the country or a commercial financial and credit organization. The rate is necessary not only as a calculation of the amount of payment for services, but also to regulate the operational balance.

Overnight lending is used in advanced economies. This service is needed to regulate liquidity commercial organizations and banks maintain financial balance. Overnight loans have a positive effect on the development of the country's economy.

IN Lately due to license revocations, not all banks can perform such procedures. The rate is set by the Central Bank. Clients pay interest for one day of using the money. The accrual is carried out on the balance of funds at the beginning of the day. With the execution of such a transaction, the parties enter into an agreement.

Deal for the night

Sometimes an overnight trade is referred to as an overnight trade because it is completed in a day. Also in the field of financial services there is such a thing as a "target percentage amount". This value is determined in the interbank market by the most important participants, for example, Japan, Canada.

An overnight deal involves obtaining a one-day loan, which is called a REPO agreement. These operations are concluded on the interbank market and involve the purchase (sale) of securities. But then the client acquires the obligation to reverse the transaction after a specific period of time at a fixed price.

Contributions

To get a cash loan, you usually need to collect a lot of documents. But for overnight you need to have a checking account. It is necessary to conclude a deal for 1 day. It is important to repay the funds within the specified period by paying interest, since banks charge large fines in case of delays.

There is also an overnight deposit service. It involves the conclusion of a termless deposit transaction and placement on current account a certain amount of money. Such services are quite popular among legal entities. Deposits are opened in euros and dollars. Interest is paid annually. The minimum is 60 thousand euros or 100 thousand US dollars. Often this service allows you to conduct important transactions, so many large banks perform it.

Who draws up such procedures?

There is a list of organizations that offer to place funds for profit. You just need to sign a special contract first. Favorable conditions are offered by the following financial institutions:

VTB Bank.
Sberbank.
"Alfa Bank".
"Bank of Moscow".
Promsvyazbank.

Other banks may also offer such services. Their terms and conditions may vary slightly. The procedure for registration in each bank is standard. To place funds on the account in order to make a profit, you need to go through the following steps:

Learn about the terms of the transaction from an employee of a financial institution by phone call.
An agreement is drawn up in which the conditions and procedure for placement are prescribed.
The agreement is concluded until 16.30.
If a positive decision is received, funds are transferred.

The loan must be repaid the next day. If the client places a deposit, then interest is charged to him. Over time, a large amount is formed in the account. These services are used by both individuals and legal entities. In each bank, the conditions for registration may differ, so they should be recognized in advance.