Home  Journals  Finance and Credit  38(758) - 2017 October

The connection of monetary capital with the profitability of banking operations in a commercial bank

Vol. 23, Iss. 38, OCTOBER 2017

Article PDF Version

Received: 23 June 2017

Received in revised form: 25 July 2017

Received in final form: 12 September 2017

Accepted: 26 September 2017

Available online: 16 October 2017

Subject Heading: Banking

JEL Classification: G21

Pages: 2274–2286

https://doi.org/10.24891/fc.23.38.2274

Importance The article identifies the main characteristics of banking products, services, operations and deals, shows their relationship. In a commercial bank, capital exists in the form of money. The bank receives profit through attracting and placement of monetary funds. These functions are carried out through banking operations.
Objectives The purpose of the paper is to identify the basic primary elements of banking, to show their interrelation and to determine the dependence of profit and profitability of money capital.
Methods In this research, the methods of logical analysis, comparison and generalization are used.
Results The article reveals the lack of definitions of banking product and service. There is a difficulty with the definition of bank product, bank services, banking operation and deal. I suggest allocating these terms as separate units. I also define the relationship of profitability of a commercial bank with profitability of banking operations.
Conclusions On studying the question, I come to the conclusion about the necessity to consider these terms as independent primary elements of banking activities.

Keywords: banking operation, monetary capital, profitability

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