Financial Administration Of The Reserve Bank

Financial Administration of the Reserve Bank

Introduction

Finance is defined as the branch of the economy that is responsible for the ideal management of money, that is, from how to obtain it to the correct distribution of this. Once defined what finance is, it is relevant to highlight that these are a vital point of companies, since they all want to look considerably and seek strategies and tactics to achieve it. Hence they have a manager or financial director who plays the promoter role of strategies in order to achieve the objective of increasing the riches of the owners of the companies.

In the research shown below we focus on a financial entity belonging to multiple banking, the same operates under the name of the Reserve Bank of the Dominican Republic and we will show the importance of the financial administration for the operation of this bank and themain activities carried out by the institution in the financial market.

Justification

The present investigation was carried out in order to understand how the financial administration works in an entity dedicated to financial activities and how the role of the manager is essential for the fulfillment of organizational objectives.

In addition, it will allow us to know the financial operations used by the entity selected for research, as well as strengthen the knowledge acquired in the subject.

Chapter I: Knowing the Reserve Bank of the Dominican Republic

The official name of the company that will be analyzed is reservation bank of the Dominican Republic.

Vision

Be the banking reference, recognized by our excellence and human quality, committed to the country’s social and economic well -being.

Mission

Promote the prosperity and well -being of all Dominicans.

Values

• Commitment
• Leadership
• Excellence
• Integrity
• Innovation

Within the financial classification, this bank enters the category of financial intermediary, authorized to operate in the multiple banks and began operations on October 25, 1941.

This institution is dedicated to providing banking services, both publicly and private, these services cover from personal and business loans to savings accounts, to certificates and investments in the stock exchange and is constituted as the largest financial intermediation companyof the country in terms of loan portfolio.

Organization chart

Functions of the Banreservas Financial Manager

It is responsible for planning, executing and controlling the administrative and accounting activities of the organization, as well as administering the processes efficiently to guarantee the development of operations.

Within its functions are:

• Participate in the formulation of policies, plans and general programs of the organization.
• Formulate standards and procedures that facilitate the address and execution of the assigned functions.
• Monitor budget execution and make the necessary adjustments.
• Guarantee record activities of the entity’s accounting operations.
• Analyze, supervise and control the financial situation of the entity to ensure that there is adequate balance between short, medium and long term operations.
• Carry out the efforts to provide the necessary financial resources for the execution of projects.
• Control the budget allocated to project development and supervise the registration of accounting operations.
• Check and check the investment performance calculations.
• Ensure assets and entity’s assets that are duly secured.
• Authorize corrections to accounting records.
• Coordinate the elaboration of the results report.
• Provide information to State Supervisors and Internal and External Auditors.
• Prepare sworn declaration to be presented to the DGII.

Chapter II: Characteristic of your income

The most frequent income received. They also receive income from credit card commissions, for services, for changes and other income.

Chapter III: Fundamental Financial Elements 

Capital that has reservation bank

This financial entity has an estimated share capital of 39,501,950,775.00, according to the publications made in its web portal, attending to those established by article 33 of the Institution’s Organic Law.

Taxes paid at the end of the fiscal period

The Entity for Income Taxes (ISR), pay itbis on the goods and services that are acquired by the entity, must pay the 1.5% for payments in checks and transfers they carry out in their own operations, 1% to the assets for cases in which their benefits do not reach this value. In addition, they pay the contributions to the funds for the deposits, corresponding to 1%, pay tax for the fuel they use, the telephone services they use and the various insurance they hire.

Portfolio of products they offer:

• CURRENT ACCOUNTS

1. Business current account 
2. More current account  

• Commercial financing 

1. Commercial loans 
2. Credit lines 
3. Cash banner lines

• Business Credit Cards 

1. Business Visa Credit Card
2. Visa Flotilla card

• Other additional savings and investment products 

1. Savings account
2. Term deposit certificates in pesos, dollars and euros

Chapter IV: Risk and financial performance

Interest rate of the main products that contain 

Method they use to measure financial risk when offering their financial products, Banreservas uses credit history and credit score (the score), since they allow you to measure the level of risk that a customer represents, compared to the use of useor the acquisition of a product and/or service with the institution. The credit history turns out to be the letter of presentation of a person in front of a service provider or a creditor.

Rating that has on the market on solidity level

The rating that it has on the market is based on a strong business profile, its generation capacity, a risk profile and a strong qualified funding and liquidity, as well as adequate heritage support. This entity has a leading position in the multiple banking industry in the country, with a 30% participation on the total gross placements to July 2019.

Credit portfolio indicators have health.

Chapter V: Financial Markets and Actions

Composition of their shares (which percent of partners are common shareholders, which are preferential).

Shareholders 1, Employees 10547, Branchs 167, Agencies 129, Change Estafetas 0, ATMs 721

Indicate whether you have a stock market (stock exchange) and what are the conditions to invest in this type of product in that company

The Reserve Bank has an area for investments in the stock market called investments and stock market reservations dedicated to investments in Central Bank titles, Ministry of Finance and Corporate, in addition to being able to invest in various products offeredstriking yields to diversify the portfolio of interested clients.

Among the advantages you have to invest with this entity are:

• Interest payments with periods included monthly, quarterly and semiannually.
• Your performance rates are attractive and competitive.
• Allows you to make online transactions, through its www web portal.Investments Reservations.com.
• Finally, various emissions can be made with different emitters, returns and characteristics, adapting to the needs of the investor.

The only requirement requested to invest is to have an identity card or a passport.

Another product of the bank are the investments that are made through the AFI reservations, which consists in investing the savings from 15,000 pesos, which will be managed by experienced people from the area.

They have various funds where to place the money, with different investment strategies from each other, going from investing in real estate to other financial instruments, as well as there are those that pay monthly benefits and others that do not.

The requested requirements to invest in the background of the reserves are:

• Application form duly completed and signed
• Identity and electoral card or passport
• Minimum opening amount (RD $ 15,000.00)
• Audited financial statements of the last 3 years
• Statutes
• RNC card
• Updated commercial registration
• Act where legal representatives are designated

And the benefits they have are:

• Security
• Transparency
• Diversification
• Liquidity
• Flexibility

conclusion

Multiple banking is a significant part of the financial market. As evidenced in the research carried out, the reservation bank has a wide portfolio of products whose interest rates are competitive and position it as the largest of all multiple banks in the country, since it is supported by the Dominican state.

Bibliography

• Reserve Bank. Recovered from https: // www.Banreservas.com/
• Stock Exchange of the Dominican Republic. Fixed income emitters. Recovered from https: // bvrd.com.DO/BANCO-DE-RESERVAS-DE-LA-REPUBLICA-DOMINICANA-BANRESERVAS/
• Banreservas. INVESTMENTS IN TITLES – VALUES. Recovered from https: // www.Banreservas.com/Products/Investments-En-Titules-Valores-0
• Banreservas. Consolidated financial statements. (2019). Recovered from https: // www.Banreservas.com/sites/default/files/states_financieros_consolidados_30_de_junio_2019.PDF
• Banreservas. Investment funds. Recovered from https: // www.Banreservas.com/products/funds-inversion-1
• Banreservas. Feller Rate, Risk Rating. (2019). Recovered from https: // www.Banreservas.com/sites/default/files/qualification_riesgo_feller_rat_jul _-_2019.PDF
• Accent. ABA: Banking Sector is the third one that contributes the most to RD Treasury. (2016). Recovered from https: // accent.com.DO/2016/ECONOMY/8366234 -ABA-SECTOR-BANCARY-TERCERO-MAS-APORTA-AL-FISCO-RD/RD/