Key Banking Concepts: Meetings, Operations, and Deposits
Bank Meetings
Ordinary Meetings
These are held periodically, typically once a year within four months following the financial year-end. Their purpose includes:
- Publishing the financial results for the year.
- Deciding on the allocation of profits (utilities).
- Electing directors, external auditors, and account inspectors.
- Addressing any routine matters concerning the bank’s progress.
It is not necessary to specify every matter to be discussed in the meeting notice.
Extraordinary Meetings
These are convened only when specific needs arise and can only address matters explicitly mentioned in the meeting notice. Common topics include:
- Amendment of the bank’s statutes.
- Increase of capital.
- Early dissolution of the company.
- Extension of the company’s duration.
- Trading of the company’s assets and liabilities.
They are called ‘extraordinary’ because they occur outside the scheduled period for ordinary meetings.
Bank Operations
Passive Operations
These involve receiving money, such as deposits in current or savings accounts. The bank becomes a debtor to the client, obligated to return the received funds at some point.
Active Operations (Capital Assets)
These involve lending money, whether through mutual agreements, discounting documents, or other methods. In these operations, the bank holds credit against the debtor.
Neutral Operations
In these operations, the bank simply manages customer orders without taking on debtor or creditor roles related to the principal transaction (e.g., collections, transfers).
Classification of Bank Deposits
Sight Deposits
Deposits where the depositor can demand restitution at any time, without limitation by the bank. Types include:
- Simple Sight Deposits: The bank receives a sum of money, and the holder can withdraw all or part of it without restrictions beyond standard procedures.
- Checking Accounts (Contract of Bank Account): The bank is obligated to pay third parties using funds available in the account holder’s checking account, upon presentation of documents called checks.
Term or Commercial Deposits
Deposits where the depositor can typically demand return only after a specified period, often starting 30 days after the deposit. Types include:
- Fixed Term: The bank is obligated to pay on a specified future date. Interest and indexation accrue only until that date. The agreed term cannot be less than 30 days. After expiry, these may be treated as sight deposits if not withdrawn or renewed.
- Renewable Term: Maturity is set for a specific day, but with an option for automatic extension for another identical term.
- Undefined Term: No specific maturity date or period is fixed at the time of deposit. The bank is obligated to repay the funds within a specified timeframe after the client provides notice of withdrawal.
Other Deposit Forms (Combinations/Examples):
- Current account deposit (sight)
- Savings account (sight)
- Deposit-term current account
- Current account deposit money deferred
- Savings account (term)
Bank Lending and Credit Operations
Discount of Documents
This operation involves a client (the ‘discounter’) transferring ownership of unexpired credit documents (receivables from third parties) to another party, usually a bank (the ‘discounting party’). The bank advances the value of the documents, deducting interest (the discount rate). The original client typically provides collateral or guarantees repayment.
Loans (Mutual and Comodato)
Two civil contracts related to lending are Comodato (loan for use) and Mutual (loan for consumption).
The Mutual Loan, or “loan for consumption,” is highly relevant to banking. Article 2196 of the Civil Code defines it as a “contract in which one party delivers to the other a certain quantity of consumable items for the latter to restore as many of the same kind and quality.” The parties involved are the lender (mutuante) and the borrower.
Comparing Bank Loans and Mutual Loans
From an economic perspective, a bank loan might seem similar to a mutual loan. However, legally, they differ. Bank loans typically require repayment at stated intervals, and the customer usually cannot re-access the repaid sums without a new agreement, unlike some lines of credit which might resemble aspects of a mutual agreement but operate under specific banking regulations.