What is a bank book?

Bank book is a type of accounting or book that is used to monitor all securities that are currently not actively traded by a specific institution. Usually, securities that are logged in to this type of accounting book are intended for an extended period, with the expectation that these assets will provide a temporary amount. Using this approach to the management of securities, it is much easier to find out which holding is currently considered eligible for trading and which are to be held at least in further regular review.

Many institutions actually keep a partner in a bank book known as a business book. The purpose of this second accounting record is to create and maintain a list of investments currently actively traded. While both books provide funds to record ups and falls of investment value based on market performance, a business book is a varuable tool used in determining not only what assets to trade, but also toDy is to trade.

From time to time, securities that are monitored in a bank book or business book will be transferred from one record to another. For example, if it is decided that the asset currently monitored in the bank book will no longer be dealt with by long -term possession, the asset is removed from the bank book and moved to the tracking book where it becomes eligible for trading. At the same time, if the asset that was usually considered correct for trading is suddenly perceived as one that is a long -term, security is transferred to a bank book where it remains until the market events indicate that the change is in order.

Any type of securities can be included in the data recorded in the bank book. Among the more common examples of investments is likely to be monitored in this type of record, there are problems with links with a relatively long time. Assuming thatThe bond issuer is stable and there is no great chance that the bond will be called soon, the investor is likely to monitor the progress of the bond towards maturity through the bank book. Together with bonds, problems with stocks that are purchased with the intention to stick to them for a long time can be purchased, often due to consistent securities in different market situations, also monitored using this type of recording method.