Banks - the contract concluded in writing between the bank and the borrower. The Bank undertakes to provide a specified amount for a specific purpose and time and the borrower agree to use the loan in accordance with its purpose, and the amount of pay taken together with due consideration in the form of bank commission and interest. Based on this definition of credit is seen as a specific type of obligations whose distinguishing features are: agility, timeliness and interest.

Methods of accounting for credit:

* Formal and legal recognition of credit

according to him, the essence of credit is to use free cash flow in time, rather than creating new ones. The Bank has here the role of intermediary in the transfer of needy persons temporarily held there by another person, cash. As a result of this operation, a claim in the lender, and proportionate in amount in the borrower’s obligation,

* Credit economic inclusion;

understood by such recognition, the bank allows for the expenditure of funds in excess of the currently available size of the borrower of funds, creating new income and resources made available to them while the borrower under the terms of the contract.

The standard credit agreement include:

* The date and place of conclusion of contract
* Details of the contracting parties
* General Provisions
* The amount of currency and credit
* The conditions to start
* The purpose of credit
* Terms and the term loan repayment
* The amount of commission
* The amount of interest
* Method of securing credit
* The terms of the bank
* The timing and way to bring the amount of available credit
* Information about the changes and cancellation of the contract by the bank and the borrower
* Information about the consequences of breach of contract and other arrangements the parties.

Party dominant in relation to the borrower’s credit is a bank, which sets out the conditions of the loan and is entitled to control its use and makes a loan from the credit-worthiness, but is not obliged to grant a loan, even if the person applying for any loan. Credit is only in the form of non-cash, in the form of record on the account.

The right to grant loans only to banks and funds for this purpose are derived from deposits of the bank by its customers, so credit agreement is governed by banking law.

Depending on the period of credit There are short-term loans (up to 1 year), medium term (from 1 year to 3 years) and long-term (over 3 years).