What is related to the banking system. Banking system
BANKING SYSTEM OF THE STATE
1 The concept and structure of the banking system, types of banking systems
2 Bank as an economic entity, its functions and operations
3 central bank state, its functions and operations
4 Characteristics of the banking system of the Republic of Belarus
Credit system - a set of credit relations existing in the country, forms and methods of lending, banks and others credit institutions organizing and implementing such relationships.
Banking system - a collection of different types of national banks operating within the framework of the general monetary mechanism. The banking system includes a central bank, a network of commercial banks. The Central Bank conducts the state issuing and foreign exchange policy, is the core of the reserve system. Commercial banks carry out all types of banking operations.
Depending on the subordination of credit institutions, as well as depending on from a hierarchical structure banking system, allocate:
- single-level banking system - provides for the presence of horizontal links between banking institutions, the universalization of their functions and operations. Used in underdeveloped countries economic structures and in countries with a totalitarian, administrative-command regime;
- two-level banking system - based on building relationships between banking institutions, both horizontally and vertically. Horizontally, these are relations of equal partnership between links (commercial banks); vertically - between the central bank as a leading and managing center and lower lower levels (commercial banks).
In developed market economies, there are two-tier banking systems. The top level of the system is represented central (issuing) bank. At the lower level there are commercial banks subdivided into universal and specialized banks ( investment banks, savings banks, mortgage banks, banks consumer credit, industry banks, intra-industrial banks). In addition to banks, the credit system includes non-bank credit and financial institutions (investment companies, investment funds, Insurance companies, pension funds, pawnshops, trust companies).
International practice knows several types of banking systems:
Distribution centralized banking system;
Market banking system;
banking system in transition.
Distribution (centralized) banking system: the state is the sole owner, the state monopoly on the formation of banks, a single-level banking system, a single bank policy, the state is responsible for the obligations of banks, banks are subordinate to the government and depend on its operational activities, credit and emission operations are concentrated in one bank, the head of the bank is appointed by the central or local authorities higher authorities management.
Banking system market type characterized by the absence of a state monopoly on banking activities. Banking competition is typical for the banking system in market conditions. Issuing and lending functions are separated from each other. The issue of money is concentrated in the central bank, lending to enterprises and the population is carried out by various business banks - commercial, investment, innovative, mortgage, savings, etc. Commercial banks are not liable for the obligations of the state, just as the state is not liable for the obligations of commercial banks.
Banking system transition period has features of both distribution and market banking system.
Due to the fact that banking is one of the varieties entrepreneurial activity general and specific principles apply to it. General principles are fundamental to all business activities in general:
Inviolability of property;
The principle of freedom banking;
Encouragement of competition and protection against monopoly;
The principle of banking activities in a single economic space;
Combination of interests of all banking entities.
Specific Principles:
1 building and development of the banking system:
The principle of a two-level construction of the banking system;
The principle of economic zoning in organizational construction Central Bank;
Separation and fixation of the powers of the upper level of the banking system;
The principle of independence of the Central Bank from other state authorities;
2 principle of the procedure for carrying out banking activities:
Responsibility of the Central Bank for its actions;
The principle of monopoly implementation by the Central Bank of the issue of cash and the organization of their circulation;
Combination principle government controlled banking system with self-management;
The principle of inadmissibility of interference of state authorities in the operational activities of a credit institution;
The principle of the exclusive legal capacity of a credit institution, which is entitled to exercise Bank operations from the moment of obtaining a license;
The principle of bank secrecy;
Payment for banking services.
Banking system of the Republic of Belarus- an integral part of the financial and credit system of the Republic of Belarus. The banking system of the Republic of Belarus is two-tier and includes the National Bank and other banks.
Financial and credit system The Republic of Belarus, in addition to banks, includes non-bank credit and financial organizations.
banking- a set of banking operations carried out by banks and non-banking financial organizations aimed at making a profit.
Basic principles of banking in the Republic of Belarus are:
Obligation for banks and non-bank financial institutions to obtain a special permit (license) to carry out banking activities (hereinafter referred to as a license to carry out banking activities);
Independence of banks and non-bank credit and financial organizations in their activities, non-interference on the part of state bodies in their work, with the exception of cases provided for by legislative acts of the Republic of Belarus;
Separation of responsibility between banks, non-bank financial institutions and the state;
Mandatory compliance with the standards of safe functioning established by the National Bank to maintain the stability and soundness of the banking system of the Republic of Belarus;
Providing individuals and legal entities with the right to choose a bank, non-bank financial institution;
Ensuring banking secrecy on transactions, accounts and deposits (deposits) of clients;
Ensuring the return of funds to bank depositors.
8. The concept, essence and structure of the banking system of the Russian Federation
Banking system- a set of different types of national banks and credit institutions operating within the framework of a common monetary mechanism. The banking system includes the Central Bank of the Russian Federation, a network of commercial banks and other credit and settlement centers. The Central Bank of the Russian Federation conducts the state emission and currency policy. Commercial banks carry out all types of banking operations.
The banking system occupies a significant place in the system of bodies that carry out financial activities on behalf of the state
In countries with developed market economies, two-tier banking systems have developed. The upper level of the system is represented by the central (issuing) bank. At the lower level, there are commercial banks, subdivided into universal and specialized banks (investment banks, savings banks, mortgage banks, consumer credit banks, industry banks, intra-industrial banks), and non-bank credit and financial institutions (investment companies, investment funds, insurance companies, pension funds, pawnshops, trust companies, etc.). Both links of the banking system are endowed with certain powers in the field of management banking finance. Stability depends on the state of the banking system national currency, effective functioning of state bodies.
The elements that make up the banking system are not limited to the bodies that directly carry out banking operations. The elements include bodies that regulate the activities of the banking system. The essence of the banking system is to perform certain functions that distinguish banks from other bodies.
The main functions of the banking system include:
1) organization of non-cash turnover;
2) organization of cash cash flow;
3) accumulation of funds for the functioning of lending to sectors of the economy;
4) settlement and cash execution of the state budget;
5) organizing the storage of savings of the population.
The principles of organization of the banking system are important, they include:
1) state monopoly on the regulation and supervision of banking activities. It makes it possible to carry out a unified emission policy in the state and supervise banking activities;
2) centralization of the banking system. obligatory state regulation activities of credit institutions of the Central Bank of the Russian Federation;
3) the independence of banks in the performance of banking operations.
The Central Bank occupies a special place among the special government bodies created to carry out financial activities. It plays an important role in the formation and implementation of one of the constituent parts state organizational policy - the monetary policy of the state.
Along with the Central Bank of the Russian Federation, credit organizations also participate in the activities of the state. Even though they are not government bodies However, banks in some cases exercise power.
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The banking system is a set of banks operating in the country, credit institutions, individual economic organizations performing banking operations and specialized companies that support the activities of banks and credit institutions: cash settlement and clearing centers, bank audit organizations, dealer companies for working with bank securities, companies that provide banks with equipment, information, personnel.
The banking system as an integral part of the country's economic system. Therefore, the activity and development of banks should be considered in close connection with the production, circulation and consumption of tangible and intangible goods.
The banking system is a set of all credit institutions included in the country's economy, each of which has its own special function. They carry out their list of operations, satisfying the need of society for banking services and products.
The banking system is a form of organizing the functioning of specialized credit institutions in the country, which has developed historically and is enshrined in legislation. It has national features, is formed and transformed under the influence of a whole range of factors characteristic of a given region: natural and geographical conditions, climate, national composition of the population, its occupations and crafts, contacts with neighbors, trade routes, etc.
The banking system operates on the basis of laws and relevant regulations, which together form the infrastructure that consolidates and regulates it. In general, it reflects the main, fundamental directions of the development of society.
The banking system can be represented as the following blocks and their elements:
1. Fundamental block:
Bank as a monetary institution.
Banking rules.
2. Organization block:
Types of banks and non-bank credit institutions.
Fundamentals of banking.
Organizational basis of banking activity.
banking infrastructure.
3. Regulating block:
State regulation of banking activity.
banking legislation.
Regulations of the Central Bank.
Guidance materials developed by commercial banks in order to regulate their activities.
The elements of the banking system are: banks and non-bank credit organizations, banking infrastructure, banking legislation. Banks and non-bank credit institutions are the main elements of the banking system, as they directly carry out banking operations and are Banking services. They may have different rights and obligations and, accordingly, carry out operations and provide services only within the limits of their authorized powers, which forms the structure and, within the framework of a single structure, different levels of the banking system.
Blocks and elements of the banking system form a unity, reflecting the specifics of the whole, and act as carriers of its properties. The banking system has the following features:
1. It is not a random variety, a random collection of elements. It cannot mechanically include entities that also operate on the market, but are subordinated to other goals. It includes elements subordinated to a certain unity, corresponding to common goals.
2. The banking system is specific, it expresses the properties that are characteristic of itself, in contrast to other systems operating in the national economy. The specificity of the banking system is determined by its elements and the relationships that develop between them.
3. Interchangeability of parts of the system. Its individual parts (different banks) are connected in such a way that they can, if necessary, replace one another. If one bank is liquidated, the whole system does not become incapacitated - another bank appears that can perform banking operations and provide banking services.
4. The system as a whole is constantly in motion, it is supplemented with new components, and also improved. New connections are constantly being created within her.
5. The banking system is a "closed" system. Since, despite the exchange of information between banks, there is banking secrecy. By law, banks do not have the right to provide information about the balance of funds in accounts, about their movement.
6. It has the character of a self-regulating, i.e., self-regulating system. Changes in the economic environment, the political situation inevitably leads to an automatic change in banking policy.
7. The banking system is manageable. The Central Bank, pursuing an independent monetary policy, is accountable in various forms only to the parliament or the executive authority. Commercial banks operate in accordance with general and special banking legislation, their activities are regulated by economic standards established by the central bank, which controls the activities of credit institutions.
STRUCTURE OF THE BANKING SYSTEM
The banking system includes a central bank, a network of commercial banks and other credit and settlement centers. In most market economies, there is a two-tier structure that involves both horizontal and vertical relationships between banks.
The need to create a two-tier banking system is due to the contradictory nature of market relations. On the one hand, they require freedom of enterprise and the disposal of financial resources, and this is provided by elements of the lower level - commercial banks. On the other hand, these relations require certain regulation, control and targeted impact, which requires a special institution in the form of a central bank. The creation of central banks with the function of regulating monetary relations made it possible to effectively curb the elements of the market while maintaining the freedom of private enterprise.
The structure of the banking system is reduced to the distribution of all banking and credit institutions in a hierarchical order. It distinguishes the central link and grassroots functional organs.
At the highest level of the hierarchy is the Central Bank of the Russian Federation, the most important function of which is to conduct the monetary and foreign exchange policy of the government in order to achieve national economic goals. The bank acts as an intermediary between the government and the financial markets.
At the lowest level of the banking hierarchy are commercial and specialized banks. They are engaged in the accumulation of free cash resources in the form of deposits (deposits), maintenance of current accounts and all types of settlements between the relevant economic entities that are their clients.
The structure of the banking system also has a division into sectors, which include institutions similar in function. For example, consumer credit banks, land banks, the sector of leasing institutions and others. The main purpose of this division is to establish regulatory procedures depending on the characteristics of the operations of institutions in a particular sector.
The classification of the types of the banking system based on the allocation of its various levels in modern economic literature is the subject of discussion. The reason for this is the confusion of the concepts of banking and credit systems. Based on the generally accepted criterion of subordination of banks, only one or two levels of the banking system can be distinguished, while the second level, depending on the characteristics of the country, can have a rather complex structure, include several groups of banks with a pronounced specificity of activity.
The banking system of Russia is a two-tier system, the first level of which is represented by the Bank of Russia, and the second - by commercial banks. The system itself is not new - in Russia it was created in the image of the banking system in England.
The basic principles of the organization of the banking system, enshrined in the legislation of the Russian Federation, imply not only the existence of two levels, but also the principle of the universality of banks.
If you look at the structure of the banking system, then the credit institutions represented at the second level of the system can be divided into 3 categories:
- banks;
- non-bank credit organizations;
- branches of representative offices of foreign banks.
Everything banking structures can also be represented by the following varieties:
- private banks;
- banks with state participation;
- banks with the participation of foreign capital.
Non-bank credit organizations can be divided into:
- non-bank credit and deposit organizations;
- Settlement non-bank credit institutions;
- non-bank credit collection organizations.
The essence of the principle of universality of the structure of the banking system is to provide all commercial banks in the country with universal functionality, namely the permission to carry out long-term investment or short-term commercial transactions permitted by law or provided for by banking licenses. At the same time, as such, the legislation does not provide for a distinction between banks by types of operations performed.
In the conditions of modern society, the banking system of Russia is constantly developing and changing, its structure is becoming more complicated. This is due to the development of financial and commodity markets, the emergence of new tools and methods of customer service, new types of financial and credit institutions.
TYPES OF BANKING SYSTEM
International practice knows several types of banking systems:
- distribution centralized;
- market;
- transition period system.
The distributive (centralized) banking system exists in the conditions of a command-administrative economy and is characterized by a state monopoly on banking. The country has one or more state-owned banks with many local branches. The state is responsible for the obligations of banks, banks are subordinate to the government and depend on its operational activities, credit and emission operations are concentrated in one bank, the head of the bank is appointed by the central or local authorities by higher authorities. Banking activities are regulated by legal documents.
The market-type banking system is characterized by the absence of a state monopoly on banking activities. Banking competition is typical for the banking system in market conditions. Issuing and lending functions are separated from each other. The issue of money is concentrated in the central bank, lending to enterprises and the population is carried out by various business banks - commercial, investment, innovative, mortgage, savings, etc. Commercial banks are not liable for the obligations of the state, just as the state is not liable for the obligations of commercial banks.
A centralized banking system was built in the USSR and in many other socialist countries. In the USSR, it consisted of three state banks (Gosbank, Stroybank, Vneshtorgbank) and a system of savings banks.
The State Bank of the USSR, in addition to issuing and cash settlement activities, performed the functions of lending to various sectors of the national economy (providing short-term loans to industry, transport, communications and long-term loans to agriculture).
Stroybank carried out long-term lending and financing of capital investments in various sectors of the national economy (except agriculture).
Vneshtorgbank provided loans to foreign trade, dealt with international settlements, transactions with foreign currency, gold and precious metals.
Savings banks attracted cash deposits population, paid utility bills and other services.
The monopoly of the three state-owned banks led to the fact that loans often served as a second budget. Under these conditions, the effective potential of the credit mechanism was not used, it was not possible to pursue an active monetary policy with the instruments that are known in countries with a market economy.
The main functions of the banking system:
- ensure the functioning and development of the economy by providing bank loans and organization of the settlement system;
- mediation in the movement of funds from creditors to borrowers and from sellers to buyers;
- accumulation of temporarily free resources in the country;
- crediting of production, circulation of goods and needs of individuals.
The banking system is the main link in the financial and credit system of the state, since the burden of credit and financial services falls on it economic turnover country.
The banking system of Russia constantly and quite successfully performs its functions, providing settlements between all parts of the economy, redistributing temporarily free funds.
DEVELOPMENT OF THE BANKING SYSTEM
The development of the banking system is influenced by a number of macroeconomic and political factors. Of these, the following can be distinguished:
- the degree of maturity of commodity-money relations;
- social and economic order, its special purpose and social orientation;
- legislative bases and acts;
- a general idea of the nature and role of the bank in the economy.
The development of the banking system is influenced by the development of national markets for international trade. The demand for banking services is expanding as production increases, the scale of exchange between producers.
The development of the banking system is also greatly influenced by general ideas about the nature and role of the bank in the economy. The social and economic order inevitably affects the nature of its activities. Political factors also affect its state and current development. Here, first of all, the general political orientation of the state is important.
With the general progressive development of the banking economy, it can at the same time be restrained by wars that are associated with the destruction of material wealth and property. Protracted economic crises also have a negative impact on the banking system.
The development of the banking system is greatly influenced by the legislative framework country. In some countries, banks are prohibited from performing certain transactions with securities, investing their capital in the capital of enterprises. In a number of countries, banks are not allowed to engage in insurance.
A significant factor determining the development of the banking system is interbank competition. The presence of a sufficiently large number of independent banks in the country and its individual regions creates a certain environment in which they are forced to fight for the client, improve the quality of service, expand services, offer the market new products.
The development of the banking system can be constrained by such factors as excessive tax pressure on bank profits, lack of sufficient resources for active banking operations, lack of qualified personnel, etc. In countries with economies in transition, it is often these factors that prevent banks from taking wider steps in its development.
In recent years, the Russian banking system has been developing intensively, and positive trends have emerged in this development. Credit institutions began to strive for the greatest transparency, openness to customers. Advanced business models are being introduced, new banking technologies, various types of lending.
However, according to all indicators, the banking system of Russia lags far behind developed countries. Despite high growth, the volume of loans issued does not meet the objectives economic growth facing the country. In the structure of sources of capital investment financing Russian enterprises the share of bank loans remains insignificant compared to developed countries. Most of the population is not included in the system banking service. According to statistics, in Russia only 25% of Russians have bank accounts, while in Western European countries - the entire adult population. A small part of the population use plastic cards, when in developed countries There are 1 - 2 cards for each inhabitant.
The banking system is a combination of various types of national banks and credit institutions operating within the framework of a common monetary mechanism. The banking system includes a central bank, a network of commercial banks and other credit and settlement centers.
The Central Bank conducts the state issuing and foreign exchange policy, is the core of the reserve system. Commercial banks carry out all types of banking operations.
In countries with developed market economies, two-tier banking systems have developed. The upper level of the system is represented by the central (issuing) bank. At the lower level, there are commercial banks, subdivided into universal and specialized banks (savings, mortgage, consumer credit, industry banks,), and non-bank credit and financial institutions (investment companies, insurance companies, pension funds, pawnshops, trust companies)
Properties of the banking system:
1. The banking system includes elements subordinate to a certain unity, corresponding to common goals.
2. The banking system is specific. It expresses the properties that are characteristic of itself, in contrast to other systems functioning in the national economy. The specificity of the banking system is determined by its constituent elements and the relationships that develop between them. From the history of the development of the banking system in Russia, it can be seen that there were several types of it: a distributive centralized banking system; market banking system; transitional system.
3. The banking system is capable of interchangeability of elements, i.e. it can be represented as a whole, as a variety of parts (different banks), subordinate to a single whole and, if necessary, capable of replacing one another. If one bank is liquidated, the whole system does not become incapacitated - another one appears.
4. The Russian banking system is dynamic. It is constantly replenished with new banks, gets rid of bankrupt ones, and is also constantly being improved.
5. The banking system is a closed system. Despite the exchange of information between banks and the publication by the Central Bank of statistical collections, information guides, bulletins, there is a banking "secret".
6. The banking system is "self-organizing", self-regulating, since a change in the economic environment, the political situation inevitably leads to an "automatic" change in the bank's policy.
7. The banking system acts as a controlled system. Business banks, being legal entities, operate on the basis of banking legislation, their activities are regulated by economic standards established by the Central Bank, which controls the activities of credit institutions. The modern banking system of Russia is a market one and consists of two blocks - the Central Bank of the Russian Federation and commercial banks.
The Central Bank of Russia is the central bank of the state. Its main tasks are: ensuring the sustainability of the national monetary unit; organization of money circulation, settlements and currency relations; protecting the interests of creditors and depositors by defining the rules for the activities of commercial banks and monitoring their observance; promoting the development of the economy, the creation of a single market of the country and its integration into world economy. The Central Bank of Russia regulates the activities of commercial banks in order to create general conditions for their operation and to introduce the principles of fair banking competition.
Commercial banks, in accordance with the Law "On Banks and Banking Activities in the Russian Federation", Russian banks act as universal credit institutions, that is, they perform a wide range of operations on financial market. These operations include the provision of loans of various types and terms, the purchase and sale and storage valuable papers, foreign exchange, attracting funds for deposits, making settlements, issuing guarantees, guarantees, etc. Banks are prohibited from carrying out activities in the field of material production, trade in material values, and all types of insurance.
Banks in Russia can be created on the basis of any form of ownership: private, collective, joint-stock, mixed, state. To form the authorized capital of Russian banks, it is allowed to attract foreign investment. The Bank has the right to organize branches and representative offices. Bank branches are separate structural units located outside its location and performing all or part of its functions.
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Introduction
Banks play a significant role in the credit system, which is a collection of credit institutions. The credit system is interesting in that the specifics of its development are determined by the features historical path development of the country.
In Western Europe, for example, banking of the modern type appeared as a result of the enlargement of the activities of money changers, who exchanged one coin for another, stored valuables, and operated with bills of exchange. By the beginning of the period in history, called the New Age, private banks appeared as special kind entrepreneurial activity. Later they become state central banks of issue.
In Russia for a long time there were only state-owned and class banks, and only in the second half of the 19th century. the first private commercial banks appeared.
So, as mentioned above, a large place in the credit system is occupied by the banking system, the state of which depends on the authority of the state and the success of all ongoing economic reforms.
Depending on the interrelations of banks, on the nature of the functions they perform, two types of banking system construction are distinguished: single-level (distributive, central) and two-level.
For countries with an administrative-command management regime, a single-level banking system is typical. Its peculiarity lies in the fact that all banks, including the central one, perform similar functions of credit and settlement services for the economy.
In countries with a market economy, there is a two-tier banking system, which is characterized by a strict separation of the functions of the central and commercial banks.
So, the object of research is the banking system. The study of the banking system is important, because in modern conditions normalization of the banking system is the key to political stabilization.
The study of the banking system was carried out by such scientists as E.F. Zhukov, S.V. Galitskaya, A.Yu. Korchagin, A.S. Selishchev, M.P. Vladimirova, A.I. Kozlov, A.Yu. Kazak, M.S. Maramygin, L.P. Krolivetskaya and others.
The authors who have studied the banking system name the different elements that make up it. Meanwhile, the elements of the banking system form the unity of the banking system, determine its specifics and act as carriers of the properties of the banking system. But despite the differences in the definition of the elements of the banking system, the authors agree that the basis of the banking system are commercial banks.
The question of what a bank is, how the block of the banking system works, is not as simple as it seems at first glance. Banks are perceived by the population mainly as a store of money. This worldly understanding of the role of the bank will not help reveal its essence and true significance for the national economy. Even more confusing is an attempt to find out the origin of the word “bank” (from the head word bank - bench) and the use of modern expressions, for example, a data bank, a plant bank, a book bank, which have nothing to do with the bank as such. It is difficult for non-specialists to understand the features of the bank's activities. But due to the fact that banks are extremely important both for the economy as a whole and for local communities, there is a need to define what a bank is.
Meanwhile, banks serve as the main source of credit (borrowing) for millions of households (represented by single citizens and families) and many local governments. What's more, for small businesses - from grocers to car dealers - banks are often the main source of credit, used to replenish shelves with goods and showrooms with new cars. When paying for purchased goods or services, businesses and consumers often use bank checks or credit cards. When a company or client needs financial information or a financial plan, they most often turn to a banker for advice and advice.
Both on the national and global markets, banks provide their customers with more consumer loans than any other financial institution. Almost always they are the main buyers of bonds and short-term securities. Banks are the most important sources of short-term (working) debt capital for enterprises, and in recent years they have been increasingly offering long-term loans to enterprises for the purchase of new plants and equipment. Bank deposits are the main source of money for transnational transactions and the main tool that the state uses in its policy of stabilizing the economy. For all these and other reasons, banks can be called the most important public institutions, the activities of which must be known and studied.
It should be noted that it is difficult to understand the features of the bank's activities, not only not only for non-specialists, but also management experts consider the management of a modern bank to be one of the most difficult areas activities. This statement is doubly true for the current Russian conditions: banks are objectively at the center of many contradictory, crisis and difficult to predict processes taking place in the economy, politics, and the social sphere.
The essence of the bank, the functions and principles of its activities determine its role in the economy. The role of the bank should be understood as its purpose, for the sake of which it is created, exists and develops. Like the function, the role of the bank is specific, it must be considered within the framework of the economy as a whole and it does not depend on what type the bank belongs to.
Of great importance in determining the role of commercial banks in the banking system and part of the economy is the organization of banking activities. The organization of the bank's activities has a number of features. These features stem from the specifics of the bank as an enterprise.
Practice shows that improving the interaction between individual divisions of the bank speeds up the decision-making process, strengthens supervision and control, and contributes to the rationalization of banking activities. Even a simple reorganization of the administrative apparatus, associated with the elimination of redundant links, ultimately has a positive effect on cost savings. On the contrary, the creation of some centers (for example, liquidity management) makes it possible to avoid mistakes that lead to direct losses of resources. Ultimately, the goals of the bank are achieved not only on the basis of streamlining the interaction between individual organizational structures of the bank, but also mainly on the basis of improving the relationship of all elements of the bank's organizational structure with the external environment.
The task of organizing banking activity is to, through the division of labor, the creation organizational structures(departments, groups, departments, committees, etc.) contribute to the implementation of the bank's goals. The task of the organization is also to organize and coordinate the work of the personnel of organizational structures in accordance with the goals set. For this, the tasks of organizing information support, developing rules and procedures for the implementation of various types of banking activities are also becoming important. Thus, the functions of the organization are to ensure the effective operation of the monetary institution through the creation of organizational structures, the establishment of their work.
However, the organization of banking activities entails a number of problems that require immediate solutions.
To solve the problems that arise when organizing the activities of commercial banks, it is necessary to understand their role in the economy. Therefore, for our study, we chose the topic: "Commercial banks as a link in the banking system and part of the economy."
Purpose: to determine the essence of commercial banks as a link in the banking system and part of the economy.
Analyze the features of the banking system;
Describe the elements that make up the banking system;
Reveal the essence of a commercial bank through the analysis of definitions this concept, consideration of the functions and principles of commercial banks;
Consider definitions of the concept of banking;
To identify the problems of organizing banking activities at the present stage and find ways to solve them.
The object is the banking system.
The subject of the study is commercial banks in the banking system and part of the economy. commercial Bank economy
This work can be addressed primarily to students of colleges and universities studying in economic specialties.
1. Banking system
1.1 The concept and essence of the banking system
L.G. Batrakova gives the following definition:
The banking system is one of the most important structures of a market economy.
S.V. Galitskaya defines the banking system as a set of banks.
In the legislation of the Russian Federation, the banking system is defined as follows: "The banking system of the Russian Federation includes the Bank of Russia, credit institutions, as well as branches and representative offices of foreign banks."
In the book "Finance, credit, banks" edited by O.I. Lavrushin gives the following definition:
The banking system is such an integral entity that ensures its sustainable development.
L.P. Krolivetskaya believes that:
The banking system is a combination of various types of banks, banking institutions, credit organizations with their relationships that form a single whole.
According to Kuznetsova V.V. and Larina O.I.:
The banking system is a single and integral set of banks and non-banking credit organizations included in the country's economic system, each of which performs its own special functions, conducts its own list of operations, as a result of which the entire volume of society's needs for relevant products is satisfied in full and with the maximum possible degree of effectiveness.
A. Yu. Kazak and M.S. Maramygin define the banking system as follows:
The banking system is a set of banks and non-bank credit institutions operating in the economy within the framework of a single financial, credit and legal mechanism.
According to A.S. Selishchev:
The banking system is a form of organizing the functioning of specialized credit institutions in the country, which has developed historically and is enshrined in law.
A. Seleznev in the article “Problems of Improving the Credit and Banking System” gave the following definition:
The banking system is a unity of functionally independent, organically interconnected subsystems that ensure the issue of money, their circulation, cash and non-cash turnover, the balance of money demand and supply, settlements in cash and the provision of credit based on the execution of adequate instruments and effective interaction between the Central Bank, commercial banks and other infrastructure links of this system.
In the "Economic Dictionary", compiled by A.F. Nikitin, the following definition is given:
The banking system is an integral part of the credit system, a set of various types of national banks, banking investors and credit institutions operating within the framework of the general monetary mechanism that exists in a particular country.
From these definitions it follows that the banking system has a number of features:
Includes elements subordinate to a certain unity, meeting common goals;
Has specific properties;
Operates as a unit;
Is dynamic;
Acts as a system of "closed" type;
It has the character of a self-regulating system;
It is a managed system.
1. The banking system, first of all, is not a random variety, a random collection of elements. It cannot mechanically include entities that also operate in the market, but are subordinated to other goals.
2. The banking system is specific, it expresses the properties that are characteristic of itself, in contrast to other systems operating in the national economy. The specificity of the banking system is determined by its elements and the relationships that develop between them.
When the banking system is considered, it first of all means that it includes banks as an element, which, as monetary institutions, give a "color" to the banking system.
However, this should not be understood in such a way that the essence of the banking system is the addition of the essence of its elements. The essence of the banking system is not an arithmetic operation, but penetration into a new, broader essence, covering the essence of not only individual elements, but also their relationship.
The essence of the banking system is addressed not only to the essence of private, constituent elements, but also to their interaction.
It follows from this that the essence of the banking system affects the composition and essence of its elements.
3. The banking system can be represented as a whole, as a variety of parts subordinate to a single whole. This means that separate parts of the banking system (different banks) are connected in such a way that they can, if necessary, replace one another.
4. The banking system is not in a static state, on the contrary, it is in dynamics. Two points are important.
Firstly, the banking system as a whole is constantly in motion, it is supplemented with new components, and also improved.
Secondly, new connections are constantly emerging within the banking system. Interaction is formed both between the central bank and commercial banks, and between the latter.
5. The banking system is a system of "closed" type. By law, banks do not have the right to provide information about the balance of funds in accounts, about their movement.
6. The banking system is self-organizing, i.e. self-regulatory, since a change in the economic environment, the political situation inevitably leads to an "automatic" change in the policy of the bank.
7. The banking system acts as a controlled system. The Central Bank, pursuing an independent monetary policy, is accountable in various forms only to the parliament or the executive authority. Business banks, being legal entities, operate in accordance with general and special banking legislation, their activities are regulated by economic standards established by the central bank, which controls the activities of credit institutions (in a number of countries, the functions of overseeing the activities of commercial banks are assigned to other special state bodies).
The banking system is not isolated from the environment, on the contrary, it closely interacts with it, it is a subsystem of the economic system. Being part of the general, the banking system operates within the framework of general and specific laws, subject to the general legal norms of society; its acts, although expressing the features of the banking sector, can be included in the overall system, like the banking system itself, only if they do not contradict the general foundations and principles and allow building a common system as a whole.
As mentioned above, in the economic literature the question of the content of the concept of "banking system" is interpreted in different ways. Based general provisions, we can conclude that the banking system is a single whole, the parts of which are interconnected and interact with each other, and the system itself simultaneously depends on the properties of these parts.
1.2 Elements of the banking system
The specificity of the banking system is determined by its constituent elements and the relationships that develop between them.
A.S. Selishchev identifies as elements of the banking system:
Central bank;
Banking Supervision Authority (conditionally and with certain reservations);
- "State", universal, specialized banks;
Non-bank credit organizations;
Branches and representative offices of foreign banks.
The elements of the banking system are banks, some special financial institutions that perform special banking operations, but do not have the status of a bank, as well as some additional institutions, which form the banking infrastructure and ensure the vital activity of credit institutions.
The first level of the banking system is represented by the central bank of the country. This is an issuing bank, a special body of state administration and economic policy. The Central Bank is an independent but state-controlled credit institution that ensures the implementation of monetary policy and the efficient functioning of the country's banking system.
The main functions of the Central Bank of the Russian Federation include: monopoly issue and organization of circulation of cash in the country; implementation of the policy of monetary regulation of the national economy; implementation of banking regulation and supervision over the activities of credit institutions; currency regulation and control; organization of the functioning of the system of cash and non-cash payments in the economy; financial services for the national government; conducting analytical studies of the monetary sphere. The goal of the Bank of Russia is the stability of the national currency and the banking system.
In addition, in many countries, the first level of the banking system often includes one or another bank control agency. So, in the USA - this is the Federal Deposit Insurance Corporation, in Germany - the Federal Office for the Control of Banks, in France - the National Credit Council, the Committee of Credit Institutions and the Banking Commission, in Italy - the Interministerial Committee on Credit and Savings, etc.
In accordance with Art. 2 of the Law "On Banks and Banking" the Russian banking system includes the Central Bank of the Russian Federation (Bank of Russia), credit institutions, as well as branches and representative offices of foreign banks.
In the Federal Law of 02.12. 1990 No. 395-I "On banks and banking activities" credit organisation is defined as "a legal entity that, in order to make a profit as the main goal of its activities, on the basis of a special permit (license) of the Bank of Russia, has the right to carry out banking operations provided for by the legislation of the Russian Federation."
In the Russian Federation, a credit institution may be formed on the basis of any form of ownership as a business entity.
Credit institutions may create unions and associations that do not pursue profit-making purposes to protect and represent the interests of their members, coordinate their activities, develop interregional and international relations, meeting scientific, informational and professional interests, developing recommendations for the implementation of banking activities and solving other joint tasks. Given the non-commercial nature of the activities of unions and associations, they are prohibited from carrying out banking operations.
Bank - a credit institution that has the exclusive right to carry out in aggregate the following banking operations: attracting funds from individuals and legal entities, placement of these funds on its own behalf and at its own expense on the terms of payment, repayment, urgency, opening and maintaining bank accounts of individuals and legal entities.
If a credit institution does not carry out at least one of these classic operations, then it belongs to non-bank credit institutions.
The specific needs of private bank owners or their clients may lead to the creation of banking groups or banking holdings. A banking group is an association of credit institutions in which one (parent) credit institution exercises direct or indirect (through a third party) significant influence on decisions made by the management bodies of another credit institution (credit institutions). Bank holding company - an association of a group of legal entities with the participation of a credit institution (credit institutions), in which a legal entity that is not a credit institution (the parent organization of a bank holding company) has the opportunity, directly or indirectly (through a third party), to exert a significant influence on decisions taken by the authorities management of the credit institution (credit institutions).
At the same time, based on the legislation of the Russian Federation, neither the banking group nor the banking holding is a legal entity.
The said Federal Law also defines the concepts of "non-banking credit organization" and "foreign bank".
Non-bank credit institution - a credit institution that has the right to carry out certain banking operations provided for by this Federal Law.
Permissible combinations of banking operations for non-bank credit institutions are established by the country's central bank.
Foreign bank - a bank recognized as such under the laws of a foreign state in whose territory it is registered.
From an economic point of view, there is no single definition"commercial Bank". IN different countries The group of commercial banks includes a number of institutions with different structures and different ownership relations. The very concept of "commercial bank" is interpreted differently in different countries. Their main difference from central banks is the lack of the right to issue banknotes.
The elements of the banking system include the banking infrastructure. It includes various kinds of enterprises, agencies and services that ensure the vital activity of banks. The banking infrastructure includes information, methodological, scientific, personnel support, as well as means of communication, communication, etc.
Thus, the elements of the banking system constitute the unity of the banking system. They interact and complement each other, thereby ensuring the stability of the banking system. The more effective the interaction of the elements of the banking system, the better the overall condition of the country's banking system.
2. The role of a commercial bank in the economy
2.1 The essence of a commercial bank
The disclosure of the essence of the bank can be approached from two sides:
From a legal point of view, i.e. how in legislative acts countries, the concept of a bank and banking operations is interpreted.
For example, a bank is an enterprise that specializes in accepting from the public, in the form of deposits or in other forms, the funds that it manages for accounting, credit and other financial transactions.
This legal definition, borrowed from a law passed in France on June 13, 1941, correctly emphasizes the combination of two types of operations: the management of deposits and the provision of loans.
In accordance with banking legislation, a bank is a credit institution that performs deposit, settlement and credit operations. The main requirement here is not only that they carry out these operations, but also that banks perform them simultaneously (unlike, for example, organizations that can perform one of the operations). An important addition is contained in the German banking legislation, it boils down to the fact that banking operations are not secondary, but the main activity of the subject.
From an economic point of view, which should give an idea of what qualities a bank should have, how these qualities express this essence and thus distinguish the bank from other financial institutions.
A bank can be characterized as an enterprise engaged in specific activities, as a result of which its own specific product is created, namely:
means of payment issued at the macro and micro levels. Without money, the products of labor cannot be exchanged and the reproduction process cannot continue. The issue of cash is the monopoly of the bank, it is produced only by the bank, making it a specific product of the banking system;
accumulated free, temporarily unused resources. Turning non-performing funds into working ones, banks direct these funds to areas of the economy where there is not enough money;
loans provided to its clients as capital, as funds returned to the lender with an increment in the form of newly created value;
variety of banking services.
Thus, the bank as an enterprise produces not just a commodity, a commodity of a special kind in the form of money, means of payment.
To reveal the essence of the bank, it is necessary to reveal the main quality of the bank. At the macro level, credit is such a fundamental quality. Credit business is the basis of the bank, which, unlike other credit organizations, is a large credit institution that regulates the payment turnover of business entities in cash and non-cash forms.
In addition, the essence of the bank requires the disclosure of its structure (but not the structure of the bank's management). The structure is understood as such a device of the bank, the composition of its elements that are in close interaction with each other, which makes it possible for it to function as a bank. In this case, the bank can be conditionally divided into 4 blocks.
The first block is banking capital, specific capital, freed from commercial and industrial capital, existing mainly in loan form, used not for oneself, but borrowed for others. Bank capital exists only in motion. The continuity of the movement of banking capital increases its profitability, competitiveness and market value. The financial stability of the bank, its solvency depends on the state of capital.
The second block covers the very activity of the bank, which differs from the activities of other institutions and enterprises by the nature of the product itself. The product of the bank's activities is, as already noted, the issuance of means of payment, the issuance of cash into circulation, various operations and services, as well as a loan.
The third block includes a special group of people with special knowledge in the field of banking and its management.
The fourth block is production, covering banking equipment, buildings, structures, means of communication and communication, internal and external information, certain types of production materials.
Thus, a bank can be defined as a monetary institution that regulates the payment turnover in cash and non-cash forms.
This definition does not exclude other definitions of a bank in terms of its essence. Essence is a fairly capacious category; in one definition it is often impossible to take into account all the necessary characteristics. Therefore, it is possible that there may be other definitions that reveal certain aspects of the essence of the bank and expand the idea of the bank as a specific monetary institution.
In modern society, banks perform a wide variety of operations. They not only organize money turnover and credit relations: through them, financing of the national economy, insurance operations, purchase and sale of securities, and in some cases - intermediary transactions and property management are carried out. Credit institutions act as consultants, participate in the discussion of national economic programs, keep statistics, and create their own auxiliary enterprises.
Most often, a bank is defined as an institution, an organization. banking institutions and organizations - a widespread phrase, it can be found both in scientific and educational literature, banking legislation, banking documents and in periodicals. Recall that the word organization refers not to the essence of the phenomenon, but to a certain set of people. Organization (from French organization) - a set of people, groups united to achieve a goal, solve a problem, jointly implement a program or achieve a goal and act in accordance with certain rules and procedures. What kind of association this is, what it does according to its rules, remains hidden. After all, there are charitable organizations, public organizations. Although the bank has a public mission, it does not belong to such organizations.
Often the bank is characterized as an economic management body. Such an idea was formed in the period when banks began to turn from private, cooperative into state ones and the state monopoly on banking was established; the bank "merged" with the state, became part of the state apparatus for managing, controlling economic activity. The functions of supervision and the need to signal the mismanagement committed by enterprises to some extent became their purpose. Hence the idea of the bank as an element of the superstructure. With the transition to the modern market, the position of the bank in the economy has changed significantly, and there is no need to define it as a management apparatus (or part of the state management apparatus).
Often the bank is considered an intermediary organization. The reason for this is a special overflow of resources, temporarily settling in some and requiring use by others. The peculiarity of the situation is that the lender, having a certain part of the resources, wants to give it to another counterparty, the borrower, with appropriate guarantees, for a specific period, at interest. The interests of the lender must coincide with the interests of the borrower, who may not necessarily be located in the region. In the modern monetary economy, such a coincidence of interests is not accidental. The consolidating link here is the intermediary bank, which provides the opportunity to carry out the transaction, taking into account supply and demand.
This view is held by:
A. Seleznev, who gave the following definition:
Commercial (business) banks, as second-tier banks, are intermediaries in the banking system - they attract clients' funds to accounts and, on their own behalf, turn them into "working" assets that generate income, while incurring obligations to clients.
Lipsits I.V.:
A bank is a financial intermediary carrying out activities on: accepting deposits; granting loans; organization of settlements; buying and selling securities.
In general, intermediaries are a variety of organizations and individuals. The role of an intermediary in various fields of activity can be assumed by various services (legal, commission, postal, etc.), but this does not make them banks. The bank as an intermediary has a different nature, connected not with intermediary activities as such, but with a special kind of activity.
Another point is also important. If we consider that the bank is an intermediary between the lender and the borrower, then how to explain that in its daily activities it is both a lender and a borrower, since every day it gives its own resources, receives others.
The paradox is that the bank, acting as a lender, a borrower, an intermediary between them, nevertheless, from the point of view of its essence, is neither one nor the other, nor the third. Being a lender, borrower, intermediary - only fragments of the bank's activities, a particle of its essence, which does not show all the specifics of its position and characteristics of activity. The bank is a special phenomenon in economic activity.
The activity of the bank in the sphere of circulation gave rise to the idea of it as an agent of the exchange back in the 20s of the XX century. The reason for this was that banks are indispensable participants in the exchange. They can organize exchange operations, carry out securities trading operations. However, not historically, nor logically, this does not turn the bank into a part of the exchange organization. Private banks (banking houses) appeared long before the exchange, before the process of buying and selling securities. It is also significant that trading in securities is a part of banking operations, and far from being the main one.
Gradually, the bank became more and more a credit center, which made it possible to define it as credit enterprise. However, "bank" and "credit" are not synonymous.
Credit is a relationship between a lender and a borrower regarding the possible movement of the loaned value. IN credit relations, therefore, one of the parties is a creditor, someone is a borrower. In every loan transaction, taken separately, as if photographed at a certain moment, there are always two sides, and the loan expresses a special relationship between them. Unlike a loan, a bank is one of the parties to the relationship, which, although it can simultaneously act as a lender and as a borrower, at each moment in a single transaction acts either as a lender or as a borrower. Consequently, the bank is not the relationship itself, but one of the subjects of the relationship, which becomes one of the parties opposing each other in a credit transaction. In addition, the difference between a bank and a loan is that a loan is a relationship carried out both in monetary and in commodity form. The bank is concentrated and only cash flows through it. When comparing a bank and a loan, it is important to see their historical roots as well. The bank arose only when money appeared, the credit functioned before the appearance of money in all its manifestations. The bank arose as a result of the development of credit, which is the foundation of the bank.
The definitions of the bank given by us and other definitions of the bank, accepted in the economic literature and business use, have one general disadvantage: they do not reveal the essence of such a phenomenon as a bank, but only show what banks do or what they can do.
A.I. Arkhipov gave the following definition: “A bank is a credit institution that has the exclusive right to carry out the following banking operations in aggregate: attraction of funds from individuals and legal entities to deposits; placement of these funds on its own behalf and at its own expense on terms of repayment, payment, urgency; opening and maintaining bank accounts of individuals and legal entities".
According to T.N. Vinogradova:
A bank is a commercial institution that is a legal entity, which, on the basis of a license issued by the Central Bank, has the following rights:
Attract funds and securities and place them on its own behalf on the condition of repayment, urgency, payment;
Provide settlement and cash services to bank customers;
Finance capital investments on behalf of the owners;
Issue, buy, sell and store payment documents and securities;
Issue guarantees and guarantees;
Buying and selling foreign currencies precious metals, stones and products from them;
Provide brokerage, trust and advisory services.
The Dictionary of Economics gives the following definition:
Commercial bank - a bank specializing in short-term lending to industry and trade, as well as various types of banking services for private clients (maintenance of current accounts, provision of commercial, consumer and mortgage loans, etc.) These banks are created on a share or share basis and can differ: according to the method of formation authorized capital(with the participation of the state, foreign capital, etc.), by territory of activity, types of operations performed, etc.
The term commercial bank itself arose in the early stages of the development of banking, when banks served mainly trade (commerce), barter operations and payments. The main clientele of banks were merchants. Commercial banks financed transportation, storage and other operations related to commodity exchange. With the development of industrial production, short-term lending operations for the production cycle arose: loans for replenishment working capital, creating stocks of raw materials and finished products, paying wages, etc. Now the term "commercial" in the name of the bank has lost its original meaning. It began to denote the business nature of the bank, its focus on serving all types of economic agents, regardless of their type of activity. Currently, banks are formed on any form of ownership and operate on the principles of commerce.
Commercial banks are multifunctional institutions that provide their clients with a full range of financial services, including loans, deposits, settlements, etc. In this they differ from specialized financial institutions (insurance, mortgage, etc.), which have restrictive functions.
Thus, there is a huge variety of definitions of the concept of "commercial bank". Each of them reflects the characteristics of a commercial bank as a financial intermediary, or as an economic regulatory body, or as an enterprise engaged in specific activities, or as an institution, or as an exchange agent, or as a credit institution.
2.2 Functions of a commercial bank
Consideration of the functions of the bank is a continuation of the analysis of its economic essence.
Function - specific interaction of the bank (in general and individual borrowers) with the external environment, aimed at preserving the bank as an integral entity.
The function of a bank is what is characteristic of a bank, in contrast to economic entities.
Among the functions of a commercial bank, the following stand out:
Accumulation and mobilization of temporarily free funds;
Loan intermediation;
Mediation in the implementation of payments and settlements;
Creation of means of payment.
The function of accumulation and mobilization of temporarily free funds is one of the most important. Commercial banks play a leading role in attracting free funds of all economic agents, i.e. population, enterprises and the state, turning them into capital for profit. Initially, commercial banks used only their own funds for their activities. In the future, they began to look for opportunities to expand the channels for raising funds by opening a variety of deposits and accounts, making the owners of funds interested in paying the appropriate interest. As a result, the share of borrowed funds in relation to own funds increased immeasurably and amounted to 80% of the bank's total capital.
An important condition for the successful attraction of funds is the level of their safety. The depositor of a credit institution must be sure that he will be able to return not only his deposit, but also receive the promised interest income. Such guarantees should be provided by the state represented by the central bank, which conducts licensing of banking activities and supervises the activities of credit institutions.
By performing the function of raising funds, banks act as borrowers. Accumulating significant funds, banks, as already noted, do not store money, but turn it into capital, investing it in the economy, providing loans and purchasing securities.
At one time, the "Japanese economic miracle" became largely possible because the country's banking system was able to mobilize the population's savings to invest in the country's economy. On the contrary, in Russia, with the obvious connivance of the state, as a result of a series of scams like "MMM" and other " financial pyramids”(the apotheosis is“ shock therapy ”, the collapse of GKOs in 1998, as a result of which millions of depositors lost their deposits), the population has lost faith in the reliability of domestic financial system, which became a powerful brake economic development country. Having lost the confidence of the population, banks have lost the main source of savings mobilization. It will take a lot of time and effort to restore trust.
Performing the function of mediation in a loan, a commercial bank acts as an intermediary between entities that have free cash and entities that need it. As a rule, in the economy there is often a situation where some people have money, while others have a real need for it. Such a ratio can theoretically be realized by providing the first entities with funds on credit, but in practice it is very difficult to find out of the entire mass of economic entities exactly those who have the funds in the required amount and for the required period. This is what a commercial bank does. As an intermediary in a loan, he, by accumulating funds (the first function), has the ability to provide these resources to subjects in need of them in the right amount and for necessary period. Thus, lending to enterprises, industry, the state and the population is carried out.
When performing an intermediary function, banks carry out the transformation of terms, i.e. transformation of "short" money into "long". In order not to disturb its liquidity, the bank, in principle, can provide long-term loans only at the expense of long-term deposits and other sources attracted for a long period, while short-term deposits (“short” money) can only serve as a source of short-term loans. Transformation of terms becomes possible because, firstly, many creditors leave their money in banks longer than it is legally agreed, and secondly, outgoing funds are often replaced by newly incoming ones, therefore total amount funds raised remains unchanged. At the same time, the transformation of terms is associated with risk, in connection with this, along with internal control of liquidity, there is always a system of external regulation of bank liquidity and control by the state. The discrepancy between loans and deposits occurs not only in terms, but also in size. Often loans are provided in larger volumes than deposits made, so the bank carries out the transformation of sizes sums of money, i.e. it is he who transforms many small deposits into a small number of large loans. If banks did not do this, then those in need of credit would have to negotiate with many depositors, which would be both costly and inefficient.
Taking out a loan is always a risky business. Despite all the checks on the solvency of the borrower, cases of default on the loan cannot be avoided. The bank, acting as an intermediary between the lender and the borrower, transforms the risk of the lender and reduces it. This is possible because banks, carrying out their operations, are able to disperse funds by industry, size, purpose of use, regions. Due to this, the total risk of the bank and its depositors is reduced. In addition, the reduction of the risk of individual transactions is achieved through careful selection of borrowers by the bank using all the information it has accumulated, as well as constant monitoring of the intended use of loans and their effectiveness. Banking risks are also subject to a system of external regulation and control. Banks bear an increased responsibility to clients and depositors and take on the risks associated with a decrease in the value or loss of some of the assets. Unlike others financial intermediaries banks form their resources on the basis of fixed debt obligations (deposits), so they must cover losses with their own capital before they affect the position of depositors.
The performance of this function contributes to the expansion of production, financing of industry, facilitating the creation of stocks, expanding consumer demand, facilitating the financial activities of the government, and reducing distribution costs.
Performing the function of intermediary in the implementation of payments and settlements in the economy, commercial banks ensure the functioning payment system by transferring funds. The high efficiency of the use of means of payment is evidenced by the gradual reduction in cash turnover and the increase in the share of non-cash payments that are carried out by commercial banks. In foreign countries for non-cash payments accounts for over 90% of all settlements, in the Russian Federation - about 64%.
In the modern economy, the entire system of cashless payments is divided into three levels:
Settlements of resident non-financial entities within the national economic system;
Interbank settlements;
International settlements of non-financial non-resident entities.
Each level implies its own methods of regulation, its own legal framework and control apparatus. But they have one thing in common - a bank, an institution that makes these payments.
In order to implement this function, commercial banks open accounts for their customers and transfer funds. A significant place in transfer operations is occupied by funds that are in demand deposits, and they are used more efficiently; improving the calculation technology; business clientele seeks to use their funds more efficiently.
A necessary condition for the implementation of this function of the bank is the obligation of all legal entities, regardless of organizational and legal forms and scope of activity, to keep free cash in banking institutions. Funds are placed on contractual terms, including the observance of the interests of both the account holders themselves and the credit institutions that open these accounts.
Write-off of funds from the client's account is carried out by the bank only by order of the owner. Without the consent of the payer, funds may be debited only in cases provided for by law or a separate agreement concluded between the bank and the client. Banks cannot restrict the rights of the account holder to dispose of the funds on it and interfere with the contractual relations that develop between other participants in economic transactions. Members business transactions has the right to independently choose the form of non-cash payments and reflect his choice in the contracts concluded.
Banks are required to make payments in deadlines, in strict accordance with the concluded agreements and instructive and regulatory documents in force on the territory of the Russian Federation.
Clients are interested in the bank taking over the execution of all payment transactions, since the concentration cash transactions in banks, it reduces the corresponding costs, speeds up settlements, increases the reliability of payments, and allows improving the technology of their maintenance. For this, they introduce electronic systems settlements, plastic cards are introduced, correspondent accounts are opened. Commercial banks have a special role in the payment mechanism of the economy - only they can maintain accounts to which current incomes and receipts are credited, and transfer current expenses from them for firms, individuals and the state. Efficiently functioning mechanism provides savings in distribution costs.
Commercial banks carry out clearing offsets using the clearing systems of large banks with a large number of branches and branches. In some countries, such as Germany, a giro system is used for this purpose, which, along with commercial banks, includes central banks, the so-called giro centrals, as participants in settlements. The system of electronic payments - electronic money - is developing. Centralization of payments in banks helps to reduce distribution costs.
The function of creating means of payment appeared in commercial banks due to the development credit money, the withdrawal of gold money from circulation and the transformation of bank emission into deposit and check, which made it possible to expand non-cash circulation and reduce the issue of banknotes.
If the client brought a certain amount of money and instructed the bank to credit it to his current account, then total amount money will be constant. Changes will occur in terms of an increase in the volume of cash balances in the asset balance, in liabilities, the deposit will increase by this amount. There will be a transfer of money from cash to non-cash. If the borrower received a loan and the bank credited it to the client's deposit account, then in this case the total amount of money increased by the amount of the loan. This happened because the bank, in the process of lending, created new means of payment, i.e. money. However, he can destroy them. For example, if the repayment of a loan by borrowers is carried out by writing off money from their deposit accounts, then in this case the total amount of money is reduced.
With the growth in demand for credit, a modern mechanism based on non-cash deposit and loan emission of banks expands the volume money supply, which allows you to freely carry out the growing number of business transactions due to the growth in production volumes. Bank customers have the full right to dispose of the funds created in the process of lending by banks: send them, pay for purchases or transactions, etc. At the same time, the total amount of money in economic system increases by the amount of the loan. The Central Bank cannot monopolize the issue of non-cash means of payment, it only regulates its scale by setting the norms of required reserves.
Banks issue checks, bills of exchange, plastic cards, create money in non-cash form in the form of bank deposits.
The goals of the banking system are to ensure that the amount of money in circulation matches the needs for them, to maintain normal economic growth rates and a high level of employment. However, the economy needs necessary, but not excessive, cash flows. If the amount of money in circulation increases, then inflation rises, and vice versa. In this case, the central bank limits the creation of money by changing the value of the money multiplier.
In addition to 4 fundamental functions, an additional one is often singled out - the function of organizing the issuance and placement of securities. It is carried out through investment transactions and is of great importance in an elastic credit system, which is necessary condition to maintain relatively stable economic growth rates. When bank loans are unavailable, expansion of production becomes impossible or will be delayed until the necessary funds are accumulated. Furthermore, industrial enterprises will be forced to hold large amounts of money, which is uneconomical, so commercial banks organize the sale of securities on the securities market, and this makes it possible to redistribute funds. The expansion of the importance of this function has led to the fact that banks since the 20s. 20th century become direct competitors stock exchanges through which the bulk of retail sales of securities are realized.
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