1. CONCEPT of a banking SYSTEM
1.1. Essence of a banking system
The banking system as a beam part of a credit system on the formal organization both centralization represents the most skilful and perfect creation, in which generally results development of the economic attitudes.
Bank system — one from maximum reachings of an economic civilization. Invented and constructed by the person, she has embodied in herself the polyhedral most thin tool of effect through currency, money, notes valuable papers on social — economics processes, adjusting a structure, setting a direction of development and, main, skilfully supporting stability of operation of the money circulation, and by means of him(it) and all economy.
The uniform definition of concept «banking system in the economic literature does not exist. The elementary definition(determination) looks obvious enough: « the banking System is a population of banks and banking establishments performing functions, inherent to them» .
In the organizational plan provide one link or two links a system. The system including as a main, first link central bank, acting in a role of the organizer of the controller of the money circulation in country is characteristic two links of developed countries, and as the second link — independent, but under monitoring to central bank commercial and specialized banks. So that schematic two links the system looks as follows.
For want of one links to a system central bank and the business banks are at one level, acting by the equivalent agents, or all banks are state, branches of central bank. Such system is characteristic of countries with the underdeveloped economy and for countries with totalitarians a mode.
Point of view from the point of view of a regulation and the licensings divide a banking system into two kinds: universal and specialized. In a universal system the business banks have a possibility to execute all kinds of credit and financial services. An example of such universal system is the banking system Germanium. In a specialized system the different business banks are specialized on fulfilment concerning a narrow circle of operations. In the pure state such system does not exist, the banking system of USA is as much as possible approximate to it. The modern conditions of development of a banking system have reduced in necessity of transition from specialized to a universal system, as last conjugate with smaller bank risk thanking it to distribution and differentiation. The transition to a universal banking system happens in such countries, as Japan, Australia .
Core of a banking system are, naturally, the banks. If originally banks played a role of storehouse of money, then there was a significant extension of their functions, which become numerous enough and diverse, in many respects dependent from the status of banks in country.
Concept «bank has acquired a so general character, that it actually cannot be expressed by unequivocal definition. More full and inclusive definition can be given, only leaning on the list of functions of banks.
The modern banks are commercial organizations occupied with an accumulation of money resources, allotting credits, realizing money accounts producing in the circulation token moneys, conducting operations with valuable papers rendering various services of an economic character servicing the customers, performing diverse financial transactions.
In market conditions the bank can be considered as the enterprise, which яв-ляется by an independent managing link, has the legal rights, make a peculiar product of banking, sells it, renders financial services. The activity of banks is carried out on principles of recoupment, cover of the costs the incomes of realization of banking operations, bargains and creation of the certain profit.
By virtue of that that the bank does not concern to the enterprises of an orb of material production, and acts in an orb of exchange, it is accepted to consider banks as the trade enterprises. They as though «purchase resources) and «sell them, function in an orb of redistribution, promoting exchange by the goods. The banks have the sellers, buyers, storehouses, special stock of goods, their activity in many respects depends from оборачиваемости. But it the likeness between bank and orb of trade also limits. In trade the sold goods changes the proprietor, it careaves to the buyer, for want of proprietor of lent cost remains to bank trade former.
The operation of bank in an orb of exchange generates also other submissions about it of an essence. Quite often business bank is represented as intermediary organization realizing operations, by realizations, ensuring a possibility, of the bargains with allowance for supplies and demand. By such intermediary the bank acts when it takes money from legal and natural persons and directs them to other faces. In this intermediary role the bank simultaneously acts both as the borrower, and as the creditor. It as well the intermediary in money accounts. Similar activity is lawful to refer to an orb of rendering of services.
The business bank can act as the agent of exchanges occupied with security trading. Banks too realize exchange transactions and trade valuable papers, making an essential competitiveness to stock exchanges. However neither historically, nor logically it does not convert bank into a part of exchange organization. The security trading becomes only one from operations of banks, and not main. So, the operations with valuable papers were by a completely new moment in activity of banks of Russia. Earlier, before transition to market economy, the capital market in Russia actually was not .
Speaking about bank as the credit enterprise, it is necessary to mean, that the bank is connected not only with credit, but also to the money attitudes. On their basis also engender such unique formation, as it is possible to define bank, which in this sense as the special enterprise occupied in credit and issuing business. Accordingly, as an essence of bank, it is possible to consider it a basis organization of money-credit process and emitter’s of token moneys.
In an outcome of the analysis of different kinds and parties of banking we come to follow, full enough definition: « the Bank is special economic institute, heat-sink money resources allotting credits, conducting money accounts realizing issue of money valuable papers, intermediary in mutual payments and accounts between the states, enterprises, establishments and separate persons » . Clearly, as this definition it is impossible to consider comprehensive.
1.2. Kinds of banking establishments
In market economy the various banking establishments function. Their classification on indications of a pattern of ownership and character of activity is most accepted.
On a pattern of ownership the banks can be state, private, joint-stock, cooperative, municipal, mixed uding and international.
National bank — credit institution were in the property of the state. Distinguish three kinds of national banks: central banks, state business banks and state special credit institutes. The state business banks ensure realization of policy of the state in the field of crediting economy, render influence to investment, intermediary and settlement operations, and through them and on an economic condition of clientele. Their fixed capital is state. The state special credit institutes serve major, branches of facilities, defining position of country in a system of the international economic relations, which crediting is unsufficiently favourable to the individual capital. They ensure a solution of current and strategic problems, stimulate capital investments, foreign trade expansion, realize regulation; The agriculture, carry out state regional policy (investment banks, Export-Import Banks, banks for crediting an agriculture etc.). Besides in majority of western countries the state posesses also savings cash departments .
In a basis the modern banks are joint-stock banks, which capital is formed in an outcome of sale of the own shares. Such form of the property is progressive, as enables extensions of bank by means of additional engaging of money resources at the expense of issue of the shares, creation of an ownership capital.
The cooperative banks, which capital will be derivated for the invoice the shari’s паевых of the instalments of the members of such cooperative society, now meet rather seldom, that is connected to the limited sizes of the capital involved with a similar method.
Municipal name banks based on the urban, local capital, or cities, were in management. A main problem of such banks is the service of needs of city in bank services.
The capital of international banks makes a population of the capitals of different countries. An example of such bank are World, or World), bank, International bank for Reconsruction and Development.
If to try to group together a system of banks on a character of economic activity, it is possible to select: issuing, commercial, specialized banking establishments.
The issuing house is a bank realizing issue of token moneys, notes being centre and the governor of a banking system. More often in a role of an issuing house the central bank of country acts. Such bank takes the special position in economy, as it, in essence, is «banker’s bank».
The business banks represent credit institutions, which realize credit and accounting service of industrial, trade and other enterprises, organizations, and also citizens. The money resources they attract as the contributions, deposits or obtained on the part of the credits, for example from central bank or from other banks, on conditions of the payment for these involved extra resources. Besides the business banks use own money resources.
2. ECONOMIC ROLE of BANKS
2.1. Role of central bank in a banking system
Let’s consider a maximum, first level of a banking system, namely central bank, it a role and place in a national economy. Central bank — more often national bank, though in some countries it is commercial, joint-stock bank, where by the main shareholder the state (for example, Swiss bank) acts. The special structure there is a central bank of USA called FRS (a Federal reserve system), consisting from 12 regular central banks. In Russia Central bank — state. The primal problems Central bank consist in realization of policy of the state in the field of the money circulation, credit and accounts, maintenance of a stable buying power of monetary unit, regulation and monitoring of activity of business banks, storage of gold-value reserves .
The regulation of volume and structure of a money supply in circulation is carried out Central bank by a modification of volume of credit resources, granted banks, purchasing both sale of valuable papers and foreign exchange named Operations in the open market. The central bank installs and changes norms of mandatory reserves, which business banks should keep in Central bank, carrying out policy of is minimum allowable reserves. The main bank of country renders a control action on the bank interest rates under the Credits, installing the so-called rate, on which it allots credits. The rate affects interest rates, on which issue the credits banks of the second level.
The central bank will organize accounts between business banks through the correspondent accounts, which are opened by these banks at cash centre (RKC) of Central bank.
The central bank posesses the exclusive right issue in the circulation and retirements of token moneys. In this connection it will organize manufacturing, carriage and storage of token moneys, creates their surplus fund and determine the order of a replacement of the damaged token moneys, realizes an erasure of out-of-date token moneys, and also installs indications payment’s of money .
Regulation and monitoring behind activity of business banks the Central bank realizes at all stages of their activity, beginning from licensings and finish deprivation of this or that business bank of the license on banking.
With the purposes of maintenance of stable work of business banks and guards of interests of the creditors the Central bank installs a number of the mandatory spefications of activity of business banks. Into number of such spefications enter minimum; a size of the authorized capital, limiting parity between a size own; means and sum of assets of these banks, parameter of liquidity of balance, size of mandatory minimum reserves, which are placed by business banks in Central bank, and also extreme allowable sizes of risk on one borrower. The business banks are obliged to grantive the financial reports and financial documents to Central bank .
The central bank realizes the following extensive circle of operations: it grantive the credit to government on principles of promptness, payment and reflexivity within the limits of those limits, which install legislative organs; issues the credits to other banks for the term of under the agreement, purchases and sells the bills, and also valuable papers produced by government, allot credits for the term of, under the lien of the bills valuable papers; purchases and sells a foreign exchange and payment documents in a foreign exchange, which exhibit russian and foreign banks; participates in domestic and foreign credit organizations (as such participant it can invest means both in domestic, and in a foreign exchange); installs an official rate of rouble to monetary units of the foreign states; realizes settlement and cash service of the state, business banks and, by way of an elemination separate organizations .
All these operations correspond to activity. Central bank as issuing, credit and financial settlements centre of country.
Being by «banker’s bank and organizer of all credit system in country the Central bank, certainly, has the right for want of detection of violations by business banks of the established spefications of their activity to apply appropriate measures of effect. So, in case of systematic violations the spefication of default of the instructions concerning terms and conditions of realization of bank operations, for want of rendering, totals of a year with the losses, for want of origin of a position, which threatens to interests of the customers of a business bank, the Central bank can put a problem before the founders of a business bank about financial improvement of bank, about it of reorganization and even about full liquidation of such bank. As the sanction for want of approach of circumstances stipulated above, the temporary administration on management of bank on period of financial improvement can be appointed.
The central banks are a regulating link in a banking system, therefore their activity is connected to solidifying of the money circulation, guard and maintenance of stability of national monetary unit and it of a rate in relation to foreign exchanges: in development and solidifying of a banking system of country: by maintenance of an effective and uninterrupted realization of accounts .
The regulation of a money supply in circulation concerns to regulating function. It is reached by reduction or extension of cash and non-cash issue and realization дисконтной of policy, policy of minimum reserves open market, currency policy.
The inspecting function is closely connected to regulating function. The central bank receives an extensive state information of this or that bank for want of realizations, for example, policy of minimum reserves or rediscount’s. The inspecting function includes definition of the correspondence to requests to qualitative structure of a banking system, i.e. procedure of the admission of credit institutes on the national bank market. Besides here concern development of a gang of economic factors, necessary for credit institutes, both norms and monitoring behind them.
In all central banks is inherent the function, informational& — investigates, Function of research, informational — statistical centre. For want of it in many countries this function is marked in the legislative order. So, the German federal bank is obliged to give if necessary recommendations to federal government, and also to supply it with an information about development of a credit system.
The informational — research function of central bank assumes also consulting activity. By way of information exchange, and also with the purpose of consultations the central banks carry out(conducted) meetings, conference, including at an international level. The functions of central bank are frequently interlaced, other follows from one, if it is required by reaching an object in view or solution of any certain problem.
The central bank should build the work so that the realization of uniform policy of the state was supplied in the field of the money circulations of the credit, accounts.
2.2. Activity of business banks. Functions of banks
The business banks serve the enterprises, organization and establishment, as the natural persons and represent itself representatives of the second level of a banking system.
The banking is a mobilization of money resources for economic construction, concentration temporarily of free means for their industrial use. More full definition reflecting contents of banking, can be represented in performance of main kinds and purposes of this activity. Problem of business banks includes granting cash, payment, investment and insurance services ensuring to the companies to firms financing of an industrial or trade cycle, reaching of their current and strategic problems, warranty of long-term operation. To the individual customers the business banks ensure daily effective and reliable credit and financial service promoting reaching of the long-term individual purposes. The interaction of business banks with Central bank enables realizations of systematic monitoring for condition of a financial system of country. Besides the business banks will be presented by itself by one from tools of realization by state organs, government of effective economic policy .
The banking is exhibited in fulfilment of the certain functions, into which number enter: organization of a non-cash turn-over and cash -money dialogue, crediting of facilities(economy), financing of capital investments and overhaul of permanent assets, accumulation of means for crediting and financing, cash performance of a public finance, organization of the savings of the population.
The important function of business banks is the issue of means on investment financing on behalf of the holders and managers of these means. The banks can also issue the payment documents valuable papers, checks, bill, share, bonds, letters of credit, to purchase, to sell and to store payment documents and valuable papers, to issue the guarantees, warranty behind the third faces, to acquire the right of a call for supply of the goods and rendering of services, to accept risks for want of performances of such requests .
The business banks can also realize currency transactions, purchase as inside country, and abroad precious metals, stones, item from them.
At last, they execute various commissions of operation, including for want of — accept and place means, realize management of valuable papers on deriving the customers and render consultation services in problems of management of operations in bank, organization of crediting and on other interesting the customers of bank to problems.
The business banks, being by the constituent of a uniform banking system, should ensure with credit resources of the customers and program of socio economic development of country, region to promote development priorities of branches of economy.
The business banks organized on the basis of membership, act in the correspondence with the laws regulating organization and activity of joint-stock companies and other economic companies.
For want of consideration of activity of business banks it is necessary to distinguish the founders of banks and their participants. The founders are legal and natural persons creating, organizing banks and participating in them by the means, that is having paid means in creation of the authorized capital of bank. And the participants, customers of banks are legal and natural persons, which store the means in these banks, that is keep the contributions, the deposits realize through bank various money operations. In structure of the founders there can be other banks, enterprise, organization, citizens. The foreign founders can be the foreign legal persons and separate citizens .
The customers of a business bank should be sure that a credit organ, where they store the means and through which they realize various money operations, is strong, financ stable and that the guard of their interests is supplied. The business banks save secret on operations, accounts both contributions of the customers and correspondents.
The various business banks realize banking operations. On the contractual beginnings they can attract and place each other money resources in the form of the deposits, receive the credits and make other mutual operations. For want of defect of resources for crediting the business banks will convert behind deriving of the credits in «banker’s bank»- Central bank.
The business banks completely are independent in realization of credit policy, but they have no the right of money-credit issue and issue of the credit only in limits of the really involved resources.
The mechanism of creation of credit money name as a money multiplicator. The magnitude of a multiplicator is equal 1/r, where r — norm of mandatory reserves.
The policy of regulation of norm of reserves represents the high-power tool of monitoring, realized through Central bank, of the state behind volume of the bank deposits and cumulative credit money mass. As the state has a necessity to constrain process of crediting in country Central bank increases in this or that measure of norm of mandatory reserves, owing to what cumulative bank money is reduced .
Corollary of such policy will be compression, diminution of the cumulative credit. It conducts to a diminution it of availability because of growth of dearness. The norm of bank credit percent both for the businessmen, and for the population for want of it increase, the private) and state investment is reduced.
In case if the economic situation in country is characterized by depression and the state is interested in revival of enterprise activity, the Central bank can go on decrease of the interest rates under the credits and norms of mandatory reserves for business banks. These measures call magnification of the deposits of banks. The growth of a money supply in a commercial web is exhibited in cheaper credit money. Accessible the credit, low interest for the loans, bonds and mortgages is created by favorable conditions to the potential investors (businessmen, government, population) for a realization of the investments in production, social orb or purchasing by installments of durable subjects .
However excessive dagging with similar measures threatens by surplus of a money supply unguided rise in prices, inflation.
One more high-power tool of regulation of a money supply — operation of Central bank on « the open market ». Such operations are closely connected to operation of a capital market. Purchasing or selling state valuable papers (percentage state bonds) in their market, the Central bank can hold down or release credit resources of business banks. If the state wants a little to reduce inflation, to contract a free money supply, the Central bank can «throw «out» on the open market the certain amount of the state bonds with the purpose of an abstraction on their purchasing of free money. The market price of the bonds will decrease, the yield till a Nim will be increased, and it becomes more favourable to the investors with allowance for of incomes through the coupons to purchase the state bonds, than other valuable papers,say, shares. Thus, the means of the investors will be connected, including connected there will be also bank money, that call a chain response in all banking system. But it is natural, Central, the bank should in consequent pay percents on the bonds and then to redeem them, that will require additional charges of the budgetary funds. So that эмир сия of state valuable papers is without inflation only temporarily.
For want of all unity of an essence of bank in practice the set of their kinds functions.
Distinguish first of all commercial and issuing houses, which functions will be considered further. Except for commercial and issuing among banks also it is possible to select specialized financial establishments (savings, mortgage banks etc.) which functions does not follow, under my judgement, to give of the special attention as datas of organization are only narrowly specialized. As a matter of fact they профилируются on fulfilment of those or other functions of business banks. The business banks are universal.
The business banks in economy execute the following functions.
Engaging and accumulation temporarily of free money resources. The banks concentrate a significant part of accumulation, forming in facilities and savings. The moneys, introduced in a credit institution, bring to the investors the income as percent. Under the current accounts percent is not paid, instead of it the bank free of charge executes for the customer diverse services in transfer and payment of money. The bank promotes fulfilment of function of the credit on transformation temporarily of free money capitals and accumulation in the loan capital .
One from the important functions of a business bank is the intermediary in the credit. Function of intermediary in the credit the banks realize by redistribution of money resources temporarily freed in process a full turn-over of funds of the enterprises and the money incomes of the private persons. The feature of mediatorial functions of business banks is, that by a key factor of redistribution of resources the profit of their use by the borrower acts. The redistribution of resources realizes on a horizontal of economic relations from the creditor to the borrower, by means of banks without sharing of intermediate links on benalf of higher bank structures, on conditions платности and reflexivity. The payment for separate and obtained on loan means is formed under influence of a supply and demand of extra means. In an outcome the free transition of financial resources in economy appropriate to a market type of the attitudes is reached.
Major function of banks is also inducing of accumulation in facilities. The realization of structural reorganization of economy should lean on use mainly and first of all of internal accumulation of economy. They, instead of foreign investments should make a main body of means which are necessary for reforming of economy. Between that all it the preceding development did not create at the direct manufacturers and other subjects of economic life, including the population, sufficient stimulus to the savings and accumulation of resources. For the enterprises of a proportion of distribution of the obtained incomes on a consumed and stored part were installed order by planning. For want of low level of the incomes of the population it the propensity to accumulation is on a low level, and lost balance of the consumer market has lowered this level up to a minimum mark.
Function of regulation of a money turn-over. The banks act by centres, through which passes a payment turn-over of the various economic subjects. Due to a system of accounts the banks create for the customers a possibility of fulfilment of exchange, turn-over of money resources and capital. The regulation of a money turn-over is reached also by means of emitter of legal tenders, crediting of needs of the various subjects of production and circulation, mass service of economy and population. Therefore it is possible to make a conclusion, that the given function will be realized by means of a complex of the operations recognized bank and fixed for bank as by money-credit institute, fixed .
Consultations and granting of an economic and financial information. The banks concentrate at themselves informations общеэкономического and financial character representing interest for the enterprises. The banks grantive a diverse exchange and financial information, frequently of confidential character, first of all to enterprises connected to them by a generality of interests, financial узами.
2.3. Role of banks in market economy
Essence and the functions of bank determine it a role in economy. It is necessary to understand a role of bank it purpose, what it arises for the sake, exists and develops. As well as the function, role of bank is specific, she addresses to economy as a whole, to bank irrespective of, to what type it belongs (issuing either commercial, savings or investment and Item).
Business bank — objectively necessary element in a general system of the subjects of managing in market economy.
The feature of bank as managing subject of market economy is, that it purchases and sells the special goods — money. Money does not grow out of a transactions and consequently quite often are named in western economic literature as the fictitious goods.
Popular belief however is wide that the banks « trade money », is not an actual reflection of a documentary structure of the bank market.
Really, the business banks constantly work with money. At the same time in majority of the bank bargains money only executes one from functions, intrinsic by them, acting either as a medium of circulation, or as a means of payment etc. In these bargains money is not direct object of a sale and purchase. You see the act of purchase of sale of any material object assumes, as we were convinced from all preceding analysis of the market attitudes, change of the proprietor of material object, or else, transfer by the seller to the buyer of the right of possession, use, order by the purchased object .
The today’s practice of a business bank testifies, that as direct object of a sale and purchase money acts extremely seldom. The sale and purchase of money for want of exchange of a foreign exchange, and also sale and purchasing of precious metals and other material objects concerns to number of such rare cases.
Basis commodity of the bank market is the service. Quite often in the domestic economic literature concept bank facility identifies with concept banking operation, though these two concepts and interconnected, but their significance variously.
Taking into account that the bank functions in an orb of exchange, it is necessary, first of all, purpose and influence to economy for considering through the given orb. The purpose of bank is, that it ensures:
Ordering and rationalization of a money turn-over. As it follows from function of an accumulation temporarily of free resources, the banks are the collectors temporarily of free money resources for their consequent direction to those managing subjects, which require additional appropriations. Assembled on крупицам temporarily free money resources as the small-sized money streams turn with banks to huge streams of money resources. Their concentration, direction on sufficing of needs of production and circulation over sources, being available in their order, makes major attribute of their touch and interactions with an economic medium. Concentrate by banks of money resources, their consequent redistribution enable not only to support a continuity of production and circulation of a product, but also to speed up reproduced process as a whole .
The transition from the primitive methods of payments used ancient backing’s by houses, to organization of accounts on basis of modern electronic webs enables economy to speed up time of the circulation, to expand economic relations between the coomodity producers. The banks become integral attributes of modern economic life. Without their assistance it is impossible to present activity of the enterprises, their associations separate legal persons and citizens.
The ordering and rationalization of a money turn-over reaches not only owing to accounts organized by bank, introduction of the most perfect and economic forms of payments, but also by means of more rational use of resources of the enterprise. On money resources located in bank, enterprise and the citizens can receive certain percent on the contributions, charge-free other services. As a whole banks can execute on behalf of the customer work on management of money and material means. Money were in bank, is not simply stored on the accounts, they make full turn-overе, permitting to receive additional profit, both their holders, and credit institution .
It is important to consider banking not only on itself, but also in coordination with общеэкономическими by parameters. Bank, working in an orb of exchange, not отгорожен « by the Chinese wall » from a national economy, воспроизводственного of process as a whole. It is impossible to present it a role, therefore is isolated from influence to economy as a whole, how the banks, grantiving the product, help facilities in it development. Would be, for example, problematic to consider a role of bank from an item only masses of legal tenders granted on macro and micro levels. Size of the money, manufactured in the circulation, testifies only about operation, executed by bank, without which the exchange would not be held, the course of production and circulation of a product was slowed. Issue of legal tenders — important performance of banking. However from an item of an evaluation of a role of bank here hardly it is possible to put a point. Emitter of legal tenders has, at least, two parties: Their mass renders huge influence to stability of monetary unit and on efficiency of production and circulation of a product .
The banks can see and that the artificial constraining of a stream of money resources necessary for exchange, can call difficulties in payments. So, in Russia in the beginning 90 yy. Printing of money, their issue in the circulation lagged behind needs of a cash-money turn-over, calling delay of payment of wages to the workers, deriving of pensions and allowances. By one from the reasons неплатежей between the enterprises in the high inflation environments and depreciation of their capitals acted (alongside with other reasons) lag of issue from needs of a money turn-over, in practice resulted in suspension of production, curtailing of production of the certain industrial products.
The stability of monetary unit, correspondence of its mass to needs of a national economy is a major parameter of the balanced money policy of banks, major component, as far as the activity of banks answers their purpose in economy. Banks, though work, as it mark earlier, in an orb of exchange, but not for the sake of its as such, last is inseparable from production, distribution and consumption of a public product. The role of bank reproduced on a macro — economic level, can not be, therefore is uncovered in a full measure disregarding of its effect on economy as a whole. The bank, being institute of exchange, works not only on him, but also on ultimate goals of the consumers of bank services .
The influence of a role of bank on общеэкономические parameters is possible to trace on an example it of activity in the field of crediting economy. Volume of this activity does not give a full picture of purpose of banks. So, during economic crisises the need for the credits considerably will increase. The enterprises more often test acute financial difficulties, mutual not — payments for the most various reasons (marketing difficulty, default by government of the obligations on payment of the orders, insolvency of the debtors etc.) reach enormous sizes, call sharp magnification of need in the credit as a legal tender. In these conditions the full sufficing by banks of need of the enterprises in additional legal tenders would be error. The experience shows, that during economic crisises sharply will increase credit risks. The growth of the credits only is not accompanied by their adequate return, but, opposite, calls significant growth of overdued payments under the loans, results in growth of the losses from credit operations. In this connection during crisis the banks, despite of significant growth of demand on the credit, reduce volumes of the credit operations. The decrease of volumes of production is inevitably accompanied also by reduction of volume of credit investments .
The activity of bank on crediting a national economy contrary to the tendencies of production and market inevitably can undermine it of products both production, and credit basis basing on returnable movement of means. Models of an optimum parity between growth of production and growth of credit investments, assets of bank and share of the credits in it assets therefore are developed, the spefications of liquidity, proportion between the credits and deposits and are installed.. Their purpose consists in constraining of unjustified credit expansion, decrease is brave in banking. The qualitative party of a role of bank is reached here by means of realization of the balanced policy directed as on efficiency of production, and on efficiency of banking. Proceed, how the bank manages in practice to conduct such policy, in the end, and the outcome — is determined whether it executed the purpose in economy, whether there was a role of bank positive or negative.
For want of it is important to an evaluation of a role of bank to see and it public purpose. The bank from an item of the property represents inhomogeneous institute. The central bank is by the property of the state more often. Realizing the activity at a macro level, it(he) acts as national institute conducting policy not in interests of this or that region, this or that group of branches of a national economy or enterprises, and in interests of the state, nation as a whole. Acting for want of it as economic institute, the central bank does not put by the problem deriving of the profit.
On profit other level of a banking system — business banks more often acting as joint-stock, share, cooperative, banking businesses works. The public purpose of the given type of banks is exhibited in the sense that they work not for the sake of the own profit, and, first of all for the sake of the profit of their customers. It is not necessary to overlook, that the banks have arisen owing to the certain public interest — interest of facilities in operation of the special institute satisfying needs for payments and resources, safety of the capitals. . Was bom by interests of a national economy, the banks are initially obliged to realize activity in the correspondence with public interests. The attempt to conduct policy which is not adequate public needs and interests, always resulted in a falling of banks, their leaving from economic arena. At the command of the state always be tools, with the help of which the banks were deprived with the licenses, their activity of a gradually was contracted.
Business not only in that historical process, which determines public mission of bank. The bank, being one from the economic subjects of production, is «citizen of that country, that company, in which it lives and develops. The civil item of bank is free or involuntarily is always exhibited in it of activity.
The large effect on the given process renders usual mentality, submission of the bankers about public values and debt. The faster in consciousness of the bankers the philosophy of activity directed on sufficing of needs of their customers affirm the in the greater degree their positive role in public development has an effect. Important for want of it to not overlook, that the bank is not a political organ, and the economic enterprise, it can not attend to charities, by money of the investors it has no the right to cover the losses of the inconsistent borrowers. From all spectrum of needs of facilities bank as the public institute is obliged to select those from them, which for want of it to active support will allow to receive large profit, to increase profitability as enterprise — borrower, and.
So, the banks render specific services. First of all it is necessary to take into account, that the service always assumes availability of two subjects — the one whom serve (customer of bank), and the one who renders service. The service, therefore, expresses the attitudes between two parties or subjects of the market attitudes between representing a bank facility and it purchasing.
As to operation, one party — business bank here suffices, which executes those or other operations both connected with the external order, and realized inside bank outside of communication with the external order.
In that case service of a business bank can be determined as the banking operation realized on behalf of the customer for the benefit of the latter and for the certain payment.
The operations of business banks characterize « process of production » inside a business bank. The service represents one from outcomes of a realization of operations.
Number of operations the business banks execute not on behalf of the customers, and under the own initiative, proceeding from own economic interests (for example, form an own share portfolio).
One bank facility can call tens operations. For example, the simple discovery of the deposit account entails such operations as consultation of the customer, reception and recalculation of cash money, signing of the agreement of the bank contribution, the statement the saving’s book, issue of a plastic card, purely discovery of the account and transfer on him the sums of the contribution, deduction of mandatory reserves to central bank etc. Hereinafter under each account of the customer are made charge and payment of percents, and their sum is taken into account in the balance sheets. Also it is not all operations connected to realization of services. The bank should have a location equipped floor broker, to organize the advertising company etc.
More point speaking, the services characterize work of bank point of view;!from the point of view of the consumer (customer of bank), and operation — point of view;!from the point of view of the bank.
In the end services and operations concern to various orbs of a control system and are object of a research of various scientific disciplines: services — marketing, and operation — operational management.
From items of an economic theory, to a classification of bank services it is expedient to approach point of view; from the point of view of needs of the customers of a business bank.
The specific feature of bank services is, that they are called to satisfy not primary industrial and personal needs, and derivatives from them financial needs. In conditions of the market attitudes many needs are transformed to necessity of magnification of the present or future money incomes.
Proceeding from this the services of business banks can be divided into three main groups:
1) Services connected to financing of needs of the customers: issue of the credits in the money form; indirect crediting (leasing, forfenting’s, account of the bills, issue of the guarantees and warranties under the obligations of the customers);
2) Investment services: a reception and accommodation of money resources on the deposit accounts (current, urgent, savings); intermediary services in purchase and realization of valuable papers on behalf of the customer; an investment of means of the customer in actual assets — precious metals, art values, real estate);
3) Services connected to rationalization of a turn-over of financial assets of the customers: cash services; трастовые of service; consulting and other services .
With allowance for indicated classification of services in a documentary structure of the bank market can select) such it elements, as: the market of credit services; the market of investment services; the market of cash services; the market трастовых of services; the market of consultation services; the other markets (protection and transportation of values, insurance services, realization of the advertising companies and other).
As to banking businesses, the activity each from them as a whole consists) of passive and active operations.
The bank — equivalent subject of market economy and in the activity, as well as any managing subject, is guided by a principle « of a maxima of the profit at the expense of a minimum of costs ».
The business bank, as well as any managing subject, works in a competitive medium, testing pressure not only on the part of other banks, but also not bank structures: the insurance companies, loan savings of cooperative societies, leasing of the companies, pension funds, financial brokers, investment funds, трастовых of the companies and other, which render services, similar to banks. It is natural, that the more competitors, the above with other things being equal intensity of a competitiveness in the markets of bank services. With the purposes of increase of competitiveness the banks tend to magnification of a degree of differentiation of services, represented to the customer. The banking is traditional it is considered as a line of business with a high level of differentiation of the goods. Each bank tends to render the customers a set of additional services down to submission of the friendly loans.
In a russian banking the differentiation of granted services plays an essential role.
Thus, summarizing, it is possible to make the following conclusions.
Banking system today — one from major and integral structures of market economy. The development of banks both commodity production and circulation historically went in parallel and was closely interlaced. For want of it the banks, acting by the intermediaries in redistribution of the capitals, essentially increase a general efficiency of production.
The modern кредитно-banking systems have a complicated, spline structure. It is possible to select(allocate) three major elements of a modern credit system: central bank; business banks; specialized financial establishments (insurance, hypothecary, savings).
From an economic point of view from the point of view of the business banks concern to the special category of the business enterprises which have received a title of the financial intermediaries. They attract the capitals, savings of the population and other money resources freed during economic activity, and grantive them in temporary use to other economic agents, which require the additional capital. The banks create new requests and obligations, which become the goods in the money market. So, accepting the contributions of the customers, the business bank creates the new obligation — deposit, and giving the loan — new request to the borrower. This process of creation of the new obligations makes an essence of financial intermediary. This transformation allows to overcome complexities of direct contact men’s and borrowers originating because of an incongruity of the offered and required sums, their terms, yield, etc.
It is necessary to mean, that banks it is not simple storehouses of money and cash department for their issue and granting on credit. They represent the high-power tool of structural policy and adjustment process of economy realized by redistribution of the finance, capital in the form of bank crediting of the investments necessary for enterprise activity, creation both development of industrial and social objects. The banks can direct money resources, financial resources as the credits to those branches, orbs, regions, where the capital will find the best effective application.
Alongside with central banks, commercial execute also important function of regulation of the money circulation.
In a banking system the central bank is determined as main bank of country and creditor of the last instance. It is in a state ownership and the functions of general regulation of activity of each business bank are assigned to him within the framework of uniform денежно — credit system of country. The central bank is called to result their activity in the correspondence with the general economic strategy and acts by the key agent of a state monetary policy, for want of it on the part of central bank the economic methods of management and only on occassion administrative are used first of all.
Thus, the banks play the very important role in economy. Therefore it is necessary to begin from adjustment of a normally functioning banking system withdrawal from a crisis position usual at us in country. Now, in connection with shortage of the qualified frames and prompt growth of an amount of business banks in this orb there are poorly prepared workers, which have no special formation. It results in unsatisfactory work of banks and rushing them simply faster to earn money. Frequently banks issue the credits to the enterprises, at all not having checked up their competence. All this results in aggravation of an economic situation in country.
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