Elements of banking systems. Banking infrastructure

The successful development of the economy of most countries in the world depends on the effectiveness of the banking system operating in the state. What is its specificity? What are the elements of the infrastructure of the corresponding system?

What is a banking system?

Let us study for the beginning the essence of the terms in question. By the banking system is understood the totality of financial institutions - banks and other credit organizations operating in the jurisdiction of a state. Corresponding elements of banking systems are classified into 3 main categories:

• National banks;
• Commercial credit institutions of federal level;
• Local financial centers (open in the regions, municipalities).

It can be noted that in most modern states, including in Russia, 1 national bank has been established. In our country, the corresponding function is performed by the CBR. In turn, commercial credit institutions in the state can be very much. But what is the essence of both types of financial organizations, and also the specifics of the functioning of these elements of the banking system? Let's study this issue in more detail.

What is a national bank?

Let's consider who is in charge of the country's gold and currency fund. The National Bank, or the Central Bank, is the key organ of the financial system in the economies of most countries of the world.

Its functions are mainly regulatory. They are most often related:

• With the issue of the national currency;
• With the implementation of credit policy;
• With provision of settlements initiated by various subjects of financial legal relations;
• With the implementation of supervision over the activities of non-state credit institutions;
• With the refinancing of loans;
• With the disposal of the state's gold and foreign currency reserves .

The noted functions of the Central Bank characterize the activity of the Central Bank of the Russian Federation. It can be noted that the main Russian bank is state-owned, but it is characterized by a sufficiently high degree of independence from other federal structures.

There are mainly central banks. Such financial organizations include the US Federal Reserve. The capital of this institution is formed from contributions paid by commercial banks. Let us consider the specifics of this type of financial institutions in more detail.

What is a commercial bank?

Along with the CB, another key element of the banking system is a commercial bank that is legally independent of the authorities of the country (but at the same time the state is allowed to own assets of the relevant credit and financial institution). Anyway, the bank should be independent in part of making decisions on money management.

The appropriate type of institution provides various financial services. A commercial bank is an element of the credit and banking system that:

• Provides loans to citizens, organizations, budgetary structures, sometimes other banks;
• Refinances loans;
• Carries out various transactions, for example, on payments from some individuals and legal entities to others, transfers to the budget system in the form of taxes and fees;
• Gives an opportunity to place deposits;
• Promotes investment in various assets.

The Central Bank, as we noted above, performs a function related to exercising control over the activities of commercial financial structures. Thus, the activities of the latter are sufficiently strictly regulated. As a rule, the commencement of work of a commercial bank is possible only if there is a license issued by the Central Bank, as well as subject to successful passing of inspections by the main credit and financial institution of the state.

We will now study in more detail what the characteristics of the elements of the banking system, considered by us, are. First of all, it is useful to pay attention to their functions in relation to the Russian economy.

Functions of elements of the banking system in the Russian Federation

In Russia, there are all the basic elements of banking systems: the Central Bank, commercial credit institutions of federal scale, as well as local financial structures. The main organization that has the largest range of powers is the Central Bank of Russia. We designated its main functions. Among these are the implementation of the issuing policy, the currency regulation of the economy, the regulation of financial relations, the establishment of legal norms and standards for the activities of private credit organizations.

The following key structural elements of the Russian banking system are federal private credit and financial structures. Among them are the largest brands, such as Sberbank, VTB, Rosselkhozbank. Their functions are to make key decisions in the banking sector of the Russian Federation, primarily related to lending and servicing of the largest enterprises, budget system institutions, and international projects.

The largest federal brands may have regional representations that operate in the subjects of the Russian Federation and municipalities. In addition, regions may have their own financial institutions that are not subordinate to federal structures. These organizations perform local functions. A regional bank, whether it is a representative of a federal brand or an organization created at the level of an entity or a municipality, accomplishes tasks related, in its turn, to lending and servicing enterprises and individuals that operate in the respective region.

It can be noted that in the constituent entities of the Russian Federation, the activities of the Central Bank branch also operate. They mainly solve the problems associated with servicing financial transactions of private banks, monitor the activities of local financial organizations.

Principles of the functioning of the banking system

Having examined the essence and elements of the banking system, we can explore the basic principles of its functioning. Experts determine their specific list. So, there are principles:

• Legal;
• Institutional;
• Functional.

Let's study their features in more detail.

Legal principles of banking systems

The basic principles of the corresponding type include:

• Standardization of financial transactions;
• Securing the secrecy of deposits and transactions;
• Protection of deposits and payments.

Standardization of transactions carried out by banks is based on the regulatory regulation of the activities of credit and financial institutions. Its main subject is, as we already know, the national bank of the country. He develops standards and rules, according to which federal and regional private structures should carry out operations.

Ensuring the secrecy of deposits and financial transactions is the most important principle through which the institutions of the financial system function. The client of the credit institution must have the right to ensure the confidentiality of information about himself, as well as his deposits and other transactions, for example, formed in the process of servicing the corporate settlement account.

The principle of bank secrecy is established at the level of official legal norms. In this case, we are talking about sources of law having the highest legal force. In Russia, those are federal laws. Thus, the principle in question is fixed in Federal Law No. 395-1, adopted on 02.12.1990. In the jurisdiction of this law are not only considered elements of banking systems, but also other entities that carry out activities in the financial sector. For example, the Deposit Insurance Agency, various audit structures.

Another important legal principle of the functioning of the banking system is the protection of deposits and payments of customers of credit and financial organizations. A person or organization that uses services provided by, for example, a particular regional bank, must be sure that their money in the form of a deposit or payment will be protected from unauthorized access. The way in which banks are required to ensure compliance with this criterion is also regulated by federal legislation.

In addition, the central bank of the state can issue normative acts in addition to federal sources, monitor the activities of credit institutions in terms of ensuring their security of deposits and transactions. This aspect of the functioning of banks is among the significant competitive advantages in the market. The client will prefer to apply to the credit institution that can ensure the security of financial transactions.

The main method of securing the protection of deposits and payments in banks is the identification of customers. There is a large number of technologies through which it can be implemented. Due to the active development of online transactions, the national bank of the state can pay special attention to this aspect of the relationship between clients and banks both in terms of monitoring the activities of private financial structures and in the aspect of regulating the work of the respective organizations.

Institutional principles of banking systems

The next group of principles for the functioning of banking systems is institutional. To such it is possible to carry:

• Two-level organization of management of the state's credit and financial system;
• Centralization of management of banking institutions of the country.

The first principle is enshrined, like many others, that ensure the functioning of Russia's financial system, at the level of federal legislation. It involves the classification of the RF banks at 2 levels: normative and functional.

At the first institutional level of the financial system is the Central Bank and subordinate regional structures. Its task, as we have already explained above, is to implement regulatory regulation of the activities of other credit institutions operating in the country. The latter, in turn, are located on the second level. They in practice realize the basic functions characteristic for banks: lending and servicing of the population and enterprises. Actually, we have also actually considered this aspect above, indicating how the elements of banking systems can be classified.

It is worth noting that the Central Bank of the Russian Federation also decides on important functional tasks. True, their essence in many cases is quite far from those that characterize the activity of credit organizations at the second level. Thus, the CBR lends to private banks, refinances them if necessary, registers federal, regional banks and issues licenses to them. These types of activities do not deal with commercial institutions. In the exclusive competence of the Central Bank of the Russian Federation there is also a solution of a number of problems that do not directly concern the functioning of the banking system. Among them are: inflation regulation, issuing, currency policy. These competences of the Central Bank of the Russian Federation refer, in fact, to the functional principles of banking systems. Let's consider their features.

Functional principles of banking systems

Among the key principles that are referred to in connection with the banking system of Russia:

• The monopoly right of the Central Bank of the Russian Federation for the issue of cash;
• The exclusivity of the credit and financial activities of organizations subordinated to the CBR.

Thus, due to the fact that only the CBR has the power to provide the economy of the state with cash, it guarantees the legitimacy and stability of the functioning of the banking system. This is also facilitated by the fact that the banking structures operating in Russia are exclusively engaged in activities on the profile, they work only under the laws that regulate financial and credit operations. The functioning of banks is carried out through the use of resources of a special infrastructure. Let's consider its specificity.

What is the specificity of the banking infrastructure?

Banking infrastructure is a set of legal norms adopted by the state authorities, social institutions that support the functioning of credit and financial institutions, as well as technological resources, through which various financial transactions are carried out.

The first elements include legal norms regulating the activity of the Central Bank and private banking organizations, administrative norms formed within the jurisdiction of certain financial institutions, local regulations adopted by specific financial structures at the level of departments and offices.

Key social institutions that support the work of the banking system of the state can be represented by:

• Authorities that manage economic processes at various levels;
• Educational institutions and personnel services, which are responsible for the training of competent specialists in banking operations;
• Research and expert organizations engaged in the study and optimization of various business processes at the level of the banking system of the country.

Technological resources that form the financial infrastructure can be represented by a wide range of solutions:

• Computers and software designed to handle banking transactions;
• Lines of communication;
• The main funds of banks - buildings, structures, vehicles.

All the subjects of the financial system of the state - in fact, the authorities, the Central Bank, private credit institutions - are interested in ensuring that the banking infrastructure is effective. The degree to which it is stable, functional and technological, largely predetermines the level of economic development of the country, the stability of partnership ties established between various economic entities. The banking system is of great importance to the state. Let's study this aspect in more detail.

The importance of the banking system for the state

So, we examined the basic structural elements of the banking system of the state, the specifics of the relevant infrastructure and activities of the main subjects of financial relations at various levels. What is the significance of this system for the country?

Banks represented at various levels, from the Central Bank to local credit and financial organizations, ensure the functioning of most of the economic legal relations in the state. The status of the bank has a limited number of financial structures. It is received only by those organizations that meet the criteria and requirements established by law. It is assumed that the credit institution will be able to issue loans, accept deposits and provide for their protection, conduct payments initiated by individuals and legal entities.

The banking system is among the key elements of the country's economy. The more stable it is, the more successfully the economy of the state will develop. Interaction of the elements of the banking system established by the competent authorities, therefore, involves the participation of citizens, enterprises, budget structures, foreign entities.

Financial relations are carried out in the economy in fact constantly. A person paying for a purchase in a store uses the products of the banking system - cash money issued by the Central Bank or a plastic card, which, firstly, is issued by a private credit and financial institution that operates in accordance with the norms of the law and the orders of the Central Bank of the Russian Federation, And secondly, it uses the acquiring infrastructure, which is managed by the same bank or partner organization. Sellers in this store pay for the delivery of goods from counterparties through a bank account in the bank, as well as through other payments in the form of wages, social charges, various taxes.

Thus, the elements of the modern banking system constantly interact with each other. Their functioning is regulated at the level of official sources of law, local sources. Elements of the credit and banking system work with the use of a special infrastructure, which is represented by a wide range of components. The state should be interested in the fact that the first functioned qualitatively. This means that it is in the interests of the authorities to ensure the successful development of the necessary infrastructure components of the financial system. Of course, in this case, we can also talk about involving private structures in this process.

Summary

So, we studied the key elements of banking systems, reviewed their basic functions, as well as the specific infrastructure that is used by them. The main of the corresponding elements in the economies of most modern states is the Central Bank. As a rule, it is endowed with the widest range of powers to issue currency, manage inflation, regulate the activities of another major group of elements of the banking system - commercial lending institutions. The latter also play a crucial role in the economy of the state, ensuring the conduct of various financial transactions involving citizens, organizations, government agencies.