The innovative development of the banking sector of the regional economy
Isayeva P.G.
Russia, Dagestan State
University
Public policy of
the development of the regional banking sector still has certain shortcomings which
are negatively impact on the innovative development of specific sectors of the
regional economy, in particular:
- the interests
of the banks do not always coincide with the economic interests of corporate
entities;
- the majority of
enterprises in the basic sectors of the economy are experiencing crisis and are
unprofitable.
In whole the
situation in the region is such that the activation of crediting of the real
sector of the economy comes in conflict with the task of maintaining the
financial stability of the regional banks.
The reason lies
in the state's economic policy. The state did not create the conditions under
which commercial interests of banks would coincide with the interests of
various sectors of the regional economy.
Elimination of
contradictions in the interests of the banking system and the real sector of
the regional economy requires significant adjustment in the state's economic
policy. Such adjustments are possible only after a fundamental analysis of the trends
of the development of regional banking systems and determination of the causes
of existing shortcomings.
It should be mentioned
that the regulation of banking activity through taxation is not fully implemented
on the regional level, but only in that part of the income tax which comes to
the budget of the territory. Such distribution of authority does not allow
timely and accurately regulate the activity of the regional banking sector, as
the problems of the development of the banking sector on the regional level in
general and particularly on the level of specific territories cannot be
interpreted at a macro level (Fig. 1).
|
Federal
level of banking
system regulation |
|
®
|
The
establishment and state registration of commercial banks |
|
|
®
|
The
state's participation in the authorized capital stock of the bank |
|
|
|
®
|
Determination
of the minimum amount of capital |
|
|
|
®
|
Licensing
of banking activity |
|
|
|
®
|
Rules
of banking operations |
|
|
®
|
®
|
Regulation
of accounting and accountability |
|
|
|
®
|
Reserve
Requirements |
|
|
|
®
|
Refinancing
of regional banks |
|
|
|
®
|
Exchange
control |
|
|
|
®
|
Creation
of surplus funds |
|
|
|
®
|
Implementation
of obligatory economic standards of banking activity |
|
|
|
|||
|
Regional
level |
®
|
®
|
Taxation
and tax regulation of banking activity |
|
®
|
The
state's participation in the authorized capital stock of the bank |
||
Fig. 1. State regulation of banking activity[1]
Figure 1 reflects
the existing layout of the mechanism of the state control of the banking
activity in Russia.
The analysis of
the layout of the state control of the banking activity has allowed us to
conclude that the state control of the regional banking system currently is
carried out mainly on the federal level; regional authorities can influence the
activity of the banking sector only through taxation and through participation
in the authorized capital of the regional banks.
Basing on the
study of legal forms of banking organization it is necessary to make the
following conclusions that the existing distribution of authority slightly
hampers the process of efficient and quality control of the regional banks
activity, especially in such important directions as:
– establishment
of resource base of the regional banks;
– prevention of
capital flight to other regions;
– development of
credit and investing activity;
– strengthening
the level of capitalization in the banking sector of economics, and others.
This process can
be completed by implementation of such a control mechanism that can ascertain
the number of bad banks and identify investments of the Bank of Russia and the
Government in the fund of bad banks and others.
The level of
interest rates of the Central Bank makes definite impact on the functioning of
the regional banks and on the sphere of application of bank’s fund. When the
discount rate is higher than the level of profitability of basic sectors it
becomes a factor of decrediting economy and enterprises lose access to cheap
credit as the real interest rate for bank credit subject to inflation becomes 2
or 2.5 times higher. Under such circumstances only the highly profitable
companies which produce excisable goods can take advantage of medium-term and
long-term bank credit.
These factors testify
that the Government's and the Bank of Russia policy has principally the same
goal, i.e. to restrict the money supply, and almost does not regulate the
actual banking. Reserve requirements and other standards cannot ensure the
integration of the banking sector in the economy of the regions as a system-forming
segment.
Thereby, it
should be noted that a significant improvement in the socio-economic status in
the regions could become only on the basis of positive changes in the banking
sector, i.e. subordination of the banking sector to the needs of the real
economy. It requires the state not to dissociate from participating in the
management of banking activities in the hope that new market mechanisms will
align the position and remedy existing deficiencies. According to the
experience of the past and present years, that have not yet become, on the contrary,
the financial and the banking crises which broke out one after another clearly showed
the shortcomings of the banking sector.
REFERENCES:
1. Borodin A.F. The
role of the banking sector in providing the sustainable growth of the economy.
Money and credit. ¹6. 2003.
2. Vissarionov A.
The features of state regulation of the market economy (problems of theory and
practice of management). M.: 2009. - P.349.
3. Il'yasov S.M. Improvement
of the management of credit and financial flows in the region. - Makhachkala: DGU, 2009. Pages.
132-145.