PhD student Olena Tarasenko
Chernihiv national university of technology, Ukraine
SCIENTIFIC APPROACHES TO STUDY THE DEPOSIT MARKET ESSENCE
In current conditions the efficient development of the state economy is not possible without appropriate functioning of the financial market. Scientists have empirically confirmed correlation between the level of the state economic development and its financial market development. That is why, issues of the investment processes activation in the country with the purpose to increase availability of the financial resources for business entities always come in interrelation with the financial market development as a separate macro system.
The financial market is also an abstract concept and contains definite set different by nature but combined by common peculiarities of other markets. The financial market, in our opinion, should be considered as a set of economic relations that arise between its participants (the sellers, the buyers) in the process of sale and purchasing financial assets on mutually beneficial base of their interests agreeing and needs satisfying.
It should be noted that majority of the scientists at the present moment don’t define the deposit market into the separate segment of the financial market, and in extreme case relate it to the monetary market which they consider as a separate element of the financial market. Such situation, first of all , is due by the conceptual approach introduction to identifying separate parts of the financial market on the base of their financial asset that is used on such markets by economic entities. In particular, cash flows in cash and cashless form take place on the deposit market, that’s why this market is related to the monetary market. However, as it is rightly said by Didenko I.Â., the deposit market can be called of the non official segments of the financial market. Such status the author assigned to it because by her words many scientists in general don’t define such definition as a separate market [2, ñ. 73].
Definition “the deposit market” by its context is produced on the base of synthesis of two economic categories ,,the deposit” and ,,the market”.
In general, the word ,,the deposit” is borrowed in the Western-European languages in the middle of the XVII century and means monetary deposit in bank on definite conditions. Primary meaning of the word in Latin : depositum – given to storage: de - from, movement from, aside ; the second part of the word - ponere – to put, to deposit, to state [1, c. 13].
Thus, the initial form of the context of the defined category was always connected with the flow of the specific amount of the financial resources for their further storing. It should be noted that such operations were conducted already in times of the ancient countries existence in the East, in antique Greece and in Rome. In other words, history of the development of the deposit operations starts its beginning from the times of the societies origin and states origin. Of course, in those times there were no separate financial institutions of the modern type that could provide deposit services, and the deposits were received by churches, individuals, money changers, etc.
Economical essence of the deposit which lays in the necessity to transfer the financial resources from one entity to the other was always fueled by two objective factors: for money owners – it is constant desire to get the additional income on behalf of providing own resources in use to other economic entities; for money borrowers – it is the desire to get the additional income on difference between the cost of raising funds and their value which was formed as a result of further use such funds.
In majority of cases the deposit is investigated through the use of the resource approach to this definition treatment. Essence of such approach lays in identification the content of the category through defining the main resource that lays in the base of such operations and actions which are explained and described by this category. In general, the deposits are considered as funds set, in other words the financial resources, the amount of money in different variations of their forms existence. In majority of normative-legal acts the resource approach is used to identify the deposit essence. However, there exist some controversies in their treatment, in particular among the scientific works. The majority of them note rather vaguely that the deposit are cash funds which are deposited to the bank by the clients, are stored on their accounts and are used in accordance with the concluded agreement and bank legislation. However, for instance Goncharov S.M. and Kushnir N.B. in the deposit structure define two positions: 1) cash funds deposited for storing into credit institutions under which the defined interest is payed to the investors; 2) securities deposited for storing into the credit institutions .
Thus, taking into account all the above mentioned and presented treatments we consider that the most appropriate is the following specification of the definition ,,the deposit”: the deposit – these are cash funds in cash or cashless form , in the currency of Ukraine or in foreign currency that deposited to the deposit institutions under contractual basis and terms of payment, return of the deposit, maternity or arise of defined in the deposit agreement terms) under the legislation of Ukraine .
That is , in this work we also use the resource approach to identify the defined category. However, operations with the securities that allow to attract funds of economic entities , in our opinion, should not be related to the deposits. The mentioned position we consider to be appropriate because our conclusion we build on identifying the essence and detailed investigation of creation resources base of the commercial bank as a separate economic entity. In particular, if to use the system approach concerning definition and grouping of all possible sources of the financial resources creation by the commercial bank, then as a result of such analysis conducting we can state the existence of three classic approaches of the funds attracting.
Operations connected with the deposit operations implementation are related to the operations on the funds attracting of the economic entities, in range of which the deposit institution offers to the market own conditions on its own, under which it agrees to attract the financial resources. Operations on issue the deposit and savings certificates are related to the operations on the funds borrowing be the deposit institutions and are sold by them under conditions offers by the market, i.e. other economic entities. The defined principal difference doesn’t allow the operations with the mentioned types of the certificated to be related to the deposits. Thus, by researching the deposit as an economic category the attention, in first turn, we will focus on the resource aspect of this definition and both cash and cashless means of such resources transfer.
The deposit, in our point of view, as an economic category, should be considered as an amount of cash funds that are in cash or cashless form, in the currency of Ukraine or in foreign currency, and are in property of one economic entity which wished and can transfer these funds in temporary use to the deposit institution that has right to accept these resources under the conditions of return , maturity, terms of payment, timeliness.
Conditions creation to provide following the defined principles gives the possibility to form strong base for the deposit market development and constantly increase the trust between the clients in the process of the financial resources circulation. Let’s investigate for final identifying the category essence ,,the deposit market” the definition content ,,the market”. Within this work the market will be considered as a set of economic relations that arise between its participants in the process of goods and services sale on mutually beneficial base of their interests agreeing and needs satisfaction .
Taking into consideration the conducted analysis of the categories ,,the deposit” and ,,the market” we consider that the deposit market should be considered as space within which the relations between the deposit institutions are established that have right to attract the financial resources of other economic entities in own management and the owners of such funds that have the desire to temporary deposit them with the purpose of getting the additional income and their value preserve in future.
Thus , we came to the conclusion that more fully the deposit market essence is opened from the position of the resource approach separating it as an individual and weighty segment of the financial market.
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2. Didenko I.V. Scientific and methodological approach to the definition of the deposit market, its role and position in the financial market structure / I.V. Didenko // Bulletin of the Ukrainian Academy of Banking. – 2014. – # 1 (36). – pp. 72-76.
3. Law of Ukraine ,, On banks and banking activity” [Electronic source]. – Access mode: http://zakon4.rada.gov.ua/laws/show/2121-14/print1449398772555612
4. Il’chuck V.P. Evolution of the formation and development of the deposit operations / V.P. Il’chuck, O.O. Prokopenko // Bulletin of Chernihiv state technological university, 2013. – # 4(70). – pp. 412-420.
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