Usachev V

Donetsk Nation University of Economics and Trade named after Mikhailo Tugan-Baranovsky

Banking system

The aggregate of all banks is a banking system. The appearance of which is because of their expanding activities could not be implemented in isolation, is subordinate unified rules of operations, is the support of the center with its features that combine the activities of the system. Banking system began to emerge only in the appearance of the central banks and their allocation among other banks, not only as the emission centers, but also the regulatory level.

Banking system - one of the most important and integral structures of the market economy. The modern banking system - is the most important sector of the national economy of any developed country. In the single banking system including central banks, commercial banks and their subsidiaries, branches and representative offices of foreign banks.

At present, several of the banking system expands the concept, and in the broadest sense of the word, it includes not only banks, but also the accompanying lenders, allowing banks to more effectively carry out their functions, as well as, unions and associations of banks, banking infrastructure and banking market.

The role of the banking system by the fact that it operates in the state of payment and settlement system, most of its business transactions are conducted through deposits, investments and lending operations. Direct public savings banks to businesses and industrial structures. Commercial banks, in line with the monetary policy of the State to regulate cash flow, affecting the rate of turnover, total mass emissions, including the amount of cash in circulation.

In organizational terms, the banking system may be a single-level and two-level.

With a one-tier system, the central bank and commercial banks are on the same level and to become equal agents or branches of the central bank. This system is found in countries with a totalitarian regime, or in countries with weak economies.

A two-tier system is a division of all banks in the upper and lower levels. At the top, the first level is the central bank acting as an organizer and the Comptroller of the country, on the second - independent, but under the control of the central bank to commercial banks. Two-tier system as follows:

In accordance with the regulation and licensing of the banking system is divided into: the universal and specialized.

In the universal system of commercial banks have the ability to perform all types of credit and financial services.

In the specialized system of different commercial banks focus on a relatively narrow range of operations.

In pure form of any of the systems do not exist, because each has its own advantages and disadvantages. At the same time, the country that is most approximate to the universal system, Germany is a country with a specialized banking system - the United States.

Such a system is typical of developed countries with a large number of commercial banks and has an excellent status of the central bank.

In Ukraine today has developed a two-tier banking system. The upper level is the Central Bank of Ukraine, the lower - credit institutions, branches and representative offices of foreign banks. This approach is logical and in the event that the criterion for recognizing the levels in the banking system elected the presence or absence of elements of public authority. In this case, do the upper level of the banking system is a central bank, and the lower - banks, branches and representative offices of foreign banks.

With specialized banking system advantage is the possibility of better handling of the operation: the clients who come to the bank, also expect to receive only the service, as a rule, the cost of such services may be lower than in the universal bank. At the same time, these banks are more risky, because there is no diversification of operations, for example, the crisis in the industry (with industry specialization) may lead to the bankruptcy of the bank. When universalization lost advantages of specialization per se, but with significantly reduced risk of loss and thus increases financial stability of banks. In addition, in the present conditions, when clients are closely related to banking services (salary, fee payments, settlement of accounts, credit), they choose a universal bank, where you can immediately get the full range of services.

Elements that make up the banking system, have different within the system objectives, functions, tasks, powers and responsibilities, ie, have a different status. But they operate in the same field of public relations - the financial and monetary circulation, have a single subject and method of regulation.

The structural elements of the banking system may be classified according to various criteria. By the presence of public authority are distinguished: the central bank, as the bank holding public authority, and credit institutions, branches and representative offices of foreign banks, have no such authority. Organizations within the banking system may have the status of a legal entity (the central bank, commercial banks and foreign) or not have the status of (structural units, regional branches of the central bank, representative offices and branches of domestic and foreign banks)

The modern banking system - is an area of diverse services to its customers - from traditional deposit-loan and Cash transactions are determined based banking, to new forms of monetary and financial instruments used by banking institutions (leasing, factoring, trust, etc. .).

Creating a stable, flexible and efficient banking infrastructure - one of the most important (and extremely difficult) tasks of economic reform in Ukraine. Today, with the development of commodity and financial markets, the structure of the banking system becomes much more complicated. New types of financial institutions, the new credit facilities, tools, and methods of serving customers.