The market of loan capital on a temporary basis. The concept, structure and functions of the loan capital market

FEDERAL AGENCY FOR EDUCATION

STATE EDUCATIONAL INSTITUTION OF HIGHER PROFESSIONAL EDUCATION

ALL-RUSSIAN CORRESPONDENCE FINANCIAL AND ECONOMIC INSTITUTE

Department of "Money, Credit and Securities"

TEST

discipline: "Banking"

on the topic: "The market of loan capital"

Introduction

Chapter 1

Chapter 2. Credit system, characteristics of its links

Chapter 3. Securities market: concept, structure

Conclusion

List of used literature

Introduction

The capitalist mode of production dictates the need for the emergence and development of a market for loan capital. Since in the course of the reproduction process, individual firms, individuals and other participants in market relations have temporarily free capital in cash. The pursuit of profit compels the capitalist to invest the temporarily released capital in the banks of his country and abroad in order to receive income in the form of interest. Banks, in turn, provide these funds to other market participants in need of additional funds, beyond what they have on this moment, at a higher percentage. As a result of the separation of money capital from industrial capital, loan capital arises, which is money capital lent out on terms of repayment and payment. Loan capital is a special historical form of capital inherent in the capitalist mode of production. The sphere of movement of loan capital is represented by the market of loan capital.

Chapter 1

The loan capital market is a system of economic relations that ensures the accumulation of free funds, their transformation into loan capital and its redistribution among the participants in the reproduction process. This is a specific sphere of commodity relations, in which the object of the transaction is the money capital provided on loan and the demand and supply for it is formed.

Under the conditions of pre-monopoly capitalism, the loan capital market was poorly developed due to the limited supply and demand for money capital. This was due to a number of reasons. The credit system could not yet widely carry out the accumulation of money capital and monetary savings of the population, since it was represented mainly by banks, while other forms of credit and financial institutions were just emerging. Demand for money capital, mainly short-term, was presented by individual enterprises, while the state and the population turned to the loan capital market extremely rarely. Finally, the fictitious capital market was just in its infancy.

The impetus for the development of the loan capital market was given by monopoly capitalism. The creation of joint-stock companies, the high concentration and centralization of production, the development of new industries based on scientific and technical discoveries, the strengthening of the role of the state in the economy, and a number of other reasons caused a huge demand for loan capital. State-monopoly capitalism created the prerequisites for the further growth of the loan capital market. The governments of the capitalist countries actively participate in the formation of economic policy, including credit. The state influences the loan capital market by setting the discount rate of central banks, thus regulating the supply and demand for loan capital. The creation of state credit institutions has led to the fact that the state acts on the loan capital market both as a buyer and as a seller. In the modern system of state-monopoly capitalism, the loan capital market contributes to the growth of production and trade, the movement of capital within the country, the transformation of monetary savings, the sale of scientific and technological revolution, the renewal of fixed capital, the unification of the scattered individual monetary savings of society, the savings of social costs, etc. A feature of the development of the loan capital market at present is the strengthening of its role in the processes of internationalization of the world economy through the migration of capital.

The functions of the loan capital market are determined by its essence and the role that it performs in the system of the capitalist economy, as well as by the tasks in the process of reproduction. There are five main functions of the loan capital market:

1) servicing commodity circulation through credit;

2) accumulation of monetary savings (savings) of enterprises, population, state, as well as foreign clients;

3) the transformation of monetary funds directly into loan capital and its use in the form of capital investments or investments to service the production process.

These three functions began to be actively used in industrialized countries in the postwar period.

4) serving the state and the population as sources of capital to cover government and consumer spending (given the huge role of the loan capital market in covering budget deficits and financing final consumption in the form of mortgage and consumer lending within the framework of state-monopoly capitalism).

In all four cases, the market acts as a kind of intermediary in the movement of capital.

5) acceleration of concentration and centralization of capital for the formation of powerful financial and industrial groups.

These functions of the loan capital market are aimed at maintaining the capitalist mode of production, ensuring the functioning of the economic system of state-monopoly capitalism.

Reflecting the accumulation and movement of money capital, the loan capital market is organically connected with the movement of value in its monetary form, with the formation and use of various monetary funds in the form of credit resources and securities. By means of the loan capital market as an economic category, it is possible to measure and determine the movement, volume, direction of monetary funds going to the development of capitalist social reproduction, its impact on socio-economic relations.

The modern structure of the loan capital market is characterized by two main features: temporary and institutional (Fig. 1).

Loan capital market

time factor

functional-institutional factor

money market

medium-term loans

long-term loans

credit system

stocks and bods market

primary

secondary

Rice. 1 - The modern structure of the loan capital market

The time sign characterizes the period of time for which a loan, credit, loan is provided, and securities are also issued. Accordingly, a distinction is made between the money market, where loans and credits are provided for a period of up to one year, and directly the capital market, where funds are issued for longer periods: from one to five years (medium-term loans market) and from five years or more (long-term loans market).

On a functional and institutional basis, the modern market of loan capital implies the presence of two main links: the credit system (a set of various financial institutions) and the securities market. The latter, in turn, is divided into the primary market, where new issues of securities are sold and bought, the exchange (secondary), where previously issued securities are bought and sold, and the over-the-counter market, where securities are sold that cannot be sold on the exchange. The over-the-counter market is also called the street market.

The temporal and functional-institutional features of the loan capital market are characteristic of all countries. At the same time, the state of the national market is judged on an institutional basis, i.e. by the presence of two main tiers: the credit system and the securities market.

The most developed are the capital markets of the USA, Western Europe, Canada and Japan. These countries have extensive, flexible capital markets with well-developed two main tiers and an extensive network of various financial institutions. At the same time, the capital market in the United States is in a privileged position, since it is distinguished by a more extensive system of credit and financial institutions, their diversification activities, and an extensive, three-stage securities market.

Chapter 2. Credit system, characteristics of its links

The capitalist credit system is a set of banks and other credit and financial institutions that accumulate and mobilize free money capital and income and provide loans, as well as issue credit instruments of circulation.

The modern credit system includes two main concepts:

1) a set of credit settlement and payment relations, which are based on certain, specific forms and methods of lending (functional aspect). This concept is usually associated with the movement of loan capital in the form of various forms of credit.

2) a set of functioning financial institutions (institutional aspect). This means that the credit system, through its numerous institutions, accumulates free funds and directs them to enterprises, the population, and the government.

The essence and functions of credit are realized through the credit system. A loan is a form of movement of loan capital, that is, money capital that is loaned for a certain percentage on a repayment basis. The essence of the loan is manifested in its functions: distribution, emission, control. In the first aspect, the credit system is represented by banking, consumer, commercial, state, international credit. All these types of credit are characterized by specific forms of relations and methods of lending. These relations are implemented and organized by specialized institutions that form the credit system in the second (institutional) sense. Banks are the leading link in the institutional structure of the credit system.

There are three main links in the modern credit system:

I. Central Bank and mixed state credit institutions;

II. Banking sector:

1) commercial banks;

2) savings banks;

3) investment banks;

4) mortgage banks;

5) specialized commercial banks;

6) banking houses.

III. Insurance sector:

1) life insurance companies;

2) property and casualty insurance companies;

3) private pension funds.

IV. Specialized non-bank credit and financial institutions:

1) investment companies;

2) financial companies;

3) charitable foundations;

4) savings and loan associations, building societies;

5) credit unions;

6) brokerage firms;

7) trust departments of commercial banks.

Such a scheme is called a three- or four-tier scheme (sometimes the third and fourth tiers are combined into one - non-bank credit and financial institutions). It is typical for most industrialized countries - mainly for the USA, Western European countries, Japan. The most developed credit system in the United States. Therefore, all industrialized countries are guided by it when forming their credit system. In the credit system of Western European countries, the banking and insurance sectors have received the greatest development. Moreover, in Germany the banking sector is based on commercial, savings and mortgage banks. France is characterized by the division of the banking link into deposit (commercial) banks, business banks that perform the functions of investment, and savings banks.

The modern Japanese credit system was formed on the American model, and has a three-tiered system. The most developed banking sector is based on urban (commercial), savings and investment banks. In the specialized sector, only insurance and investment companies have become widespread.

The credit systems of developing countries as a whole are poorly developed (mainly these are credit systems in the developing countries of Africa). In most of these countries, there is a two-tier system, represented by the national central bank and the commercial banking system. At a higher level are the credit systems of Asian and Latin American countries. Of particular note are a number of Asian countries: South Korea, Singapore, Thailand, India, credit systems, which are quite developed, because. have a three-tiered structure and are close in their level to the credit systems of Western European countries. A number of countries in Latin America also have three-tiered credit systems - Mexico, Brazil, Peru.

The credit system plays a crucial role in maintaining the high rate of national economic accumulation, which is characteristic of most industrialized countries. However, in the United States this figure is somewhat lower than in other industrialized countries. This is primarily due to the fact that the processes of accumulation of money capital in the United States were influenced by such factors as frequent fluctuations in the market situation, a high share of military spending in the national income and budget, a drop in the purchasing power of money, a large proportion of investments in the non-productive sphere, and the stability of the securities market. until the end of the 60s.

Credit occupies an important place in solving the problem of selling goods and services on the market. The great growth in consumer and residential mortgage lending to the population greatly expanded the market for consumer durables and played a significant role in the rapid development of the relevant industries and construction.

The development of credit relations in various forms and the activities of banks on the world stage also greatly influence the formation of international conditions for reproduction. These factors contributed to the growth of international trade, which in turn boosted production.

Monetary crises, which usually accompany cyclical economic crises and significantly intensify them, were weakly expressed until the late 1970s and early 1980s. Their most acute forms - the onslaught of depositors on banks, the massive demand for loans, bank failures - were virtually absent until the indicated time. This was due to many profound changes in the economy, in particular, an increase in the elasticity of the monetary system in the absence of a gold standard, changes in the structure of credit institutions and the loan capital market, and state-monopoly regulation.

At the same time, the credit system in the postwar period largely contributed to increased concentration and monopolization of the economy, deepening the social and property gap between different strata of society. More specifically, the following factors can be pointed out. The stock business, which is a peculiar form of the credit business, has been the source of tremendous growth in the personal fortunes of the richest people in society over the past two decades. At the same time, the accumulation of workers' savings by the credit system chained the latter to the existing capitalist system and therefore often served as a tool for additional financial exploitation. The latter became especially obvious and effective in connection with inflation, which continuously depreciated savings in terms of their real purchasing power, especially in the 1970s. The credit system also exploited workers as debtors by charging extremely high interest on consumer and mortgage loans.

Although the credit system did not experience in the period 1980-1982. acute "traditional" crises, as in 1929-1933, the credit expansion of banks, the growth of the credit superstructure, the swelling of mortgage and consumer loans required the government to take urgent measures to prevent a crisis in credit area, which was closely related to the crisis of the international monetary system.

In the presence of general patterns of development, the credit systems of individual countries have their own characteristics. In the 19th century England had the most developed and extensive credit system. The United States is now such a leader in many respects. Other capitalist countries often seek to adopt organizational forms and methods of American financial institutions, especially investment and insurance companies, corporate pension funds, consumer credit organizations. At the same time, a number of Western European countries are characterized by public credit institutions of a larger scale and universal nature than in the United States.

The processes of concentration in the banking sector, which largely determine the development of the credit system, have a number of problems in the post-war period. important features. Significant changes are also taking place in the operations of banks and, in particular, in the forms of their relations with industry. A combination of universalization tendencies is characteristic, i.e. expansion and combination of functions, and specialization, or allocation of special types of financial institutions with their own specific functions. They are especially widespread in such areas as attracting small savings, credit secured by land and real estate, consumer credit, credit to agricultural producers, financing and settlement operations in foreign trade, capital investment and placement of securities of industrial companies. One of the most important trends in recent years in the development of credit systems in developed foreign countries is the blurring of differences between certain types of banks, between banks and non-bank credit organizations. The global trend towards the universalization of the activities of large banks is successfully combined with the preservation of the specialization of a number of credit institutions in certain types of banking operations.

The main link of the credit system is the banking system - the totality of all banks in the national economy. There are one- and two-tier banking system. For a single-tier banking system, a characteristic feature is that all banks perform similar functions. In a two-tier banking system, there is a strict separation of functions between the central and commercial banks. At present, in almost all countries with a developed market economy, the banking system has two levels. The first level of the banking system forms the central bank (or a set of banking institutions that perform the functions of a central bank, such as the US Federal Reserve System). It is legally assigned a monopoly on the issue of national banknotes and a number of special functions in the field of monetary policy. The Central Bank acts as the official conductor of monetary policy. In turn, monetary policy, along with budgetary policy, forms the basis of all state regulation of the economy. Therefore, the effective operation of the central bank is one of the conditions for the effective functioning of a market economy.

The first central banks emerged over 300 years ago. The Bank of England, established in 1694, is considered the first issuing bank, since it was the first to issue banknotes and discount commercial bills. It was only in the 20th century that central banks gained ubiquity and modern significance.

Central banks can be state-owned, joint-stock or have a mixed form of capital ownership, when part of the capital of the central bank belongs to the state, and part is in the hands of legal and / or individuals. Regardless of the form of ownership, historically close ties have developed between the central bank and the government, which have become especially strong at the present time. However, the central bank is legally independent and has relative independence from the executive branch.

The task of the central bank is to ensure the stability of purchasing power and exchange rate national currency, stability and liquidity of the banking system, efficiency and reliability of the payment system. To solve this problem, the following functions are assigned to the central bank: monopoly issue of banknotes; monetary regulation; foreign economic; bank function of banks; government bank function.

The Central Bank performs its functions through banking operations: passive, with the help of which banking resources are formed: the issuance of banknotes (it accounts for from 40 to 85% of all liabilities), the acceptance of deposits from commercial banks and the treasury, operations to form equity capital; and active - operations for their placement: accounting and loan operations (represented in the form of accounting operations and short-term loans to the state and banks), investments in securities, operations with gold and foreign currency.

The second level of the two-tier banking system is occupied by commercial banks. They concentrate the bulk of credit resources, carry out a wide range of banking operations and financial services for legal entities and individuals. The tasks of banks are to ensure uninterrupted cash and capital turnover, lending to industrial enterprises, the state and the population, and creating conditions for national economic accumulation. The main functions of commercial banks are: mobilization of temporarily free funds and their transformation into capital; lending to enterprises, the state and the population; issue and placement of securities; implementation of settlements and payments in the economy; creation of means of payment; consulting, provision of economic and financial information; execution of operations on cash execution of the federal budget and the budgets of the republics on behalf of the central bank.

Passive operations of commercial banks include: accepting deposits, issuing own securities, obtaining interbank loans, Eurocurrency loans, repo operations, opening and maintaining customer accounts; active operations include - accounting and loan (forming loan portfolio bank), investment (forming an investment portfolio), cash and settlement and others.

The modern credit system of the capitalist countries in the postwar years has undergone major structural changes: the role of banks has decreased and the influence of other credit and financial institutions (insurance companies, pension funds, investment companies, etc.) has increased. This was expressed both in the growth of the total number of new financial institutions, and in the increase in their specific gravity in the total assets of all financial institutions. Such evolutionary processes have affected many developing countries.

Important processes in the modern credit system of the capitalist countries were:

Concentration and centralization of banking capital;

Further strengthening of competition between different types (kinds) of credit and financial institutions;

Continued merging of large credit and financial institutions with powerful industrial, trade, transport corporations and companies;
- internationalization of the activities of credit and financial institutions and the creation of international financial and credit associations and groups.

The credit system functions through the credit mechanism. It is, firstly, a system of connections for the accumulation and mobilization of money capital between credit institutions and various sectors of the economy; secondly, the relations associated with the redistribution of monetary capital between the credit institutions themselves within the framework of the current capital market, and thirdly, the relations between credit institutions and foreign clients.

The credit mechanism also includes all aspects of the loan, investment, founding, intermediary, advisory, accumulation, redistribution activities of the credit system represented by its institutions.

In the post-war period, the credit system helped to create conditions for a significant increase in production, capital accumulation and the development of scientific and technological progress. Thanks to credit, in its various forms, there is a mobilization of money capital and a huge concentration of capital investments in key, technically the most progressive sectors of the economy. Only powerful banks and insurance companies can carry out credit operations on the scale necessary to finance modern large industrial, transport and other facilities. Public funds involved in the financing of capital investments also often come to the economy in the form of credit.

The monopoly stage of capitalism led to the emergence of new credit and financial institutions, which began to develop rapidly after the crisis of 1929-1933. There was a more complete delimitation of functions between various financial institutions within the credit system. Insurance companies (mainly life insurance companies), pension funds, investment companies, savings and loan associations, and other specialized institutions have rapidly grown and occupied the most important positions in the loan capital market. They have become the main source of long-term capital in the money market, displacing commercial banks in this area.

However, the decline in the share of commercial banks does not mean a decrease in their role in the economy. They continue to perform the most important functions of the credit system: settlement operations, deposit and check issue, short-term and medium-term financing, as well as a certain part of long term financing.

Credit and financial institutions carry out their functions in the economy in three main areas: 1) providing loan capital to industry and the state; 2) accumulation of free money capital and monetary savings of the population; 3) possession of fictitious capital. A wide network of specialized credit and financial institutions made it possible to collect free cash capital and savings and put them at the disposal of commercial and industrial corporations and the state. Thus, the development of the credit system was one of the most important prerequisites for ensuring a relatively high rate of capital accumulation, which contributed to the growth of production and the implementation of the scientific and technological revolution.

Chapter 3. Securities market: concept, structure

The securities market is a set of economic relations that arise between various economic entities regarding the mobilization and placement of free capital in the process of issuing and circulating securities.

A feature of the securities market is that it circulates a specific product - securities, which in themselves have no value. However, they are titles of ownership, behind them are real assets, which basically determine the value of specific securities.

The securities market performs a number of functions that can be divided into two groups:

1) general market functions inherent in each market:

Commercial function, that is, making a profit from operations in this market;

Price function, which ensures the process of formation of market prices, their constant movement;

Information function - the market produces and brings to its participants market information about the objects of trade and its participants;

Regulatory function - the creation of rules for trade and participation in it, the procedure for resolving disputes between participants, setting priorities, control or management bodies;

2) specific features that distinguish it from other markets:

The redistributive function ensures the redistribution of funds between sectors and areas of market activity and the financing of the budget deficit;

Price and financial risks, which became possible due to the emergence of a class of derivative securities: futures and auction contracts.

One of the main functions of the securities market is to mobilize investors' funds for the purpose of organizing and expanding production. Thus, the existence of the securities market contributes to the formation of an efficient and rational economy.

The securities market can be classified according to various criteria, depending on which the structure of the market can be presented from different points of view.

According to the stages of issuance and circulation of securities, primary and secondary markets are distinguished. The primary market is the market in which an entity sells securities to the first owners. This type of activity is called the placement of securities. Due to this, the company attracts financial resources for the purposes of its development. The most important feature of the primary market is the full disclosure of information to investors, allowing them to make an informed choice of a security for investing money. All activity in the primary market serves to disclose information: preparation of the issue prospectus, its registration and control by state authorities from the point of view of the completeness of the data presented, publication of the prospectus and subscription results, etc.

The secondary market is the market where securities are traded, i.e. investors sell securities to each other. In the secondary market, there is no accumulation of funds for the enterprise, but a redistribution of funds between investors.

Both of these concepts are closely related. Without a primary securities market, which supplies stock values for circulation, there can be no secondary market. Without a full-fledged secondary market, it is impossible to talk about the effective functioning of the primary market and, in general, about the securities market. The secondary market, by creating a mechanism for carrying out transactions with securities, enhances investor confidence in the securities market, stimulates their desire to acquire stock values, and contributes to a more complete accumulation of society's resources in the interests of expanded reproduction.

Depending on the availability of established trading rules, organized and unorganized markets are distinguished.

According to the organization of trading in securities, exchange and over-the-counter markets are distinguished. The exchange market is an organized securities market, transactions for the purchase and sale of which are carried out on the exchange in strict accordance with established rules. On the exchange market, securities of the most reliable issuers are traded, which are admitted to the exchange only after passing a certain selection procedure, and their activities are constantly monitored by the exchange. The over-the-counter market is the trading of securities without going through the stock exchange.

According to the timing of the execution of transactions, a cash market is distinguished with immediate execution within one or two business days and urgent - with a maturity exceeding two business days.

The securities market plays the role of a regulator of investment flows and makes it possible to provide an optimal structure for the use of resources for society: through it, the redistribution of monetary savings in industries that ensure the highest return on investment is carried out. In addition, the securities markets make it possible to ensure the mass nature of the investment process, allowing any economic entities (including those with a nominally small investment potential) to make investments - both financial and real when buying shares of a new issue.

Conclusion

In the modern system of state-monopoly capitalism, the loan capital market contributes to the growth of production and trade, the movement of capital within the country, the transformation of monetary savings, the implementation of the scientific and technological revolution, the renewal of fixed capital, the unification of the scattered individual monetary savings of society, the saving of social costs, etc.

The credit system plays an important role in maintaining a high rate of national economic accumulation. At the same time, the credit system in the postwar period largely contributed to increased concentration and monopolization of the economy, deepening the social and property gap between different strata of society.

In a market economy, the securities market is the main mechanism for the redistribution of monetary savings. Through the securities market, monetary savings of legal entities, individuals and the state are accumulated and directed to the production and non-productive investment of capital. The stock market creates a market mechanism for the free, albeit regulated, flow of capital into the most efficient sectors of the economy.

List of used literature

1. Banking: Textbook / Ed. O.I. Lavrushin. - M.: "Finance and statistics", 1998.

2. Money, credit, banks: Textbook / Ed.E.F. Zhukov. - M.: UNITI, 2005.

3. Money. Credit. Banks. Securities. Workshop: Proc. manual for universities / Ed. prof. E.F. Zhukov. – M.: UNITI-DANA, 2001.

4. Finance. Money turnover. Credit: Textbook / Ed. prof. G.B. Pole. - M.: UNITI, 2001.

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1. Essence and functions of the loan capital market

2. Credit as a form of movement of loan capital

3. Essence of judgment interest

4. Credit institutions in the infrastructure of the financial market

5. Regulation of the activities of commercial banks

1. Essence and functions of the loan capital market

Loan capital - this is money lent for a certain percentage, subject to repayment.

Loan capital arose on the basis of the circulation of industrial capital, and is a special, independent form of capital separated from it, characterized by a circuit different from that of industrial and commercial capital.

Main loan sources capital:

money capital released in the process of reproduction; depreciation fund of enterprises;

funds released in the process of selling products and making material costs;

cash generated as a result of the gap between the receipt of money from the sale of goods and the payment of wages;

profit going to the renewal and expansion of production;

cash income and savings of all segments of the population;

the state's money savings in the form of funds from possession state property;

income from industrial, commercial and financial activities of the government;

positive balances of central and local banks.

Loan capital market - a specific sphere of commodity relations, where the object of the transaction is the money capital provided on loan and the demand and supply for it are formed.

WITH functional point of view The loan capital market is a system of market relations that ensures the accumulation of free funds, their transformation into loan capital and its redistribution among the participants in the reproduction process.

WITH institutional point of view the loan capital market is a set of financial institutions, stock exchanges through which the movement of loan capital is carried out.

The essence of the loan capital market is manifested in its functions :

service of commodity circulation through credit;

accumulation of money savings(savings) of enterprises, the population, the state, as well as foreign lenders (maintenance of sources of loan capital);

transformation of cash funds directly into loan capital for its use in credit form in the sphere of social production;

service of enterprises, population and state as consumers of loan capital;

acceleration of concentration and centralization of capital for the formation of powerful financial and industrial groups.

The modern structure of the loan capital market is characterized by two main features:

temporary;

institutional.

By temporary sign distinguish:

money market is a market that provides loans for periods ranging from a few weeks to one year.

capital market - this is a market where funds are issued for longer periods: from one to five years (medium-term loans market) and from five years or more (long-term loans market).

By functional-institutional feature the modern market of loan capital implies the presence of two main links:

credit system - a set of various financial institutions.

stocks and bods market is the market where securities are sold.

The instruments of the loan capital market are:

money market instruments;

securities market instruments.

Money market instruments – obligations, as a rule, short-term (less than one year), which are usually issued for sale at a discount.

The following main money market instruments:

treasury bills - issued by the state as an obligation to pay a certain amount of money;

bills of exchange (commercial bills) - issued by companies as debt instruments in payment for goods and services as an obligation to pay a certain amount of money;

certificates of deposit - these are certificates confirming the placement of a deposit with the issuer and are an object for trading, similar to a savings book issued by a bank when making a deposit to an individual bank account.

Securities market instruments are securities . Securities are monetary documents certifying the property right or loan relationship of the issuer who issued the paper in relation to its owner.

Introduction

1. The concept of the loan capital market and its structure

2. Banking system

Conclusion

Introduction

An integral part of the market economy is the monetary system of the state. It is she who should be given a special role in organizing market relations in the country.

The transition to a market economy requires radical changes in the monetary sphere. There is an obvious need to implement fundamentally new methods in managing the country's money turnover, the credit mechanism, and other economic levers. The monetary system is of a transitional nature, is influenced by crisis phenomena in the economy, undergoes a radical restructuring and breakdown, and has a number of significant shortcomings in its activities.

The adopted laws regulating the activities of the monetary system laid the foundations for the creation of a two-tier banking system. The conversion process is underway, but so far very slowly. The central banks of the republics are operating, and the network of commercial banks is expanding. However, the adoption of laws on the creation of a banking system is only the first step; a consistent state policy in this area is needed.

The reform of the credit system in the context of the transition to the market goes in several directions, interconnected: the first is the improvement of the work of the Central banks and their interaction with commercial banks; the second is the creation of new market structures in the credit system; third, ways to find the effective use of these levers in the monetary sphere.

In any direction, there are a number of unresolved problems to date. But it should be borne in mind that for a long period of time in our country a single economic space was created, based on the social division of labor, specialization and cooperation of production. Within the boundaries of this space, a unified monetary system was also formed.

Today, what is needed is not its destruction, but a "soft" qualitative transformation, so that this reorganized system contributes in every possible way to the development of creative processes in the national economy. With the transition to new economic forms of relations, the relevance and importance of problems associated with loan capital is extremely increasing. This is explained by the fact that investment activity, savings, which serve as the main indicators and a link between the financial market and the real sphere of management, depend on the loan capital, the rate of its interest.

In a crisis situation, during inflationary processes, the value and importance of loan capital increases sharply.

Loan capital and credit is one of the components of financial relations that ensure the life and functioning of a market economy.

Under the influence of many factors, credit and financial relations are undergoing a number of changes, therefore, a constant study of world experience in the loan capital and credit market is of great interest in order to form a position that helps to determine fruitful steps in a difficult, modern market economy.

With the development of market relations in our country, the emergence of enterprises of various forms of ownership (both private and state, public), the problem of clear regulation of the financial and credit relations of business entities is of particular importance.

Enterprises of all forms of ownership increasingly need to attract borrowed funds to carry out their activities and make a profit. The most common form of raising funds is obtaining a loan under a loan agreement.

A loan is a movement of loan capital provided on a loan on a repayment basis for a fee in the form of interest. The need for a loan is due to the laws of circulation and turnover of capital in the process of reproduction. In some areas, free funds are released, which act as sources of loan capital, in others, there is a need for them. It is on this basis, on the mutual benefit of the participants in the reproduction process, that loan capital is born, exists and develops.

From what sources is the loan capital formed? First, from the funds released from the circulation of capital. Namely:

funds for the restoration of fixed capital in the form of depreciation;

· part of the working capital in cash, released due to a mismatch between the time of receipt of proceeds and the implementation of costs;

Profits accumulated for the expansion and renewal of production.

Secondly, from the monetary income and savings of the population. In the post-war period, the general trend of developed countries is the active use of savings in the form of deposits, insurance, and the purchase of securities. This was the result of a slight increase in wages, as well as a change in the structure of consumption. The share of expenditures on durable goods, housing construction, and education has increased, which requires the preliminary accumulation of funds.

Thirdly, from the money savings of the state, the value of which depends on the size of state property and the share of the gross national product redistributed through the state budget.

Loan capital is a kind of commodity, the use value of which consists in the ability to function as capital (buildings, structures, equipment, goods) and generate income in the form of profit. Part of this profit is used to pay for the loan capital and acts as its price or loan interest.

Loan capital appears in the form of money, but there are significant differences between these categories. Loan capital differs qualitatively from money in that it is a form of self-increasing value. Money as a value equivalent does not give an increase in value. They also differ quantitatively. The mass of loan capital exceeds the amount of money in circulation, since one monetary unit repeatedly acts as loan capital.

So, the main feature of loan capital as an economic category is the transfer of value for temporary use in order to realize its specific quality - the ability to make a profit in the form of interest. Loan interest acts as the price of loan capital. Its economic nature is determined by production relations. Interest is the payment for the use-value of loan capital, while the prices of ordinary commodities are the monetary expression of their value.

Banks are an integral feature of the modern money economy, their activities are closely related to the needs of reproduction. Being at the center of economic life, serving the interests of producers, banks mediate links between industry and trade, agriculture and the population. Banks are not an attribute of a single economic region or any one country, the scope of their activities has neither geographical nor national boundaries, it is a planetary phenomenon with colossal financial power, significant monetary capital. Having huge power all over the world, banks in Russia, however, have lost their original high role. And only the last two years have begun to play a prominent role.

Domestic banks, like our entire economy, were unlucky in many respects. Unfortunately, for quite a long time, administrative, often unprofessional thinking replaced the economic approach. As a result, the true economic functions of credit institutions were transformed from the main ones into the secondary ones. Throughout our history, banks have been so often ignored, their economic purpose reduced to such an extent that even now, in organizing the transition to the market, we do not give them the attention they deserve. In other words, the command style of managing the national economy has been so persistently introduced into our minds for so long and persistently, and the banks have been so cornered, have lost their authority and purpose, that at present the need to restore their true role does not sound convincing enough.

It can be said that in our society an understanding of the place that banks should occupy in the economic system of economic management is just beginning to take shape. Our whole theory of banks is an actual retelling of what kind of banks exist in the country, what operations they perform at the same time. Society needs a thorough, deeper understanding of the essence of the bank, its concept is needed, the clarification of its social purpose.

The activities of banking institutions are so diverse that their actual nature is uncertain. In modern society, banks are engaged in a wide variety of types of operations. They not only organize money circulation and credit relations; through them financing of industry and agriculture, insurance operations, purchase and sale of securities, and in some cases intermediary transactions and property management are carried out. Credit institutions act as consultants, participate in the discussion of national economic programs, keep statistics, and have their own auxiliary enterprises.

In my work, I will try to reveal the concept of the loan capital market, loan interest, the banking system of the Russian Federation; consider their structure and condition; to analyze what the Central Banks (CB) and commercial banks are, what functions they perform; Let's consider the trends in the development of the banking system in Russia, as well as the credit and monetary policy of the Central Bank.

1. The concept of the loan capital market and its structure

The increase in the accumulation of money capital under capitalism led to the development of the loan capital market. Under the influence of supply and demand, there is a movement of loan capital: the capital accumulated in the form of money is converted directly into loan capital.

The loan capital market as an economic category expresses socio-economic relations that are determined by the laws of capitalist management, which ultimately form its essence, i.e. connections and relations both within the market itself and in interaction with other economic categories.

Money capital is released in the process of reproduction. It goes there in the form of loan capital through the market, and then returns to the creditor (banks and other financial institutions).

The essence of the loan capital market does not depend on what kind of money capital is used on it: own or someone else's, accumulated, i.e. it does not matter whether the banker conducts his business only with his own capital or only with capital deposited with him.

The economic role of the loan capital market lies in its ability to combine small, disparate funds in the interests of all capitalist accumulation. This allows the market to actively influence the concentration and centralization of production and capital.

The increased role of the loan capital market in the economy is manifested in three main areas: the provision of loan capital to the private sector, the state and the population, as well as to foreign borrowers; accumulation of free money capital and monetary savings of the population; concentration of fictitious capital. The accumulation and association of individual monetary capital is carried out not only by private financial institutions, but also by the securities market.

An important feature of the loan capital market is the increased influence on the process of internationalization of the world economy by ensuring the migration of capital.

The loan capital market performs a macroeconomic function. In the modern capitalist economy, money capital is accumulated mainly in the form of loan money capital. Therefore, the accumulation of money capital is important not in itself as a separate process, but primarily from the point of view of its impact on the entire course of capitalist reproduction, i.e. in the macroeconomic aspect. In this respect, the accumulation of money capital closely interacts with real accumulation, which is a completely different process. Most of the money capital is formed from the savings of the population, and their size plays a significant role in the formation of the national rate of real accumulation, the share of capital investment in the gross national product and national income.

Huge masses of money capital accumulated and mobilized through the loan capital markets create a certain illusion that the volume of money capital is potentially equal to the volume of loan capital. This appearance arises primarily in those countries where there is an extensive credit system.

The modern structure of the loan capital market is characterized by two main features: temporary and institutional (Fig. 1 and 2).

On a temporary basis, they distinguish between the money market, in which loans are provided for a period of several weeks to one year, and the capital market itself, where funds are issued for longer periods: from one to five years (the market for medium-term loans) and from five or more years (market of long-term loans).

The most developed are the capital markets of the USA, Western Europe and Japan. These countries have extensive, flexible capital markets with well-developed two main tiers and an extensive network of various financial institutions.

Conclusion: The loan capital market contributes to the growth of production and trade, the movement of capital within the country, the transformation of monetary savings into investments, the implementation of the scientific and technological revolution, and the renewal of fixed capital. In this sense, the market mediates the various phases of reproduction, is a kind of support for the material sphere of production, from where it draws additional monetary resources.

Fig.1 Institutional structure of the loan capital market

Rice. 2 Functional (operational) structure of the loan capital market

Loan capital and loan interest

To define the modern capital market, it is necessary to refer to the concept of loan capital as an economic category. Loan capital is money lent for a certain percentage subject to repayment. The form of movement of loan capital is a loan. Loan capital is a special historical category of capital that arises and develops under the conditions of the capitalist mode of production.

The main sources of loan capital are money capital (cash) released in the process of reproduction. These include:

· depreciation fund of the enterprise, intended for renewal, expansion and restoration of production assets;

part of working capital in cash, released in the process of selling products and making material costs;

cash generated as a result of the gap between the receipt of money from the sale of goods and the payment of wages;

profits going to upgrade and expand production;

cash income and savings of all segments of the population;

·monetary savings of the state in the form of funds from the ownership of state property, income from the industrial, commercial and financial activities of the government, as well as positive balances of the central and local budgets.

Loan capital always appears in the form of money. However, this does not mean that the concepts of money and loan capital are identical. Money capital does not always take the form of loan capital. As one of the functional forms of industrial capital, it takes the form of a loan only when it is free for its owner. If, on the other hand, the functioning capitalist uses the proceeds from the sale of goods to pay for new material elements of circulating or fixed capital or to pay the wages of workers, then the money is used not as loan capital, but as money capital.

Loan capital exists in the form of money. However, it is not money and differs from money qualitatively and quantitatively. The qualitative difference is that money, no matter what function it performs, does not bring surplus value by itself. Loan capital is a value that brings surplus value in the form of interest on loans. The difference between loan capital and money in quantitative terms is that the amount of capital provided for loans exceeds the amount of money in circulation. This is due to two reasons:

Firstly, the same monetary unit can function several times as loan capital. (For example, capitalist A made a deposit in the amount of 10 thousand dollars to the bank, the bank provided this money as a loan to capitalist B, to pay for goods purchased from the capitalist D, and the latter deposited money in the bank.As a result of these two operations alone, the loan capital doubled in comparison with the amount of cash.). In this case, the quantitative difference between cash and the mass of loan capital is entirely determined by the velocity of circulation of money in the functions of the means of circulation and payment. This, in turn, depends on the degree of development of the credit system.

Secondly, a significant part of the loan capital carries out its movement and accumulates without the use of cash on the basis of credit operations.

What are the features of loan capital:

1. Loan capital, which must be returned to the borrower at the end of the loan, always remains the capital of the owner, the borrower does not invest in production, as does an industrial or commercial capitalist. Loan capital is only given for temporary use in order to obtain profit in the form of loan interest. It differs from capital-function in that it is property capital.

2. Borrowers of loan capital "sell" it as a commodity to industrial and commercial capitalists for loan interest. In turn, the latter acquire means of production and labor power on it, as a result of the exploitation of which they receive surplus value in the form of profit, part of which repays the loan interest and the loan itself. Thus, loan capital, as a result of circulation, is able to act in the form of a commodity capable of making a profit as a result of the exploitation of wage labor.

3. Loan capital does not change its monetary form, unlike commercial and industrial capital. Its movement does not change its structure. When a loan is granted in cash, it is returned to the borrower in the same form, but in a different amount increased by the amount of the loan interest (cash gain).

4. The presence of a specific form of alienation in the loan capital in the form of a unilateral transfer of value. That is, the return of loan capital occurs after a certain period of time, and not initially, as happens with goods exchanged for an amount of money when buying and selling. That is why the contradictions between capital and labor reach their highest point in loan capital.

5. Generation of money by money, i.e. the ability to obtain without visible costs and intermediate links of growth (interest) on a loan, regardless of both the production process and commodity circulation.

6. Getting profit in the form of loan interest, i.e. that part of the surplus value which production (functioning) capitalists return to loan capitalists for the use of loan capital.

Loan interest is a kind of price of value lent for temporary use (loan capital).

The existence of loan interest is due to the presence of commodity-money relations, which in turn are determined by property relations. Loan interest arises where one owner transfers to another a certain value for temporary use, as a rule, for the purpose of its productive consumption.

For a creditor refusing current consumption wealth, the purpose of the transaction is to receive income on the loaned value; the entrepreneur also attracts borrowed funds in order to rationalize production, including increasing profits, from which he must pay interest.

Based on the principle of equal return on invested funds, then one ruble of borrowed funds accounts for the amount of profit corresponding to the return on own investments. The clash of interests of the owner of the funds and the entrepreneur putting them into circulation leads to the division of profits on invested funds between the borrower and the lender. The share of the latter acts in the form of loan interest.

The development of market relations in Russia determined the transformation of the loan interest functions inherent in it in the system of administratively planned economy: the stimulating function and the profit distribution function into a more widely interpreted regulatory function.

In the transition economy, the prerequisites have not yet been created that would allow interest to realize this function in full. If the level of loan interest is formed on the basis of the ratio of demand and supply of credit, which is typical for a market economy, it should clearly reflect the change in the economic situation. Incentives for additional investment with credit will continue as long as the expected rate of return is greater than or equal to the current rate of interest. However, this scheme today does not fully correspond to the real economic conditions. Despite the market formation of the level of loan interest, a number of reasons (inflation, features of monetary regulation, the underdevelopment of the money market, the forms of state regulation of certain sectors of the economy used) do not allow interest to fully realize the regulatory function.

At the same time, in the conditions of the modern Russian economy, there are separate elements of economic regulation associated with loan interest. This is manifested in the role that interest plays in the economic sphere:

· By means of the rate of interest, the ratio of demand and supply of credit is balanced. It promotes a rational combination of own and borrowed funds. In the conditions of market formation of the level of loan interest, attracting borrowed funds into circulation is beneficial only if the loan covers temporary and necessary additional needs. Any excessive use of credit reduces the overall level of return on investment;

· The rate of payment for resources set by the Bank of Russia, along with the required reserve ratio and the conditions for the issuance and circulation of government securities, is gradually becoming an effective means of managing commercial banks. Without resorting to direct regulation of the interest rate policy of the latter, the Bank of Russia determines the unity of the interest rate policy across the economy, stimulating an increase or decrease in interest rates;

· By means of interest, the volume of deposits attracted by the bank is regulated. The growth in the needs of the economy in loans should be covered by a corresponding increase in bank deposits as sources of lending. This leads to an increase in deposit interest rates to an amount that balances the supply of deposits and demand for them from the credit institution. On the contrary, with a reduction in the needs of the economy for loans, the bank's income from loans granted will decrease. He will be able to increase profits by reducing the volume of passive operations. Thus, a decrease in the inflow of resources into the credit system is a reaction to a decrease in the economy's need for borrowed funds;

· The interest rate policy of a commercial bank is already aimed at the appropriate management of the liquidity of its balance sheet. Differentiation of the level of loan interest for active operations depending on the liquidity of investments leads to the correspondence of the demand for a risky loan on the part of borrowers to the liquidity requirements of the bank's balance sheet. Similarly, the role of interest on deposit operations is traced as an incentive to attract the most stable funds into the turnover of a credit institution.

Loan interest can take different forms, their classification is determined by a number of features, including forms of credit, types of operations of a credit institution, types of investments with a loan, terms of lending.

As an example, we can cite the following classifications of forms of loan interest (Fig. 3 and 4).

The presence of various forms of loan interest in practice determines the variety of interest rates.

Taking into account the modern assessment of the mechanism of formation of the level of loan interest, the following should be noted.

Under the conditions of market mechanisms in the sphere of credit relations, the level of loan interest tends to the average rate of profit in the economy. Given the free flow of capital, it will rush into that industry, that sphere of investment of funds, which will ensure the greatest profit. If the level of income in the manufacturing sector of the economy is higher than the loan interest, then there will be a transfer of funds from the monetary sphere to the production one and vice versa.

When forming the market level of loan interest, the deviation of its value from the average rate of return is affected by both macroeconomic and private factors that underlie the interest rate policy of individual loans.

Macroeconomic factors:

· the ratio of supply and demand for borrowed funds, which in a free economy is balanced by the rate of interest. If the demand for borrowed funds falls, as happens during an economic downturn, but the supply of resources remains unchanged, interest rates fall. The reverse trend occurs, for example, in the case of a decrease in the volume of lending to the economy by the Bank of Russia: the supply of borrowed funds is reduced, which, with a constant demand, causes an increase in interest rates;

· the level of development of money markets and securities markets. The most important parameters of the securities market and the money market are directly dependent on each other. For example, investments in securities are traditionally an alternative to bank deposits. With the growth of profitability on operations with securities, financial institutions are forced to adjust rates accordingly. The more developed the securities market, the stronger this dependence manifests itself;

· international migration of capital, the state of national currencies, the state of the balance of payments. The balance of payments characterizes the balance of trade, non-trade operations and capital movements. The inflow or outflow of funds for these items of the balance of payments affects the volume and structure of the money supply, the state of the markets, and psychological expectations. As a result, there is a movement of interest rates, accumulating the influence of these factors;

The risk factor is inherent in any credit transaction. The nature and level of risks vary depending on specific operations, but if internal risks are more mitigable, external risks are often unmanageable. They are taken into account when setting the level of interest rates, primarily on international operations;

· Monetary policy of the Bank of Russia. In pursuing its monetary policy, the Bank of Russia seeks to provide incentives economic growth, mitigation of cyclical fluctuations in the economy, containment of inflation, balance foreign economic relations. The main instruments of monetary policy are the accounting policy of the Bank of Russia, the regulation of the required bank reserve ratio, and open market operations. Through the use of these instruments, the volume of money supply in circulation and, accordingly, the level of market interest rates are regulated;

· Inflationary depreciation of money (inflationary expectations) is a significant factor affecting the level of interest rates. A decrease in the purchasing power of money over the period of using a loan or circulation of a security leads to a decrease in the actual amount of borrowed funds returned to the lender. The lender seeks to compensate for such a decrease by increasing the amount of the loan fee;

taxation. The taxation system affects the amount of profit remaining at the disposal of the enterprise. Thus, by changing the procedure for levying taxes, tax rates, applying a system of benefits, the state stimulates certain economic processes. This system is also valid for the monetary market. For example, at the stage of formation of the government securities market, the income received from transactions with them was not included in the taxable base. Therefore, it was attractive for an investor to buy GKOs with a yield of, for example, 30% per annum, when rates in other market segments were about 40% per annum.

Private factors are determined by the specific conditions of the lender's activity, its position in the market for credit resources, the nature of operations and the degree of risk. In addition, the formation of the level of individual forms of loan interest has its own characteristics.

IN modern Russia features of the loan interest are determined by the state of the economy, primarily the monetary market, as well as the monetary policy of the state.

Let us name the main features of the loan interest in modern Russia.

First of all, this is a high level of loan interest, which is formed as a result of the interaction of the factors discussed above. Currently, there is a steady downward trend in interest rates.

The structure of interest rates in Russia practically corresponds to the international one. However, taking into account the level of inflation, and most importantly, the difficulty of its real forecasting in Russia, we can conclude that there is practically no long-term lending, and, consequently, interest rates on long-term debt instruments.

In our country, the mechanism of using floating interest rates has not become widespread, primarily due to the lack of recognition of monetary market indicators that could be used as a floating basis for such rates. Currently, other methods of insuring interest rate risk are used. Thus, the issuer of a long-term debt obligation has the opportunity to determine the coupon rate for a debt obligation within a specified period of time in accordance with the approved prospectus. For example, the interest rate on coupons during the first year of circulation of a three-year bond is agreed at the time of issue, and for the second and third years it is announced when the issuer fulfills an offer to buy back securities, say, a year after the issue.

The state currently uses interest on a limited scale as a tool to stimulate certain economic processes. An example is the procedure for stimulating agricultural production by the state by subsidizing interest rates on loans received by agricultural producers in Russian banks. In conditions when enterprises are reimbursed from the budget for part of the costs of paying interest, agricultural producers are provided with preferential credit conditions.

Commercial banks, which are the main subjects of credit relations in Russia, are characterized by a gradual decrease in the interest margin. This is determined by general trends in the reduction of interest rates, increased competition in the banking system and the development of the monetary and credit market and the securities market.

Conclusion: Thus, we can conclude that temporarily free funds arising on the basis of the circulation of industrial and commercial capital, monetary accumulations of the personal sector and the state form sources of loan capital.

In general, the strengthening of the role of loan interest in the economy and its transformation into an effective element of economic regulation are directly related to the state of the economic situation in the country and the progress of reforms. Modern economic relations are characterized by the strengthening of the role of loan interest as a result of the manifestation of its regulatory function.

1.2 Demand and supply of loan capital

The essence of the movement of loan capital is most fully manifested in the process of its transfer from the lender to the borrower and vice versa. In fact, in this case, the owner of the capital (creditor) sells to the borrower not the capital itself, but the right to its temporary use.

Many economists consider loan capital as a kind of commodity, the consumer value of which is determined by the ability to be productively realized by the borrower, providing him with profit (part of which is used for the subsequent payment of loan interest).

The demand for money and its supply are the most difficult to predict quantities, since they cannot be quantified absolutely accurately and definitively by the participants in the money turnover. Accordingly, all other values are relative both from the point of view of forecasting and from the point of view of regulating money circulation.

The increase in the demand for money on the part of the participants in the money turnover is determined by:

further growth of the economy;

Decrease in inflation and inflationary expectations;

Growth of confidence in the banking system.

Demand for money is formed depending on what motives the participant of money circulation is guided by.

The first (main) type of need for money, i.e. in the stock of money (transactional motive), ensures the current economic functioning of one or another participant in the money turnover. For an individual, this is a store of money for purchases until the next income. For enterprises, the reserve of money is intended to ensure the purchase of materials, the payment of wages and the implementation of other expenses until the next cash receipts from the sale of goods and the provision of services are received. For the state, the stock of money is foreign exchange reserves, which make it possible to provide its residents with funds for settlements on foreign economic activity.

The second type of need for money (precautionary motive) allows the participant of money turnover to create a reserve of funds to reduce risks in the face of uncertainty and smooth out inevitable cash gaps.

The third type of need for money (speculative motive) arises due to the fact that modern money in itself cannot serve as a store of value. A certain part of the income of a participant in money circulation should be used as a means of payment - credit resources that generate income in the form of interest. This demand is realized through the acquisition of intangible (financial) assets by participants in the money turnover. Such assets can be bonds, shares, as well as derivative financial instruments.

The money supply is determined by the interaction of three variables:

1. monetary base of the central bank;

2. interest rate in the money market;

3. the norm of obligatory reservation.

The monetary base of the central bank includes required reserves and cash. This base is provided by the assets of the central bank: gold and foreign exchange reserves, securities held in its portfolio, loans to banks.

The interest rate in the short-term money market is formed largely due to the optimization of the ratio of the banking system's reserves to its deposits. The ratio of cash in circulation and deposits of the banking system influences the determination of the required reserve ratio.

The money supply is also affected by:

Retail turnover;

receipt of taxes and fees from the population;

income from bank deposits;

Proceeds from the sale of securities;

gold and foreign exchange reserves (especially in the presence of a state budget deficit);

the state of the balance of payments of the country;

the balance sheet of the central bank.

The money supply is formed by all participants in the money turnover. But the banking system has a direct impact on the money supply through:

organization of a more economic, sustainable cash flow;

· carrying out operations in various segments of the financial market in order to influence the structure of money turnover;

Reducing or increasing the issue of money and other means of payment.

Depending on the level of development of the country's economy, national characteristics and financial capabilities, sustainable cash flow is ensured by a rigidly centralized system of specialized units of the central bank or the banking system as a whole. They are entrusted with the functions of establishing a well-functioning cash flow.

Conclusion: A slowdown in economic development and a decrease in the demand for money on the part of economic agents do not exclude the negative inflationary consequences of the growth of the money supply in the context of maintaining the external economic environment, and efforts are required to balance the supply of money and demand for them. The money supply must be balanced with the economically justified demand for money.

2. Banking system

The activities of banking institutions are so diverse that their actual nature is uncertain. In modern society, banks are engaged in a wide variety of types of operations. They not only organize money circulation and credit relations. Through them, financing of the national economy, insurance operations, purchase and sale of securities, intermediary transactions, property management and many other operations are carried out. Credit institutions carry out consultations, participate in the discussion of national economic programs, keep statistics, and have their subsidiary enterprises.

A bank is an autonomous, independent, commercial enterprise.

Of course, a bank is not a plant, not a factory, but it, like any enterprise, has its own product. The product of the bank is primarily the formation of means of payment (money supply), as well as a variety of services in the form of loans, guarantees, guarantees, consultations, property management. The bank's activities are productive.

In market conditions, banks are a key link that feeds the national economy with additional monetary resources. Modern banks not only trade in money, at the same time they are market analysts. By their location, banks are closest to the business, its needs, changing market conditions. Thus, the market inevitably puts forward the bank among the fundamental, key elements of economic regulation.

To date, the Bank is defined as a financial enterprise that concentrates temporarily free funds (deposits), provides them for temporary use in the form of loans (loans, loans), mediates in mutual payments and settlements between enterprises, institutions or individuals, regulates money circulation in the country, including the issue (issue) of new money. Simply put, banks are organizations created to raise funds and place them on their own behalf on terms of repayment, payment and urgency.

The banking system is a combination of various types of national banks and credit institutions operating within the framework of a common monetary mechanism. Includes the Central Bank, a network of commercial banks and other credit and settlement centers. The Central Bank conducts the state issue and currency policy, regulates the economy and is the core of the reserve system. Commercial banks carry out various types of banking operations and services.

Thus, we can say that the main function of the banking system is to mediate the movement of funds from creditors to borrowers and from sellers to buyers.

In creating a new market economy for Russia with various forms of ownership, the role of the banking system is great, with the help of it, the redistribution and mobilization of capital is carried out, cash settlements are regulated, commodity flows are mediated, etc. Banks are called upon to perform many special functions. They also include settlement and cash transactions, lending, investment, storage and management of cash and other funds, i.e. those services that a business person cannot do without today.

Keynes compared the banking system to the circulatory system of the body, and capital - to the blood that feeds its various parts. He believed that the state, by regulating the flow of financial resources with the help of banks, could influence the national economy and provide support to those industries that were lagging behind the general development.

Thus, we are approaching a deeper understanding of the role of the banking system, i.e. to the fact that its most important task is the creation and functioning of the capital market, as the main link in the national economy, which determines its development as a whole.

The banking system is such an integral entity that ensures its sustainable development. As a set of elements, it can be represented as the following blocks and their elements. (Fig. 5)

Rice. 5 Structure of the Russian banking system

The presented blocks and elements of the banking system form a unity, reflecting the specifics of the whole, and act as carriers of its properties.

The task of activating the development of the banking sector, the need state participation in this process, as well as the course of implementation in 2002 of the Strategy for the Development of the Banking Sector of the Russian Federation (hereinafter referred to as the Strategy) orient the Government of the Russian Federation and the Bank of Russia towards the development and adoption of additional measures to enhance the role of banks in the economic development of the country, its transparency, security of creditors and depositors. This is in line with the provisions of the Strategy, which provides that the development of banking may bring forward new tasks, the solution of which will require clarification of the developed approaches.

One of the most important conditions for dynamic economic development is the creation of a sustainable resource base for economic growth based primarily on internal sources, as well as reducing the dependence of the economy on foreign economic conditions. The banking sector is one of the key instruments for solving this problem. Through banks, the accumulation of financial resources of the population, enterprises, their redistribution by sectors of the economy.

The main task for the near future is to create conditions that will improve the efficiency of the banking sector and strengthen its functional role in the economy. Risk reduction is an important component of solving this problem. banking, the cost of banking products and services, primarily credit, for the real economy and the population; increase in terms and reduction in cost of resources attracted by banks; improving the quality of capital (own funds), reducing the costs of credit institutions.

The measures proposed by the Government of the Russian Federation and the Bank of Russia will contribute to the strengthening and development of the banking sector as a whole. At the same time, the structure of the banking sector is heterogeneous. Various groups of banks operate in the banking sector (according to the development strategy, the profile of accepted risks, the clientele served, the sources of formation of the resource base). In this regard, the proposed measures will have a different impact on the activities of credit institutions, including from the standpoint of achieving specific goals of the state policy defined for the near future.

Conclusion: The most important directions for the development of the banking sector were the expansion of the network of branches throughout the country, the establishment of ties with banking institutions of the near abroad, the desire to enter the financial markets of the West. The dynamism of changes in the banking sector is growing, which is associated with the instability of the credit market, increased interbank competition, and stratification among banking institutions.

The reliability of the bank is the main component of the basis on which the funds of Shareholders and Clients are preserved and increased.

2.1. Central Bank and its functions

The Central Bank combines the features of an ordinary (commercial) banking institution and a government agency, having certain power functions in the field of organizing monetary circulation. The central bank is characterized by a high level of independence from other state structures. For the most part, it reports directly to Parliament or to a special commission formed by Parliament. The head of the central bank is appointed by the head of state or parliament. The government, as a rule, according to the banking legislation of the developed countries of the West, is given the right to select a candidate for this high post. The central bank is usually set up in the form joint-stock company with special powers. In most cases, its capital belongs to the state: but commercial banks and other financial institutions can be shareholders.

The degree of independence of central banks is not the same - from the most independent German Federal Bank to the Bank of France, which is completely dependent on the government. The banks of England and Russia occupy an intermediate position in this series. Here, a clear legislative distinction between public finance and the banking system is essential, i.e. limiting the government's ability to use central bank funds.

As an agent of the government in fiscal matters, the central bank advises it, manages some of the government's deposit accounts and funds, issues and withdraws money on behalf of the government, manages national foreign exchange reserves and acts on behalf of the government in the international foreign exchange market, is a depository of gold and a manager of the state debt (issues government bonds, pays interest on them, repays them).

The central bank helps the government determine the best time to issue bonds, their price, yield and other characteristics that make the issue attractive to investors, the best place to place bonds. To successfully cope with this task, the bank must have accurate and timely information about the state of the economy, the movement of credit resources, etc. Despite efforts to be as informed as possible, the bank is sometimes forced to make decisions before the statistics confirm the alleged event. Therefore, he conducts his own research, the results of which are usually published and are of great interest to scientists, economists, managers, employees of a financial institution.

The central bank manages government deposits (even if they are held in commercial banks). Nearly all government spending and revenue goes through central bank accounts. Interest-bearing balances are held in commercial bank accounts. The central bank also maintains an account for investing government revenue in securities (usually the government's own) and an account for holding foreign exchange reserves.

The central bank issues money and distributes it among commercial banks, withdraws old banknotes and worn coins from circulation. The new money is issued to commercial banks upon requests reflecting their cash needs, by debit entry in the accounts of commercial banks at the central bank.

Another duty of the central bank, as an agent of the government, is to control and protect the exchange rate of the national currency. The Bank is authorized to buy and sell gold, silver, foreign currency, open accounts with the central banks of other countries, act as an agent of foreign central banks and as a depository of their assets.

The exchange rate is the price of the national currency in the international currency market or the proportion in which it is exchanged for the currencies of other countries. The price is determined by the balance of supply and demand. In order to trade currencies, the central bank must have foreign exchange accounts with the central banks of the respective countries. When the government decides to invade the foreign exchange market in order to change the exchange rate of the national currency (now such invasions are very rare), if the goal is to keep the exchange rate from falling, the central bank withdraws some amount from the foreign exchange account and buys the national currency with it, changing thus balancing supply and demand. Conversely, the central bank buys foreign currency if a decision is made to slow down the growth of the national currency exchange rate. In the first case, the invasion is limited by the presence of national currency in government accounts, in the second - by the presence of foreign currency.

The central bank also acts as a depository, custodian of gold owned by the government of a given country. It can also store gold owned by foreign central banks and other financial institutions. The central bank buys and sells gold using a foreign exchange account. Gold is usually sold to central banks and governments of other countries, as well as international financial institutions like the International Monetary Fund.

One of the most important tasks of a central bank is to manage public debt, i.e. purposefully change that part of it, which is represented by direct and guaranteed bonds in circulation (direct bonds are bonds issued by the government itself, and guaranteed bonds are bonds issued under a government guarantee by state corporations). To manage means to determine the properties of bonds, the terms of their issue and the place of placement. This public debt, which is growing rapidly in many developed countries, is a cumulative budget deficit (the excess of budget expenditure over revenue for all years). As a government financial adviser, the central bank must not only collect and interpret economic information, but also feel changes in the demand for securities, in the inflow of funds into the securities market, in the level of interest and liquidity in the securities market, in the attitude of investors to new releases, etc. To get a complete picture, the central bank consults with commercial banks, other investors and investment dealers.

Public debt management should be linked to the goals of the government (not in conflict with, for example, fiscal policy). For the central bank, this can be a serious problem. On the one hand, the government cannot be left without cash, and on the other hand, getting it may be associated with the need to weaken the fight against the budget deficit, with the ensuing drop in confidence in the national currency.

Conclusion: Thus, the Bank of Russia has a dual legal nature. It is both a public administration body of special competence and a legal entity carrying out economic activities.

2.2. Commercial banks and their role in the formation of the money supply

The term "Commercial bank" arose in the early stages of the development of banking, when banks served mainly trade (commerce), barter transactions and payments. Traders were the main clientele. Banks financed transportation, storage and other operations related to the exchange of goods. With the development of industrial production, operations for short-term crediting of the production cycle arose: loans for replenishment of working capital, stockpiling of raw materials and finished products, payment of wages, etc. The terms of loans gradually increased, part of the bank resources began to be used for investments in fixed assets and securities. In other words, the term "commercial bank" has lost its meaning. It denotes the "business" nature of the bank, its focus on servicing all types of economic agents, regardless of their type of activity.

The banking system today is one of the most important and integral structures of a market economy. The development of banks and commodity production and circulation historically proceeded in parallel and were closely intertwined. At the same time, banks, acting as intermediaries in the redistribution of capital, significantly increase the overall efficiency of production.

Commercial banks belong to a special category of business enterprises called financial intermediaries. They attract capital, savings of the population and other funds released in the course of economic activity, and provide them for temporary use to other economic agents that need additional capital. Banks create new requirements and obligations that become commodities in the money market. Thus, by accepting customer deposits, a commercial bank creates a new obligation - a deposit, and by issuing a loan - a new requirement for the borrower. This process of creating new obligations is the essence of financial intermediation.

Among other things, banks are divided according to the field of activity.

Investment banks (in Great Britain - issue houses, in France - business banks) specialize in issuing and founding operations. On behalf of state enterprises that need long-term investments and resort to issuing shares and bonds, investment banks take upon themselves the determination of the size, conditions, period of issue, the choice of the type of securities, as well as the responsibility for their placement and organization of secondary circulation. Institutions of this type guarantee the purchase of issued securities by acquiring and selling them at their own expense or organizing banking syndicates for this, provide loans to buyers of shares and bonds. Although the share of investment banks in the assets of the credit system is relatively small, they play a crucial role in the economy due to their knowledge and founding connections.

Savings banks (in the USA - mutual savings banks, in Germany - savings banks) are, as a rule, small credit institutions of local importance, which unite in national associations and are usually controlled by the state, and often belong to it. Passive operations of savings banks include taking deposits from the public to current and other accounts. Active operations are represented by consumer and mortgage loans, bank loans, purchase of private and government securities. Savings banks issue credit cards.

Mortgage banks are institutions that provide long-term loans secured by real estate (land, buildings, structures). The passive operations of these banks consist in the issuance of mortgage bonds. A mortgage loan is a long-term loan issued by mortgage, commercial banks, insurance and construction companies and other financial and credit institutions secured by land and buildings for industrial and residential purposes.

Consumer credit banks - a type of banks that operate mainly through loans received from commercial banks and the issuance of short-term and medium-term loans for the purchase of expensive durable goods, etc.

In addition, there are innovative, industry and in-house banks.

Today, a commercial bank is able to offer a client up to 200 types of various banking products and services. Broad diversification of operations allows banks to retain customers and remain profitable even in a very unfavorable economic environment. It should be borne in mind that not all banking operations are daily present and used in the practice of a particular banking institution (for example, international settlements or trust operations). But there is a certain basic set without which a bank cannot exist and function normally. Such design operations of the bank include:

accepting deposits;

· implementation of cash payments and settlements;

issuance of loans.

In addition to these basic operations, there are a number of operations (leasing, factoring, etc.).

Deposit. Over 90% of the total need for funds to carry out active operations, the bank covers at the expense of borrowed funds. Traditionally, the bulk of these funds are deposits, i.e. money deposited in the bank by customers - individuals and companies, kept on their accounts and used in accordance with the account regime and banking legislation.

In most countries, the classification of deposit accounts is based on two points: the term of the deposit until the moment of withdrawal and the category of the depositor.

Settlement functions. Payment mechanism - the structure of the economy, which mediates the "metabolism" in the economic system. Payment methods are divided into cash and non-cash. Large-scale turnover is dominated by non-cash payments and settlements, and in the field of retail trade, the bulk of transactions are mediated in cash, despite the fact that in recent decades, forms of non-cash payment have been actively introduced. There is a wide variety of types of non-cash payments.

Credit agreements. In the practice of banks, a distinction is made between commercial loans and personal loans. These categories correspond to various types of loan agreements that determine the conditions for granting a loan, its repayment, etc.

Leasing. This form is applicable to financing long-term rentals of expensive equipment. According to the lease agreement, the tenant receives equipment for long-term use subject to making periodic payments to the owner of the equipment. Lessors can be industrial enterprises with their own leasing companies, as well as specialized leasing companies.

Leasing rates are calculated on the basis of production costs, interest, taxes.

Factoring. The factor bank buys the claims of a company and then receives payments on them. In this case, we are talking, as a rule, about circulating short-term claims arising from commodity deliveries. There are three participants in the factoring operation: the factor, the original creditor and the debtor receiving goods from the client with deferred payment. The factor maintains all accounting, assumes the responsibility of warning the debtor about payments, performs the collection of claims, and also bears all the risk associated with the full and timely receipt of payments. The client's expenses consist of a commission and a factor fee, consisting of interest on the advance payment and the profit of the advance company.

Operations with securities. The bank's investment portfolio is strictly structured by law. This means that the state sets the rate of interest, according to which a certain part (up to 90%) should consist of state securities, the rest - private enterprises. The primary placement of all types of government securities takes place in the order of auction sale, where the applications offering the highest price (rate) are satisfied first of all. Secondary circulation takes place on the over-the-counter market. The market is created by a group of dealer firms that are active in buying and selling government bonds. In an economic downturn, the government, through the central bank, tries to stimulate economic activity and buys government bonds from dealers, increasing their reserve accounts. In conditions of an inflationary boom, the state sells its obligations to dealers and thereby reduces their liquidity. Corporate bonds are much more at risk than government bonds. Banks buy only high-quality securities in accordance with the credit agencies' assessment of the risk associated with them.

Conclusion: Commercial banks play a significant role in the economy of any country. And the number of banks does not always mean quality, as we see in Russia.

2.3. Credit and monetary policy of the Central Bank

Central banks manage the entire credit system of the country, they are designed to regulate credit and money circulation, control and stabilize the movement of the exchange rate of the national currency, smooth out fluctuations in the level of business activity, prices and employment, stimulate the growth of the national economy on a sound financial basis. The central bank acts as an agent of the government. In this case, he advises the government in areas such as national debt management, foreign exchange and monetary policy. In addition, he is the representative of the government in the financial transactions of the latter. The main function of the bank is to develop and implement monetary policy. This is its most important function.

The main instruments of monetary policy are:

· official discount rate - a relatively rarely changed rate of the Central Bank, at which it is ready to discount bills or provide loans to other banks as a lender of last resort;

Required reserves - part of the resources of banks deposited at the request of the authorities on an interest-free account with the Central Bank;

· operations on the open market - operations of the Central Bank for the purchase and sale of commercial and treasury bills, government bonds and other securities, as well as short-term operations with securities with the completion of a reverse transaction later;

· reasonable banking supervision - various methods of control over the functioning of banks in terms of ensuring their security based on the collection of information, the requirement to comply with certain balance ratios;

· control over the capital market - the procedure for issuing shares and bonds, including standard rules-requirements, the order of issue, the official limit of external borrowing in relation to self-financing, bond issue quotas, etc.;

· admission to the markets - regulation of opening of new banks, permission of operations to foreign banking institutions;

· special deposits - part of the increase in deposits or loans of commercial banks withdrawn to interest-free accounts with the Central Bank;

· Quantitative restrictions - rate ceilings, direct restriction of lending, periodic "freezing" of interest rates;

· foreign exchange intervention - the purchase and sale of currency to influence the exchange rate and, consequently, the supply and demand of the monetary unit;

public debt management. The issue of government bonds neutralizes the liquidity of banks, binds their funds, and therefore the scale of public debt, the technique of its issue, the form of placement are of great importance for controlling money circulation;

targeting - setting targets for the growth of one or more indicators of the money supply;

regulation of stock and futures operations by establishing a mandatory margin;

· Norms of mandatory investment in government securities for banks and investment institutions.

All of these tools can only be effective if they are closely linked to fiscal policy and legislation.

Conclusion: The performance by the Bank of Russia of its main functions implies the need for control and supervision over the activities of credit institutions. The Bank of Russia combines the implementation of monetary policy with supervision of the work of credit institutions, being, in fact, the only supervisory body in the country.

Conclusion

The loan capital market contributes to the growth of production and trade, the movement of capital within the country, the transformation of monetary savings into investments, the implementation of the scientific and technological revolution, and the renewal of fixed capital. In this sense, the market mediates the various phases of reproduction, is a kind of support for the material sphere of production, from where it draws additional monetary resources.

Thus, we can conclude that temporarily free funds arising on the basis of the circulation of industrial and commercial capital, monetary accumulations of the personal sector and the state form sources of loan capital.

In the context of economic recovery, sufficient economic stability, credit acts as a growth factor. By redistributing huge cash and commodity masses, credit feeds enterprises with additional resources.

A slowdown in economic development and a decrease in the demand for money on the part of economic agents do not exclude the negative inflationary consequences of the growth of the money supply in the context of maintaining the external economic conjuncture, and efforts are required to balance the supply of money and demand for them. The money supply must be balanced with the economically justified demand for money.

The most important directions for the development of the banking sector were the expansion of the network of branches throughout the country, the establishment of ties with banking institutions of the near abroad, the desire to enter the financial markets of the West. The dynamism of changes in the banking sector is growing, which is associated with the instability of the credit market, increased interbank competition, and stratification among banking institutions.

The reliability of the bank is the main component of the basis on which the funds of Shareholders and Clients are preserved and increased

Thus, the Bank of Russia has a dual legal nature. It is both a public administration body of special competence and a legal entity carrying out economic activities.

The main feature of the legal status of the Bank of Russia at the present time is that the implementation of its administrative rights and economic activities are subject to the solution of one and the same task - the management of the credit system.

Administrative functions can be divided into organizational (organization and management of money circulation) and the function of protecting civil circulation, the interests of depositors and other creditors of commercial banks.

Commercial banks play a significant role in the economy of any country. And the number of banks does not always mean quality, as we see in Russia.

The systematic performance by the bank of its functions creates the foundation on which the stability of the country's economy as a whole rests. And although the execution of each type of operation is concentrated in special departments of the bank and is carried out by a special team of employees, they are intertwined. Thus, banks have a unique ability to create means of payment that are used in the economy to organize commodity circulation and settlements. We are talking about opening and maintaining check and other accounts that serve as the basis for non-cash transactions. The economy cannot exist and develop without a well-functioning system of monetary settlements. Hence the great importance of banks as organizers of these settlements.

The performance by the Bank of Russia of its main functions implies the need for control and supervision over the activities of credit institutions. The Bank of Russia combines the implementation of monetary policy with supervision of the work of credit institutions, being, in fact, the only supervisory body in the country.

Annex 1

CREDIT ORGANIZATIONS

(for the beginning of the year)

2001	2002	2003	2004	2005	2006
Number of credit institutions registered in the Russian Federation	2126	2003	1828	1668	1518	1409
including those having the right to carry out banking operations (operating)	1311	1319	1329	1329	1299	1253
Number of branches of operating credit institutions in the Russian Federation	3793	3433	3326	3219	3238	3295
of them:
Sberbank of Russia	1529	1233	1162	1045	1011	1009
banks with 100% foreign participation in the authorized capital	7	9	12	15	16	29
Registered authorized capital of operating credit institutions, billion rubles	207,4	261,0	300,4	362,0	380,5	444,4
Number of credit institutions holding licenses (permits) granting the right to:
to attract deposits from the population	1239	1223	1202	1190	1165	1045
for transactions in foreign currency	764	810	839	845	839	827
for general licenses	244	262	293	310	311	301
for operations with precious metals	163	171	175	181	182	184
Number of credit institutions with foreign participation in the authorized capital, entitled to carry out banking operations	130	125	126	128	131	136
including:
with 100% foreign participation	22	23	27	32	33	41
with foreign participation from 50 to 100%	11	12	10	9	9	11

GROUPING OF OPERATING CREDIT INSTITUTIONS BY THE VALUE OF REGISTERED AUTHORIZED CAPITAL

(for the beginning of the year)

authorized capital, million rubles

Literature

1. Lavrushin O.I. Money. Credit. Banks.: Textbook / M.: Knorus, 2006

2. Gusakov N.P. International monetary and credit relations: textbook. for universities / M .: INFRA-M, 2006

3. Zhukov E.F. General theory of money and credit: textbook / M .: Unity, 2000

4. Russian Statistical Yearbook, 2006

5. Kovalev A.P. Finance. Money turnover. Credit: textbook / R-on-D: Phoenix, 2001

6. Yanova V.V. Economics: textbook / M .: Exam, 2007

Loan capital - a set of markets in which the redistribution of funds between lenders and borrowers is carried out. Under loan capital means a certain amount of money provided by their owner to another person at interest. The movement of loan capital is called credit. The redistribution of monetary resources in the market occurs with the involvement of intermediaries, which are organizations such as banks, investment funds. Borrowers most often are firms that lack capital to implement their tasks. In addition, individuals and the government can be borrowers - the latter is needed to cover the budget deficit.

Loan: sources of formation

Loan capital is formed from the money released in the process of reproduction, namely:

Organization profits.

Temporarily unclaimed share of working capital.

depreciation charges.

savings of citizens.

Public funds intended specifically for lending.

According to statistics, the largest contribution to loan capital is made by the savings of ordinary consumers. If citizens accumulate a large amount, they go to the bank to open a deposit. From the funds stored on deposits, banks form loans.

Demand and supply of capital

Demand for loan capital- the totality of all funds that borrowers wish to receive at the interest offered by lenders, supply of capital is the amount of savings that lenders are able to offer to potential borrowers in the form of a loan. The amount of supply is influenced by such factors as the citizen and the rate of interest, otherwise called the price of savings. on the charts, as a rule, it is marked as Sc:

On the graph, you can see that the Sc curve is not very elastic with respect to the price of savings - in other words, no matter what deposit rate banks offer, most citizens will still keep money in bank deposits, because this way to increase capital is the most common and least risky.

The combined supply/demand schedule for loan capital would look like this:

The intersection point shows the equilibrium lending rate (r0) and the optimal amount of invested capital (Q0).

In addition to the factors described above, the supply and demand for loan capital is influenced by the following:

The amount of public debt.

Intensity of inflationary economic processes.

currency market.

The purpose of the country's monetary policy.

Dependence of production on seasonality.

The state of the world economy.

Market trends

In recent years, several distinct trends in the loan capital market have emerged:

1. Liberalization of activities. The market has become less regulated, as a result of which big number new players and escalated .

2. . Over time, many international companies have appeared, including in developing countries. The globalization of the loan capital market gives economic entities a whole list of advantages, for example, it allows them to reduce the speed of transactions, choose the most favorable conditions, and reduce risk through international diversification. Globalization is to some extent a consequence of liberalization.

3. Toolkit expansion was caused by the need to find new ways to minimize the risk. New financial instruments include, for example, credit interest rate swaps, options on bad debts, options on credit spreads. Derivatives can be combined with traditional ones - in modern world lending practice, interest rate derivatives are often attached to standard contracts, designed to protect the borrower from adverse changes in the interest rate.

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- borrowers - in the person of legal entities and individuals, as well as states experiencing a temporary shortage of financial resources.

Based on the foregoing, the modern structure of the loan capital market is characterized by two main features;

- temporary;

- institutional.

On a temporary basis, a distinction is made between the money market, in which short-term loans (up to 1 year) are provided, and the capital market, where medium-term (from 1 to 5 years) and long-term loans (from 5 years or more) are issued.

On an institutional basis, the modern loan capital market assumes the existence of a market (equity capital or securities market) and a debt capital market (credit and banking system). In addition, the securities market is subdivided into the primary market, where issues of securities are sold and bought, and the secondary (exchange) market, where previously issued securities are sold and bought. There is an off-exchange (street) securities market where securities are sold that, for one reason or another, cannot be sold on the exchange.

Both signs of the loan capital market are typical for all developed countries, however, of course, the state of the national market is judged by the second (institutional) sign, in particular by the presence and degree of development of its two main tiers:

— credit and banking system;

There are five main functions of the loan capital market:

- the first - the service of commodity circulation through credit;

- the second - the accumulation of monetary savings of legal entities, individuals and the state, as well as foreign clients;

- the third - the transformation of monetary funds directly into loan capital and its use in the form of capital investments for servicing the production process;

- fourth - serving the state and the population as sources of capital to cover government and consumer spending;

- the fifth - the acceleration of the concentration and centralization of capital for the formation of powerful financial and industrial groups.

It should also be noted that:

- firstly, the first three functions began to be actively used in industrialized countries only in the post-war period;

- secondly, in the first four functions, the market acts as a kind of intermediary in the movement of capital;

- thirdly, all functions are aimed at ensuring the effective functioning of the system of state-regulated economy.

The functions of the loan capital market are determined by its essence and the role that it performs in the system of public management.

4. Features of the development of the loan capital market

The level of development of national loan capital markets is determined by a number of factors, among which are:

- economic development of the country;

- traditions of functioning in the country of the credit market and the securities market;

- the level of production accumulation in the country;

Unconditional leadership among the above factors belongs to the first, i.e., the level of economic development of the country.

It is obvious that three world centers of economic development correspond to this criterion to the greatest extent: the USA; Western Europe; Japan.

In these countries, there are powerful developed markets and loan capital, although in fairness it should be noted that even between the markets for loan capital in these countries there are certain differences.

The most powerful is the US loan capital market. It is distinguished by branching, the presence of two powerful links - the credit system and the securities market, a high level of capital accumulation, and wide internationalization.

And at present, the situation in the US capital market largely determines the market situation in the global capital market.

— gravitation towards the structure of the capital markets of the Western countries.

This is explained by the fact that most developing countries were colonies of European countries for a long time, as well as the long-term economic and financial influence of the United States in Latin America, which to a large extent predetermined the development of the structure of the national capital markets of most developing countries. .

5. Formation of the loan capital market in Russia

The transformation of the Russian economy from an administrative-command to a market one necessitated the creation of a loan capital market in Russia to serve the needs of the economy. However, the true development of the loan capital market in the country is possible with the corresponding development of other markets, such as:

- the market for the means of production;

- consumer goods market;

- the labor market;

- real estate market.

All these markets need money, which is provided by the loan capital market.

It should be noted that certain elements of the loan capital market in Russia have existed for a long time:

— Creation and all-round guarantee of the state securities market;

2. The mechanism of the functioning of the credit system.

3. Forms of credit.

4. The problem of price and non-price competition in the credit market.

5. State regulation of credit and financial institutions.

6. Problems of formation of the credit system in Russia.

1. The structure of the credit system of Western countries

- specialized commercial banks.

3. Parabank sector:

— investment companies;

— financial companies;

- Insurance companies;

- charitable foundations;

— savings and loan associations;

- credit unions.

The similar structure of credit system is typical for the majority of modern industrially developed countries. However, according to the degree of development of certain structural links of the credit system, countries differ significantly from each other.

Thus, the most developed is the US credit system, which industrialized countries are guided by when forming their credit system.

In the credit system of Western European countries, the banking and insurance sectors have received the greatest development. Moreover, in Germany the banking sector is based on commercial, savings and mortgage banks. France is characterized by the division of the banking link mainly into deposit commercial, business banks, which perform the functions of investment, and savings banks.

The modern Japanese credit system was formed in the post-war period, mainly on the American model and, accordingly, has a three-tiered system. Greatest development received the banking sector based on urban (commercial), savings and investment banks. In the parabanking sector, only insurance and investment companies have become widespread.

The credit systems of most developing countries are generally underdeveloped. They have a two-tiered credit system, represented by the national central bank and the system of commercial banks. However, it should be noted that a number of Asian countries, as well as Latin American countries (South Korea, Singapore, Thailand, India, Mexico, Brazil, Peru) have a fairly developed three-tier structure and are close in their level to credit systems in Western Europe.

2. The mechanism of the functioning of the credit system

The modern credit system is a combination of various financial institutions operating in the loan capital market. Through the credit system, the essence and functions of credit are realized.

The essence of credit is manifested in its functions. In turn, the function of credit is a manifestation of its essence, an expression of the social purpose of credit. Credit performs three main functions:

- distributive;

- emission;

- control.

distribution function - the distribution of money on a returnable basis. It is implemented in the process of providing funds to enterprises and organizations on the terms of repayment and payment.

The emission function is the creation of credit means of circulation and replacement of cash. It manifests itself in the fact that means of payment are created in the process of lending, i.e., along with cash, money in non-cash form enters into circulation.

The control function is control over the efficiency of the activities of economic entities. It manifests itself in the comprehensive control of the economic activity of the entity that received the loan.

Bank lending to legal entities is carried out with strict observance of the principles of lending, which are the basis, main element credit systems. The principles of lending reflect the essence and content of the loan, as well as the requirements of the basic laws in the field of credit relations.

There are five basic principles of lending:

- urgency;

- return;

- payment;

- differentiation;

- security of loans.

The urgency of lending means that the loan must be repaid within a strictly defined period. The urgency of lending is a necessary condition for the repayment of the loan. The loan period specified in the contract is the maximum time for the borrower to hold funds. Violation of the term distorts the essence of the loan, it loses its true purpose.

Repayment means that after the end of the loan period, the funds must be returned. Credit as an economic category differs from other categories of commodity-money relations in that the movement of money here occurs on terms of repayment.

The payment of the loan means that the borrower must pay the bank a certain fee for the temporary use of funds borrowed from the bank. In practice, this principle is implemented using the bank interest mechanism.

Bank interest is a fee received by the lender from the borrower for the use of borrowed funds.

The interest rate depends on the following factors:

- Demand for credit from legal entities and individuals;

- the rate paid by the bank to its customers on deposit accounts of various types;

- the term of the loan, i.e. the higher the term of the loan, the higher the risk, and consequently, the amount of loan interest;

- the degree of security of the loan, i.e. the lower the security of the loan, the higher the value of the loan interest;

- the level of inflation in the country and the stability of monetary circulation.

The real value of the loan interest is established in practice, taking into account the totality of all the above-named factors.

The differentiation of lending means that banks should not have the same approach to resolving the issue of issuing a loan to clients applying for it. Based on the preliminary work carried out to assess the creditworthiness of prospective borrowers, the bank selects the most reliable from among them and only with them conducts further work to conclude a loan agreement.

The security of loans as a principle of lending means that the borrower's property, valuables and guarantees allow the lender to be sure that the return of the funds issued will be carried out on time. To ensure the timely repayment of the loan, lenders under the agreement appoint a pledge, guarantee or bank guarantee, as well as obligations in other forms provided for by law.

3. Forms of credit

In the process of lending, various forms of credit are used. In market conditions, the following forms of credit are implemented:

- commercial;

- banking;

- consumer;

- mortgage;

- interbank;

- state;

- international.

A commercial loan is a loan left in commodity form by sellers of goods and buyers in the form of a deferral or installment payment for goods sold or services provided. This form of credit is used to accelerate the sale of goods.

A loan is issued in the form of a promissory note - a bill paid through a commercial bank. The peculiarity of this credit is the fact that the loan capital here merges with industrial capital. The main task is to accelerate the process of selling goods in order to obtain the profit contained in them. It should also be noted that the interest on a commercial loan is included in the price of the goods and the amount of the promissory note.

A bank loan is a loan provided in the form of cash loans by commercial banks and other credit institutions to legal entities and individuals, as well as to the state and foreign clients. A bank loan exceeds the boundaries of a commercial loan in size, terms, directions, i.e., it has a wider scope.

A bank loan is classified depending on the period of use and the type of borrower.

A consumer loan is a loan provided trading companies and specialized non-bank credit institutions to the population for the acquisition of durable goods with installment payment.

Such a loan is provided both in cash and in commodity form. The term of use of credit funds is up to three years, and the percentage for its use is from 10 to 25%.

Mortgage loan - a loan issued for the acquisition or construction of housing or the purchase of land. It is usually provided by banks and specialized non-bank financial institutions. The interest on the loan is from 15 to 30%. The most developed mortgage loan in England, USA, Canada.

An interbank loan is a loan provided by banks to each other when some banks have a shortage, while others have an excess of credit resources. It should be noted that the size of such loans in a stable functioning economy is quite significant.

A variety of interbank credit in relations between business entities is an inter-economic loan.

State loan - a loan in which the borrower is the state or local authorities, and the loan itself takes the form of a state loan, implemented through the Central Bank and credit and financial institutions.

The international credit — the credit covering economic relations between the state and the international economic organizations. There is international credit in the form of both commercial and bank credit.

The modern credit system includes two main concepts:

- a set of credit and settlement and payment relations based on certain forms and methods of lending;

— a set of operating credit and financial institutions.

The first concept is usually associated with the movement of loan capital in the form of various forms of credit, and the second means that the credit system, through its various institutions, accumulates temporarily free borrowed funds and directed to legal entities, as well as the state.

The credit system functions through a credit mechanism, which is:

- firstly, a system of connections for the accumulation and mobilization of monetary capital between credit institutions and various sectors of the economy;

— secondly, relations connected with the redistribution of money capital between the credit institutions themselves within the framework of the current capital market;

- thirdly, the relationship between credit institutions and foreign clients. The credit mechanism also includes all aspects of the loan, investment, founding, intermediary, redistributive activities of the credit system in the face of its institutions.

The credit system plays an important role:

- in maintaining a high rate of national economic accumulation, which is typical for most industrialized countries;

- in solving the problem of selling goods and services on the market;

- in the formation of international conditions for reproduction.

In the presence of general patterns of development, the credit systems of individual countries are characterized by their own
peculiarities. In the 19th century England had the most developed and extensive credit system. The United States is now such a leader in many respects. Other Western countries often seek to adopt the organizational forms and methods of American financial institutions, especially investment and insurance companies, pension funds, and consumer credit organizations. For a number of countries
Western Europe, however, is characterized by public credit institutions of a larger scale and universal nature than in the United States.

4. The problem of price and non-price competition in the credit market

The development of a multi-level credit system raises competition to a new level, changing its forms and methods. However, it should be noted that the possibilities of price competition for financial, credit and banking institutions are quite limited. This is due to a number of objective restrictions that exist in the credit market. First of all, this is the presence of such a financial and credit indicator as the discount rate (or refinancing rate), i.e. the interest rate at which the Central Bank buys the debt obligations of banks and corporations. Of course, this indicator is rather conditional, however, nevertheless, prices for resources purchased by financial institutions and loans issued by them are located around this indicator. In addition, in a number of countries, the setting of interest rates on term and savings deposits is regulated by law, and payment of interest on current accounts is generally prohibited. All this forces commercial banks to resort to non-price competition, that is, to offer their clients conditions that take into account not only the material interest of clients. It should be noted that the savings banks of industrialized countries have great advantages over commercial ones, since their interest rates are not controlled by law. This, of course, allows you to pay a higher interest on deposits, which gives significant advantages to savings banks in attracting savings from the population;

Insurance companies and pension funds also widely use methods of non-price competition (special terms of contracts, flexible terms of insurance policies that can satisfy certain needs of the client).

With regard to loans and granting credits, the competition between financial institutions is of a specific nature. In any group of credit-financial institutions, the interest rate on loans is set by the so-called "leadership in yen", that is, it is determined by a small group of banking monopolies.

5. State regulation of credit and financial institutions

State regulation of credit and financial institutions is one of the most important elements in the development and formation of the credit system.

The main directions of state regulation are:

— policy of the Central Bank in relation to credit and financial institutions;

— tax policy of the state;

- participation of the state in mixed or state credit institutions;

— legislative regulation activities of various institutions of the credit and financial system.

In most industrialized countries, the policy of the Central Bank extends mainly to commercial and savings banks and is carried out in the following forms.

1. The accounting policy of the Central Bank consists in accounting and rediscounting commercial bills of exchange received from commercial banks, which, in turn, receive them from industrial, commercial and transport companies. The Central Bank issues credit resources to pay bills and sets the so-called discount rate. U tal policy is usually combined with state regulation of interest rates on deposits and loans.

2. The second form is the determination by the Central Bank of the norm of required reserves for commercial banks. The meaning of this form of regulation lies in the fact that commercial banks are obliged to keep part of their credit resources in interest-free accounts with the Central Bank. By changing the reserve ratio, the Central Bank expands or limits the credit expansion of commercial banks in the country's credit market.

3. The third form of regulation is the operations of the Central Bank on the open market with state organizations through their purchase and sale to credit and financial institutions. At the same time, all credit and financial institutions, according to the legislation, are obliged to buy a certain part of government bonds from the Central Bank, thus financing the state budget deficit.

4. The fourth form of regulation is the direct impact of the Central Bank on the credit system through direct instructions, directives, orders and letters, as well as the application of sanctions for their violation.

The main methods of monetary policy of the Central Bank of Russia are formulated in Art. 35 of the Law on the Bank of Russia:

— interest rates on Bank of Russia operations;

— norms of required reserves deposited with the Bank of Russia;

- open market operations;

— refinancing of banks;

— currency regulation;

— setting benchmarks for the growth of the money supply;

- direct quantitative restrictions.

With regard to interest rates on the operations of the Bank of Russia, the law provides that the Bank of Russia may set one or more interest rates for different types of operations or pursue an interest rate policy without fixing the interest rate.

The refinancing system refers to the forms, procedure, conditions, terms and limits of lending by the Bank of Russia to banks and credit institutions to regulate the liquidity of the banking system.

The interest rates of the Bank of Russia are the minimum rates at which it carries out its operations. The change in the refinancing rate is a change in the price of additional credit resources provided by the Central Bank to commercial banks. The Central Bank of Russia actively uses the refinancing rate as an instrument of its monetary policy.

Required reserve ratios represent the norms of mandatory deductions from commercial banks from borrowed resources to a reserve account with the Central Bank.

Their purpose is twofold: firstly, the role of a brake on the issue by commercial banks, and secondly, an instrument for the current regulation of liquidity in the money market. An increase in reserve requirements leads to a reduction in the credit resources of banks and to an increase in loans. The mechanism for using required reserves is the same as the refinancing rates. In case of need for credit restriction, the reserve ratios increase, and during credit expansion they decrease. The amount of required reserves, the procedure for their deposition in the Bank of Russia is established by the Board of Directors of the Central Bank of the Russian Federation.

Operations on the open market mean the purchase and sale by the Bank of Russia of commercial and other promissory notes, government bonds and other interest-bearing securities.

The essence of this instrument is the purchase or sale of securities by the Central Bank of the Russian Federation at its own expense. By buying securities, the Central Bank increases the amount of money in circulation, by selling it removes some of them from circulation.

At the present time, open market operations are becoming crucial due to the fact that this is a more flexible regulatory tool compared to interest rate policy and policy of required reserves. This, of course, shows the preference for market methods of regulating the economy over administrative ones.

Refinancing refers to lending by the Bank of Russia to commercial banks, including the accounting and rediscounting of promissory notes. The main form of lending to commercial banks of the Central Bank of the Russian Federation today is a pawn loan secured by government securities.

Under foreign exchange interventions is understood as the purchase-la-sale by the Bank of Russia of foreign currency against the Russian one on the interbank or exchange markets to influence the ruble exchange rate and the total demand and supply of money in the economy. By regulating the exchange rate, the Central Bank of the Russian Federation affects exports, imports, foreign trade and domestic prices, and many other parameters of the Russian economy.

Under direct quantitative limitation the establishment of the Central Bank of the Russian Federation of maximum levels of rates for certain types of operations and transactions, direct restriction of lending, freezing of interest rates, direct regulation of specific types of credit for banks and credit institutions.

According to the Law on the Central Bank of the Russian Federation, the latter has the right to apply direct quantitative restrictions in exceptional cases, in order to conduct a unified state monetary policy and only after consultations with the Government of Russia.

As already noted, the main areas of state regulation of credit and financial institutions, in addition to the mechanism of the Central Bank, include the following:

1. State tax policy. It consists in changing tax rates on profits received by financial institutions. Thus, an increase in tax rates can contribute to a decrease in lending operations and an increase in interest rates. On the contrary, the reduction of tax rates leads to the expansion of such operations and lower interest rates.

2. Participation of the state in the activities of credit and financial institutions. Through this method, the state has a fairly effective impact on the functioning of the entire credit system of the country. This method is quite widespread in Western Europe and developing countries.

3. Significant influence on the regulation of the credit system is provided by legislative measures carried out by the central government and local governments. They develop packages of laws and regulations governing various areas activities of credit and financial institutions.

Thus, the state regulation of the credit system is a complex, to a certain extent effective and rather contradictory mechanism that has gone through a large number of difficult stages of adaptation and serious structural changes in its development.

6. Problems of formation of the credit system in Russia

The creation of a modern credit system in Russia was preceded by a long historical period, which is determined by the specific socio-economic conditions for the development of our country.

For more than seventy years of history, the credit system of Russia has gone through several stages of its development, but the main features of the entire past period were the orientation towards administrative methods of managing the economy, the maximum concentration of financial resources and power functions in government agencies and complete inconsistency with the credit systems of industrialized countries.

At the last stage of the administrative-command functioning, the credit system of the USSR looked like this:

- State Bank of the USSR;

- Stroybank of the USSR;

— Bank for foreign trade;

— Gostrudsberkass system;

— Gosstrakh and Ingosstrakh.

That is, the credit market of the USSR was dominated by six absolute monopolists who divided this market among themselves.

It should be noted that the long-term command and administrative functioning of the credit system showed its low efficiency. Most of the loans to enterprises were not returned, and banks practically performed the function of not lending, but financing enterprises. Under these conditions, in the mid-80s. an attempt was made to form a two-tier credit system in the country, however, quite specific.

At the top level was the State Bank of the USSR, freed from functions unusual for it. At the second level there were five specialized banks. The system of non-bank credit institutions was again practically non-existent.

As a response to the negative consequences of this banking reform, commercial and cooperative banks began to be created in the country, mainly on the basis of the monetary savings of various industries and the population.

At the end of 1990, the Supreme Soviet of the USSR adopted a law that finally established a two-tier banking system in the form of the Central Bank of the Russian Federation, the Savings Bank and commercial banks, which received an independent status in the field of attracting deposits, credit and interest policies.

At present, the structure of the Russian credit system is as follows:

1. The Central Bank of Russia.

2. Banking system:

- commercial banks;

— Savings Bank of Russia;

- other specialized banks.

3. Specialized credit and financial institutions:

- Insurance companies;

— non-state pension funds;

— investment companies;

— financial and construction companies. Of course, the new structure of the credit system to a greater extent reflects the needs of a civilized market economy.

At the same time, the process of formation of the credit system revealed certain problems and shortcomings in all its structural links. The main ones include the following:

- the existence of small commercial banks, which, due to a weak financial base, cannot cope with the needs of customers;

- monopoly, unrestricted position in the banking market continues to occupy the Savings Bank;

- the absence of a law on land ownership as a basis for the creation of mortgage banks;

- lack of real conditions for the development of the corporate securities market as a basis for the functioning of investment banks;

—absence of a real legislative base for regulating the market of specialized non-banking institutions.

All these problems significantly hinder the development of Russia's credit system in its rapid approach to the state of the credit systems of industrialized countries.

Control questions

1. What is the structure of the credit system of Western countries?

2. Describe the mechanism of functioning of the credit system.

3. What is the problem of price and non-price competition in the credit market?

4. Name the main forms of credit.

5. What is the need for state regulation of credit and financial institutions?

6. What are the problems of formation of the credit system in Russia?

Topic 17. Banking system

1. The concept of the banking system, its elements and properties.

2. Ways of development and reformation of the banking system of Russia.

1. The concept of the banking system, its elements and properties

If banks, credit institutions, as well as economic organizations that perform certain banking operations operate in a country in sufficient numbers, then they usually talk about the presence of a banking system in the country.

However, this is not entirely true, because any system: must contain all the necessary elements in certain proportions;

- it should not contain unnecessary, unnecessary elements;

- between the elements of the system should be carried out effective interaction, as a result of which all the necessary functions of the system are realized, which is incomparably richer than just the sum of the functions of its individual elements;

- elements of the system define, limit and complement each other;

- as a rule, one system enters another, wider system, where it also interacts with other elements and performs its own special function.

With regard to banking, these general principles mean the following.

1. The country has a sufficient number of operating banks and other credit institutions.

2. The country does not have:

- banks that have not started operations;

— not provided for by the legislation of organizations engaged in banking activities;

— credit institutions carrying out banking operations without a state license.

3. There is a mechanism that performs only its inherent functional responsibilities established by the Central Bank of the country.

4. A variety of economically viable types of commercial banks and other credit institutions operate in the country.

5. Banks and other credit institutions interact in various forms:

- with the clientele;

— with the Central Bank of the country and other bodies state power and management;

— with each other and supporting organizations.

The banking system, as an integral part, is included in a large system - the credit system of the country, and the credit system - in economic system countries. This means that the activities and development of banks should be considered in close connection with the production, circulation and consumption of material and non-material goods. In their practical activities, banks are organically woven into the general mechanism for regulating economic life, closely interacting with the budget and tax systems, the pricing system, and the conditions of foreign economic activity.

Banks operating in the country may have one- or two-tier organization. The one-tier option is valid when there is no central bank in the country, or there is only one central bank. Of course, in this case it is too early to talk about the banking system.

The banking system as an element of a civilized market economy can only be two-level. The first, upper level is the central bank. The second, lower level is commercial banks and credit institutions. The need to create a two-tier system of banks is due to the contradictory nature of market relations, which, on the one hand, require freedom of entrepreneurship and disposal of private financial resources, which is provided by elements of the lower level - commercial banks, and on the other hand, the need for a certain state regulation, which requires a special institution in the form of a central bank.

The central bank of the country is the main link in the banking system of any state. He is an intermediary between the state and the economy. More often than not, the central bank is the property of the state. Carrying out its activities at the macro level, it reflects the national interest, pursues a policy not in the interests of this or that region, this or that group of sectors of the national economy, but in the interests of the state as a whole.

Traditionally, the central bank performs four main functions:

— carries out monopoly issue of banknotes;

- is a bank of banks;

- is a government banker;

— carries out monetary regulation and banking supervision.

It should be noted that all functions of the central bank are interconnected. By lending to the state and banks, the central bank thereby creates credit instruments of circulation. Carrying out the issue and repayment of government obligations, it affects the level of loan interest. The listed functions of the central bank create real prerequisites for it to perform the functions of regulating the entire monetary system of the country, and thereby regulating the economy. The function of monetary regulation and banking supervision is at the present stage the most important function of the central bank.

Commercial banks represent the second level of the banking system. They concentrate the business part of credit resources and directly serve legal entities and individuals. Commercial banks are the main link in the country's banking system. According to the level of specialization, commercial banks are divided into:

- universal, i.e., carrying out practically all types of banking operations;

- specialized, i.e., carrying out, for one reason or another, specialization in certain types of banking operations.

The main functions of commercial banks are:

- mobilization of temporarily free funds of legal entities and individuals and their transformation into capital;

- lending to legal entities and individuals, as well as the state;

- Settlement and cash services for customers. Commercial banks in most Western countries are currently performing various operations to meet the financial needs of all types of customers - from the individual depositor to a large company. Large banks carry out up to 300 types of operations and services for their clients: maintaining deposit accounts, issuing various loans, buying and selling securities, operations by proxy, storing valuables, etc. Thanks to this, commercial banks are constantly and are inextricably linked with almost all parts of the reproductive process.

A concrete manifestation of banking functions are the operations of a commercial bank.

2. Ways to develop and reform the banking system of Russia

1998 was the most dramatic year for the Russian banking system. The financial crisis dealt the most serious blow to commercial banks and revealed weaknesses in the Russian banking system, which, of course, needs substantial reform.

After August 17, 1998, the Bank of Russia took a number of urgent measures to create favorable conditions for the restructuring and recapitalization of the banking system, prohibiting, in particular, the payment of authorized capital in foreign currency and limiting the share of payment in tangible assets. Simultaneously, the Bank of Russia started to solve long-term tasks. The main one is the restructuring of the entire banking system of Russia.

The main goals of the restructuring are to single out a viable core of the banking system, increase its capital, improve the quality of assets, and create a long-term resource base for high-quality customer service.

The program is based on the grouping of banks depending on their real financial situation and the role they play in the regional economy. All banks were divided into four groups.

First group— stably operating banks with a long-term capital base that do not experience significant difficulties in managing current liquidity and are able to operate without additional government support.

Second group - stable working regional banks, which will become the backbone of the future regional banking system of Russia.

Third group - individual large banks that have lost their capital and are not able to continue banking operations on their own, some are not advisable to close due to high economic and social costs and consequences.

TO fourth the group includes ruined unpromising banks, unconditionally subject to closure. More than 300 banks were included among them.

Of fundamental importance is the question of the structure of the Russian banking system. Of course, it is important for the country to have a complete "range" of banks that meet the real needs of a market economy. For this purpose it is necessary:

— liquidate the monopoly of Sberbank in working with the funds of the population;

- to create a legal framework and real conditions for the formation of a parabanking system, including the entire range of institutions for working with the funds of the population under the unconditional legislative control of the state;

- create specialized banks in the country, such as a development bank, an export-import bank, an agricultural bank, a mortgage bank, and a credit cooperation bank;

- create conditions that do not allow privileges for individual banks, including those created with the participation of the state;

- to create conditions for supporting the regional network of banks as a condition for the development of the productive forces of the regions.

An important direction in the development of the banking system in the future is the restoration of confidence in the banking system, since one of the most severe consequences of the 1998 crisis was the loss of confidence of the population, and in a broader aspect, of all investors in the banking system. As a result, the interbank market has been destroyed, the banks' resources have sharply decreased, and the population's amount of cash has sharply increased, which causes additional pressure on the ruble exchange rate.

Related to the previous issue is the question of increasing the attention of banks to limiting market risks. Of course, the banking business is among the top ten most dangerous and risky types of human activity. Therefore, it is necessary to improve the current procedure for regulating market risks, in particular, to take into account the quantitative assessment of market risks when calculating the bank's capital adequacy ratio.

The implementation of all these measures will restore the activity of the Russian banking system and create conditions for intensifying its work with the real sector of the economy, increase the responsibility of bank managers and shareholders for the result of their bank management activities.

Control questions

1. Define the concept of the banking system.

2. Name the main elements and properties of the banking system.

3. What are the ways of development of the banking system in Russia?

Topic 18. Securities market

1. Basic concepts of the securities market.

2. State and municipal securities.

3. Corporate securities.

4. Organization of the securities market. Stock Exchange.

1. Basic concepts of the securities market

An important element of an effectively functioning market economy is the securities market, which, as an element, is included in the financial market system.

It is well known that the financial market is divided into two parts:

— equity capital market;

- debt capital market.

The loan capital market is represented in a market economy by the credit and banking system of the country.

The equity capital market is a securities market, that is, that part of the financial market that provides the possibility of prompt transfer of funds to various sectors of the economy and promotes investment. Thus, the key task of the securities market is to attract investments that determine the possibilities of long-term economic development. In addition, the securities market is one of the most important instruments of the state budget policy.

The main object functioning in this market is a security. In modern economic literature, there are many definitions of this concept. However, most economists agree that a security is a specially designed document expressing property relations between the parties, confirming the right of its owner to any property or its monetary equivalent.

There are a number of classifications of securities:

- registered securities, the data on the owner of which are recorded in a special register, and bearer securities, i.e. transferred to another person without identification;

- term securities, i.e. securities with a specific maturity, and perpetual securities that do not contain a specific maturity;

- documentary securities, the owner of which is established on the basis of the presentation of a issued certificate, and non-documentary securities, the owner of which is established on the basis of an entry in the registry system;

— government securities issued by the federal government; securities of the subjects of the Federation, issued by the subjects of the Federation; municipal securities issued by local authorities; corporate, produced by enterprises and organizations.

The procedure for issuing securities is called emission. Securities are emissive, i.e., the placement of which requires an issue prospectus and registration of the issue by regulatory authorities, and non-emission securities, the placement of which does not require an issue prospectus.

The issue is carried out on the basis of a decision to issue a document registered with the state registration authority for securities and containing data sufficient to establish the scope of rights secured by the security.

The main types of securities are stocks and bonds, but other financial instruments also belong to this market.

Shares are called equity securities, confirming the contribution of their owner to the capital of the joint-stock company and on this basis giving the right to vote at a meeting of shareholders and to receive part of the profit of the joint-stock company in the form of dividends. Shares are divided into ordinary and preferred, which, unlike ordinary shares, do not give its owner the right to vote at a shareholders' meeting, but for which a fixed dividend is set.

Bonds are called issuance securities that secure the holder's right to receive bonds from the issuer for the period stipulated by them of the nominal value and a fixed percentage of this value, i.e. bonds are debt obligations expressing loan relationships.

A bill is a security that determines the relationship of a loan. The bill contains an unconditional obligation of the borrower to pay the amount specified in the bill. In this case, the bill is drawn up in paper form in strict accordance with the legally established norms. Mortgages (mortgage securities) - securities reflecting the relationship of pledge. Mortgages certify the right to receive monetary obligations secured by a property mortgage.

Derivative securities are securities that certify the owner's right to purchase (sell) securities issued by a third party within the terms and conditions specified in the certificate and the decision to issue these derivative securities.

2. State and municipal securities

State and municipal securities are issued in the form of bonds or other securities certifying the right of their owners to receive funds from the issuer in the manner prescribed by the terms of the issue.

Government securities are part of the government debt. If these securities are denominated in rubles, then they are part of the internal debt, and if in foreign currency, then external.

The government securities market is represented primarily by government short-term bonds (GKO), federal loan bonds (OFZ), government savings loan bonds (OGSS) and domestic foreign currency loan bonds (OVVZ).

Over the past few years, GKOs have been the largest segment of the Russian securities market in terms of initial placement and secondary trading turnover.

Domestic foreign currency bonds are issued by the Ministry of Finance and are a government debt instrument denominated in foreign currency.

The bonds of the subjects of the Federation are considered the second in terms of reliability after the securities issued by the federal center, and the yield on them even exceeded the yield on GKOs.

Municipal bonds have been developed in a number of states due to the provision of significant tax benefits. The issuer of this type of bonds is the municipality, which has the right to issue debt obligations.

It should be noted, however, that historically municipal bonds have not been developed in all countries, which, of course, is associated with the existing schemes for attracting resources to the budgets of cities and territories - by obtaining bank loans or issuing municipal bonds.

3. Corporate securities

Issued corporate securities are issued in the form of shares and bonds. In developed Western countries, the issue of corporate securities is the most important mechanism for attracting funds by legal entities. Corporate securities issued by enterprises in one industry attract temporarily free capital from other industries, which contributes to the unimpeded flow of capital and its effective use in the most profitable industry projects.

When creating a joint-stock company, its founders receive shares in an amount proportional to the funds contributed to the authorized capital of the company.

By purchasing shares, the investor receives the right to vote in the management of the joint-stock company and the right to receive dividends based on the results of the company's work for the year.

However, the investor is also interested in the possibility of receiving profit from the growth in the market value of shares.

It should be said that the price of a share is an integrated indicator that reflects the investment attractiveness of an enterprise, taking into account a large number of factors: the situation in the industry, the situation in the country's economy, the financial and economic condition of the enterprise, the situation on the product market enterprise and its development forecast, etc.

Attraction of additional financial resources corporate structure it is also possible by placing bonds. Corporate bonds are a debt security that allows the issuer to raise funds for the implementation of both short-term and long-term investment projects. Placing a bonded loan can be a more profitable and simple way for an enterprise to attract resources than obtaining a bank loan.

Enterprises can also issue bills of exchange, but this species securities is not issued and is used mainly for mutual settlements. Bills of exchange can be issued only in documentary form.

The most important task facing the corporate securities market is to create an effective mechanism for mobilizing sufficient resources for productive investment. In this regard, the priority task is to develop the corporate bond market, including those denominated in the national currency, as well as to develop a mechanism that makes additional placement of Russian issuers' shares attractive, aimed at attracting additional resources to production.

4. Organization of the securities market. Stock Exchange

The issue of securities is carried out under strict control by the bodies regulating the securities market. Circulation of securities, i.e., purchase and sale between investors, including through the mediation of investment institutions, is carried out at market prices. The issued securities enter the securities market, where they are further circulated. There are primary and secondary securities markets. Newly issued securities are sold on the primary market. Over-the-counter turnover is sold here. Securities in this market are purchased directly by buyers - usually large special financial institutions (insurance and investment companies, various funds, etc.) and the population.

Both earlier and additionally issued securities circulate on the secondary market. There are two main organizational varieties of secondary securities markets: an organized state-regulated securities market, represented by exchange and organized over-the-counter trading systems, as well as an unorganized (spontaneous) securities market. In the secondary market, the main role is played by the official stock exchange.

A stock exchange is an organization whose exclusive subject of activity is to ensure the necessary conditions for the normal circulation of securities, the determination of their market prices (prices reflecting the balance between supply and demand for securities) and the proper dissemination of information about them , maintaining a high level of professionalism of participants in the securities market.

The term "exchange" comes from a place in the city of Bruges, where merchants gathered in front of the house of the rich man Van der Burze, with the family coat of arms of which there were three purses. Wallet in Dutch - "Burze". In the XVI century. in the city of Antwerp, the first stock exchange appeared, where bonds were traded. Then there was a stock exchange in Amsterdam for stocks. In the 17th century there was a division of commodity and stock exchanges.

The exchange is called upon to provide conditions for the normal, civilized circulation of securities. Here their market prices are determined, reliable comprehensive information about the quality, reliability, liquidity of tradable securities is provided. All securities entering the exchange go through the listing procedure (admission of securities to exchange trading). The purpose of the listing is to admit only high-quality securities to exchange trading. The exchange registers the prices of shares and bonds (quotations) that have developed in the process of buying and selling. The price at which transactions with securities are concluded is called the rate.

The stock exchange in the Russian Federation is created in the form of a closed joint stock company and must have at least three members. Members of the stock exchange can be professional market participants, whose main tasks include the implementation of operations with securities. Operations on the stock exchange can only be carried out by its members. The stock exchange has the right to establish minimum mandatory requirements for investment institutions necessary for joining the exchange, qualification requirements for representatives of members at exchange trading.

In organized securities markets, stock indices are compiled. Stock indices are methods for measuring changes in stock prices compared to averages. When calculating the indices, the shares of many companies are taken into account, and both composite indices and industry indices are compiled. Of the world's stock indices, the most well-known, calculated on the exchange market. - Standard & Poor "s 5000, Dow Jones index and New York Stock Exchange index, over-the-counter - NASDAQ index.

Of the Russian exchange indices, one can name the index of the Moscow Interbank Currency Exchange (MICEX), the AK & M index, and of the over-the-counter ones - the index of the Russian Trading System (RTS).

The decision to purchase securities is made on the basis of analysis, the purpose of which is to assess the investment qualities of securities and their comparability with risk. The following methods of analysis are used: fundamental and technical analysis, analysis using ratings and stock indices, formation of a stock portfolio.

Control questions

1. Define the basic concepts of the securities market.

2. Determine the features of state, municipal and corporate securities.

3. Describe the mechanism of the stock exchange.