How is the country's banking system organized: structure, functions, development

The banking system is the aggregate of the regulator and credit institutions that operate within a single mechanism. The key link is the Bank of Russia (CB). The activity of the whole structure is regulated by the Law "On Banks and Banking Activity".

Kinds

The essence of the banking system, the purpose of its creation is to accumulate free funds and extract profits from them through capital investments. This process is carried out on several levels.

Types of systems:

• Two-level;
• Monobank;
• Decentralized system.

In developed countries , a two-tier system operates. It is characterized by the presence of a regulator in the person of the Central Bank and the commercial credit institutions subordinate to it on the second level. But there are exceptions. In France, the functions of the regulator are performed by the Ministry of Finance. He obeys all banks, including the Central Bank. The US has its own decentralized system, in which the Federal Reserve is the main function . During the Soviet Union, the mono-bank scheme operated. Consider how the banking system of the country is organized today.

Regulator

The Central Bank of the Russian Federation is established in the form of a legal entity, but it does not have a charter and is not regulated by the tax authorities. He can emit money, withdraw them, issue new banknotes. The profit of the institution is directed to the formation of reserves and funds, is transferred to the budget. Sources of income:

• Dividends on shares;
• Interest income on loans and deposits;
• Profit from operations with precious metals, corporate rights, other securities, etc.

The objectives of the activity are:

• Organization of the banking system;
• Ensuring the stability of the national currency (purchasing power, rate);
• Ensuring the effective functioning of the system.

Instruments:

• Rates on operations of the Central Bank;
• Reserve ratios;
• refinancing;
• Currency regulation;
• Guidelines for the growth of the money supply.

Under the law, the authorized capital of the regulator and other property thereof are federal property. The Bank of Russia only disposes of them. The state and the Central Bank of the Russian Federation are responsible for each other's obligations.

The highest authority of the Central Bank is the Board of Directors, which determines the directions of the institution's activities. It consists of the Chairman of the Central Bank and 12 members. Banks of the republics, which are territorial branches of the regulator, can not issue guarantees, sureties, obligations without the permission of the Council.

Banks are divided into two large groups: commercial organizations and non-bank lending institutions. This is how the country's banking system is structured on the first level.

Commercial institutions

The purpose of the existence of credit institutions is to make a profit. They must obtain a license from the regulator to carry out their activities. Such institutions can be created in different forms of ownership: state, private, municipal, etc.

Banks have the right to carry out the following operations:

• Attract deposits of individuals and legal entities;
• Place funds on your behalf;
• To carry out settlements on behalf of third parties;
• Carry out collection services;
• Acquiring;
• Open and maintain accounts;
• Issue guarantees, etc.

Banks can borrow funds from each other, make settlements through correspondent accounts and perform transactions that do not conflict with the law. Credit institutions around the world are ready to offer customers about 200 types of services. But the Law "On Banks and Banking Activity" imposed a ban on 4 of them: trade, manufacturing, insurance, and monopoly. The latter refers to operations aimed at restricting competition.

A credit institution can not independently change the rates for loans, deposits, the duration of the contracts. Money and valuables of clients can be seized through the court. Executions are carried out only on the basis of executive documents, and confiscation is based on the court verdict that came into force .

Non-banking organizations

These are credit institutions that can carry out certain types of transactions. They are organizations:

• outstanding loans;

• storing values;

• selling mortgaged property.

Answering the question about the structure of the country's banking system today, we can say that it consists of three levels. In addition to the Central Bank and commercial institutions, insurance companies, investment and pension funds, and other financial institutions participate in the redistribution of funds. This is how the country's banking system is structured.

Principles of operation

1. Work within existing resources. Interest income on deposits and loans is the main, but not the only source of profit for banks. In the conditions of inflation, the most profitable area is exchange trade. Bank capital promotes the growth of speculative operations. In such conditions, planning is carried out on the basis of actually attracted funds.
2. Responsibility for the results of activities. The banking system in the economy fulfills an important task - it redistributes money between sectors. Credit institutions are free to choose customers and investment directions. But for all obligations taken, banks are responsible for their own funds, which can be imposed a penalty.
3. Organization of relationships with customers on market conditions. When issuing loans, the bank is guided by indicators of liquidity, profitability and risk.
4. Regulation of activities is carried out exclusively by indirect methods. The state and legal acts form the basis of functioning, but they can not dictate the conditions and directions of activity.

Banking and financial systems today

In recent years, credit institutions have been striving for openness. Introduce modern technologies (bank payment systems, plastic cards, client-bank, etc.), different types of lending. But on economic indicators, the level of development of the system in the Russian Federation lags behind the world.

In the structure of the sources of capital investment of enterprises, the share of loans is insignificant - 8-10% (Japan - 65%, EU - 42-45%, USA - 40%). Accounts in banks are 25% of Russians, and only 10% use plastic cards. In Western countries, almost all the population over the age of 18 has an account and 1-2 credit cards.

The issue of saturation with the services of the regions remains acute. The basic banking system of the Russian Federation is concentrated in megacities. Get a mortgage or car loan in the northern and southern regions of the country can only be in state-owned banks.

The reasons for the low level of development of the system are as follows:

• The state does not pay much attention to this sector;
• Low level of monetization of the economy;
• Undeveloped infrastructure of banking services;
• A large proportion of cash payments that are carried out outside the banking system;
• Lack of adequate protection by the state.

"Bankfall" 2015

The national banking system as of 01.01.2016 includes 681 credit institutions. A total of 947 organizations were registered, but 266 of them had their license revoked. Compared to 2015, the number of banks decreased by 102 units. Analysts predict that in 2-3 years this figure will drop to 500.

Despite the crisis, the pace of "cleaning" the sector has not declined. The loudest in the last year was the revocation of the license from Transportny in connection with the failure to comply with federal laws. The volume of payments to DIA is estimated at a record 39 billion rubles.

The number of banks in Russia exceeds the needs of the state economy. Approximately 96% of the country's acts are consolidated among the 200 largest institutions. Another 481 small organizations account for 3.5% of assets. Until the situation in the economy improves, small banks will have problems with liquidity and compliance with regulations. There are only two options for solving the problem: to sell assets or to go to sanitation.

It is difficult to find investors

Banks who want to stay on the market are many. As well as buyers. The problem is that the vision of value on both sides is different. After imposing sanctions, the number of Western investors is constantly decreasing. Partners are now looking for markets in the Middle and Far East.

The work of the banking system of the Russian Federation may well be carried out at the expense of 300 institutions. Organizations from the fourth hundred in the rating are captive, they are serviced only by a number of enterprises. In the literal sense, they are not engaged in banking.

2015 Results

Over the past year, banks have tried to maintain profitability. But not everyone succeeded. Even the major players of the market showed record losses. While the population is considering whether to deposit in the same Sberbank (previously exchanging rubles to dollars), credit institutions are experiencing liquidity problems.

In connection with the collapse of the ruble, the volume of the loan portfolio for the I quarter of 2015 decreased by 0.7%, reserves - by 7.6%, profit amounted to only 6 billion rubles. The rescue circle was thrown by the Central Bank, which introduced normative indulgences. As a result, the share of the regulator's funds in banks' liabilities at the end of April reached a record level of 10.4%. Institutions accrued reserves for restructured loans under a preferential scheme.

The second measure of support is the capitalization of banks by 830 billion rubles. Under the OFZ scheme. The program earned only in the second half of the year, so its effectiveness can really be estimated only by the end of 2016. But injections allowed banks to maintain capital adequacy ratios and replenish reserves of the first level. The fee for support was the obligation not to increase the cost of FOP and to limit dividends for three years. The Central Bank's actions allowed increasing the share of loans by 0.7%, deposits by 10.9% and profit of 265 billion rubles.

The main problems of 2015

The main problem is the decrease in consumer crediting by 12% compared to its last year's growth of 8.9%. As a result, a group of banks sank, which specialized only in unsecured loans. The 6 largest institutions accounted for 10% of retail loans and 20% of overdue loans. Their indicator of distressed assets (15%) is twice the average for the system (9%). To restore their positions, banks will have to reorient themselves to provide universal services.

Another unexpected obstacle was the collapse of Transaero, which accumulated 250 billion rubles in debt. Its problems fell on the shoulders of creditors, whose losses in case of bankruptcy of the air carrier will amount to billions of rubles. Defaults in the corporate sector are expected in 2016 as well. All sectors of the economy suffered from a decline in demand. There are practically no hopes for its restoration in 2016.