Structure of the Banking System

The banking system is a set of all credit institutions included in the economy of the country, each of which has its own special function. They conduct their list of operations, satisfying the society's need for banking services and products. The structure of the banking system is reduced to the distribution of all banking institutions in the hierarchy, depending on their functions.

The banking system of the Russian Federation still has many contradictions. Banks are engaged in a variety of types of operations. Their functions include not only the organization of money turnover and the establishment of credit relations. They finance the national economy, operations for the sale of securities, organize insurance operations, conduct intermediary transactions, manage property, etc.

The concept and structure of the banking system begins with the definition of the very concept of "bank".

The bank is an independent commercial enterprise. Its main product is the formation and management of payment instruments or a mass of money, as well as the provision of services in the form of guarantees, loans, consultations, guarantees, etc. Banks trade in money and analyze the market. They are very close to the business and its needs. Therefore, banks are a key element in regulating the economy.

Today, the bank is defined as a financial enterprise concentrating free funds in the form of deposits, providing them for use as loans, acting as an intermediary in settlements between business entities and individuals, regulating circulation of money and issuing missing money.

The banking system , therefore, is a collection of different types of national banks, as well as all credit institutions. It includes such elements as the Central Bank, commercial banks and other credit and settlement centers. This is the structure of the banking system.

The central bank carries out the issuing policy and carries out currency regulation, controls the economy and, in fact, acts as the main core of the reserve economy system. Commercial banks conduct various types of banking services and operations.

The main function of the banking system is to mediate the movement of loans and cash from sellers to buyers and from creditors to borrowers.

The role of the banking system in Russia is great, it helps to regulate cash settlements, passes through the mediation of all cash flows.

The structure of the banking system is reduced to the distribution of all banking and credit institutions in a hierarchical order. Like all other branches of the national economy, the banking system needs a hierarchical structure of its components. In it, the central link and the lower functional organs are distinguished.

The structure of the Rossiyskaya banking system is characterized by a two-level structure .

At the highest level of the hierarchy is the Central Bank of Russia . Its functions are to organize circulation of money and non-cash payments, manage gold and currency reserves, credit and settlement services to the government, monetary regulation, implement the policy of the Central Bank among the institutions of this sector. Central Bank subdivisions are the Central Office, the central institute of the sector, regional institutions of the Central Bank.

At the grassroots level of the banking hierarchy there are commercial and specialized banks . Their functions include credit and settlement services to clients in a complex form, specialization in certain types of services.

The structure of the banking system also has a subdivision by sector. To improve the efficiency and effectiveness of the regulatory activities of the Central Bank, the banking system is divided into sectors that include similarly functioning institutions. For example, consumer credit banks, land banks, leasing institutions sector and others. The main purpose of this division is the establishment of regulatory procedures, depending on the specifics of the operations of institutions in a particular sector.