Finance (in a broad sense) is a system of economic (monetary) relations with the help of which monetary funds and state funds are created and spent, respectively. with their inherent functions. Money. Wed are accumulated in den. Fund Finance is a set of objectively determined economic relations that have a distributive nature, a monetary form of expression and are materialized in cash income and savings, formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, and the satisfaction of social and other needs. The term “finance” appeared in Western Europe in the 17th century and translated into Russian means “cash payment.” It is generally accepted to distinguish 4 signs of financial relations:
The monetary nature of finance. relationships;
The distributive nature of finance. relationships;
Fin. relationships are always associated with the formation and cash income and accumulations taking the form financial resources.
2. Finance has by its nature monetary relations, but movement alone Money between objects does not reveal the whole essence of finance. To do this, you need to consider the relationships inherent in finance that also arise between objects:
1) enterprises (in the process of acquisition
inventory, sales
products and services);
2) the state and enterprises (in the form of paying taxes to the budget);
3) the state and the population (as payment of taxes
from individuals);
4) enterprises and insurance companies;
5) enterprises and banks;
6) enterprises and extra-budgetary funds;
7) budgets of various levels.
Finance represents economic relations related to the formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions and tasks of the state, ensuring conditions for expanded reproduction.
Functions of finance: 1) distribution (distributes the created product; with the help of this function funds are created); 2) redistribution (redistribution of the created product, i.e. secondary distribution between members of society); 3) regulatory (finance can both stimulate production and suppress it); 4) control (thanks to finance, society has the opportunity to observe all financial flows in the state in order to influence a particular product in a timely manner).
5. Compare finance and money categories
Non-specialists say: “Finance is money; the available funds of the enterprise." Money and finance differ sharply from each other in the functions they perform and their content. Finance is an economic relationship that is associated with the distribution, formation and use of decentralized and centralized various funds of funds in order to fulfill the tasks and functions of an individual enterprise or state, as well as to ensure conditions for expanded reproduction.
Money is a means of payment for goods (works, services), a means of storing value and a means of paying for services. Money is a rather complex economic category; it still remains a mystery: why does an increase in the number of banknotes in an individual increase his individual wealth, and the growth of society as a whole? money supply does not contribute to the increase in the wealth of society?
Money is also a sign of exchange, which participates in the role of an intermediary in the exchange of goods for another. Some Russian economists, that is, economists of the Russian market economy, consider money to be a type of securities whose specific feature is the relative autonomy of their movement and the possibility of accumulation.
Money performs different functions than finance. For example, finance performs three functions:
1. use of cash and funds; 2. receiving cash and forming funds; 3. control.
Some economists claim that finance performs only two functions: control and distribution.
K. Marx identified five functions for money: a measure of value, a means of payment, a means of circulation, a means of saving and accumulation, and world money. He always named the measure of value as the first.
Over the past 150 years, economics has come a long way. Most modern economists identify three functions for money:
1. a means of measuring value (that is, a measure of value);
2. medium of exchange;
3. a means of storing and accumulating value.
Let's look at the differences between money and finance using the following example. Let's say a citizen lends money to another person. This means that a citizen transferred a material thing in the form of a banknote to another person. In other words, money is a thing that can be lost, found, destroyed (torn banknotes). But the attitude of a citizen who lent money to another person is already a financial relationship. A person acts as a lender, a person who borrowed money acts as a borrower. Will the lender take a receipt from the borrower, will he take some thing as collateral, will he charge interest for the money, etc. - all this represents a financial relationship.
The concept of finance is a set of objectively determined connections, economic relations that have a distributive nature, a special monetary form of expression, materialized in monetary total income and accumulations that accumulate and concentrate in government agencies and business entities for the purpose of expanded reproduction, as well as material incentives for workers, meeting various social needs of society.
Some other aspects of the concept of “finance” are highlighted in the following definitions:
Finance is an element of business associated with the attraction, distribution and use of received financial resources in order to support entrepreneurial activity.
Finance is, at its core, an integral part of monetary relations, an economic instrument for the distribution and redistribution of the entire gross domestic product and national wealth, a tool for controlling education and intended use monetary funds.
From the above list of definitions of the concept “finance”, which are given in the domestic literature, we can draw a summary conclusion that the category “finance” is primarily interpreted as economic relations associated with the creation, distribution and redistribution of GDP in monetary value. Relations of this kind are determined by financial law and, obviously, this is too narrow for understanding the essence of money in the full range of possible aspects. Therefore, it is not surprising that a number of authors note the static nature of the distribution concept, while one of the characteristic features financial sector are dynamics and movement of funds. And it’s hard to disagree with them.
Without a doubt, as a result of economic transactions that were accompanied by the movement of funds, certain economic relations arise between the participants. But financiers are those specialists who can not only take into account the norms financial law, but also within these standards to regulate and measure the flow of funds at the macro, and of course at the micro level. The relationships that arise in this case are a consequence of the interaction between business entities and the state, but they are difficult to quantify.
Summarizing the existing positions, we can formulate the following definition of the concept of finance. Finance is flows of funds regulated in a certain legal field using special methods, special techniques and tools, measured in monetary equivalent, circulating in national economy through a system of funds created at the macro and micro levels and, ultimately, ensuring the implementation of the processes of formation, distribution, redistribution of GDP, national income and national wealth and are accompanied by the emergence of economic relations between all participants in these processes.
“Despite some differences in the definition of the concept of “finance,” all of them are not of a significant nature, since the interpretation of finance by domestic scientists is based on a single concept based on the identification of the essence of finance as a distributive cost and monetary category.”
12. Draw a diagram showing the drafting and approval process financial plan non-profit organizations.
Financial plan is a document that reflects goals financial strategy non-profit organization, contains a description of the financial situation, methods of raising funds, directions of expenses, calendar plan, methods of ongoing monitoring and analysis.
Stages of drawing up and approving a financial plan in a non-profit organization:
 |
Stage 1: definition priority areas activities of a non-profit organization, principles of formation and use of its property; is a stage strategic planning. The stage of forecasting possible sources of financial resources;
Stage 2: formulating assumptions and hypotheses about the state of the economy, development trends of the non-profit sector in general and this non-profit organization in particular and making changes to the financial plan. The need for labor and material resources necessary for the implementation of programs is assessed. This is where the lack of resources is identified and a decision is made about the need to make changes.
Stage 3: comparison of planned and actual indicators and determination of deviations; analysis of deviations and identification of their causes; making a decision to adjust the budget or tighten control over its execution.
Stage 4: the report on the implementation of the financial plan for a certain period of time is approved.
Educational institution
secondary vocational education
"Oryol Banking School (College)
Central Bank of the Russian Federation"
Department of Professional Disciplines
Course work
discipline: Finance, money circulation and credit
on the topic " Comparative analysis, structure and functions of the Russian and foreign credit systems"
Female students
Troshina Ekaterina Sergeevna
Supervisor:
Molchanova Elena Valerievna
Orel
Introduction
Section 1. theoretical foundations of the functioning of the credit system
1.1 The concept of the credit system, its essence and functions
1.2 Structure of the credit system and the role of its subjects
Section 2. Comparative analysis of the structure and functions of credit systems foreign countries and Russia
2.1 Credit system Russia
2.1.1 Structure of the Russian credit system and its characteristics
2.1.2 The role of the Bank of Russia in the country’s credit system
2.1.3 Banking and non-banking credit organizations, their functions and role in the country’s credit system
2.1.4 Specialized financial institutions, their functions and role in the country’s credit system
2.2 Comparative analysis of the structure and functions of credit systems of foreign countries and Russia
Section 3. Problems and improvement of the credit system of the Russian Federation
3.1 Problems of the modern credit system of the Russian Federation
3.2 Ways to improve the modern credit system of the Russian Federation
Conclusion
Bibliography
Application
Introduction
Relevance. The credit system is a set of credit relations existing in the country, forms and methods of lending, banks or other credit institutions that organize and carry out such relations. It operates through a credit mechanism, which is a system of connections: between credit institutions and various sectors of the economy for the accumulation of monetary capital and investment; between the credit institutions themselves for the redistribution of monetary capital within the framework of the capital market. By mobilizing money capital and concentrating investment in key sectors of the economy, the credit system promotes production growth, scientific and technological progress, and ensuring balanced economic development.
IN market economy From time to time, a situation arises when some entities have temporarily free funds, while others have a temporary need for additional funds. The credit system allows us to resolve this contradiction in a mutually beneficial manner. Therefore, this topic is relevant in modern world, since many take out loans for a variety of needs.
The object of the study is Russian and foreign credit systems.
The subject of the study is the structure and functions of Russian and foreign credit systems.
The purpose of the course work is to conduct a comparative analysis of Russian and foreign credit systems.
To achieve this goal, the following tasks have been set:
Define the credit system, its essence and functions.
Present the structure of the credit system and show the roles of its subjects.
Identify the structure of the Russian credit system and give its characteristics.
Show the role of the Bank of Russia in the country's credit system.
Define, explore the functions and role of banking and non-banking institutions in the credit system of the Russian Federation credit institutions.
Characterize specialized credit and financial institutions in Russia.
Conduct a comparative analysis of the structure and functions of credit systems of foreign countries and Russia.
Designate modern problems credit system of the Russian Federation.
Determine ways to improve the modern credit system of the Russian Federation.
The methodological and theoretical basis of the study was the works of domestic and foreign scientists on the problems of the formation and development of the country's credit system, the main of which were created by such scientists as Lavrushin O.I., Rogova O.L., Fetisov V.D., Biryukova E.A. , Chinenkov A.V. etc. In addition, the study is based on an analysis of legislative acts of the Russian Federation regulating the functioning of the credit system of the Russian Federation, as well as analytical and statistical data.
In the process of work, the following methods were used: comprehensive analysis, specification, generalization, comparative comparison, analysis of literature, regulatory documents, documentation.
The practical significance of the work lies in the fact that its main provisions and conclusions can be used for a more in-depth study of the functioning of credit systems.
The structure of the work is determined by the logic of the research topic and is aimed at a consistent presentation of the research topic. The work consists of three sections.
The first section examines the theoretical foundations of the functioning of the credit system: concept, essence, functions, structure of the credit system and the role of its subjects.
The second section presents a comparative description of the Russian and foreign credit systems.
The third section examines the prospects for developing the credit system in Russia and increasing its efficiency.
The work includes 8 applications.
The total volume of work is 26 pages of typewritten text.
1. Theoretical basis functioning of the credit system
1.1 The concept of the credit system, its essence and functions
The credit system is usually considered as a set of credit and settlement relations, forms and methods of lending, and as a set of credit organizations, or financial credit institutions. The essence and functions of credit in its various forms implemented through the credit system. The credit system is closely related to the monetary system, so they often talk about their combination - the monetary system. Traditionally, the credit system is considered in two aspects: functional and institutional.
From the point of view of the functional aspect, the “credit system” is understood as a set of credit relations, forms and methods of lending, that is, the credit system is represented by banking, commercial and consumer, state and international credit (Appendix 1).
From the point of view of the institutional aspect, the credit system is a set of credit institutions that create, accumulate and provide funds in accordance with the basic principles of lending.
The institutional component of the credit system is characterized by the following parameters:
type banking system- single-level or multi-level;
place in economic system, economic role, functional purpose, organizational structure of the Central Bank;
place in the economic system, economic role, range of operations performed, specialization, degree economic freedom, organizational structure of banks;
place in the economic system, the economic role of specialized financial and credit institutions and non-bank credit organizations, as well as state and non-governmental organizations, carrying out different kinds control of this area ( tax authorities, audit services, etc.);
The functional component of the credit system consists of the following elements:
The principles of the loan are repayment, urgency, payment, security, targeted nature.
The functions of credit are accumulating, redistributive, and substituting.
Forms of credit - commercial, state, banking, consumer, international.
Lending methods - by balance, by turnover, individual, urgent, credit lines.
The subjects of credit relations are the lender and the borrower.
The credit system carries out following functions. Through credit, commodity circulation is serviced. The credit system accumulates or collects monetary savings and savings of enterprises, the population, the state, as well as foreign clients. Money funds are transformed directly into loan capital and used in the form of capital investments to service the production process. As sources of capital to cover government and consumer spending serves the state and the population. In addition, the concentration and centralization of capital is accelerating and the formation of powerful financial and industrial groups is being promoted.
The central bank is the main part of the structure of the credit system. This organization is an intermediary between public administration and banks. The main tasks of the central bank are: issuing banknotes, conducting the state's monetary policy, managing the state's gold and foreign exchange reserves, as well as implementing monetary policy.
The banking sector is also one of the most important parts of the structure of the credit system. Currently banking sector divided into savings banks, commercial banks, investment banks, mortgage, and specialized banks. The main task of banks is to issue loans to individuals and legal entities, attract funds from individuals to increase turnover, as well as maintain accounts and provide credit and cash services to legal entities.
The insurance sector also plays an important role in the modern structure of the credit system. This sector not only employs insurance organizations, which provide various types of compulsory and voluntary insurance services, but also pension funds.
Specialized organizations representing the non-banking sector include various investment and financial companies, charitable foundations, trust companies, and savings and loans (Appendix 3).
This structure of the modern credit system is typical for most countries with developed economy However, there are national peculiarities in the development of the structure of the modern credit system.
Thus, the credit system is an integral part of the economy of any country, since the form and dynamics of the development of the state, and primarily in economic terms, depend on its functioning.
2. Comparative analysis of the structure and functions of credit systems of foreign countries and Russia
2.1 Credit system of Russia
.1.1 Structure of the Russian credit system and its characteristics
The Russian credit system includes the banking system and specialized credit and financial institutions. The banking system is two-tier. At the first level it includes the Central Bank of the Russian Federation, and at the second level credit organizations, which include bank credit organizations and non-bank credit organizations.
The Central Bank of the Russian Federation by law has the status of a legal entity. Key element legal status Bank of Russia - the principle of independence, which is manifested primarily in the fact that the Bank of Russia acts as a special public legal institution with exclusive rights money issue and organizations money circulation
It is not a government body, however, its powers in its own right legal nature relate to the functions of state power, since their implementation involves the use of measures of state coercion. The Central Bank of the Russian Federation is a single centralized system with a vertical management structure. It includes the central office, territorial institutions (Main Directorates and National Banks), cash settlement centers (RCC, GRKTs), computer centers, field institutions, educational establishments and other organizations that are necessary to carry out the activities of the Bank of Russia (Appendix 4).
Like the central banks of other countries, the Bank of Russia primarily issues banknotes, banking supervision and monetary regulation of the economy. The Central Bank's performance of its main functions presupposes 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 practically the only supervisory authority in the country. The functions of the Central Bank confirm its status as an institution located at the very center of the country's banking system. The successful performance of functions by the Bank of Russia is a condition for the effective development of the market economy of the Russian Federation.
In 2010-2012, the Bank of Russia was active in the field of banking regulation and supervision, ensuring the stability of the financial system, stability and development of the national payment system, currency regulation and control, organizing cash circulation, improving accounting and reporting, international interaction and cooperation, etc.
Credit organizations. The concept of “credit organization” is enshrined by the legislator in the Federal Law “On Banks and Banking Activities”, where a credit organization is understood as a legal entity that, in order to make profit as the main purpose of its activities, is based on a special permit (license) of the Central Bank of the Russian Federation (Bank of Russia). ) has the right to carry out banking operations. There are three types of credit institutions:
Banking credit organizations.
A bank is a credit institution that has the exclusive right to carry out the following banking operations in total: attracting deposits of funds from individuals and legal entities, placement of the specified funds on one’s own behalf and at one’s own expense on the terms of repayment, payment, urgency, opening and maintaining bank accounts of individuals and legal entities.
Non-bank credit organizations.
Non-bank credit organization - a credit organization that has the right to carry out certain banking operations provided for by this Federal law. Valid combinations banking operations for non-bank credit organizations are established by the Bank of Russia.
Specialized credit and financial institutions.
These are specialized financial institutions that provide lending to certain areas and sectors of the economy. Their activities can be divided into two main operations; they dominate relatively narrow sectors of the capital market and have a specific clientele.
2.1.2 The role of the Bank of Russia in the country’s credit system
The main link in the banking system of any state is the country's central bank. Central Bank of the Russian Federation - main bank countries. The Bank of Russia carries out the functions and powers provided for by the Constitution of the Russian Federation and the Federal Law “On the Central Bank of the Russian Federation” independently of federal government bodies, government bodies of constituent entities of the Russian Federation and local government bodies.
The Bank of Russia has a seal with the image of the State Emblem of the Russian Federation and with its name. The authorized capital and other property of the Bank of Russia are federal property. The state is not liable for the obligations of the Bank of Russia, and the Bank of Russia is not liable for the obligations of the state, unless they have assumed such obligations or unless otherwise provided by federal laws.
The goals of the Bank of Russia are:
· protecting and ensuring the stability of the ruble;
· development and strengthening of the banking system of the Russian Federation;
· ensuring the efficient and uninterrupted functioning of the payment system.
Making a profit is not the purpose of the Bank of Russia.
The Law on the Central Bank contains a detailed list of areas of activity of the Bank of Russia (Appendix 5). The difference between activity goals and functions is that goals show the direction of development of processes, and functions represent a set of specific powers and actions aimed at achieving set goals. Functions can be classified according to their economic content (enlarged functions):
Carrying out a unified state monetary policy is one of the most important functions of the Central Bank, which, in cooperation with the Government of the Russian Federation, develops and ensures the implementation of the main directions of a unified state monetary policy. Chapter VII of the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” is dedicated to it. The main instruments of the Bank of Russia's monetary policy are: setting interest rates for Bank of Russia operations; standards for required reserves deposited with the Bank of Russia ( reserve requirements); operations on open market; refinancing of credit institutions; currency interventions; establishing benchmarks for money supply growth; direct quantitative restrictions on refinancing and banking operations; issuing bonds in one's own name.
The monopoly of issuing cash and organizing its circulation on the territory of the Russian Federation is one of the oldest functions of the Central Bank. It issues and withdraws cash from circulation, provides conditions for the production, storage, replacement of damaged coins and banknotes and their destruction, and determines the procedure for conducting cash transactions.
The Bank of Russia, in accordance with the legislation, organizes the payment system, establishes rules, forms and standards for making payments on the territory of the Russian Federation, carries out supervision and supervision in the national payment system, and is also a participant himself.
The Central Bank is the organizer of the refinancing system for credit institutions, the lender of last resort. The Bank of Russia provides lending in the following forms: pawn loan; intraday credit (within trading day) - type of loan to complete settlements; overnight loan (for 1 business day); loans secured by pledge of bills of exchange and rights of claim loan agreements organizations in the sphere of material production and (or) bank guarantees (for up to 6 months); loans secured by gold. In conditions of the financial and economic crisis, the practice of refinancing usually expands. For example, in 1998-1999. The Bank of Russia issued stabilization loans, and in 2008-2009. unsecured loans. Their term was extended to 1 year.
Carrying out the functions of banking regulation and banking supervision includes making decisions on state registration and licensing of banking operations; documentary supervision - assessment and identification at an early stage of problems in the activities of credit institutions and taking measures to overcome identified negative phenomena and trends; conducting inspections of the activities of credit institutions (their branches); prevention of insolvency (bankruptcy) of credit institutions and control over their liquidation; control over the issue of securities by credit institutions.
In accordance with the Federal Law, the Bank of Russia is the main body of currency regulation and control in the Russian Federation. This area of activity of the Central Bank usually intensifies during the period of overcoming the consequences of the financial and economic crisis.
Acting as a financial agent of the Government, namely through lending to the state (only if the corresponding budget law is adopted) and servicing the state domestic debt and through servicing accounts of budgets of all levels and extra-budgetary funds.
The function of macroeconomic analysis and forecasting is carried out through: compilation, forecasting and analysis of the balance of payments of Russia; analysis and forecasting of the state of the economy of the Russian Federation as a whole and by region, primarily monetary, monetary, financial and price relations; analysis and forecasting of the development of the banking system; monitoring of the most important enterprises in the real sector of the economy, etc. The importance of this function increases in conditions of stabilization of the economic and political situation in the country.
To achieve the goals set for the Bank of Russia, it has the right to carry out banking operations and transactions with Russian and foreign credit institutions and the Government of the Russian Federation. The Law on the Central Bank determines the list of operations of the Bank of Russia (Appendix 6).
A comparative analysis of banking operations and transactions permitted by law to the Central Bank of the Russian Federation and credit organizations allows us to draw the following conclusions. There are restrictions in legislation for the Bank of Russia that are not provided for credit institutions. In particular, the Bank of Russia can serve as counterparties for operations and transactions only against certain collateral and for a period of no more than 1 year (with the exception of unsecured loans issued during the financial and economic crisis). There are also restrictions regarding the financial and economic activities of the Bank of Russia and participation in the capital of other legal entities. Among other things, the Bank of Russia should be considered as an effective investor and distributor of resources among credit institutions. Efficient allocation is a condition for the concomitant development of the banking sector to be maximized. Accordingly, the participation of the Bank of Russia in any social- economic policy states that provide for the involvement of the banking sector, regardless of the current macroeconomic situation.
Thus, the goals, objectives, functions and operations of the Central Bank of the Russian Federation correspond to its essence. All the goals and objectives that the Bank of Russia faces and the powers granted to it are ultimately determined by the fact that the bank acts as a national center designed to regulate monetary circulation in the country.
2.1.3 Banking and non-banking credit organizations, their functions and role in the country’s credit system
Credit organizations are divided into two groups - banks and non-bank credit organizations.
Banks are credit organizations that have the exclusive right to carry out the following banking operations in the aggregate: attracting deposits of funds from individuals and legal entities; placement of these funds on your own behalf and at your own expense on the terms of repayment, payment, urgency (lending); opening and maintaining bank accounts for individuals and legal entities. Commercial banks accumulate and mobilize money capital, mediate loans, check settlements and payments in the economy, organize the issue and placement of securities, and provide consulting services. Depending on the method of formation of authorized capital, commercial banks can be divided into joint-stock and share.
Three lending principles have been established for credit institutions: the principle of repayment; principle of urgency; principle of payment.
A non-bank credit organization (NPO) is an organization that has the right to carry out certain banking operations. Acceptable combinations of banking operations for non-profit organizations are established by the Bank of Russia. Legislative requirements for non-bank credit institutions are lower than for banks, which is associated with a lower degree of risk in transactions.
In general, non-bank credit organizations can be divided into three main types: settlement non-bank credit organizations (RNCOs), payment non-bank credit organizations (PNCOs) and non-bank depository credit organizations (NDCOs).
RNCOs can carry out the following types of activities:
Opening and maintaining bank accounts for legal entities;
Carrying out settlements on behalf of legal entities, including correspondent banks, on their bank accounts;
Collection of funds, bills, payment and settlement documents and cash service legal entities;
Purchase and sale of foreign currency in non-cash form;
Making money transfers on behalf of individuals without opening bank accounts (except for postal transfers);
RNKO does not have the right to: attract funds from individuals and legal entities for deposits; open and maintain bank accounts for individuals, carry out settlements on behalf of individuals on their bank accounts; buy and sell cash foreign currency; attract deposits and place precious metals, as well as issue bank guarantees. In other words, RNKO does not have the right to attract deposits and issue loans; it provides a system of payments and transfers.
A payment non-bank credit organization has the right to carry out money transfers without opening bank accounts and other banking operations related to them. This type of NPO appeared with the release of the law “On the National Payment System”. Compared to a settlement payment non-bank credit organization, a narrower range of operations is permitted. It should provide a risk-free transfer system within the framework of organizing instant, electronic, and mobile payments.
NDCOs can carry out the following banking operations:
Attracting funds from legal entities into deposits (for a certain period);
Placement of funds attracted from legal entities as deposits on their own behalf and at their own expense;
Purchase and sale of foreign currency in non-cash form (exclusively on your own behalf and at your own expense);
Issuance of bank guarantees;
Carrying out activities on the securities market.
NDCO has no right:
Attract funds from individuals into deposits (on demand and for a certain period) and legal entities into deposits on demand;
Open and maintain bank accounts of individuals and legal entities, as well as make payments on them;
Engage in collection of funds, bills, payment and settlement documents and cash services;
Buy and sell cash foreign currency;
Attract deposits and place precious metals;
Make money transfers on behalf of individuals without opening bank accounts.
In other words, NDCO does not have the right to conduct settlement transactions, but can carry out certain credit and deposit operations.
Thus, modern economic conditions revealed the problems of the banking sector, forced banks to reconsider their client policies, as well as their product line, and changed tariffs. The goal of the fight for the client is the desire to increase one’s own liquidity, even through increased rates on borrowed funds and the provision of free services. The need to “work off” increased expenses forces banks to adhere to riskier tactics of placing “temporarily free” funds.
2.1.4 Specialized financial institutions, their functions and role in the country’s credit system
Specialized financial institutions (SCFI) or para-banking institutions are distinguished by their orientation:
a) either to serve certain types of clientele;
b) or for the provision of mainly one or two types of services.
At the same time, specialized credit and financial institutions (SCFIs) are characterized by double subordination:
) specializing in any financial, insurance, investment or other operations, SKFIs are subject to the regulatory activities of the relevant departments.
The activities of specialized credit and financial institutions (SCFIs) are mostly concentrated on serving a small segment of the market and, as a rule, providing services to a specific clientele.
A special type of NCFU are postal savings institutions that form a postal savings system. One of the most important and oldest elements of this system are postal savings banks, which historically arose as government agencies to attract funds from small investors.
Postal savings institutions, through post offices, accumulate deposits from the population, receive and issue funds. IN Lately In most countries, credit and settlement operations of postal savings institutions, characteristic of banks, are becoming increasingly widespread, and the lines between the provisions of banking legislation and areas of financial legislation regarding the subject of activity and types of services provided by various credit institutions are becoming increasingly blurred.
Specialized financial institutions (SCFI) include:
leasing companies, factoring companies, pawnshops, credit partnerships, societies and unions, mutual credit societies, insurance companies, investment companies (funds), pension funds, financial companies, settlement (clearing) centers.
Leasing companies are organizations and firms that carry out leasing operations. Leasing - type financial services, a form of lending for the acquisition of fixed assets by enterprises or very expensive goods individuals.
Factoring is a range of services for manufacturers and suppliers trading on deferred payment terms.
Pawnshops are credit institutions that issue loans secured by movable property.
Credit unions are credit cooperatives organized by certain groups of individuals or small credit institutions.
Mutual credit societies (MCS) are a type of credit institutions similar in nature to commercial banks serving small and medium-sized businesses
Insurance companies are organizations that provide insurance services and act as an insurer, i.e. accepting the obligation to compensate the insured for damage upon occurrence insured event. Insurance companies provide life, health, property, liability insurance, etc.
An investment fund is an institution that makes collective investments. Its essence is the accumulation of savings of private and legal entities for joint portfolio investment through the purchase of securities rather than real productive assets. At the same time, due to the fact that the acquisition of securities is carried out by a professional market participant, this allows minimizing the risks of private investors.
Pension fund - a fund designed to pay pensions for old age or disability.
Financial companies are a special type of financial institutions that operate in the field of consumer credit.
A settlement and clearing organization is a specialized banking-type organization that provides settlement services to participants in the organized securities market.
Thus, the influence of credit institutions on the economy is extremely great, since it is they who ensure the functioning of the financial market and organize the redistribution of funds between individual enterprises, industries, territories, individuals and legal entities. With insufficient development of the credit system, the rate of economic development, since enterprises, experiencing a lack of resources for the development of production, cannot make up for it through credit sources. Successful economic development contributes to the development and strengthening of the credit system.
2.2 Comparative analysis of the structure and functions of credit systems of foreign countries and Russia
For clarity, let us consider the credit systems of the USA, Germany, Great Britain, Japan and the Russian Federation separately.
US credit system. The core of the US credit system is the Federal Reserve System (FRS) (Appendix structure.
The Federal Reserve System has the following important bodies:
Federal Open Market Committee.
Federal Advisory Council (FAC).
FRS apparatus.
The liabilities of the Federal Reserve Banks consist of:
) from own capital created through share contributions of member banks;
) from banknote issue;
) from bank deposits, representing the reserves of banks - members of the Federal Reserve.
The concentration of commercial banks' monetary reserves in the Federal Reserve Banks was a factor in saving money. The organization of the Federal Reserve System contributed to saving cash in another respect - thanks to the development of non-cash payments, which began to be carried out on a large scale through federal reserve banks. Congress decided that in order for the Federal Reserve to effectively carry out its responsibilities, it must be independent of the executive and legislative branches of government. The Federal Reserve Act of 1913 established 12 separate Federal Reserve Districts, each with its own Federal Reserve District. reserve bank. In each of the 12 districts, Fed member banks are shareholders of their own Federal Reserve Bank. They choose 6 out of 9 directors of this bank.
The Federal Reserve Banks are not intended to make a profit, but to supervise member banks of the Federal Reserve and participate in the implementation of monetary policy developed by the Board of Governors. The main active operation of the Federal Reserve Banks is the purchase of government securities. The Federal Reserve Banks' loans to member banks are insignificant in comparison. The Federal Reserve Banks are primarily lenders to the government. But the funds they invest in government securities are ultimately used in the interests of corporations, since they are largely spent by the state on paying for government orders and purchasing goods.
In addition to the issuing (Federal Reserve) banks, the US banking system includes:
) commercial banks,
) investment banks,
) mutual savings banks,
) banking houses.
The most common type of bank in the United States is a branchless bank - a bank without branches (branches). This is why the number of banks in the United States significantly exceeds the number of banks in any other country. However, the structure of the US banking system is changing all the time. Branchless banks still retain their importance, but the role of branches, bank holding companies and other organizational structures is increasingly increasing today.
The German credit system displays a model of relatively tight monetary policy, despite the broad political rights of the regions that are part of the federation.. Features are also related to the fact that all the main functions of financial intermediation are concentrated in universal banks (commercial banks and savings banks), which do not specialize in individual operations, as do credit institutions in the USA and Japan. Currently, Germany has a highly developed banking system. Control over its activities is carried out by the Federal Control Directorate (subordinate to the Ministry of Finance).
Credit and financial institutions in Germany perform four important national economic functions:
Regularly make payments on behalf of many clients, ensuring the functioning of the non-cash payment system;
They take on the risks of companies interested in receiving loans;
Act as a liaison in raising capital for various periods; despite the fact that many depositors prefer short-term deposits, banks provide long-term investment financing;
They accumulate funds for large loans through many small deposits.
The German credit system is one of the most developed in Europe. Germany's reputation as a leading banking center in the world is associated with the perfection of national legislation. The German credit system has a two-tier structure. At the first level of the credit system is the German Federal Bank.
On August 1, 1957, the Law on the German Bundesbank came into force, on the basis of which a new banking system began to function, led by the German Bundesbank, with a central office in Frankfurt am Main and nine offices - central state banks and 126 city branches. According to the law, the Bundesbank is a federal corporation. The bank's authorized capital is owned entirely by the federal government. On the other hand, the bank is completely independent of the government in carrying out its activities.
The Bundesbank performs the following main functions:
is the emission center of the country;
is the currency center of the country;
carries out cash execution of the federal budget;
provides services to credit institutions;
is the settlement center of the country;
carries out monetary regulation of the country's economy.
At the second level there are commercial banks and non-bank financial institutions.
The UK credit system is one of the oldest. It is characterized by a high degree of concentration and specialization, a well-developed banking infrastructure, close connections with international market loan capital.
The UK banking system is two-tier. At the top level is the central bank, at the bottom are other banks: commercial (deposit) and specialized - trading, foreign, savings banks, accounting houses.
The key role of the Bank of England in the credit system is determined primarily by the fact that it serves as the country's issuing and cash center. The Bank has a monopoly on the issue of banknotes. Its liabilities (both in the form of banknotes and in the form of deposits from other banks) are the monetary base of the entire credit system. Any bank considers deposits with the Bank of England as its cash reserve, since, if necessary, it can always withdraw funds from its account. By reducing or expanding the volume of its liabilities, the Bank of England influences the amount of cash reserves of banks and the money supply in circulation.
Bank of England:
Government consultant on monetary policy issues and its guide.
Is the banker of all other banks
Provides lending to the banking system
Is the government's bank
Manages public debt.
Commercial banks in the UK are called depository banks. They form the basis of the banking system. Most of the depository banks' operations are concentrated in six London clearing banks. They are so called because they are members of the London Clearing House
The Japanese credit system consists of three parts: the Bank of Japan, commercial banks and financial institutions.. The Central Bank (Nippon Ginka) is the top level of the credit system, its chairman. The Bank of Japan issues money, monetary policy, state-monopoly regulation of the economy and cash services for the treasury.
Commercial banks are divided into several categories: city, regional banks, trust banks, long-term lending banks, foreign banks.
State-owned financial corporations also operate in industries that private banks have little interest in lending to. There are 8 state corporations in Japan (Appendix 7). Insurance companies in Japan, these are private life insurance and property insurance institutions. They accumulate huge funds, which they use primarily for investing in securities. Fund companies specialize in securities transactions. This segment of the country's financial market in modern conditions changes very dynamically. Postal savings banks occupy an important place in the structure of the country's credit relations, accumulating the savings of the population.
From the very beginning of its functioning, the credit system of Japan was subordinated to the tasks of the overall socio-economic development of the country, the strategy of turning Japan into a world economic leader. This explains its specificity, expressed primarily in the active participation of the state in the banking business, in planning and regulating the economic development of the country. It is this feature that is often harshly criticized by Western liberal economists. However, such a strategy contributed enormously to transforming what had been a backward country in the past. eastern country into a modern prosperous state. Modern banking systems are developing in a similar direction. South Korea and China.
Credit system of the Russian Federation. Modern structure The credit system of the Russian Federation is approaching the model of the credit system of industrialized countries.
The Russian banking system is formed by the Bank of Russia, the Bank Foreign trade Russian Federation (Vneshtorgbank), Savings Bank of the Russian Federation (Sberbank), commercial banks of various types, as well as other credit institutions that have received a license to conduct banking operations. The core of our banking system is the Bank of Russia. The Foreign Trade Bank carries out foreign economic activity and performs transactions in foreign currency. Vneshtorgbank is a joint stock bank, controlling stake The shares of this bank are owned by the Bank of Russia. Sberbank is also a joint-stock bank, and the Bank of Russia owns a controlling stake in the bank. By law, the state guarantees the complete safety of funds and other valuables of the population entrusted to Sberbank, and their issuance at the first request of depositors (demand deposit). This is the main difference between Sberbank and commercial banks. Sberbank performs almost all the same operations with monetary funds as commercial banks. Sberbank and commercial banks store cash deposits of enterprises and individuals, provide loans to legal entities and individuals, and thereby increase the supply of money in the economy.
Commercial banks play an executive role in the Russian banking system. Through commercial banks, the Bank of Russia implements financial policy. Each bank can carry out its activities only on the basis of a license issued by the Bank of Russia. The Bank of Russia can, on the basis of law, take away a bank’s license - this acts as a decision to liquidate the bank. Banks have the right to open branches on the territory of the Russian Federation and abroad. Banks can form banking unions, interbank associations, associations. It is only prohibited to use these and other associations to reach agreements aimed at monopolizing the banking market and limiting competition in banking. Bank mergers in our country have become widespread bank holding companies. Bank holding companies are firms that own enough of the equity capital of one or more banks to exercise complete control over them. Consequently, bank holding companies concentrate the management of an entire group of banks in one hand. This is beneficial for firms, since they have the opportunity to obtain a loan from these banks in the shortest possible time if necessary.
For the most part, commercial banks are joint-stock (there is a small share of cooperative banks), and their shares are traded on the securities market along with securities industrial enterprises.
All banks must keep their required reserves with the Bank of Russia, since the bulk of the bank’s assets are permanent deposits that are subject to withdrawal at the first request of depositors, a certain percentage of assets must be kept in reserves, in a highly liquid form. The activities of banks are subject to annual inspection audit organizations..
3. Problems and improvement of the credit system of the Russian Federation
3.1 Problems of the modern credit system of the Russian Federation
Features of the Russian credit system currently include the clear predominance of commercial banks, a poorly diversified structure (the number of types of other credit institutions is limited), unclear legislative regulation of other credit institutions not included in the banking system, and the absence of uniform approaches to the supervision of their activities, low quality of management in a number of credit institutions, including the ineffectiveness of risk management systems and internal control, poor development of modern banking technologies. In addition, one can note a constant decrease in the number of credit institutions (from 1,476 in 1999 to 958 in 2012).
Moreover, the decrease in the number of credit institutions occurs mainly due to a decrease in the number of small credit institutions with an authorized capital of up to 150 million rubles. (from 1426 in 1999 to 290 in 2012). This shows the difference between the Russian credit system and the credit systems of other countries (Appendix 8).
Another feature of the Russian credit system is the fact that, with a general decrease in the number of banks in Russia, starting from 2005. there is a sharp increase in the number of large banks with an authorized capital of 150.0 million rubles. and higher and is as of 01/01/2012. 668 banks, and also the fact that the bulk of assets (74.9%) belong to the 30 largest banks in Russia.
One of the specific features of the Russian banking system is the extreme unevenness of the territorial distribution of banking institutions. The majority of banks are located in Moscow and the Moscow region - 52.4% of operating credit institutions and 88% of total assets of the banking sector. Very few banks operate in rural areas and in distant areas. Services to organizations and the population there are mainly provided by branches of Sberbank of the Russian Federation and branches of banks in regional centers. Most provincial banks have a strong regional focus, resulting in many relatively distinct local banking markets. This situation has objective reasons: a large territory, underdeveloped infrastructure far from large cities, etc., but nevertheless, eliminating territorial unevenness is one of the promising directions development of the Russian banking system.
A feature of the modern period of development of the credit system is that its development was significantly influenced by the global financial crisis of 2008-2009, which led to a significant reduction in the number of banks.
Today, many banks are undergoing the following transformations:
Banks merge to increase and preserve capital, i.e. there is a merger of capitals;
Large banks buy smaller banks, i.e. absorption occurs;
Banks are closed due to bankruptcy or due to the inability of small banks to meet the requirements of the Central Bank for work and size authorized capital, i.e. self-liquidation or liquidation is carried out. Interbank loans are beginning to play an increasingly important role in the formation of resources of commercial banks. However, they have significant drawbacks - lack of efficiency in the redistribution of funds, limitations in size and timing. These shortcomings can be eliminated by attracting the resources of the Central Bank as a lender of last resort or a lender of last resort.
3.2 Ways to improve the modern credit system of the Russian Federation
A powerful, well-functioning national credit system is the key to the successful development of the Russian economy. The process of establishing the credit system revealed certain problems and shortcomings in all its structural links. Therefore, in Russia it is necessary to develop and implement a system of measures that would allow solving three interrelated problems. First, improve the credit climate in the country as a whole. Secondly, to ensure equalization of lending conditions and availability of resources for enterprises in different regions. And, finally, create a mechanism that allows the state to regulate financial flows, including credit, and direct them to solving priority economic problems - modernizing the economy, developing and introducing modern technologies into production.
It is necessary to develop mechanisms that will provide favorable conditions for attracting capital to credit organizations. It is advisable to establish a number of sectoral development banks, as well as to reorient large credit organizations with state participation to primarily finance knowledge-intensive and manufacturing industries. In relation to other banks, it is necessary to pursue a flexible policy aimed at developing specialization and concentration of bank capital. By gradually changing legislation, it is necessary to structure the banking system in such a way that some credit institutions specialize in settlements, some - in various types of loans, and some - in investment activities. At the same time, it is necessary to stimulate friendly mergers banking structures in order to increase the degree of concentration of bank capital. To solve these problems, it is necessary to combine the efforts of the legislative and executive authorities and, of course, the entire banking community.
According to the Bank of Russia, tough measures to stimulate the capitalization of the banking system should have a positive impact on the country’s financial and credit system, cause its revival and bring its level of development closer to international standards.
Thus, the Central Bank of the Russian Federation carries out monetary regulation of the country’s economy and, depending on the direction of credit policy, builds its relations with banks. The Bank of Russia pursues a policy towards banks aimed at expanding or reducing their volume of credit investments. In this case, tools such as changing the level discount rate, the size of the minimum requirements for mandatory reservation of a part of the resources attracted by banks, the volume of operations carried out on the open market. The use by the Central Bank of one or another regulatory method or their combination depends on the degree of development of market relations in a given country.
Conclusion
Research in course work dedicated to the theoretical aspects of Russian and foreign credit systems.
During the writing of the work, the structure and functions of credit systems in Russia and abroad were examined, which allows us to draw the following conclusions:
The credit system has a dual nature: it is a set of credit institutions and credit relations, forms and methods of lending in accordance with the basic principles of lending.
The Central Bank is the main part of the structure of the credit system, which also includes the banking sector, which enters into credit and financial relations with individuals and legal entities. Insurance organizations, pension funds, investment and financial companies, charities, trust companies and savings and loans maintain the normal functioning of the country's credit system.
The Russian credit system consists of the banking system and specialized credit and financial institutions. The Central Bank is a special public legal institution of the first level, having a single centralized system with a vertical management structure, which has the right to apply state coercive measures to implement its powers. Second-tier credit institutions include bank credit institutions, non-bank credit institutions and specialized financial institutions, each of which carries out its own range of banking operations.
The Central Bank of Russia is the main bank of the country and the central link of its banking system. Its activities are aimed at developing and strengthening the banking system of the Russian Federation, ensuring the stability of the ruble and the uninterrupted functioning of the payment system, and not at making a profit. All of its property and authorized capital are federal property, and it is an effective investor and distributor of resources among credit institutions in Russia.
Banks have the exclusive right to accumulate and mobilize monetary capital, provide lending, and issue securities. Non-bank credit organizations, in turn, have the right to carry out payment, settlement, credit and deposit operations.
Specialized financial institutions operate under the instructions of the Central Bank or other departments. They ensure the redistribution of funds between participants in financial and economic relations.
A comparative analysis of the structure and functions of the credit systems of foreign countries and Russia shows that, based on the experience of foreign economies, it is possible to improve some aspects of our national credit system, which will allow Russian economy develop successfully and meet all modern economic requirements.
The credit system of the Russian Federation is currently faced with a constant decrease in the number of credit institutions and the consolidation of already large banks. The territorial unevenness of the credit system complicates its functioning.
To improve the national credit system of Russia, it is necessary to follow three directions - improve the credit climate in the country, ensure equalization of lending conditions, and develop mechanisms for the successful distribution of capital.
Thus, the credit system operates through the credit mechanism. It includes all aspects of lending, investment, founding, intermediary, advisory, accumulation, redistribution activities of the credit system represented by its institutions
IN last years The Russian banking system is developing intensively, and positive trends have emerged in this development. Credit organizations began to strive for greater transparency and openness to clients. Advanced business models, new banking technologies (client-bank, money transfer systems, debit and credit cards etc.), various types of lending (consumer, mortgage, etc.). By the end of the 20th century. In Russia, a credit system has developed in structure that is close to the credit system of countries with market economies; work is underway to improve the functioning of institutions already operating in the market of credit and financial services, as well as to create structures that have not yet been widely developed in Russia (credit unions, savings and loan associations, factoring firms, pawn shops).
However, in all respects, the Russian banking system lags significantly behind developed countries. Despite the high growth, the volume of loans issued does not meet the objectives economic growth facing the country. In industrialized countries the system government regulation The credit system is a complex, effective and rather contradictory mechanism. However, it took a long time to develop, going through stages of adaptation and structural changes.
Bibliography
Constitution of the Russian Federation (adopted by popular vote on December 12, 1993) [ Electronic resource]: official text
Federal Law of July 10, 2002 No. 86-FZ “On the Central Bank of the Russian Federation (Bank of Russia)” as amended [Electronic resource]
Federal Law of December 2, 1990 No. 395-I “On Banks and Banking Activities” as amended [Electronic resource]
Golikova, Yu.S. Organization of the activities of the Central Bank [Text]: textbook / Yu.S. Golikova, M.A. Khokhlenkova. - 2nd ed., revised. and additional - M.: INFRA-M, 2012.
Krolivetskaya, L.P. Banking: lending activities of commercial banks [Text]: tutorial/ L.P. Krolivetskaya, E.V. Tikhomirov. - M.: KNORUS, 2009.
Muravyova, Z.A. Financial and credit systems of foreign countries [Text]: educational methodological complex. 2nd ed., revised / Z.A. Muravyova. - M.: Publishing house MIU, 2006.
Rudko-Silivanov, V.V. Organization of the activities of the central bank [Text]: textbook / V.V. Rudko-Silivanov, N.V. Kuchina, M.A. Zhevlakova. - M.: KNORUS, 2011.
Borisov, S.M. Russian ruble in international settlements: geography and statistics // Money and credit. - 2011. - No. 12.
Ilyasov, S.M. On the prospects for the development of regional banking systems // Banking. - 2012. - No. 4.
Materials of the Bank of Russia [Electronic resource]. - Access mode: http//www.cbr.ru
credit bank financial russia
Annex 1
State credit system
Rice. 1. Scheme "State credit system"
Appendix 2
Structure of the credit system
Rice. 2. Scheme "Structure of the credit system"
Appendix 3
Hierarchical structure of the credit system
Rice. 3. Scheme "Hierarchical structure of the credit system"
Appendix 4
Organizational structure Bank of Russia
Rice. 4. Scheme "Organizational structure of the Bank of Russia"
Appendix 5
Functions of the Bank of Russia
in cooperation with the Government of the Russian Federation, develops and implements a unified state monetary policy monopolistically issues cash and organizes cash circulation approves the graphic designation of the ruble in the form of a sign is the lender of last resort for credit institutions, organizes a system for their refinancing establishes the rules for making payments in the Russian Federation carries out supervision and supervision in the national payment system establishes the rules for conducting banking operations carries out servicing of budget accounts of all levels budget system of the Russian Federation, unless otherwise established by federal laws, through settlements on behalf of authorized bodies executive power and state extra-budgetary funds, which are entrusted with organizing the execution and execution of budgets makes decisions on state registration of credit organizations, issues licenses to credit organizations to carry out banking operations, suspends their validity and revokes them supervises the activities of credit institutions and banking groups registers the issue of securities by credit institutions in accordance with federal laws carries out independently or on behalf of the Government of the Russian Federation all types of banking operations and other transactions necessary to perform the functions of the Bank of Russia organizes and implements currency regulation and currency control in accordance with the legislation of the Russian Federation determines the procedure for making settlements with international organizations, foreign states, as well as with legal entities and individuals establishes accounting and reporting rules for the banking system of the Russian Federation installs and publishes official courses foreign currencies against the ruble takes part in the development of the forecast of the balance of payments of the Russian Federation and organizes the compilation of the balance of payments of the Russian Federation takes part in the development of a methodology for compiling the financial account of the Russian Federation in the system of national accounts and organizes the compilation of the financial account of the Russian Federation conducts analysis and forecasting of the state of the economy of the Russian Federation as a whole and by region, primarily monetary, monetary, financial and price relations, publishes relevant materials and statistical data makes payments to the Bank of Russia on deposits of individuals in banks declared bankrupt that do not participate in the system of compulsory insurance of deposits of individuals in banks of the Russian Federation, in cases and in the manner prescribed by federal law is a depository of funds of the International Monetary Fund in the currency of the Russian Federation, carries out operations and transactions, provided for in articles Agreements of the International Monetary Fund and treaties with the International Monetary Fund performs other functions in accordance with federal laws Banking operations and transactions of the Bank of Russia
provide loans for a period of no more than one year secured by securities and other assets, unless otherwise established by the federal law on federal budget provide unsecured loans for a period of no more than one year to Russian credit organizations with a rating not lower than the established level. Scroll rating agencies, the ratings of which are used to determine the creditworthiness of loan recipients, and the required minimum indicators of the corresponding ratings, additional requirements for loan recipients, as well as the procedure and conditions for providing relevant loans are established by the Board of Directors buy and sell securities on the open market, as well as sell securities serving as collateral for Bank of Russia loans buy and sell bonds issued by the Bank of Russia and certificates of deposit buy and sell foreign currency, as well as payment documents and obligations denominated in foreign currency issued by Russian and foreign credit organizations buy, store, sell precious metals and other types currency values carry out settlement, cash and deposit operations, accept securities and other assets for storage and management issue sureties and bank guarantees carry out transactions with financial instruments, used to manage financial risks open accounts in Russian and foreign credit institutions on the territory of the Russian Federation and the territories of foreign states issue checks and bills in any currency carry out other banking operations and transactions on its own behalf in accordance with business customs accepted in international banking practice carry out banking operations with legal entities that do not have a license to carry out banking operations, and individuals, except for cases provided for by Federal Law acquire shares (shares) of credit and other organizations, except for cases provided for by Federal Law carry out real estate transactions, with the exception of cases related to supporting the activities of the Bank of Russia and its organizations engage in trading and production activities, except for cases provided for by Federal Law extend loans provided. An exception may be made by decision of the Board of Directors Japanese government corporations National Life Finance Corporation. Home Loan Corporation. Finance Corporation Agriculture, forestry and fisheries. Japanese financial corporation for small businesses. Japan Small and Medium Enterprises Finance Corporation. Japan Municipal Enterprise Finance Corporation. Okinawa Development Finance Corporation. Credit Guarantee Association. Grouping of operating credit institutions by size of registered authorized capital in 2012
Appendix 6
Appendix 7
Appendix 8
To study the relationship between the economic categories of finance and money, let us turn once again to the essential aspects of finance. Summarizing the views of scientists on the category “finance”, it should be noted that finance is studied in the following aspects:
as economic relations regarding the distribution of GDP;
as economic relations regarding the distribution of GDP and the formation of public monetary funds;
as a result of interaction between the state and commodity-money relations;
How material carrier financial relations;
as the movement of funds over time.
Thus, it is finance that sets in motion the static state financial system. Money is a measure of finances, the possibility of their implementation. Since money moves for a specific purpose, the purpose of its movement is financial relations, finance. The history of the origin of money also points to its emergence as a technical intermediary for the implementation of financial relations between entities. In particular, there are two concepts of the origin of money - rationalistic and evolutionary.
Rice. 1.4. Essential aspects of the economic category of finance
According to rationalistic concept The emergence of money is associated with the facilitation of exchange as a result of an agreement between people.
Evolutionary concept assumes the emergence of money as a long evolutionary process that facilitates exchange. Although both concepts have different views on the origin of money, they are united regarding the purpose of its origin - to facilitate exchange.
The market need to ensure efficient exchange is primary form financial relations and is the main reason for the origin of money.
However, money is not only a means of implementing financial relations, finance, but also a way of expressing them, which takes the form of the price of goods, resources, labor through the function of money - a measure of value.
That is why these economic categories are interconnected: money cannot function without finance, however, finance cannot be realized without money. The functioning of the financial system is ensured by a combination of static and dynamic states.
Thus, the most important feature of finance is the monetary nature of these relationships, since money is a prerequisite for the existence of finance. Money is the main instrument of financial relations.
Money is a commodity that serves as a universal equivalent of exchange for any other commodity. As for finance, money always acts as an accounting unit for monetary income or funds, the formation of which is carried out thanks to finance. Finance forms and distributes the entire value of GDP, which actually reflects such derivative functions as regulating and stimulating. It is these functions that make it possible to specify the sphere of financial relations, which constitute the essence of the invisible side of finance, and also show the prospects for their development, identify the most important directions for improving the functions of formation, distribution and control, which determine the visible side of finance.
At the same time, money has its own clear purpose in economic life, which is manifested in their main five functions: payment (counting); exchange (circulation); conservation (accumulation) of cost (price scale); international money. It is known that money and money circulation significantly influence financial position both individuals and legal entities in particular, and the state in general. If there is more money in circulation than goods and services (produced and provided in the country), then money depreciates. Accordingly, the income and costs of all business entities decrease.
Thus, finance reflects only monetary relations, or such transactions that can be assessed in terms of value. Finance, which has a monetary form and expresses corresponding economic relations, differs from money, both in its content and in its functions. So, there is no identity between money and finance, which can be reflected using Table 1.2.
Table 1.2
Comparative characteristics economic categories finance and money
| By content | |
| 1. Money is an economic category that measures labor costs and acts as a universal equivalent of exchange. 2. Money in a market economy is a generally accepted, absolutely liquid means of exchange, the value of which is determined by trust in the state. | 1. Finance is a social economic category that characterizes the process of creating and using funds of funds. 2. Finance in a market economy is certain economic relations between various participants social production, having a monetary nature and carried out in fund form. |
| By function | |
| Money performs the following functions: 1) payment (counting) 2) exchange (circulation) 3) preservation (accumulation) 4) cost (price scale) 5) international money. | Finance performs the following functions: 1) formation of monetary funds (creation of income); 2) redistribution of these funds (use of expenses); 3) control over the creation of income and the use of expenses (costs); 4) stimulation financial flows; 5) regulation of the pace and level of income. |
Being closely interconnected, finance and money cannot exist without each other. Therefore, the definition is often used as financial-monetary relations. This makes a certain sense, since it is impossible to achieve financial stability in the economy without establishing normal monetary circulation in the country. If the state does not coordinate its expenses with available income, this leads to an imbalance in monetary circulation.
To summarize, it should be noted that finance as a category is broader than money and includes the latter. Since money is a means of embodying finance, it depends on the “quality of money”, that is, the compliance of banknotes with modern social requirements, the efficiency of the organization money turnover depends on the “movement” of this “fund” to the subjects of economic relations and the efficiency of the functioning of these subjects, including finance in general.
The functioning of finance occurs through the implementation financial policy , which is an integral part of the economic policy of the state, ensures the mobilization of financial resources, their rational distribution and use to ensure the economic and social development of the state.
In table 1.3 presents the characteristics of the financial and monetary policy of the state.
Table 1.3
Comparative characteristics of the financial and monetary policies of the state
Since politics determines the scope of activity in a certain area, according to Table. 1.3 we can conclude that if monetary policy is an integral part of financial policy, ensuring the movement of money for the purposes of financial policy, this is another argument in favor of the fact that the category “finance” is broader than the category “money”.
a system of relations in society regarding the formation and use of monetary funds in accordance with the functions and roles of the categories included in finance.
Finance includes:
1. Public finance (the state budget, taxes, state credit, off-budget funds, finance state enterprises, state insurance)
2. Credit system (operations of the Central Bank, operations of commercial banks, issue of money, commercial insurance system, investment funds, commercial pension funds)
3. Finance of industries (finance of organizations in the production sector, finance of enterprises in the non-production sector, finance of other economic entities)
4. Financial market(transactions with securities, transactions with precious metals and stones, real estate transactions, other transactions)
5. international finance (finance of transnational corporations)
Finance is the economic relationship that arises between economic entities in the process of formation, distribution and use of funds.
Finance functions
The functions of any economic category characterize the type or types of activities carried out with its help. The functions of finance characterize the form of expression of their social significance; Finance functions include:
1. distributive (consists in the fact that with the help of finance, each business entity is provided with the financial resources it needs; in the conditions of commodity-money relations, distribution processes are carried out with the help of finance)
2. control (expressed through financial control over the quantitative and qualitative parameters of the processes of formation and use of financial resources)
3. accumulative (consists in the process of generating funds necessary for the functioning of any economic system)
4. regulatory (Related to state intervention through finance in the reproduction process)
5. stabilization (Is to ensure stable conditions in economic and social relations for all economic entities and citizens)
The difference between the categories finance and money
The economic content of finance is money. Money is a material form of finance, but it is inappropriate to identify the category of finance with cash.
Money is a category more ancient than finance. Money is a commodity that plays the role of a universal equivalent, i.e. instrument of financial relations.
The emergence of finance is due to the emergence of the state. With the slave system, the need arose to perform the public functions of the state based on financial resources. Money is a universal equivalent that measures the costs of labor and other resources, and finance is a set of monetary and cost relations associated with the formation and use of various monetary funds in the process of distribution and redistribution.
Finance as monetary relations.
Monetary relations result in financial relations. In turn, financial relations are:
1. monetary relations
2. distribution relations
3. relations regarding the formation and use of financial resources
Those. Finance is associated with the movement of money, with economic monetary relations, i.e. are economic category.
2. Insurance functions.
The essence of insurance is the formation of a certain monetary or insurance fund and its distribution in time and space in order to compensate for possible damage or loss of its participant in accidents, natural Disasters etc., leading to the loss of material and other types of property and assets provided for by the terms of the insurance contract.
There are three main forms of insurance fund in the Russian Federation:
the centralized insurance fund is formed at the expense of national resources in kind and cash, and is managed by the Government;
self-insurance funds are created by enterprises and organizations themselves in the form of reserve and insurance funds, risk funds; exist in monetary and in kind;
- insurer funds are created by specialized insurance companies through the payment of contributions and exist only in cash.
The essence of insurance is manifested in its functions. Insurance performs the following functions:
- risk function - redistribution of risk between insurance participants;
- preventive function - using part of the funds to reduce the likelihood of an insured event;
- savings function - insurance is used to accumulate funds (survival insurance);
- control function- control over the formation and use of insurance funds.
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Difference money from finance
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Essence insurance consists in the formation of a certain monetary or insurance fund and its distribution over time and... -
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Difference money from finance. system of relations in society regarding the formation and use of funds in accordance with. Essence distribution function finance. -
Difference money from finance. system of relations in society regarding the formation and use of funds in accordance with. Essence distribution function finance.
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