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1. THE NEED FOR FINANCING AND THE PREREQUISITES FOR THEIR APPEARANCE

Within the framework of the economic system, commodity-money relations are the main reason for the emergence and development of the entire set of value economic categories.

A certain place in the system of value economic categories is occupied by finance.

Economic processes in the conditions of commodity-money relations are impossible without distributive processes. Distribution is one of the stages of the reproduction process, without which other stages cannot be carried out, i.e. production, exchange and consumption. It is obvious that production is impossible without the creation of monetary funds, which serve as the basis for satisfying various economic needs. These monetary funds are created by means of finance at the stage of distribution, and they subsequently acquire a natural form at the stage of exchange, since the created monetary funds in the form of value are spent on the purchase of goods, use values.

Thus, we can say that finances are objectively necessary, since their existence is conditioned by the needs of exchange development. Knowledge about finance is important at various levels - from households and businesses to the state. It is on the basis of knowledge of this science that one can build a family budget, optimize the payment of income tax, effectively invest in securities, etc. Without finance, the circulation of funds at enterprises, stimulating production, analyzing economic activity and reporting is impossible.

The rational organization of finance plays an important role in the activities of the state, which, on the basis of the creation of monetary funds with the help of finance, performs its functions. The state can actively influence the development of financial relations, in turn, the economic development of the state largely depends on the proper organization of finances.

Prerequisites for the emergence of finance:

- rejection of the head of state from the treasury and the emergence of a centralized nationwide fund of funds - the state budget, the disposal of which can no longer be exercised solely by the head of state;

- the emergence of a system of state revenues and expenditures, the legislative consolidation of the state budget as a list of state revenues and expenditures;

- the transition from taxes in kind and labor duties to the collection of taxes in cash;

- the emergence of a circulation of value in the form of inventory and money and the formation of income and savings among the participants in the reproductive process beyond the limits of biological survival.

Fundamentally important for the emergence of finance is the high level of development of the money economy, the constant circulation of money on a large scale, the completed formation and use of the basic functions of money.

The above circumstances contributed to the rapid development of finance, primarily the state budget as the central link in the financial system. At the first stage of its development, financial relations were equated with budgetary relations, and only later, as commodity-money relations developed, new forms of financial relations arose.

2. FINANCE AS AN ECONOMIC CATEGORY

The term "finance" comes from the Latin word "finansia", which means "cash payment". The long process of development of commodity-money relations has changed the content of the phenomenon of finance.

Today, finance is economic social relations, the subject of which is the processes of accumulation, distribution and use of funds in the process of using the social product and income. On the one hand, this phenomenon is an economic category, and on the other hand, it is a subjective cost instrument of activity.

Finance is directly related to money. Money is a prerequisite for the existence of finance. Finances act in monetary form, but not all monetary relations are financial. Monetary relations turn into financial ones when, as a result of the production of goods and the provision of services, funds of funds are created during their sale. Cash funds created at the level of the state, local governments are called centralized funds, and cash funds created at the level of economic entities, households are called decentralized.

Finance as a subjective cost tool for the functioning of economic entities form a specific decision-making mechanism regarding the processes of formation and use of monetary funds.

The object of finance is financial resources, which are a set of funds of funds at the disposal of economic entities, the state, households, i.e., this is money serving financial relations. They are formed in the process of material production, where new value is created and GDP and ND arise. Consequently, the amount of financial resources depends on the value of GDP and ND. Financial resources, their formation and use are reflected in the consolidated financial balance of the Russian Federation. The sources of financial resources are:

- at the level of economic entities - profit, depreciation, income from the sale of securities, bank credit, interest, dividends on securities issued by other issuers;

- at the population level - wages, bonuses, wage supplements, social payments made by the employer, travel expenses, income from entrepreneurial activities, from participation in profits, from transactions with personal property, from credit and financial transactions; social transfers, including pensions, allowances, scholarships; consumer credit;

- at the level of the state, local governments - income from state and municipal enterprises, income from the privatization of state and municipal property, income from foreign economic activity, tax income, state and municipal credit, issue of money and income from the issue of securities.

Thus, finance is a set of monetary relations that arise in the process of formation, distribution and use of centralized and decentralized funds of funds in order to fulfill the functions and tasks of the state and ensure conditions for expanded reproduction.

3. FUNCTIONS OF FINANCE

The essence of finance, like any economic category, is manifested in their functions. Finances perform the main functions - distributive and control. These functions are carried out in parallel in time, since each financial transaction includes, on the one hand, the distribution of the social product and national income, and on the other hand, control over this distribution.

1. The distributive function of finance is that:

- through the distribution and redistribution of newly created value, national needs are met, sources of financing for the public sector of the economy are formed, and budgets and extra-budgetary funds are balanced within the framework of the unified budget system of the Russian Federation;

- the newly created value is subject to distribution in order to fulfill the monetary obligations of enterprises to the budget, banks, counterparties. Its result is the formation and use of centralized funds of funds, the maintenance of the non-productive sphere of the economy.

The main objects of the distribution function of finance are mandatory payments to the budget and extra-budgetary funds, as well as sources of financing the budget deficit. A special role is played by the process of redistribution of income between different levels of budgets.

2. The control function of finance consists in the implementation of the control of the ruble over the real money turnover, in which the state is a participant, the formation of centralized funds of funds. Ruble control has two forms:

- control over changes in financial indicators, the status of payments and settlements;

- control over the implementation of the financing strategy.

In the first case, a system of sanctions and incentives is applied, using coercive or incentive measures. In the second case, we are talking about the implementation of a long-term financial policy, in which the main attention is paid to the foresight of changes and the early adaptation of the order and conditions of financing to them.

The control function of state and municipal finance is implemented in the following main areas:

1) control over the correct and timely transfer of funds to centralized funds;

2) control over compliance with the specified parameters of centralized funds of funds, taking into account the needs of industrial and social development;

3) control over purposeful and efficient use of financial resources. The control function of finance always has a specific form of manifestation. It can be directed to a budget of a certain level, an off-budget fund, an enterprise or institution, etc.

Many modern economists distinguish other functions of finance. They are subjective in nature and serve as management tools.

The regulatory function is closely related to state intervention with the help of finances in the reproduction process.

The stimulating function of state and municipal finances is to ensure the development of various spheres of public life through a system of benefits and economic programs.

The fiscal function of finance is to support unprofitable but necessary sectors of the economy.

4. THE ROLE OF FINANCE IN THE MARKET ECONOMY

In a market economy, the role of finance has increased significantly: its position in the market, its competitiveness, its survival, and prospects depend on the financial position of an enterprise. Enterprises are endowed with greater independence in the distribution of sales proceeds and the use of financial resources. During the primary distribution with the help of finance, funds are created to replace the means of production consumed in the production process. At the same time, enterprises can choose one of several depreciation methods, a form of cashless payments when paying for raw materials, calculate the optimal working capital stock, and choose a strategy for financing core activities.

After deduction from the cash receipts of the fund for reimbursement of expenses, payment of certain tax payments, a wage fund is created in enterprises, and the remaining part of the proceeds is the net income of the enterprise. After paying tax payments levied to the budget, enterprises can distribute the remaining net profit as they see fit. With the help of finance, enterprises create trust funds of funds used for social and economic development.

In the course of secondary distribution or redistribution, the state budget and off-budget funds are formed. With the help of these funds, financial regulation and stimulation of production are carried out, national programs are financed, the maintenance of the non-productive sphere, defense and management, and the concentration of financial resources is achieved in the main directions of scientific and technological progress. Serving the process of distribution of national income, finance acts as an important economic lever for improving the proportions between the accumulation fund and the consumption fund, as well as within them. With the help of finance, there is a redistribution of financial resources between the territories of the country, sectors of the economy, and divisions of social production. By redistributing between sectors of production, finance contributes to the accelerated development of priority sectors. The redistribution of funds between the territories contributes to the alignment of their economic and social development.

Without the participation of finance, the social development of society is impossible, since the funds for financing all social events are obtained from the distribution of national income through the budget and social non-budgetary funds. The entire non-production sphere is financed from the budget, funds are allocated for social security.

In modern conditions, the role of finance in the socio-economic development of society is manifested in the following main areas:

- activation of the domestic capital accumulation policy;

- use of budgetary and tax policy in order to develop the economy and strengthen it;

- state support for industrial investments and financing of investment programs that ensure the preservation and development of the scientific and technical potential of the country;

- use for the purposes of industrial investment opportunities of the financial market;

- Strengthening the social orientation of the state budget;

- achieving social justice in relation to various categories, strata and social groups of citizens.

5. CONCEPT AND ROLE OF FINANCIAL RESOURCES

The concept of "financial resources" different authors invest different meanings.

Financial resources are a set of funds of funds at the disposal of economic entities, the state, households, i.e., this is money that serves financial relations.

Financial resources are the most important source for the implementation of expanded reproduction, the socio-economic development of society. Increasing the volume of financial resources is one of the most important tasks of the state's financial policy. A decrease in the volume of financial resources has a negative effect on the development of society, leads to a reduction in investment, a decrease in consumption funds, and creates disproportions in the distribution of the social product and national income. The composition and volume of financial resources depend on the level of economic development of the state, on the efficiency of production. Economic growth serves as the basis for increasing the volume of financial resources, and the amount of financial resources allocated to the expansion and development of production contributes to an increase in its efficiency.

It is necessary to distinguish between the centralized financial resources of the state and the decentralized financial resources of enterprises. Decentralized financial resources are formed in the form of various national funds, primarily the budget and extra-budgetary funds, the funds of which are used to carry out the most important functions of the state, such as the development of the national economy, the financing of social and cultural events, the provision of defense needs and the maintenance of the political superstructure of society. The sources of centralized financial resources are national income and partly national income in case of its involvement in economic circulation and effective use, borrowed and borrowed funds.

The main sources of financial resources of enterprises are profit and depreciation, borrowed and borrowed funds. The volume of decentralized financial resources depends on the same factors as the volume of centralized ones, but their value is also influenced by the degree of centralization. The emergence and development of the financial market gives business entities new opportunities to expand the composition of financial resources and increase their volume by issuing securities, using loans from various credit organizations and commercial loans, placing temporarily free funds on deposits in commercial banks, etc.

The formation and use of financial resources can be carried out not only in stock, but also in non-stock form. Centralized financial resources are formed and used mainly in the form of cash funds, which include, for example, the budget, the social insurance fund, the road fund, the fund for the reproduction of the mineral resource base and other extra-budgetary and special funds consolidated in the budget. At the enterprise level, financial resources can be created and used both in stock and non-stock form.

The volume of financial resources of the state and enterprises are directly dependent, since the source of the formation of state budgetary and extrabudgetary funds is the gross domestic product created by economic entities.

6. FINANCIAL RESOURCES OF THE STATE AND ENTERPRISES, THEIR COMPOSITION AND STRUCTURE

Financial resources are the material basis for the functioning of the state, and most of them are created during the distribution of national income. Financial resources are mobilized in the state centralized funds of funds by tax and non-tax methods, and the vast majority is accumulated by the state with the help of taxes.

The financial resources of the state are part of the financial resources of the national economy, which include the financial resources of the production and non-production sectors, as well as the population. The main sources of formation of the financial resources of the state are national income, borrowed and borrowed funds, income from the foreign economic activity of the state, and partly - national wealth. Most of the state's financial resources are concentrated in the state's centralized fund of funds - the state budget, which makes it possible to finance the state's performance of its functions.

In recent years, the state's financial resources have been largely replenished through government borrowing in the domestic and foreign financial markets. This method of increasing the volume of financial resources can be considered effective, provided that there are opportunities for the timely repayment of public debt.

The structure of financial resources changed along with the development of the economy. Under the conditions of a command-administrative economy, the share of the financial resources of domestic enterprises was occupied by the state budget and loans from the State Bank of the USSR, enterprises were not able to use such sources of financial resources as issuing securities, attracting foreign investment, loans from commercial banks. The development of the financial market gives enterprises new opportunities to expand the composition of financial resources and increase their volume.

The financial resources of enterprises include own, borrowed and borrowed funds. The own financial resources of enterprises include profit, depreciation, authorized and additional capital, as well as the so-called stable liabilities of the enterprise, including sources of financing that are constantly in the circulation of the enterprise, for example, reserves formed in accordance with the constituent documents of the enterprise or legislation. Borrowed funds include loans from commercial banks and other credit organizations, other loans. Attracted financial resources are funds raised by issuing shares, budget appropriations and extra-budgetary funds, as well as funds of other enterprises and organizations attracted for equity participation and other purposes.

The structure of the financial resources of enterprises differs depending on the organizational and legal form of the enterprise, its sectoral affiliation and other factors.

Despite the differences in the composition and structure of the financial resources of individual enterprises, in their total volume for production enterprises, the largest share is occupied by own funds.

7. CONCEPT AND ROLE OF FINANCIAL INTERMEDIARIES

In a normally developing market economy, when a sufficiently high level of income is reached both in terms of total volume and per capita, a stable supply of money is formed in the form of savings. This is some excess of money over current daily needs. In a market economy, it has a clear economic meaning - investment capital. There are two main uses for this capital:

- expansion of production, renewal of the range of goods and services produced, including, for example, the expansion of education and support for the arts;

- general and social insurance.

There is a certain fund of free funds and there are specific social needs that must be covered by these funds, but combining them into a single working system is a very difficult task. Savings are fragmented, and their rational use requires their concentration. The minimum possible investment of capital in any branch of commercial activity is currently quite large.

Financial intermediaries played a major role in turning scattered savings into working capital. Financial intermediaries are organizations that accept money for storage for a certain percentage, mainly from the population, or collect it for other reasons and lend it at a higher percentage to those legal and natural persons who need investment resources, as well as paying insurance policies and pensions. At present, in countries with developed economies, reliable legislation, systems of insurance of deposits of the population, certain traditions of relations between financial intermediaries and huge contingents of depositors and recipients have been formed.

The value of the system of financial intermediaries is very high. They provide stable financing for the most important social needs, save significant funds and thereby accelerate the development of production. They provide additional income to a significant number of people, while relieving them of the immediate risks of production, starting a new business, etc. Financial mediation shows that economic relations are not necessarily associated with conflicts and struggles. The activity of financial intermediaries leads to the receipt of benefits by all parties involved in this process.

The role of financial intermediaries is not limited to the concentration of money capital and its rational use. They coordinate and link the interests of a huge number of economic entities at a specific level. Financial intermediation has become a permanent feature of the developed market economy, especially given the variety of current financial assets, including securities and currencies.

A characteristic feature of today's financial intermediation is that the money lent or collected in the form of any mandatory deductions is used in the vast majority of cases in profitable transactions. Financial intermediaries by their activities increase the amount of income generated in society. This is their fundamental difference from usury, which did not improve, but worsened the financial situation of the borrower.

8. TYPES OF FINANCIAL INTERMEDIARY, THEIR ROLE IN THE FINANCIAL MARKET

Financial intermediaries include:

1) credit organizations:

- banks that carry out the vast majority of all lending operations in the economy;

- credit unions, credit cooperatives, savings associations, etc.;

- non-bank credit institutions serving, as a rule, a pre-known circle of people in a particular area;

2) insurance organizations, pension funds, mutual investment companies, etc. A distinctive feature of these organizations from banks is that:

- they do not accept deposits and do not affect the amount of money in circulation;

- here a connection is organized between an individual and the entire set of persons interested in insurance and pension provision;

- these intermediaries, unlike banks, do not pay income (interest) for deposited funds, but they pay pensions and make insurance payments in accordance with contracts;

- payments to insurance and pension funds are partially obligatory (deposits to credit institutions are purely voluntary);

- the commercial activities of insurance and pension funds are strictly regulated in order to avoid the risk of their bankruptcy.

Financial intermediaries play an active role in the financial market.

In recent years, there has been a trend in developed countries to merge the previously strictly distinguished powers of various financial intermediaries. In some countries, commercial banks have acquired the right to carry out insurance operations. Such a universalization of the functions of a financial intermediary is quite natural where there is a well-established legal framework and a strong infrastructure of financial relations. Under such conditions, this combination of various intermediary functions in a single organization can bring profit to all participants in the financial market. In Russia, such a merger would be premature due to the instability of economic and political conditions, as well as the insufficiently developed system of legislation in this area.

Within the framework of the money market, not just money is sold, but very important financial services. In terms of insurance, the provision of services to the insured (policy holder) looks even clearer. Insuring something means creating a reserve, in the current conditions it is a cash reserve. The majority of ordinary citizens, and legal entities, are also unable to form a large cash reserve. And the financial intermediary guarantees them compensation for losses from the occurrence of an insured event, subject to the payment of relatively small amounts. Approximately the same can be interpreted the situation with life insurance and when receiving a pension. Financial intermediaries in all areas of their activity do not just "collect money", but sell vital services that are paid for in a specific way by providing money from interested parties.

We are talking about a mutually beneficial deal between equal participants in the economic process. Depositors also provide services to banks and other financial intermediaries, keeping money with them. If it is simply a question of keeping money, then their owners receive a fee for them, provided that the bank uses this money in its operations. If the deposit is used by the owner himself for settlements, then the bank may not pay interest on it. This is a matter of specific agreement.

9. FINANCIAL MARKET AND ITS ROLE IN MOBILIZATION AND REDISTRIBUTION OF FINANCIAL RESOURCES

The most important structure of the market economy is the financial market, which redistributes temporarily free funds between various economic entities through transactions with financial assets.

The stable functioning of the financial market is a prerequisite for economic progress, political and social balance in society. The scope of his influence is very high.

When considering the structure of the financial market, many authors include different components. The most frequently named sectors of the financial market, such as the securities market, credit and currency markets, for which a common property is the redistribution of temporarily free cash. At the same time, each of these segments has its own characteristics, which distinguishes them into separate components of the market.

In the securities market, transactions are made with such a specific product as securities, by means of their purchase and sale or other civil law transactions. The issuer, through the issue of securities, attracts additional funds, and the investor, by purchasing these securities, expects to receive income or pursues other goals. In this case, the investor can sell these securities on the market.

In the credit market, there are no acts of sale and purchase, and, having concluded a loan agreement, neither the lender nor the borrower can sell it. Credit organizations attract temporarily free funds, and then issue them on credit, thus redistributing them. A distinctive feature of this market is the fact that the redistribution in this case is carried out on the principles of lending, that is, repayment, urgency and payment, and through intermediaries, mainly through banks. Business entities can lend to each other directly, bypassing banks, but in this case they must have economic ties with each other, and lending is carried out when goods are delivered (commercial credit).

In the foreign exchange market, operations are carried out with currency values, which include: foreign currency and securities denominated in foreign currency. This is the most liquid market. The object of the foreign exchange market are any financial requirements expressed in foreign currency, and the subjects are financial and investment institutions. Foreign exchange market entities carry out the following types of transactions: hedging (insurance of open currency positions), interest rate arbitrage, currency purchase and sale by performing cash (spot) and futures (forward) transactions, as well as swaps (simultaneous purchase and sale operations with different terms performance).

The financial market and especially the securities market, or the stock market, are not only a means of redistributing financial resources in the economy, but in their totality they constitute a very important indicator of the state of the entire financial system and the economy as a whole. The meaning of the financial market is not simply in the redistribution of financial resources, but primarily in determining the directions of this redistribution. It is in the financial market that the most effective areas for the application of monetary resources are determined.

10. FINANCIAL SYSTEM AND ITS STRUCTURE

The totality of financial relations is divided into different groups depending on the specifics of these relations. The implementation of these relations is carried out through the links of the financial system. Thus, the financial system is a set of links and elements of financial relations through which the distribution of the social product, the formation, distribution and use of funds of funds, cash income and savings of the state, business entities and the population is carried out.

The financial system of Russia includes the following links of financial relations: 1) national finance (state budget, extra-budgetary funds, state credit);

2) insurance funds;

3) finances of enterprises of various forms of ownership.

The above links are usually divided into centralized and decentralized spheres of financial relations.

National finances are centralized funds of monetary resources that are created through the distribution and redistribution of national income created in the branches of material production.

In national finance, the main role is played by the state budget, which is a centralized monetary fund and ensures that the state performs its inherent functions. The main and main source of formation of the state budget are taxes from enterprises and the population.

In addition to the state budget, in any economy extra-budgetary funds are formed and used, where funds from the federal government and local authorities are concentrated related to financing expenses not included in the budget. According to the economic content, extra-budgetary funds are divided into two groups - social and economic extra-budgetary funds. Formation of off-budget funds is carried out at the expense of obligatory earmarked contributions.

An important element of national finance is public credit. State credit is a special form of monetary relations between the state, individual citizens, legal entities and individuals, as well as foreign states, international organizations regarding the formation and use of the loan fund.

Public debt is the total amount of issued but not repaid government loans with accrued interest on them on a certain date or for a certain period.

Insurance funds, formed at the expense of contributions from interested legal entities and individuals, provide social protection for society, compensation for losses from natural disasters and accidents, and also contribute to their prevention. Insurance is also an important means of building the country's investment potential.

The finances of enterprises are also represented by decentralized funds of funds of economic entities of various forms of ownership, formed from cash income and savings of the enterprises themselves. Enterprise finance is the unifying backbone of the financial system. They serve the process of creating and distributing the social product and the national income. Their economic condition determines the degree to which centralized funds are provided with financial resources.

11. CONTENT OF THE FINANCIAL POLICY, ITS GOALS AND OBJECTIVES

The state develops financial policy as a means of successfully implementing its goals and objectives in the financial sector. The effectiveness of the impact of finance on the socio-economic development of society largely depends on the chosen areas of financial policy and the process of its implementation.

The content of the financial policy covers a wide range of activities:

1) development of a general concept of financial policy, determination of its main directions, goals, main tasks;

2) creation of an adequate financial mechanism;

3) management of the financial activities of the state and other economic entities.

The objectives of the financial policy are aimed at:

1) to ensure conditions for the formation of the maximum possible financial resources;

2) establishment of a rational distribution and use of financial resources from the point of view of the state;

3) organization of regulation and stimulation of economic and social processes by financial methods;

4) development of a financial mechanism and its development in accordance with the changing goals and objectives of the strategy;

5) creation of an effective and maximally business-like financial management system.

The main goal of the state financial policy is the most complete mobilization of financial resources and increasing the efficiency of their use for the socio-economic development of society.

An important component of financial policy is the establishment of a financial mechanism.

The most important directions of the state financial policy are: budgetary, tax, investment, social, customs policy.

The budgetary policy of the state, first of all, must be considered as a set of measures to implement the interaction of budgets of different levels. The main task in budget policy has been and remains to strengthen public finances, reduce the budget deficit, and create favorable financial conditions for the development of sectors of the national economy.

Tax policy is the activity of state authorities and local governments to forcibly withdraw part of the income received by economic entities and the population in order to form the revenue side of the relevant budgets.

Investment policy is a set of measures to create conditions for attracting domestic and foreign investment, primarily in the real sector of the economy. The main objective of this policy is to create conditions for investors to profitably invest in the Russian economy.

Social financial policy is associated primarily with the solution of the problems of financial support for the rights of Russian citizens, established in the Constitution of the Russian Federation. At present, social financial policy covers pension policy, immigration policy, policy of financial assistance to certain social groups of the population, etc.

Customs policy is a symbiosis of tax and price policies, restricting or expanding access to the domestic market for goods and services and encouraging or restraining the export of goods and services from the country.

The financial policy of an enterprise is a purposeful activity of financial managers to achieve the goals of doing business.

12. TYPES OF FINANCIAL POLICIES

There are three main types of financial policy:

1) classic;

2) regulatory;

3) planning and directive.

Until the end of the 20s. of the last century, the main type of financial policy in most countries was its classic version. Such a financial policy was based on the works of the classics of political economy A. Smith and D. Ricardo. Its main direction is the non-intervention of the state in the economy, the preservation of free competition, the use of the market mechanism as the main regulator of economic processes. The state sought to reduce budget expenditures, which were reduced mainly to military spending, the payment of interest on the public debt and its repayment and management. The tax system was based mainly on indirect and property taxes, which made it possible to create the necessary flow of funds to ensure a balanced state budget. The financial management system was concentrated, as a rule, in the Ministry of Finance.

The transition to regulatory financial policy in Western countries was carried out at the end of the 20s. of the last century, when the whole complex of economic, political and social problems of most states became aggravated. It was initially based on the economic theory of J. Keynes and his followers. Financial policy, along with its traditional tasks, began to pursue the goal of using the financial mechanism to regulate the economy and social relations in order to ensure full employment of the population. The main instruments of intervention in the economy are government spending. Income tax becomes the main regulatory mechanism. Much attention is paid to the system of public credit, on the basis of which the policy of deficit financing is carried out. Instead of a single governing body, several independent specialized bodies arise.

In the 70s. the neoconservative strategy associated with the neoclassical direction of economic theory was taken as the basis of financial policy. This kind of financial policy limits state intervention in the economy and the social field. The regulation of the economy is becoming multi-purpose. The financial mechanism under these conditions proceeds from the need to reduce the volume of redistribution of national income through the financial system. The task is to reduce taxes and reduce the degree of progressivity of taxation.

Planned-directive financial policy is used in countries that use the administrative-command system of economic management. The goal of financial policy in these conditions is to ensure the maximum concentration of financial resources from the state for their subsequent redistribution in accordance with the main directions of the state plan.

The main objective of the financial mechanism was the creation of instruments with the help of which the withdrawal of all financial resources not used in accordance with the state plan is carried out. Withdrawal of funds was carried out from state enterprises, the population and local authorities.

Financial management was carried out from a single center - the Ministry of Finance, which dealt with all issues of using the financial mechanism in the national economy.

13. FINANCIAL MECHANISM AND ITS ROLE IN THE IMPLEMENTATION OF FINANCIAL POLICY

To implement financial policy, a financial mechanism is used, which is a set of methods for organizing financial relations used by society in order to ensure favorable conditions for economic and social development. The financial mechanism includes types, forms and methods of organizing financial relations, methods of their quantitative determination.

Forming a financial mechanism, the state seeks to ensure its fullest compliance with the requirements of the financial policy of a particular period, while maintaining a constant desire for the most complete linkage of the financial mechanism and its interests, which is the key to the effectiveness of financial policy.

The structure of the financial mechanism is quite complex. The elements of the financial mechanism include financial resources, methods of their formation, a system of legislative norms and standards that are used in determining the income and expenditure of the state, the organization of the budget system, enterprise finance and the securities market. The combination of elements of the financial mechanism forms the structure of the financial mechanism, which is set in motion by establishing the quantitative parameters of each element.

The financial mechanism is divided into directive and regulatory.

The directive financial mechanism, as a rule, is developed for financial relations in which the state directly participates. Its scope includes taxes, state credit, budget expenditures, budget financing, organization of the budget device and the budget process, financial planning.

In this case, the state develops in detail the entire system of organizing financial relations, which is mandatory for all its participants. In a number of cases, the directive financial mechanism can be extended to other types of financial relations in which the state is not directly involved. Such relations are either of great importance for the implementation of the entire financial policy (corporate securities market), or one of the parties to these relations is an agent of the state (finances of state enterprises).

The regulatory financial mechanism determines the basic rules of the game in a specific segment of finance that does not directly affect the interests of the state. This kind of financial mechanism is typical for the organization of intra-economic financial relations in private enterprises. In this case, the state establishes a general procedure for the use of financial resources remaining at the enterprise after paying taxes and other obligatory payments, and the enterprise independently develops forms, types of funds, directions for their use.

Financial management involves purposeful activities of the state associated with the practical use of the financial mechanism. This activity is carried out by special organizational structures. Management includes a number of functional elements: forecasting, planning, operational management, regulation and control.

All these elements ensure the implementation of financial policy measures in the current activities of state bodies, legal entities and citizens.

14. MAIN DIRECTIONS AND TASKS OF THE FINANCIAL POLICY OF RUSSIA AT THE PRESENT STAGE

The creation of market relations is unthinkable without a fundamentally new financial policy. In the course of the implementation of the new financial policy, many problems were revealed, and by the beginning of the reforms, developments on financial and budgetary issues were formulated at the declarative level, which actually began to be carried out by trial and error.

To overcome the financial crisis, the Government of the Russian Federation has developed a number of areas of financial policy for the post-crisis period:

- increasing the efficiency of the budget system, reducing budget expenditures and the budget network, strengthening control over the expenditures of recipients of budget funds through the Federal Treasury system;

- improvement of the banking system;

- improvement of interbudgetary relations and budgetary federalism;

- liquidation of non-monetary settlements and non-payments;

- development of land reform;

- adoption of a set of measures to protect the rights of small investors;

- creation of legislative conditions for attracting foreign investment. The strategic directions of the financial policy of the state should be such measures that will lead to the economic growth of the country.

To strengthen the exchange rate of the national currency, it is necessary to implement a set of measures to limit speculation in the foreign exchange market and stop the illegal export of capital abroad. It is necessary to increase the commodity supply of the ruble by carrying out structural restructuring of the economy.

The task of the coming years is to strengthen the confidence of depositors in credit organizations and investment institutions. To do this, it is necessary to create a reliable system of deposit insurance, to allow, under certain conditions, foreign banks to attract funds from the population of Russia, to raise interest rates on deposits, and to observe reasonable limits on the yield of government securities.

The strategic objective of financial policy is to achieve a balance of budgets at all levels, which requires the implementation of a coordinated, unified budget policy of the federal center, subjects of the Russian Federation and municipalities in order to strengthen public finances and suppress manifestations of regional separatism.

Reducing the tax burden can support the country's economy. It is necessary to implement the adopted laws to reduce the tax burden, as well as to analyze their impact on the economy and budget revenues.

An important direction in improving the budget policy is to optimize the structure of budget expenditures and reduce budget expenditures on those items, where possible. It is necessary to increase budget spending on the national economy. It is necessary to further reduce the cost of servicing the public debt.

Financial policy should be linked to monetary policy. Directions of state policy in this area is the activation of the Bank of Russia in the open market.

In the near future, such a budget problem as an increase in the efficiency of the use of state property needs to be addressed.

The implementation of these measures will make it possible to ensure the strengthening of state and territorial finances and to accelerate the economic and social development of our country.

15. CONCEPT OF FINANCIAL MANAGEMENT

Management is understood as a set of techniques and methods of purposeful influence on an object in order to achieve a certain result. One of the most important areas of management activity is financial management. Financial management refers to the impact on financial relations in order to maximize the effective distribution (redistribution) of financial resources.

In any management system, objects and subjects of management are distinguished, in relation to finance, the objects of management are various types of financial relations, and the subjects are financial management bodies. The vast majority of authors refer to financial relations of economic entities and the population with state and local authorities regarding the payment of mandatory payments to budgets and extra-budgetary funds and the allocation of funds from these funds.

Relationships can also be attributed to the objects of financial management:

- between business entities regarding the distribution of income (joint funds, equity participation, penalties, etc.);

- between insurance organizations, on the one hand, and business entities and the population, on the other hand, regarding the formation and use of insurance funds;

- between business entities and higher organizations regarding the formation and distribution of funds of funds created by the higher organization;

- within enterprises, institutions, organizations for the distribution of revenue, the formation of cash income, savings, cash funds and their use.

The objects of financial management can also be classified according to the links of the financial system of the Russian Federation. On this basis, the following objects of financial management can be distinguished: public finances, finances of economic entities and local finances.

The subjects of financial management are the legislative and executive authorities and management in accordance with the competence in the financial sector. It is legitimate to classify them according to the links of the financial system. The current management of public finances is carried out by the Ministry of Finance of the Russian Federation and its territorial bodies. Local financial management is carried out by the financial authorities of the municipalities. Large economic entities create specialized financial management bodies (departments of finance, financial departments or departments), in small organizations, financial management functions are included in the job responsibilities of economists, mainly chief accountants.

The functions of financial management should include financial planning and forecasting, financial analysis, financial control, accounting for financial resources from cash, as well as the regulation of finances based on the use of all these functions.

The influence of the subject on the object of management can be carried out with the help of both administrative and administrative, and economic methods of management. Administrative and administrative methods involve the development of orders, instructions, other administrative documents, their communication to subordinates and control over execution. Economic methods are based on the material interest of personnel in improving the efficiency of their functions.

16. STRUCTURE OF PUBLIC FINANCIAL MANAGEMENT

Financial management is carried out through the use of the appropriate administrative apparatus. General financial management is carried out by the highest authorities and management: the President of the Russian Federation and his Administration, the Federal Assembly, the Government of the Russian Federation.

The President of the Russian Federation (Administration of the President of the Russian Federation) regulates the activities of financial bodies, has the right to veto financial legislation, signs the federal law on the federal budget of Russia, prepares and sends the Budget Address to the Federal Assembly.

The Federal Assembly approves financial laws, considers the draft federal budget of Russia, and approves the law on the federal budget.

The Government of the Russian Federation forms the federal budget, is a single center for financial management, and develops the conceptual foundations of financial policy.

The main body exercising current management of public finances is the Ministry of Finance of the Russian Federation.

The main task of the Ministry of Finance of the Russian Federation is the development of a unified state financial, credit, monetary policy, as well as a policy of auditing, accounting and accounting, mining, production, processing of precious metals and precious stones, customs payments, including the definition of customs goods and vehicles . To fulfill its tasks, the Ministry performs the following main functions:

- development of the draft federal budget and the forecast of the consolidated budget of the Russian Federation;

- forecasting and cash planning of the execution and execution of the federal budget, drawing up a report on the execution of the federal budget and the consolidated budget of the Russian Federation;

- financial control and supervision in the financial and budgetary sphere;

- improvement of budget planning methods and the procedure for budget financing, methodological guidance in this area, as well as in the field of drawing up and executing the federal budget;

- management of the state internal and external debt of the Russian Federation;

- exercising the functions of an issuer of government securities of the Russian Federation;

- coordination of budgetary and monetary policy in accordance with the objectives of macroeconomic policy.

An integral part of the financial management process is financial control. In the Russian Federation, at the federal level, the bodies of state financial control are represented by the Accounts Chamber, the Main Directorate of the Federal Treasury and its bodies in the constituent entities of the Russian Federation, the Department of State Financial Control and Audit, the Control and Auditing Department of the Ministry of Finance of Russia, as well as the Ministry of the Russian Federation for Taxes and Duties, the Central Bank Russian Federation, the State Customs Committee of the Russian Federation, the Russian Federal Service for Supervision of Insurance Activities, the Federal Financial Monitoring Service, the Federal Financial Markets Service, the Federal Financial and Budgetary Supervision Service.

17. FINANCIAL PLANNING AND FORECASTING

Financial planning is an activity to achieve a balance and proportionality of financial resources. In this case, balance means the optimal ratio between the financial resources at the disposal of the state and the income remaining with business entities. Proportionality - a rational relationship between the amount of income before tax and its amount after payment for enterprises, sectors of the economy, regions, subjects of the Russian Federation. By increasing or decreasing this ratio, the state can stimulate or limit their development. Financial planning is an integral part of economic planning.

The movement of financial resources is reflected in the relevant financial plans, consisting of revenue and expenditure parts. Balances of financial resources (financial balances) play an important role in ensuring the proportionality and balance of economic development. The financial balance is a summary of all revenues and expenditures of the budget and state off-budget funds, it also includes the profits of organizations that remain at their disposal, and depreciation. The financial balance is built on the basis of a comparison of income with expenses. The excess of expenses over income (income over expenses) determines the deficit (surplus) of the financial balance.

The financial balance is the main analytical tool in designing the budget of the Russian Federation and forecasting the sources of capital investments formed on the territory of a constituent entity of the Russian Federation. It is compiled on the basis of the reporting financial balance for the previous year, the expected results for the current year and the main parameters of the forecast for the socio-economic development of the Russian Federation.

The most important component of financial planning is budget planning. In the process of budget planning, directions for the distribution and redistribution of budgetary resources are determined in accordance with the goals and objectives set in the Budget Message of the President of the Russian Federation and specified in the budget policy. As part of financial planning, budget planning is one of the most important tools for regulating the economy and is subject to the requirements of the state's financial policy.

Under the financial forecasting understand the prediction of the possible financial situation of the state, the rationale for long-term indicators of financial plans. Financial forecasting precedes financial planning and is based on the concept of developing the country's financial policy for the medium and long term. The purpose of financial forecasting is to determine the realistically possible amount of financial resources, sources of formation and their use in the long term. Financial forecasts make it possible to outline and analyze various options for financial support for the development of the country and its regions, forms and methods for implementing financial policy.

Financial forecasting involves the use of various methods: the construction of econometric models that describe the dynamics of indicators of financial plans, depending on the factors that determine economic processes; correlation-regression analysis; method of direct expert evaluation.

18. STATE REGULATION OF FINANCE

State regulation of finance is a legislatively fixed system of influence on financial relations. Financial methods and instruments are used to influence, financial policy is implemented. Relevant state bodies develop and implement financial policy and carry out legislative regulation of finance at the macro and micro levels. At the heart of the state financial regulation is a certain financial concept. In practice, when implementing financial policy, elements of several concepts are used, which leads to the emergence of intermediate financial theories that embody the national characteristics of states and the degree of economic development.

There is no consensus on the degree of state influence on finances, methods and forms of influence, on their practical application in Russian economic science. On the one hand, the economic role of the state is presented as a manifestation in the regulatory, redistributive, social and control functions. On the other hand, state financial regulation is a priority component of the system of state regulation of socio-economic processes.

The activity of state structures in the field of financial resource management is a combination of measures of budgetary, tax, monetary and credit regulation. At present, the goal of the state is to build a socially oriented market economy. The tasks of the state are:

- consistent improvement of the population's standard of living;

- reduction of social inequality;

- restoration of the economic and political role of Russia in the world community;

- a combination of the regulatory role of the state and the free market development of the economy.

To achieve these goals, various financial instruments are used, such as dividends, budget financing limits, subventions, subsidies, and transfers. In order to improve the management of public finances, the Ministry of Finance of the Russian Federation acted as the official initiator of the normative consolidation of the concept of "best practice". This is understood as the third level of regulation and management of regional and municipal finances based on voluntary standards drawn up taking into account the best experience of the financial authorities. When using the code of best practice, the main emphasis will be placed on strengthening the self-control of territorial authorities and increasing their interest in the economical and targeted use of all funds, and first of all - budgetary resources.

To improve the efficiency of managing regional and local finances, one should:

- ensure the independence and responsibility of the subjects of public finance management;

- to create a competitive environment, which is an absolutely necessary condition for creating incentives for government institutions to increase transparency and efficiency in managing public finances.

The use of the code of best practice should contribute to the introduction of fair competition rules, raising awareness of all stakeholders about the best financial practices not only at the domestic but also at the international level.

19. FINANCIAL MANAGEMENT

The management of financial resources should be understood as the activities of the governing bodies aimed at maximizing the volume of financial resources and increasing the efficiency of their use. In a financial resource management system, as in another managed system, one should single out the object and subject of management. The object of management are the components of financial resources, and the subjects are financial management bodies.

Financial resource management objects can be classified by groups of financial relations. On this basis, the following objects of management can be distinguished: public financial resources; financial resources of economic entities; local financial resources.

The subjects of financial management are the legislative and executive authorities and management in accordance with their competence in the financial sector. They can be classified according to levels of power.

The functions of financial management should include financial planning and forecasting, financial analysis, financial control, accounting for financial resources and other funds, and also through the use of all these functions, financial regulation.

The consolidated balance sheet of Russia is a set of the federal financial balance sheet and the financial balance sheets of the constituent entities of the Federation. The financial balance of a constituent entity of the Russian Federation is a summary of all income and expenses of the consolidated budget of a constituent entity of the Russian Federation, territorial branches of state extra-budgetary funds.

The analysis of the financial balances of the constituent entities of the Russian Federation serves as a method that allows, at the stage of macroeconomic forecasting, to determine the feasibility of certain proposals and decisions made by federal government bodies regarding the financial security of the constituent entities of the Russian Federation. The problem in this case is the lack of strategic planning of financial resources, which is one of the most important areas for improving the management of the territory's financial resources.

Another problem of effective management of financial resources is the complexity of its assessment. To date, it is rather problematic to assess the effectiveness of managing the financial resources of the country and its territories, since there are no specific goals for managing them and a system of performance evaluation indicators.

All financial resources of the subject of the Federation can be divided into three groups: those created and used on its territory, going beyond its borders, and resources coming from outside. For analysis and management, the financial resources created and remaining on the territory of the subject of the Federation are of great importance. Despite the fact that in many regions they do not have a high share in the total volume of financial resources, it is precisely this part of them that the regional authorities can really independently plan and find opportunities for their growth. Therefore, for the effective management of the financial resources of the subject of the Russian Federation, it is important to resolve the issue of interbudgetary relations between federal and regional authorities, as well as between the authorities of the subject of the Federation and municipalities located on its territory.

20. FINANCIAL CONTROL AS A FORM OF IMPLEMENTING THE CONTROL FUNCTION OF FINANCE

Financial control is an integral part of the financial management process, due to the most important functions of finance: distribution and control. The process of distribution and redistribution of the value of GDP must be accompanied by the control of cash flows in the economy.

Financial control - legally regulated activities of specially created control institutions and controllers - auditors over compliance with financial legislation and financial discipline of all economic entities, as well as over the expediency and efficiency of their financial transactions.

Financial control is not limited to the legal and quantitative aspects and has an analytical aspect.

Financial control, like all other financial categories, has changed as financial relations have evolved.

In the study of financial control, its scope, object and subject are singled out. The scope of financial control is almost all monetary transactions, as well as transactions and operations carried out on the basis of cash settlements.

The object of financial control is monetary distribution and redistribution processes in the formation, distribution and use of financial resources, cash funds, income and savings.

The subject of audits are financial and other economic indicators.

The effect of financial control extends to all four stages of the reproduction process (production, distribution, exchange, consumption), as well as to the non-productive sphere.

The need for the existence of financial control stems from the characteristics of commodity-money production, which cannot exist without the timely and complete formation, reasonable distribution and effective use of funds of funds and financial resources.

With the help of financial control, the following tasks are solved:

- ensuring optimal proportions of distribution and redistribution of financial resources between the territories of the country, sectors and sectors of the national economy, production and non-production sectors, business entities and the population;

- ensuring the timeliness and completeness of the fulfillment of financial obligations to the budget, extra-budgetary funds, counterparties of economic entities;

- identification of on-farm reserves for increasing financial resources and increasing production efficiency;

- ensuring the economical and efficient use of financial resources and increasing the efficiency of financial investments. Financial control is classified depending on the entities exercising it, the time and methods of its implementation.

Depending on the entities exercising it, the following types of financial control are distinguished: state, departmental, independent (audit), on-farm.

Forms of financial control depend on the time (terms) of its implementation: preliminary, current, subsequent.

Depending on the sources of the verified data, documentary and actual control are distinguished.

The methods of financial control include checks, audits, analysis, inspection, supervision.

21. TYPES AND FORMS OF FINANCIAL CONTROL

Depending on the entities exercising financial control, there are:

1) state financial control;

2) on-farm financial control;

3) public financial control;

4) independent (audit) financial control. State financial control is implemented through the national and departmental. National financial control is carried out by state authorities and administrations. It is aimed at objects regardless of their departmental subordination. Departmental financial control is carried out by the control and audit departments of ministries, concerns, and local governments. The object of departmental control is the production and financial activities of departmental enterprises and institutions.

Internal financial control is carried out by the financial services of enterprises, institutions and organizations. The object of control is the production and financial activities of the enterprise itself as a whole, as well as its structural divisions separately.

Public financial control was widely used in Soviet times. Currently, public control has acquired new forms (control by commercial banks over the financial condition of client enterprises).

Independent (audit) financial control is carried out by specialized audit firms or services. An independent audit provides users of financial statements with additional confirmation of the reliability of data about the activities of the company. The condition for conducting audits is the independence of the inspector from the management of the audited enterprise and from the results of its financial and economic activities.

Forms of financial control depend on the time (terms) of its implementation: preliminary, current, subsequent.

Preliminary financial control is carried out at the stage of drawing up, reviewing and approving draft budgets; income estimates, financial plans of institutions, organizations; draft laws.

Current (operational) financial control is carried out at the time of financial transactions in order to prevent abuse in receiving and spending funds.

Subsequent financial control is carried out by analyzing the accounting and financial statements. Its purpose is to evaluate the results of financial and economic activities of economic entities.

According to the methods of financial control, there are: checks, surveys, analysis, audits.

Checks are carried out on the basis of reporting documentation, balance sheet and expense documents. In the process of inspections, certain issues of financial activity are considered and measures are outlined to eliminate negative consequences.

Surveys cover a wider range of financial and economic indicators of the entity in order to determine its financial condition and development prospects.

An analysis of financial activity involves a detailed study of periodic or annual financial and accounting statements with the aim of a general assessment of the results of financial activity.

The audit is a check of the financial and economic activities of the enterprise for the reporting period.

22. STATE FINANCIAL CONTROL IN THE RUSSIAN FEDERATION

In the conditions of a market economy, as its social orientation strengthens, the control and financial functions of the state become more complicated and increase.

At present, there is no single body of state financial control in the Russian Federation.

An important element of public administration, pursuing a unified fiscal policy throughout the country, and maintaining its integrity is presidential control over compliance with fiscal discipline. Presidential control is exercised in accordance with the Constitution of the Russian Federation by issuing decrees on financial, budgetary and tax issues, signing federal laws.

The functions of financial control are also performed by the Main Control Directorate of the President of the Russian Federation.

The functions of the Main Control Directorate of the President of the Russian Federation are to control the activities of:

- Supervisory bodies under the federal executive authorities;

- subdivisions of the Presidential Administration;

- executive authorities of the subjects of the Federation.

Executive authorities of all levels exercise financial control within their powers, as well as direct and control the activities of their subordinate departments.

The Government of the Russian Federation controls and regulates the financial activities of ministries and departments. Under the Government of the Russian Federation, there is a Control and Supervisory Board that performs a number of control functions in the field of finance.

One form of nationwide financial control is parliamentary control.

In the State Duma - the Committee on Budget, Taxes, Banking and Finance, in the Federation Council - the Committee on Budget, Financial, Currency and Credit Regulation.

Parliament can carry out random checks on the activities of ministries, departments and state committees. Parliament receives data on the state of public finances through the Accounts Chamber, which is a control body specially created by the Federation Council and the State Duma.

The next federal executive body exercising financial control is the Ministry of Finance of the Russian Federation. The Ministry of Finance of the Russian Federation ensures the implementation of a unified financial policy and coordinates the activities in this area of ​​other federal executive bodies. Financial control is carried out by all departments and departments of the Ministry of Finance of Russia within their competence and areas of activity, including the specially created Control and Auditing Department with its territorial and local bodies.

A structural subdivision of the Ministry of Finance of the Russian Federation is the Main Directorate of the Federal Treasury, whose main task is to control the execution of the federal budget of the Russian Federation and the budgets of federal off-budget funds.

In addition to the above bodies, state financial control in the Russian Federation is carried out by the Ministry of Taxes and Duties of the Russian Federation, the State Customs Committee of the Russian Federation, the Central Bank of the Russian Federation, the Federal Service of Russia for the Supervision of Insurance Activities, the Federal Service for Financial Monitoring, the Federal Service for Financial Markets, the Federal Service financial and budgetary oversight.

23. CONCEPT AND ESSENCE OF PUBLIC FINANCE

Public finance is the most important lever through which the government influences the entire process of production and distribution. Public finances can be defined as a set of centralized and decentralized monetary funds managed by government agencies in order to meet national and social needs.

State funds are formed mainly due to the withdrawal through taxation of part of the income from other subsystems of the financial system. The structure of public finance includes various separate links.

The leading role in the system of public finances is played by interbudgetary relations. They are formed at the federal, regional and local levels.

The state, in addition to the formation of financial resources, carries out expenses.

State revenues represent the financial relations of the state with individuals and legal entities regarding the formation of centralized funds of funds.

Centralized state revenues, in addition to budgetary ones, include financial resources of state non-budgetary funds. The funds are formed by contributions from employers and working citizens, as well as subsidies from the federal budget. Extra-budgetary funds have a strictly designated purpose.

Extra-budgetary funds in our country are independent financial and credit institutions. Currently, there are four social non-budgetary funds in the Russian Federation: the Pension Fund of the Russian Federation, the Compulsory Medical Insurance Fund of the Russian Federation, the Employment Fund of the Russian Federation and the Social Insurance Fund of the Russian Federation.

The main source of the formation of state revenues is the national income, and in case of emergency - a part of the national wealth.

The national income and part of the national wealth are internal sources of government revenue. External sources of state revenues are understood as the national income and, in exceptional cases, the national wealth of another country.

The main tasks of the state revenue system are both fiscal and economic tasks in general.

Public expenditures are the financial relations of the state, due to the use of centralized and decentralized state revenues. Public expenditures are understood as direct expenditures of the state, which it carries out through the system of budgetary and non-budgetary funds, as well as state enterprises, institutions and organizations. The content and nature of public expenditures are determined by the functions of the state.

The main functions of public finance in market conditions include:

1) development, adoption, implementation and improvement of legislative acts that form the institutional foundations of a market economy;

2) maintaining macroeconomic and socio-political stability, effective regulation and industrial policy;

3) financing of basic social services, support for vulnerable groups of the population;

4) regulation of integration into the world economy, taking into account the protection of national interests;

6) implementation of measures to protect the environment.

24. CONCEPT AND FUNCTIONS OF THE BUDGET

In accordance with Art. 6 of the Budget Code of the Russian Federation, the budget is a form of formation and spending of a fund of funds intended for financial support of the tasks and functions of the state and local government.

The essence of any financial and economic category, including the budget, is manifested in its functions.

The budget has the following functions:

1) redistribution of national income;

2) state regulation and stimulation of the economy;

3) financial support of the social sphere and implementation of the social policy of the state;

4) control over the formation and use of centralized funds of funds. The distributive function of the budget is manifested through the formation and use of centralized funds of funds at the levels of state and territorial authorities and administration. With the help of the budget, the state regulates the economic life of the country, economic relations, directing budgetary funds to support or develop industries and regions. Regulating economic relations in this way, the state is able to purposefully accelerate or restrain the pace of production, the growth of capital and private savings, and change the structure of demand and consumption.

The redistribution of national income through the budget has two interrelated, occurring simultaneously and continuously stages: 1) the formation of budget revenues; 2) use of budgetary funds (budget expenditures).

During the formation of budget revenues and the use of budgetary funds, the tasks of state regulation of economic and social processes in the country are solved.

By centralizing part of the financial resources in the budget, the state is able to meet the national needs with funds - the accelerated development of progressive sectors of the national economy, the reproduction of skilled labor, the development of science and technology, and the provision of the country's defense capability.

Through the budget, the national income is redistributed throughout the territory, as well as from the production to the non-productive sphere, for which money funds are created at the expense of the budget to finance the needs in the field of healthcare, education, culture, management, and defense. Through budgets, through budget financing, financial resources are redistributed between sectors of the production sector in order to develop them proportionally. Through the budget, inter-territorial and inter-sectoral redistribution of national income is carried out. Thus, the interests of the country's economic development and the interests of the proportional development of the regions are observed.

Budgetary regulation plays an important role in local economic and cultural construction. With the help of budgetary regulation, an inter-territorial distribution of funds is carried out on a large scale, providing the necessary sources of income to regional and local budgets.

The role of the budget in the non-production sphere is great, where it is the main source of financing. It is through the state budget that funding for social and cultural events, government and defense comes.

Budgets perform a control function, which implies the possibility and obligation of state control over the receipt and use of budgetary funds.

25. BUDGET LEGISLATION

The budgetary structure of the Russian Federation, the functioning of the budgetary system, the competence of government bodies at all levels in the field of budgeting are regulated by budgetary legislation.

Budgetary legislation is a set of legislative and other normative legal acts adopted at the federal, subfederal and municipal levels that regulate budgetary legal relations, a hierarchical system of normative acts. It is implemented on the basis of their clear structuring, primarily in terms of the content of legal norms. In accordance with them, all regulatory acts of Russia are divided into four levels:

1) the first level - the Budget Code of the Russian Federation - a codified act regulating budget violations and establishing a mechanism for legal liability for budget violations. The Budget Code establishes: general principles of the budgetary legislation of the Russian Federation; legal basis for the functioning of the budget system; legal status of subjects of budgetary offenses; the procedure for regulating interbudgetary relations; determines the procedure for passing the budget process in Russia, the grounds and types of liability for violation of the budget legislation of the Russian Federation;

2) the second level - federal and subfederal laws, as well as normative acts of representative bodies of local self-government;

3) the third level - resolutions and orders of the Government of the Russian Federation and the governments of the constituent entities of the Russian Federation, as well as regulatory acts of local governments;

4) the fourth level - legal acts of the Ministry of Finance of the Russian Federation and other federal departments relating to the public sector, as well as regulatory acts of subjects of a lower level.

The hierarchically constructed budgetary legislation of Russia establishes appropriate priorities if the norms of some legislative acts contradict others.

Federal and subfederal laws, as well as normative legal acts of local self-government bodies, adopted respectively at the federal, subfederal and municipal levels, cannot contradict the Budget Code of the Russian Federation. In case of their conflict, the legal norms contained in the articles of the Budget Code of the Russian Federation shall prevail.

If an international treaty of the Russian Federation establishes other rules than those provided for by the budgetary legislation of Russia, the rules of the international treaty shall apply. Fixing the priority of international treaties in comparison with domestic budgetary legislation, the Budget Code of the Russian Federation at the same time emphasizes that the rules of international treaties in the field of budgetary relations act directly, except when it follows from the content of an international treaty that its application requires the issuance of a special domestic legal act . The acts of the budget legislation of Russia are not retroactive and apply to relations arising after their entry into force, unless otherwise provided by the Budget Code of the Russian Federation or federal law.

26. THE ROLE OF THE STATE BUDGET IN THE SOCIO-ECONOMIC DEVELOPMENT OF THE SOCIETY

The budget is necessary for all states for the implementation of their political and social functions. With the help of the budget, the main task of actually comparing the needs of the state and the means to meet them is carried out. In modern conditions, the state, in addition to maintaining all branches of government, government, law enforcement and external defense, also affects important economic and social processes. With the help of the budget, issues of financial regulation are solved both at the macro level throughout the country, the entire economy, and in individual regions and at the level of local government.

A part of the national income is concentrated in the state budget, which is then redistributed, which makes it possible to carry out state regulation of the economy and ensure the implementation of the necessary social policy. The budget is a form of formation and expenditure of a fund of funds intended for financial support of the tasks and functions of the state and local self-government.

In view of the special importance of the budget for all spheres of public life, its preparation, approval and implementation take place on the basis of laws established by the representative government, and the adopted budget itself is also a law.

The economic significance of the budget lies in the fact that it forms a significant part of the demand for the final product, a significant share of the population's income is formed at its expense, large volumes of products are purchased, state material reserves increase, and in some cases capital investments are made. Within the framework of the budget, subsidies, guarantees, subsidies, loans are provided to support certain enterprises, and assistance is provided to other countries. The state budget provides funding for scientific institutions that carry out fundamental scientific research, which, in turn, are the basis for the development of applied science and the creation of new technology. By directing the necessary funds through the budget to the most promising branches of science, the state thereby ensures the development of the country's productive forces. Within the framework of the budget, the public debt is formed and serviced. All this makes it possible to coordinate the economic life of the state, rationally allocate monetary and material resources, promotes technical progress and enhances the economic potential of the state.

Significant financial flows pass through the budget, it directly affects the formation of the most important economic and financial indicators: the volume of production, investments, real incomes, the unemployment rate, the amount of money supply, the level of interest, the exchange rate.

The state budget, being the main plan of the state, gives the authorities a real economic opportunity to exercise power. The budget reflects the amount of financial resources needed by the state and thus determines the tax policy in the country. The budget fixes specific areas of spending, redistribution of national income and gross domestic product, which allows it to act as an effective regulator of the economy and social processes in the country.

27. CONTENT OF THE BUDGET POLICY

Budget policy is a set of decisions made by legislative (representative) and executive authorities related to determining the main directions for the development of budgetary relations and developing specific ways to use them in the interests of citizens, society and the state.

Budgetary policy is part of the financial policy of the state and as such acts as a means of implementing the economic and social policy of the state.

The development of budget policy begins with the definition of the conceptual foundations for the development of the budget, establishing its role in social reproduction at the appropriate time stage. Then the goals and objectives of the budget policy are formed, determined on the basis of the main directions for the use of budgetary relations in the interests of citizens, society and the state. At the final stage of budgetary policy, concrete ways of solving the set goals and objectives should be worked out, which would make it possible to implement the main directions for the use of budgetary relations in a given period of time.

The functional aspect of budget policy includes:

- policy in the field of budget revenues (fiscal);

- policy in the field of budget expenditures;

- policy in the field of budget expenditures; budget balance policy;

- policy of effective management of state, municipal debt;

- policy in the field of interbudgetary relations. The temporal aspect of budgetary policy consists of a budgetary strategy designed for the future and budgetary tactics focused on carrying out activities in a particular financial period.

Budget policy is carried out both at the state and at the subfederal (regional) and municipal levels. Without an independent, well-thought-out and effective budgetary policy, the financial and budgetary independence of either state, territorial or municipal entities cannot be ensured.

The basis of the budget policy is the strategic directions of the economic and social policy of the state. It is they who determine the size and proportions of financial resources centralized by the state, the prospects for the use of budgetary funds in the interests of solving the main social and economic tasks of the state. In market conditions, budget policy is the main lever for determining the main directions of the state's economic impact on social production.

The main requirement for ensuring the effectiveness of budgetary policy is a scientific approach to its development, taking into account the real state of the economy, finances and budgetary system of the country.

The effectiveness of budgetary policy also largely depends on the observance of two conditions:

- political stability in the country;

- high level of professionalism of public sector employees.

Legislative (representative) and executive authorities participate in the development of budget policy. The specificity of the constitutional system of modern Russia has led to the fact that the priority in the development of budgetary policy belongs to the President of the Russian Federation.

Budgetary law and the budgetary mechanism act as tools for the implementation of budgetary policy.

28. BUDGET MECHANISM AND CHARACTERISTICS OF ITS LINKS

The budgetary mechanism is a set of methods for accumulating funds in the budget, methods and forms of allocation from the budget and interbudgetary relations. There are three parts of the budget mechanism:

1) methods of accumulation of funds in the budget:

- tax (taxes, tax payments);

- non-tax (income from the use of state and municipal property, income from the sale of property, income from the sale of state reserves, income from foreign economic activity, fines, penalties of a non-tax nature);

2) methods and forms of allocation of funds from the budget:

- budget financing - the allocation of budget appropriations on the principles of irrevocable, perpetual and free (gratuitous);

- budget lending - the allocation of funds from the budget on the principles of lending, i.e., repayment, urgency, payment;

3) methods and forms of interbudgetary relations.

In the third link of the budgetary mechanism, methods for distributing funds between budgets and forms of interbudgetary relations are considered. Interbudgetary relations are part of the financial relations that arise between the central authorities of the Russian Federation, the authorities of the constituent entities of the Russian Federation and municipal authorities regarding the limitation and consolidation of budgetary powers and the redistribution of budgetary funds.

During the country's transition to market relations, completely new forms of interbudgetary relations arose, and old ones were improved. The principles of distributing funds between budgets changed radically in connection with the emergence in 1994 of such a form of interbudgetary relations as transfers. Transfers are repayments from the federal budget to the budgets of the constituent entities of the Federation, allocated from the Fund for Financial Support of the Regions, specially created for these purposes. The main criterion for classifying a region as a group of regions in need or not in need of support was the per capita budget income. The introduction of transfers was a very significant step in the reform of interbudgetary relations, since they were a fairly objective form of distribution of budgetary funds in comparison with subsidies.

The new forms of interbudgetary relations include subsidies and subventions, subsidies have also been preserved. Subvention - budgetary funds provided to the budget of another level of the budgetary system of the Russian Federation or to a legal entity on a gratuitous and irrevocable basis for the implementation of certain targeted expenses. Subsidy - budgetary funds provided to the budget of another level of the budgetary system of the Russian Federation, to an individual or legal entity on the terms of shared financing of targeted expenses. Grant - budgetary funds provided to the budget of another level of the budgetary system of the Russian Federation on a gratuitous and irrevocable basis to cover current expenses.

The federal budget creates five special funds for financial assistance to the constituent entities of the Russian Federation. These include:

- Fund for Financial Support of the Subjects of the Russian Federation;

- Compensation Fund;

- Fund for co-financing of social expenses;

- Regional Development Fund;

- Regional Finance Reform Fund.

29. BUDGET SYSTEM OF THE RUSSIAN FEDERATION

The budget system of the Russian Federation is a set of budgets of different levels, based on socio-economic relations and budget legislation.

The structure of the budget system of the Russian Federation consists of three levels:

1) the federal budget and the budget of state off-budget funds;

2) the budgets of the constituent entities of the Federation and the budgets of territorial state extra-budgetary funds;

3) local budgets (budgets of municipalities).

The construction of the budget system of the Russian Federation is based on the Constitution of the Russian Federation and the constitutions of the republics within the Russian Federation.

The budget system is built on the basis of the following principles.

1. The principle of the unity of the budget system, which is ensured by the unity of budget legislation, the monetary system, budget classification, forms of budget documents and budget reporting, budget policy, etc.

2. The principle of delimitation of income and expenditure between the levels of the budget system.

3. The independence of budgets of all levels is expressed in the presence of each budget of its own sources of income, in the right of each budget to independently spend them at its own discretion, to determine the sources of financing the budget deficit, in the approval of each budget by the relevant representative bodies, in the execution of each budget by the relevant executive authorities; in the inadmissibility of compensation at the expense of the budgets of other levels of the need for income and additional expenses.

4. The principle of a balanced budget means that the volume of expenditures must be equal to the volume of income plus the sources of financing the budget deficit (the size of the budget deficit of the levels is limited by the Budget Code). At the same time, the budgets of all levels must be approved without a budget surplus. A surplus is the excess of budget revenues over expenditures. If, during the preparation of the budget, an excess of revenues over expenditures is detected, then before the approval of the budget, the budget surplus is reduced in the following sequence:

- decrease in income from the sale of state and municipal property;

- reduction of income from the sale of state stocks and reserves;

- direction of budgetary funds for additional repayment of debt obligations; transfer of a part of incomes to budgets of other levels.

If these measures are impractical, then the tax revenues of the budget should be reduced.

5. The principle of efficient and economical use of budgetary funds.

6. The principle of budget credibility means the reliability of all budget indicators, their adequacy to the current economic situation. Violation of this principle leads to serious financial consequences. An example is the budget crisis of 1997 and the sequestration of the budget (proportionate reduction in public spending on all budget items, except for protected items).

7. The principle of full reflection of budget revenues and expenditures means the need to reflect them in the budget in full and without fail.

8. The principle of publicity, i.e. the need to publish laws on budgets and reports on their implementation in the open press.

9. The principle of targeting and targeted nature of budget funds means that budget funds are allocated to specific recipients with the purpose of their use indicated.

30. ESSENCE OF FINANCIAL AND BUDGETARY FEDERALISM

Fiscal federalism is understood as the autonomous functioning of the budgets of individual levels at all stages of the budget process, based on the following basic principles:

1) legislative delimitation of powers on expenditures between authorities of all levels of government;

2) providing the relevant authorities with the necessary financial resources for the performance of their functions;

3) ensuring vertical and horizontal alignment of incomes of all parts of the budget system;

4) the presence of formalized transparent and understandable methods of budget regulation that are uniform for each link of the budget system;

5) independence and equality of each budget included in the budget system, which are expressed in the independence of the budget process, including determining the directions for the use of budget funds, accountability of budget execution to the relevant representative authorities, etc. The ideal model of budget federalism assumes that the volume of revenue powers of the subjects of the Federation must fully comply with the scope of responsibility for the costs assigned to a given level of government.

In practice, there is a gap between budget spending powers and revenue opportunities, which must be covered by revenue sources that are at the disposal of the budget at a higher level. There is an uneven distribution of the income base, the potentials of different territories differ significantly.

Budgetary federalism as a system of interbudgetary relations must meet the requirements of social and economic efficiency, territorial justice and political stability. The essence of budgetary federalism as a concept of a budgetary device lies in the regulatory and legislative establishment of budgetary rights and obligations of two equal parties - federal and regional authorities and administrations, as well as the rules for their interaction at all stages of the budgetary process.

An important stage in the development of fiscal federalism in the Russian Federation was the Law of the Russian Federation "On the fundamentals of budgetary rights and rights to formulate and use off-budget funds of representative and executive bodies of state power of the republics within the Russian Federation, the autonomous region, autonomous districts, territories, regions, cities of Moscow and St. Petersburg, local governments" of 1993, in which for the first time in the history of the Russian budget the most important principle of local budget formation was fixed, based on the calculation of the minimum budget. The minimum expenditures of local budgets should be calculated on the basis of minimum social and financial norms.

In 1994, in accordance with Decree of the President of the Russian Federation No. 2268, a new form of redistribution of funds between the federal and regional budgets was introduced into the mechanism of fiscal federalism - the transfer of funds from the federal budget to regional budgets by forming a fund for financial support of the regions and calculating the amount of allocated funds based on specially designed formula. This method has also been used in the relationship between regional and local budgets, which contributes to the objectification of the interbudgetary distribution of funds.

31. BUDGET PLANNING AS A PART OF FINANCIAL PLANNING

Budget planning is an integral part of financial planning and one of the most important tools of state regulation of the economy.

The economic essence of budget planning is the centralized distribution and redistribution of GDP and national income between the links of the financial system on the basis of a nationwide program for the socio-economic development of the country. The basis of budget planning is budget forecasting, which refers to the process of making forecasts (assumptions) about possible future budget conditions. Budget planning is based on budget forecasting and indicators of the socio-economic development of the country and its territories.

The main tasks of budget planning:

- determination of the total amount of budgetary resources and their distribution among individual ministries and departments, specific budget recipients;

- determination of the necessary proportions between centralized and decentralized financial resources;

- identification of financial reserves of the state and municipal authorities;

- calculation of revenues and expenditures of budgets with a breakdown by articles and time periods;

- ensuring the balance of budgets or sources of covering their deficits (determining the directions for spending surpluses);

- budgetary regulation;

- state financial control over the implementation of the budget.

Budget planning is carried out by the relevant state authorities and financial authorities: the Ministry of Finance of the Russian Federation, territorial financial authorities, tax authorities, budget recipients.

When implementing the budget planning process, various methods are used.

The normative method is based on the use of such norms and norms as the norms for the distribution of regulatory revenues, the maximum size of the budget deficit, minimum socio-economic standards, the norms of budget security, etc.

In recent years, the program-target method has become widespread. It provides for the preparation of specific programs to solve the tasks set, indicating the sources of their financing and the direction of the use of funds under the program.

The index method is based on the use of various indices that reflect the dynamics of prices, the standard of living of the population, income and expenses, the deflator index, etc.

The balance method links budget revenues and expenditures, and makes it possible to identify an excess or shortage of budget funds.

The analytical method is mandatory for use, since the budget planning process begins with an economic analysis of the execution of budget revenues and expenditures for the previous period. This method allows you to identify the dynamics of the budget.

The method of expert assessments makes it possible to determine budget development trends based on the knowledge and experience of highly qualified experts.

The method of mathematical modeling is used most often in budget forecasting and allows you to identify the best option for the development of the budget, taking into account the influence of various factors and their changes.

The reform of budget planning and the transition from traditional methods to performance-based budgeting are currently under way.

32. CONCEPT AND STAGES OF THE BUDGET PROCESS

The budget process is a legally regulated activity of the authorities in the preparation, consideration and execution of federal, regional and local budgets.

The main document regulating the budget process is the Budget Code of the Russian Federation.

The budget process consists of five stages: drafting budgets, their consideration, approval, execution and control.

Draft budgets are compiled by the Ministry of Finance of the Russian Federation (federal budget), the relevant financial authorities of the constituent entities of the Russian Federation and municipalities on the basis of forecasts of socio-economic development and consolidated financial balances, as well as the Budget Address of the President of the Russian Federation. Consideration and approval of budgets for the coming financial year is the prerogative of the legislature. The execution of budgets is carried out by the executive financial authorities on the basis of the budget schedule. Budget list - a document on the quarterly distribution of budget revenues and expenditures and receipts from sources of financing the budget deficit, establishing the distribution of budgetary appropriations among recipients of budgetary funds.

The draft federal budget begins to draw up no later than 10 months before the start of the next financial year (in Russia it coincides with the calendar year). The draft federal budget is drawn up in three stages: planning the main indicators of the budget and its expenditures in accordance with the functional classification; distribution of limiting volumes of financing for the next financial year by recipients of budgetary funds; consideration of the draft federal budget and adoption of the draft federal law on the federal budget for submission to the State Duma for consideration.

The State Duma considers the draft federal budget in four readings.

The execution of the federal budget is carried out in accordance with revenues and expenditures by the relevant executive authorities. In the Russian Federation, treasury budget execution has been introduced based on the reflection of all operations and funds of the federal budget on the balance sheet accounts of the Federal Treasury. The right to open and close accounts belongs to the Treasury, it is prohibited to carry out operations with budgetary funds, bypassing the accounts of the Treasury.

At present, the Federal Treasury departments for the constituent entities of the Russian Federation have introduced a system of a single account of the Federal Treasury (TENS). The program for the transition to the TEN was approved in 2000. It provides for the centralization of accounting and the optimization of the flow of income and federal budget funds. The functioning of the TSA is a qualitatively new technology for the execution of the federal budget.

Decree of the Government of the Russian Federation of May 22, 2004 No. 249 approved the Concept for Reforming the Budget Process in the Russian Federation in 2004-2006. The concept is aimed at improving the effectiveness of budget expenditures and optimizing the management of budget funds at all levels of the budget system of the Russian Federation.

33. BUDGET CLASSIFICATION

State authorities at all levels conduct daily work related to the receipt and expenditure of financial resources. The volume and types of such operations are quite numerous and varied. They require a certain systematization and should be reflected in the relevant budgets. For the preparation and execution of budgets at all levels, a single methodological document is used - the budget classification.

The nature of groupings and their principles are determined by the socio-economic content of budget revenues and expenditures, the structure of the national economy, and the management system. The regulation of sources of income and the determination of the goals of budget expenditures is a prerequisite for the functioning and efficiency of the entire budget process.

The basis of the budget classification is such a grouping of indicators that gives an idea of ​​the socio-economic, departmental and territorial section of the formation of income and the direction of funds, their composition and structure.

The classification creates conditions for combining estimates and budgets into general codes, facilitates their consideration and economic analysis, simplifies control over budget execution, over the full and timely accumulation of funds, over their use for their intended purpose. It makes it possible to compare income and expenses according to budget execution reports, which contributes to the observance of financial discipline, economical spending of funds, and control over the implementation of financial plans.

Given the independence of all parts of the budget system, the classification provides the basis for a unified methodological approach to the preparation and execution of all types of budget for comparability of budget indicators in the sectoral and territorial context.

Changes that have taken place in budget practice and are associated with changes in the system of state structure and management, with the independence of all types of budgets, the expansion of the rights of state and local governments in the preparation and execution of their budgets, changes in the revenue and expenditure parts of budgets, as well as the decoding of individual articles income and expenditure, required the introduction of a new budget classification.

The current budget classification includes:

1) classification of incomes of the budgets of the Russian Federation;

2) functional classification of expenditures of the budgets of the Russian Federation;

3) economic classification of expenditures of the budgets of the Russian Federation;

4) classification of sources of internal financing of budget deficits of the Russian Federation;

5) classification of sources of external financing of the federal budget deficit;

6) classification of types of state internal debts of the Russian Federation and subjects of the Russian Federation;

7) classification of types of public external debt and external assets of the Russian Federation;

8) departmental classification of federal budget expenditures.

An important task of the new classification was to ensure international comparability of the composition and structure of indicators of the revenue and expenditure parts of the budget, their true content. The new budget classification plays a large organizing role, it facilitates the consideration and economic analysis of budgets, simplifies control, and provides the possibility of synthetic and analytical accounting of income and expenses.

34. ESSENCE, FUNCTIONS, TYPES AND MAIN ELEMENTS OF TAXES

The legal definition of tax is given in the Tax Code of the Russian Federation: a tax is understood as a mandatory individually gratuitous payment levied from organizations and individuals in the form of alienation of their funds in order to financially support the activities of the state and municipalities.

The main features of the tax: the unilateral nature of its establishment; gratuitousness; coercive nature of payments. Taxes are the most important element of the economic policy of states and perform the following functions: 1) regulatory - the state can regulate private property only indirectly - through taxes; with the help of taxes, the state regulates the pace of economic development: the reduction of the tax burden gives impetus to the development of industries, regions, individual enterprises, while the growth of taxes slows down the growth rate of the economy; 2) redistributive - with the help of taxes, the state redistributes financial resources between sectors of the economy, industries, regions, etc.; 3) fiscal - taxes are the most important source of state budget revenues, they account for more than 90% of revenues; 4) control - with the help of taxes, the state exercises control over the efficient use of financial resources; 5) stimulating - through taxes, the state stimulates the efficient use of all economic resources.

Tax classification:

1. According to the object of taxation - direct and indirect. Direct taxes are levied on income or property. Indirect taxes are included in the price of the goods and paid by the consumer. Direct taxes are divided into personal and real. Indirect taxes are divided into individual excises, universal excises (VAT) and customs duties.

2. According to the subjects of taxation - layout and quantitative. Estimated taxes are distributed among taxpayers. Quantitative taxes take into account the property status of the taxpayer.

3. At the place of receipt - fixed and regulatory.

4. By the level of management - federal, regional and local.

5. According to the purpose of use - general and targeted.

6. By terms of payment - regular and one-time (tax on property transferred by way of inheritance and donation).

The main conditions for establishing the tax: categories of taxpayers; object of taxation; the tax base; taxable period; tax rate; the procedure for calculating the tax; term and procedure for payment of tax; tax incentives.

Taxpayers are organizations and individuals, individual entrepreneurs who are obligated to pay taxes.

The object of taxation is what is taxed. The objects of taxation can be property, profit, income, cost of goods, works and services sold; import (export) of goods to the territory of Russia, etc.

Tax base - value, physical or other characteristics of the object of taxation.

The source of the tax is income or capital at the micro level, at the macro level it is national income.

Tax rate - the amount of tax charges per unit of measurement of the tax base.

Taxation method - the procedure for changing the tax rate depending on the change in the tax base. There are four methods of taxation: equal (per capita), proportional, progressive and regressive.

35. ESSENCE OF THE TAX SYSTEM AND THE PRINCIPLES OF ITS CONSTRUCTION

The tax system is a set of essential conditions of taxation that currently exist in a particular state. The latter include:

- principles, forms and methods of establishing, changing, canceling, paying taxes;

- types of taxes;

- rights and obligations of taxpayers, tax authorities and other participants in tax relations;

- forms and methods of tax control;

- responsibility of participants of tax relations;

- ways to protect the rights and interests of taxpayers.

The Russian Federation establishes federal, regional and local taxes.

Federal taxes are established by the Tax Code of the Russian Federation and credited to the federal budget or federal off-budget funds. The standard for the distribution of federal taxes between the federal budget, the budgets of the constituent entities of the Federation and local budgets is determined in accordance with the law on the federal budget. The establishment of new federal taxes, the abolition of the current tax and the introduction of amendments to the current federal taxes are carried out exclusively by the adoption of a federal law on amendments to the Tax Code. The introduction of regional local taxes, amendments to existing or previous actions of previously introduced taxes are carried out by the legislative authorities of the subjects of the Federation and representative bodies of local self-government. Regional taxes are credited to regional budgets, local taxes - to local budgets.

The organizational principles of the current Russian tax system include the provisions in accordance with which its construction and structural interaction are carried out. In addition, the organizational principles of the tax system determine the main directions of its development and management.

These principles are enshrined mainly in the Constitution of the Russian Federation and the Tax Code of the Russian Federation.

At present, the following organizational principles correspond to the Russian tax system.

The principle of the unity of the tax system. The unity of the tax system is enshrined in a number of articles of the Constitution of the Russian Federation, according to which the Government of the Russian Federation ensures the implementation of a unified financial, credit and monetary policy.

The principle of mobility (plasticity). This principle states that the tax and some tax mechanisms can be quickly changed in the direction of reducing or increasing the tax burden in accordance with the objective needs and capabilities of the state.

The principle of stability. According to the principle of stability, the tax system should operate for a number of years until the tax reform. At the same time, tax reform should be carried out only in exceptional cases and in a strictly defined manner.

The principle of multiple taxes. This principle includes several aspects, the most important of which is that the tax system of the state should be based on a set of differentiated taxes and objects of taxation. Combinations of various taxes and taxable objects should form a system that would meet the requirement of redistributing the tax burden among payers.

The principle of an exhaustive list of taxes.

The single economic space of Russia predetermines the state policy for the unification of tax exemptions.

36. TAX POLICY OF THE RUSSIAN FEDERATION

Tax policy - a set of specific measures of the state in the field of taxation. This policy is an integral part of the financial policy. The main objectives of tax policy are: providing the state with financial resources; economic regulation; solution of social problems.

There are different types of tax policy.

The policy of maximum taxes is characterized by the fact that at the beginning of receipts in the budget they increase, and then they begin to decrease.

A prudent tax policy promotes entrepreneurship, but at the same time budget revenues are reduced, which can lead to a reduction in social programs.

A policy characterized by a fairly high level of taxation, but with significant social protection of the population.

Russia uses the first type of tax policy. It is carried out through the tax mechanism, which includes: tax planning; organization of tax collection; tax incentives; tax control.

The tax system that existed in Russia before the adoption of the Tax Code had a number of shortcomings:

- fiscal approach to taxation;

- high level of taxation;

- a large number of taxes, fees and duties;

- instability of the tax system;

- the complexity of the methodology for calculating taxes;

- unreasonably broad rights of tax authorities;

- vagueness of laws in the field of taxation;

- unclear delimitation of powers between central, regional and local authorities in the field of taxation;

- unsettled legislative issue of tax control;

- lack of a clear definition of economic incentives guiding taxpayers to pay taxes in full, etc. The main directions of the tax reform stem from the need to eliminate the above shortcomings: building a unified stable tax system; reduction in the number of taxes; consolidation in the federal budget of off-budget funds while maintaining their targeted nature; new conceptual apparatus; the abolition of "turnover taxes", i.e. taxes calculated on the amount of revenue; relief of the tax burden; increase in tax collection; development of tax federalism; reduction in the number of benefits; establishment of procedural and procedural norms; revision of the composition of tax violations and penalties for them; amendments to the procedure for calculating individual taxes; shifting the center of gravity in paying taxes from legal entities to individuals; refusal to levy those taxes, the payment of which is difficult to control; change in the structure of taxes. It is necessary to gradually abandon taxes on income growth, profits, wages, production volumes, investments, employment; shifting the severity of the tax burden from the less well-to-do segments of the population to the wealthy part of the population, which will create the basis for a socially oriented economy, creating conditions that make it profitable to pay taxes, and not save on non-payment.

An attempt to immediately build a tax system in the Russian Federation, characteristic of countries with a developed market economy, failed. It is necessary to further improve the tax system in Russia. Tax policy should become a reflection of the ideology of stable and confident development of the Russian economy.

37. STATE CREDIT AS AN ECONOMIC AND FINANCIAL CATEGORY

State credit is one of the forms of existence of public finance along with budgets and extra-budgetary state funds and is one of the main ways for the state to attract additional funds and increase its financial capabilities.

Public credit is a special, largely separate part of the financial system. It has its own sources of income, their special purpose and order of use.

The existence of a state loan is quite natural, since credit financing of state expenditures is due to an objective contradiction between the operation of the law of a steady increase in social needs and the limited budgetary possibilities of the state.

As an economic category, state credit is at the junction of two types of monetary relations - finance and credit - and bears the features of both. As a link in the financial system, it serves the formation and use of centralized monetary funds of the state, i.e., extra-budgetary funds.

As one of the types of credit, public credit has a number of features that distinguish it from classical financial categories. It is voluntary.

Government credit is different from other types of credit. When borrowing funds by the state, the loan is secured by all the property owned by it, the property of a given territorial unit or any of its income.

At the level of the central government, government loans do not have a specific purpose.

As a financial category, state credit performed three functions of finance: distributive, regulatory, and control.

1. Through the distributive function of the state credit, the formation of centralized monetary funds of the state or their use on the principles of urgency, payment and repayment is carried out. Acting as a borrower, the state provides additional funds to finance its expenses.

The placement of new government loans to pay off debt already issued is called refinancing the government debt.

2. The regulatory function of the state credit is that, entering into credit relations, the state voluntarily or involuntarily influences the state of money circulation, the level of interest rates in the money and capital market, production and employment. The state regulates money circulation by placing loans to various groups of investors.

An important role in stimulating the development of production and employment is played by loans provided at the expense of the budgets of the territories or extra-budgetary funds. With their help, the accelerated development of certain regions or the necessary areas of the economy of a particular territory is ensured.

3. The control function of the state credit is organically woven into the control function of finance. But it has its own specific features: it is closely connected with the activities of the state and the state of the centralized fund of funds; covers the movement of value in both directions, since it involves the return and compensation of receiving funds; is carried out not only by financial structures, but also by credit institutions.

38. PUBLIC DEBT: ESSENCE, STRUCTURE AND MANAGEMENT METHODS

Public debt refers to the debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law. The state debt of the Russian Federation is fully and unconditionally secured by all federally owned property constituting the state treasury.

Public debt can be classified according to several criteria:

- the location of the debt;

- levels of government;

- term of attraction of means;

- the nature of the income paid;

- the volume of expenses for the payment of public debt;

- the method of determining income, etc.

The most common is the classification depending on the location of the debt, in this case, public debt is divided into external and internal.

Public debt management consists in the implementation of a system of measures taken by the state related to determining the volume of borrowings, the composition of creditors, the forms and conditions for granting loans and their repayment.

The organizational structure of the public debt management system includes the authorities and administrations of the Russian Federation that perform the functions of public debt management in accordance with their competence and the tasks assigned to them. The President of the Russian Federation sets the main priorities of the budget policy for the short and medium term. The Federal Assembly of the Russian Federation approves in the law on the federal budget for the next financial year the upper limit of the state external and internal debt. The Government of the Russian Federation determines the organizational framework for the system of managing public debt and financial assets, approves the main sources and conditions for borrowing, including the government borrowing program. The Ministry of Finance of the Russian Federation manages the public debt in accordance with the established procedure. The Central Bank of the Russian Federation advises the Ministry of Finance of Russia on the schedule of repayment of the state debt, taking into account the priorities of the unified state monetary policy. The Ministry of Economic Development and Trade of the Russian Federation takes part in the analysis of the effectiveness of projects financed from external borrowings.

Public debt management is carried out using the following methods:

1) refinancing. Represents the repayment of the principal and interest on it at the expense of funds received from the placement of new loans;

2) cancellation. This is the refusal of the state to pay the principal and interest on all previously issued loans;

3) conversion. Adoption by the state of a decision to change the yield of previously issued loans;

4) innovation. An agreement between the lender and the borrower on the termination of obligations and their replacement with other obligations providing for other terms of repayment of loans;

5) unification. Consolidation of several obligations previously assumed by the state with replacement of previously issued financial instruments with new ones;

6) consolidation. Extending the duration of previously issued obligations.

39. SOCIO-ECONOMIC ESSENCE OF EXTRABUDGETARY FUNDS

Extra-budgetary funds are a specific form of redistribution and use of the country's financial resources to finance specific social and economic needs of national or regional significance.

Through the creation of off-budget funds of any level, the state attracts significant resources to finance targeted activities through special deductions and other sources. Extra-budgetary funds provide strictly targeted use of funds, they are separated from budgets and have a certain independence.

With the help of non-budgetary funds, two main tasks are solved: providing additional funds to priority sectors of the economy and expanding the volume of financing of social services for the population.

Extra-budgetary funds have a number of features that distinguish them from other parts of the financial system:

- have a strictly target orientation;

- Funds are used to finance government spending, usually not financed from the budget or financed in small amounts;

- the vast majority of the income of the funds is formed at the expense of insurance premiums of legal entities;

- all property and funds of the funds are in state ownership and are not included in the budgets.

Extra-budgetary funds are one of the elements of such a link in the financial system as national finances, which are widely developed abroad. Sources for the formation of extrabudgetary funds can be special taxes and fees, appropriations from budgets, special loans, voluntary contributions, as well as income from the activities of the fund itself.

Most often, non-budgetary funds are classified according to the following criteria:

- terms of validity - permanent and temporary;

- accessories - state, local, interstate;

- areas of use - social, credit, economic, scientific, investment, etc. The most developed extra-budgetary social funds. In Russia, the revenues of these funds account for more than half of the federal budget revenues. There are three state social non-budgetary funds: the Pension Fund of the Russian Federation (PFR), the Social Insurance Fund of the Russian Federation (FSS), the Federal and Territorial Funds of Compulsory Medical Insurance of the Russian Federation (FOMS). Social off-budget funds accumulate funds for the implementation of the most important social guarantees: state social security for old age, sickness, in case of loss of a breadwinner, for the birth and upbringing of children, health care and free medical care, etc.

Social off-budget funds are independent financial and credit institutions. The main source of income for the funds is the unified social tax. Funds of state federal and territorial off-budget funds are in federal and regional ownership. Draft budgets for off-budget funds are considered and approved by the State Duma and the Federal Assembly in the form of federal laws.

Operational management of off-budget funds is carried out by a specially created administrative apparatus, which has the appropriate rights and obligations.

40. STATE EXTRABUDGETARY FUNDS OF THE RUSSIAN FEDERATION

The Pension Fund of the Russian Federation (PFR) was created for the purpose of state financial management of the provision of pensions to citizens. The main activities of the PFR are: 1) targeted collection and accumulation of insurance premiums, as well as financing of expenses related to social protection of the population; 2) organization of work to recover from employers and citizens the amounts of state disability pensions due to an industrial injury, occupational disease or in case of loss of a breadwinner; 3) capitalization of the Fund's resources, as well as attraction of voluntary contributions from individuals and legal entities; 4) control over the timely and complete receipt of insurance contributions to the Fund, as well as control over the correct and rational use of its funds; 5) carrying out research work in the field of state pension insurance. The funds concentrated in the Pension Fund of the Russian Federation are directed: for payment in accordance with the legislation in force in the territory of the Russian Federation, interstate and international treaties of state pensions; payment of allowances for the care of a child older than one and a half years; the provision of material assistance by the social protection authorities to the elderly and disabled citizens, etc. The funds of the Social Insurance Fund are spent on the following purposes: 1) payment of benefits for temporary disability;

2) health resort services for employees and their families;

3) financing of research works on labor protection;

4) insurance against industrial accidents and occupational diseases;

5) additional expenses for medical, social and professional rehabilitation;

6) organization and maintenance of a unified information system of social insurance;

7) compensation for harm caused to employees by injury, occupational disease or other damage to health associated with the performance of their labor duties;

8) rehabilitation of citizens affected by the accident at the Chernobyl nuclear power plant;

9) payment of benefits for pregnancy and childbirth, at the birth of a child, for caring for a child until he reaches the age of 1,5 years; to reimburse the cost of the guaranteed list of services and social benefits for burial;

10) health improvement of children;

11) expenses for the maintenance of the Fund's institutions themselves;

12) capital investments for the development of sanatorium-and-spa institutions of the fund.

Funds of the Compulsory Medical Insurance Fund are spent on the following purposes:

1) financing of targeted health care programs;

2) financing of professional training and retraining of personnel;

3) creation of a normalized insurance reserve (in case of a critical situation with the financing of compulsory medical insurance programs);

4) computerization of the compulsory health insurance system;

5) international cooperation on issues of compulsory medical insurance;

6) financing of scientific research in the field of medicine;

7) development of the material and technical base of healthcare;

8) alignment of levels of medical care in the territorial aspect;

9) payment for medicines;

10) provision of medical care in case of mass diseases, natural disasters, catastrophes;

11) maintenance of the Fund itself.

41. GENERAL CHARACTERISTICS OF THE FINANCE OF COMMERCIAL ORGANIZATIONS (ENTERPRISES)

Enterprise finance as part of the financial system includes the process of creating, distributing and using the gross domestic product in value terms. In the course of the financial activities of enterprises, certain financial relations arise related to the organization of activities, the sale of products, the formation of financial resources, the distribution and use of income.

Financial relations are part of monetary relations, arise only when cash flows and are accompanied by the formation and use of cash funds.

Finances of commercial organizations (enterprises) are financial or monetary relations that arise in the course of entrepreneurial activity, as a result of which own capital is formed, targeted centralized and decentralized funds of funds, their distribution and use take place.

In accordance with the Civil Code of the Russian Federation, commercial organizations (enterprises) are created in the form of business partnerships and companies, production cooperatives, state and municipal unitary enterprises.

Modern commercial organizations (enterprises) operate in a constantly changing market environment with fierce competition. The main goal of their entrepreneurial activity is not so much the maximum profit, but the preservation and increase of their own capital, ensuring business stability.

The finances of commercial organizations (enterprises) have the same functions as national finances - distribution and control. Both functions are closely related.

Through the distribution function, the formation of initial capital, which is formed at the expense of the founders' contributions, its advance in production, reproduction and capital growth, the creation of basic proportions in the distribution of income and financial resources, ensuring the optimal combination of interests of individual producers, business entities and the state as a whole. The distribution function of finance is associated with the formation of monetary funds and reserves of commercial organizations (enterprises) through the distribution and redistribution of incoming income. These include: authorized capital or authorized fund, reserve fund, additional capital, equity, accumulation fund, consumption fund, currency fund, etc.

The objective basis of the control function is the cost accounting for the production and sale of products, the performance of work and the provision of services, the process of generating income and cash funds. Finance as distributive relations provide sources of funding for the reproduction process (distribution function) and thus link together all phases of the reproduction process: production, exchange, consumption. The competitiveness of the enterprise, its financial stability depend on the efficiency of production, cost reduction, rational use of financial resources.

Distribution relations affect the interests of the state, enterprises, employees, shareholders, credit and insurance companies. Therefore, financial control over the activities of the enterprise is comprehensive.

42. PRINCIPLES OF THE FUNCTIONING OF THE FINANCES OF COMMERCIAL ORGANIZATIONS (ENTERPRISES)

The finances of an enterprise function on the basis of a number of principles, without which the use of finance as a tool for effective activity is impossible.

The principle of economic independence cannot be realized without financial independence. Its implementation is ensured by the fact that business entities, regardless of the form of ownership, independently determine the scope of economic activity, sources of financing, directions for investing funds in order to generate profit and increase capital, improve the welfare of the company's owners.

It is impossible to talk about complete economic independence, since the state regulates certain aspects of the activities of commercial organizations (enterprises). Commercial organizations of all forms of ownership legally pay the necessary taxes in accordance with the established rates, participate in the formation of off-budget funds. The state also determines the depreciation policy. Legislation determines the need for the formation and exchange of a financial reserve for joint-stock companies.

The principle of self-financing. Self-financing means full self-sufficiency of costs for the production and sale of products, performance of work and provision of services, investment in the development of production at the expense of own funds and, if necessary, bank and commercial loans. The implementation of the principle of self-financing is one of the main conditions for entrepreneurial activity, which ensures the competitiveness of an economic entity.

Currently, not all commercial organizations (enterprises) are able to implement this principle. Organizations in a number of industries, producing products and providing services necessary for the consumer, for objective reasons, cannot ensure their profitability. Such enterprises, as far as possible, receive state support in the form of additional funding from the budget on a returnable and non-refundable basis.

The principle of material interest is determined by the main goal of entrepreneurial activity - making a profit. For an enterprise, this principle can be implemented as a result of the state's implementation of an optimal tax policy that can provide financial resources not only for the needs of the state, but also not to reduce incentives for entrepreneurial activity through an economically justified depreciation policy, creating economic conditions for the development of production.

The principle of liability means the presence of a certain system of responsibility for the conduct and results of financial and economic activities, the safety of equity capital. Financial methods for implementing this principle are different and are regulated by Russian law. This principle is currently implemented most fully.

The principle of providing financial reserves is dictated by the conditions of entrepreneurial activity, which is associated with certain risks of non-return of funds invested in business. The implementation of this principle is the formation of financial reserves and other similar funds that can strengthen the financial position of the organization (enterprise) at critical moments of management.

43. FINANCIAL RESOURCES OF THE ENTERPRISE: SOURCES OF FORMATION, STRUCTURE

One of the most important aspects of the movement of financial flows of the enterprise is the formation of its financial resources. The financial resources of an enterprise are its own and borrowed funds, which determine the potential for the development of an enterprise.

Part of the financial resources used by the enterprise in circulation and generating income is the capital of the enterprise.

The financial resources of the enterprise are formed at the expense of: depreciation; profit received from all types of economic and financial activities; additional share contributions of participants in partnerships; funds received from the issue of bonds; funds mobilized through the issuance and placement of shares in joint-stock companies of open and closed types; long-term loan from a bank and other lenders.

The financial resources of enterprises include own, borrowed and borrowed funds. The own financial resources of enterprises include profit and depreciation, some authors include authorized and additional capital, as well as the so-called stable liabilities of the enterprise, including sources of financing that are constantly in the circulation of the enterprise (for example, reserves formed in accordance with with the constituent documents of the enterprise or under the law). Borrowed funds include loans from commercial banks and other credit organizations, other loans. Raised financial resources include funds raised by issuing shares, budget appropriations and extra-budgetary funds, as well as funds from other enterprises and organizations raised for equity participation and other purposes.

The structure of the financial resources of enterprises differs depending on the organizational and legal form of the enterprise, its sectoral affiliation and other factors. So, for example, as part of the financial resources of agricultural enterprises there are budget allocations, enterprises with a high level of technical equipment have a large share of depreciation deductions, enterprises with a seasonal nature of production have borrowed funds.

Despite the differences in the composition and structure of the financial resources of individual enterprises in their total volume by production enterprises, the largest share is occupied by own funds, they account for about half of the total financial resources. The structure of financial resources changed along with the development of the economy. The development of the financial market gives enterprises new opportunities to expand the composition of financial resources and increase their volume.

The main areas of use of the financial resources of the enterprise include:

- financing the current needs of the production and trade process to ensure the normal functioning of the production and trading activities of the enterprise through the planned allocation of funds for the main production, production and auxiliary processes, supply, marketing and distribution of products;

- financing of administrative and organizational measures;

- investing in the main production;

- financial investments;

- formation of reserves.

44. FINANCE OF NON-PROFIT ORGANIZATIONS

Institutions and organizations engaged in non-commercial activities (i.e., not setting the goal of their activities to make a profit) provide a variety of services, including social, managerial, public order, national defense, etc. In a market economy, institutions and organizations engaged in non-commercial activities have switched to new business conditions, which has led to a significant expansion of the composition of their financial sources.

The financial resources of institutions and organizations engaged in non-commercial activities are understood as the funds mobilized by them from various sources for the implementation and expansion of their activities. Sources of formation of financial resources are formed depending on the type and nature of the services provided. Services may be provided to consumers on a paid, free or mixed basis.

Sources of formation of financial resources of institutions and organizations engaged in non-commercial activities:

1) budget funds allocated on the basis of established standards;

2) funds received for the provided paid services;

3) proceeds from the lease of premises, structures, equipment;

4) voluntary contributions and material assets donated to institutions and organizations;

5) other cash receipts.

Institutions and organizations engaged in non-commercial activities, having an independent balance sheet and current account, can attract short- and long-term loans for their activities.

Mobilization and use of financial resources in non-profit institutions and organizations are carried out on the basis of estimated funding and self-financing. The functioning of non-profit institutions and organizations on the basis of self-sufficiency and self-financing means full reimbursement of costs from the proceeds from the provision of paid services. The formation and use of their financial resources is reflected in the financial plan for the relevant items of income and expenses.

Public associations function on a non-commercial basis: creative unions, public organizations, charitable foundations, associations, etc. Due to the voluntary nature of the creation of public associations, the main source of their financial resources are entrance and membership fees. The use by public associations of budgetary funds formed on the basis of obligatory payments of taxpayers is unacceptable.

Financial resources in non-profit institutions and organizations are used: 1) to cover current costs, including for settlements with third parties and payment of interest on loans; 2) for the formation of economic incentive funds.

Economic incentive funds include:

1) a fund for industrial and social development;

2) material incentive fund (wage fund);

3) fund of foreign exchange deductions.

The sources of formation of economic incentive funds are: 1) the total income of the institution; 2) specific receipts.

For the preparation of estimates, control figures, economic standards and the state order are used.

45. HOUSEHOLD FINANCE AS AN ECONOMIC CATEGORY

Household finances are a set of monetary relations regarding the creation and use of funds of funds that households and its participants enter into in the course of their socio-economic activities.

In market conditions, households play an exceptionally important role, since they perform primarily the function of owners of the means of production that are privately owned by them. Being a link in the financial system at the level of an individual family, they are the primary element of the socio-economic structure of society. The household is not only an accounting and statistical indicator that is used to analyze the state of society, but also a special type of economy that has a serious impact on all economic relations in the country.

Under market conditions, households:

1) act as buyers of goods and services;

2) provide market entities with factors of production (primarily labor force);

3) perform the function of saving a part of the total income and acquire real and financial assets.

The socio-economic essence of household finance is manifested through their functions.

The most important function of household finances is the distribution function, since household finances, as well as finances in general, are a tool for cost redistribution of the value of the gross social product. Moreover, household finances play a crucial role at the final stage of the redistribution process, immediately preceding the stage of consumption.

The second function of households is the control function, since in order to maintain a certain (achieved) level of consumption, the household is forced to control the distribution of income received among various funds, as well as to monitor the intended use of funds from these funds.

An important function of the household in the system of social reproduction is the investment function, which consists in the fact that households are one of the main suppliers of long-term financial resources for the country's economy.

Household incomes serve as the main source of satisfaction of their needs for goods and services, as well as accumulation and savings.

Household income can be conditionally divided into income in cash and in kind. Household cash income is most often subdivided according to the sources of their income:

- salary with various accruals and additional payments;

- pensions, allowances, scholarships and other insurance and social benefits;

- income from entrepreneurial activity;

- Income from operations with personal property and cash savings in the financial and credit sphere.

In-kind income includes products received in personal subsidiary plots, as well as in-kind payments to agricultural enterprises.

From the point of view of the frequency of implementation, three groups of household expenditures are distinguished:

- short-term;

- medium-term;

- long-term expenses.

Depending on the functional purpose of the expenses incurred by households, they are divided into the following main groups:

- personal consumption expenses;

- taxes and other obligatory payments;

- cash savings and savings.

46. ​​ECONOMIC CONTENT OF INSURANCE

The economic category of insurance is an integral part of the category of finance. However, if finance as a whole is associated with the distribution and redistribution of income, then insurance covers the sphere of exclusively redistributive relations.

Insurance is a set of special closed redistributive relations between their participants regarding the formation of a target insurance fund at the expense of monetary contributions, intended to compensate for the probable damage caused to business entities, or to equalize losses in income due to the consequences of insured events that have occurred.

We can distinguish the following essential features that characterize the specificity of this category.

1. When insuring, monetary redistribution relations arise, due to the presence of the probability of the onset of sudden unforeseen and insurmountable events, i.e., insured events.

2. When insuring, the distribution of the damage caused between the insurance participants is carried out, which is always closed. The emergence of such redistributive or layout relations is due to the fact that the random nature of the damage entails material or other losses, which, as a rule, do not cover the entire economy, not the entire territory, but only part of them.

3. Insurance provides for the redistribution of damage both between territorial units and in time, while the effective redistribution of the insurance fund within one year requires a fairly large territory and a significant number of objects to be insured.

4. A closed distribution of damages determines the return of funds mobilized to the insurance fund. The insurance payments of any insurance made to the insurance fund have only one purpose - compensation for the probable amount of damage on a certain territorial scale and within a certain period.

The essence of insurance is manifested in its functions, they allow you to identify the features of insurance as a link in the financial system. The main determinant is:

1) risk function, since insurance risk as a probability of damage is directly related to the main purpose of insurance to provide financial assistance to victims;

2) insurance also has a preventive function associated with the use of part of the insurance fund to reduce the degree and consequences of the insurance risk;

3) saving money with the help of insurance for "survival" is associated with the need for insurance protection of the achieved family income, i.e. insurance can also have a savings function;

4) the control function of insurance expresses the properties of this category for the strictly targeted formation and use of the insurance fund. This function follows from the above three specific functions and manifests itself simultaneously with them in specific insurance relations. The need for insurance is to ensure the safety of state, private and personal property, the continuity of social reproduction, compensation for damage in the event of an insured event, to cover possible losses of legal entities, to provide funding for preventive measures and measures to eliminate the consequences of adverse events.

47. CLASSIFICATION OF INSURANCE

The classification of insurance is a systematic grouping of interrelated concepts in the field of insurance. The components of the classification are subordinate links. Classifications differ depending on the criteria underlying them. According to the current legislation in Russia, the following branches of insurance are distinguished (in accordance with the object): personal insurance, property insurance, liability insurance.

Personal insurance reflects the interests associated with life, health, work capacity and pension provision of the insured. It, in turn, is subdivided into life insurance, accident and illness insurance, and medical insurance.

Property insurance includes the following types: land transport insurance, air transport insurance, water transport insurance, cargo insurance, insurance of other types of property, insurance of financial and business risks.

Liability insurance includes the following types: civil liability insurance of motor vehicle owners, carrier liability insurance, civil liability insurance of enterprises - sources of increased danger, professional liability insurance, liability insurance for default, insurance of other types of civil liability.

The type of insurance is insurance operations on homogeneous objects in a certain amount of insurance liability at the appropriate tariff rates.

Varieties of insurance - this is the insurance of homogeneous objects in a certain amount of insurance liability. Varieties of personal insurance are: children's insurance, marriage insurance, mixed life insurance.

Varieties of property insurance are: insurance of buildings, fixed and current assets, household property, means of transport, animals, insurance of financial and business risks.

Varieties of liability insurance are: insurance in case of harm in the course of economic and professional activities, insurance against losses due to interruptions in production, etc.

Insurance is carried out in mandatory and voluntary forms.

Compulsory insurance is carried out on a mandatory basis by virtue of existing legislation. At the same time, the types, conditions and procedure for its implementation are also determined by the relevant laws.

Voluntary insurance assumes that the relationship between the insured and the insurer is built on the basis of an agreement between them. At the same time, the rule of voluntary insurance is established by the insurer independently on the basis of current legislation.

Depending on the system of insurance relations implemented in the insurance process, reinsurance, coinsurance, double insurance, self-insurance are distinguished. In the practice of insurance, some risks are only reinsured, others are reinsured. Major risks are insured: industrial, aviation, space, transport. In mass types of insurance, only reinsurance is appropriate.

48. CONCEPT AND STRUCTURE OF THE INSURANCE MARKET

The insurance market is defined as a system of economic relations arising from the sale and purchase of a specific product - "insurance service". Taking into account market trends, demand and supply of insurance operations are formed. The objective basis for the development of the insurance market is the need to meet social needs for insurance protection.

The insurance market is an integral part of the country's financial and credit system. All insurance activities are carried out within the framework of the relevant legislation.

In the territorial aspect, regional, national and international insurance markets are distinguished.

The emergence of the insurance market is associated with the emergence of many insurers.

Insurers are legal entities that have a state license to conduct insurance operations and organize the formation and spending of the insurance fund. The insurers may be state insurance organizations, joint-stock insurance companies, mutual insurance companies and insurance pools.

Policyholders are legal entities and individuals who have an insurable interest and enter into relations with the insurer by virtue of law or on the basis of an agreement.

As intermediaries performing the functions of concluding insurance contracts, insurance agents and brokers can act as an intermediate link between the insurer and the insured.

The principles of functioning of the insurance market are determined by the general conditions of development and the state of the economy.

One of the fundamental principles is the demonopolization of the insurance business. The implementation of this principle means that any insurance company can carry out insurance activities in the market, regardless of their form of ownership.

An important principle for the formation and development of the insurance market is the competition of insurance companies in providing insurance services, attracting policyholders and mobilizing funds to insurance funds.

The principle of competition in the organization of the insurance business must, where necessary, be combined with the principle of cooperation between insurers.

The next principle of the functioning of the market is the principle of freedom of choice for policyholders of the conditions for the provision of insurance services, forms and objects of insurance.

An important principle of organizing the insurance business is the principle of reliability and guarantee of insurance protection.

The principle of publicity allows the insured to consciously decide on the choice of an insurance company.

The product offered on the insurance market is an insurance service. An insurance service can be provided on the basis of a contract (in voluntary insurance) or on the basis of a law (in compulsory insurance).

The price of insurance services is expressed in the insurance rate and is formed on a competitive basis when comparing supply and demand, but it is based on the amount of insurance compensation and the cost of doing business.

The list of types of insurance that the insured can use is an assortment of the insurance market.

The conditions for the implementation of insurance services that are developing in a particular region at a given time are called the conjuncture of the insurance market.

The objective basis of the demand for insurance services is the need for insurance, which is realized as an insurance interest.

49. NEED AND POSSIBILITY OF CREDIT

Credit - a loan in cash or commodity form on terms of repayment, payment and urgency.

Credit is the backbone of the modern economy, an integral element of economic development. However, the impact of credit on the national economy is ambiguous. Some experts believe that credit arises from poverty, lack of property and resources from business entities. According to other experts, a loan destroys the economy, because you have to pay for it, and this greatly worsens the financial situation of the borrower, leading him to bankruptcy.

The emergence of credit occurs not in the sphere of production of products for their domestic consumption, but in the sphere of exchange, where the owners of goods confront each other as owners, legally independent persons, ready to enter into economic relations. The specific economic basis on which credit relations appear and develop is the circulation and turnover of funds (capital).

The circulation and turnover of capital are distinguished by continuity. At the same time, this does not exclude fluctuations in its circulation and turnover. In the process of capital movement, the ebb and flow of funds, fluctuations in the need for resources and sources of its coverage are formed. They can be observed in connection with the movement of both fixed and working capital of enterprises.

A similar situation arises in the movement of working capital. Fluctuations in its circulation and turnover of circulating capital are more diverse.

On the basis of the uneven circulation and turnover of capital, the emergence of relations that eliminate the discrepancy between the time of production and the time of circulation of funds, resolve the relative contradiction between the temporary settling of funds and the moment when the need arises for their use in the national economy becomes natural. That relationship is credit.

Credit becomes an inevitable attribute of a commodity economy. A loan is taken not because the borrower is poor, but because, due to the objectivity of the circulation and circulation of capital, he lacks his own resources to the full extent.

Society is interested, firstly, in avoiding the deadening of the released resources, and secondly, in the economy developing continuously on an expanded scale.

The uneven circulation and turnover only characterizes the fact of the release of funds in one link and the need for them in another area; in circulation and turnover, therefore, the possibility of the emergence of credit relations is inherent.

In order for the possibility of a loan to become a reality, certain conditions are needed, at least two:

1) a loan becomes necessary if the interests of the lender and the borrower coincide;

2) participants in a credit transaction - the lender and the borrower - must act as legally independent entities materially guaranteeing the fulfillment of obligations arising from economic ties.

In order for a credit transaction to take place, it is required that its participants mutually show interest in a loan that has certain qualities. Any interest that generates action is primarily due to objective processes, a specific situation that makes the emerging mutual interest inevitable.

50. ESSENCE AND STRUCTURE OF CREDIT

Money and credit are economic categories, therefore, ideas about their essence, a comparison of their essences can be formed not by the amount of money, but on the basis of their characteristics as economic (value) relations. Credit relations differ from money relations:

1) composition of participants. The seller and the buyer participate in monetary relations, while the value of the goods in the form of commodities is converted into money. In credit relations, there are a lender and a borrower, between whom relations arise regarding the movement and return of value;

2) functions. Money performs five functions, while the functions of credit are quite different;

3) the participation of money and credit in the very process of deferment and payments;

4) use value received by the participants in the relationship.

The economic category "credit" is a certain type of social relations associated with the movement of value (in monetary terms).

Structure is what remains stable, unchanged in credit. As an object of study, credit consists of elements that are in close interaction with each other. These elements are: 1) subject; 2) object; 3) loan interest.

The subjects of credit relations are the lender and the borrower.

A lender is a party to a credit relationship that provides a loan. To issue a loan, the lender must have certain funds. Their source can be their own savings, as well as borrowed funds received from other economic entities. In modern conditions, the creditor bank provides a loan at the expense of its own capital, borrowed funds stored in the accounts of its clients, as well as mobilized through the issue of securities. By placing the loaned value, the creditor ensures its productive use both for his own purposes and for the purposes of other participants in the reproduction process.

The borrower is a party to credit relations that receives a loan and is obliged to repay the loan received. He uses the loan in production or circulation in order to extract income, and returns the loan after it has participated in the circuit and received additional profit.

The object of credit relations is loan capital - money capital, isolated from industrial capital, having a special form of movement and having a certain specificity.

With the development of credit relations, the only source of formation of loan capital is the temporarily free funds of the state, legal entities and on a voluntary basis transferred by financial intermediaries for subsequent capitalization and profit. Today, such funds are concentrated in deposit accounts with credit institutions and provide their owners with a fixed income in the form of interest on these deposits.

The value of loan capital is the ability to exchange between the lender and the borrower, and use value is the ability to produce profit, part of which the borrower gives back to the lender in the form of loan interest.

Loan interest is a kind of price of the loaned value, transferred by the creditor to the borrower for temporary use for the purpose of its productive consumption.

51. FUNCTIONS AND ROLE OF CREDIT

The existence of credit is caused by an objective necessity, and it plays an essential role in the process of social production. The place and role of credit in the economic system of society are determined by the functions it performs, both general and selective.

1. Redistributive function. In a market economy, a loan moves money capital from one area of ​​economic activity to another, providing the latter with higher profits. This redistributive process affects not only the value of the gross domestic product and national income, but also the value of national wealth in certain periods.

The state should regulate credit relations in order to ensure the attraction of credit resources to production.

2. The function of saving circulation costs. By mobilizing temporarily released funds in the process of circulation of industrial and commercial capital, credit makes it possible to make up for the lack of own financial resources of individual enterprises. An enterprise often turns to a loan to provide itself with the necessary amount of working capital. As a result, the capital turnover of an economic entity accelerates. In general, savings in the total distribution costs are ensured.

3. The function of replacing cash with credit. Credit accelerates not only commodity, but also money circulation, displacing cash from it. As a result of the replacement of cash by non-cash transactions, the mechanism of economic relations in the market is simplified, and money circulation is accelerated.

4. The function of accelerating the concentration of capital. The development of production is accompanied by a process of concentration of capital. Borrowed capital enables the entrepreneur to expand the scale of production and additional profit. The concentration of capital, even on a small scale, brings positive economic results in Russian conditions as well.

5. Stimulating function. Credit relations, involving the return of temporarily borrowed value with an increment in the form of interest, encourage the borrower to more rational use of the loan, more rational housekeeping when obtaining a loan.

In the economic development of the country, credit plays a significant role, which is characterized by the results that appear during its functioning for all participants in society: individuals, business entities, the state. It manifests itself in the implementation of all forms of credit in different ways:

1) redistribution of material resources in the interests of developing production and selling products when providing and mobilizing funds from individuals and legal entities;

2) impact on the continuity of production processes and sales of products;

3) participation in the expansion of production, when credit resources are used as a source of increasing fixed assets, capital costs;

4) accelerating the receipt by the consumer of goods, services, housing at the expense of borrowed funds;

5) regulation of cash and non-cash money circulation. The Bank of Russia, being a monopolist in the field of issuing cash, organizes their circulation, and also manages non-cash payments made by the credit system, thus stimulating the entire production process.

52. ESSENCE OF CREDIT RELATIONSHIPS

The essence of credit relations is determined by the principles of credit, the most important of which are: repayment, urgency, payment, security, targeted nature, a differentiated approach to loans and borrowers.

The principle of repayment expresses the need for the timely return of financial resources received from the lender after the completion of their use by the borrower. It finds its practical expression in the repayment of a specific loan by transferring the appropriate amount of money to the account of the credit institution (or other creditor) that provided it, which ensures the renewability of the bank's credit resources. This is a necessary condition for its continued operation.

The urgency of the loan implies that the loan amount should not be returned to the borrower at any time acceptable to him, but at a precisely defined time period established by the loan agreement. Violation of the loan repayment period is a reason for the lender to apply economic sanctions to the borrower in the form of an increase in the interest charged, and with a further delay (in Russia - more than three months) - the provision of financial claims in court. Meeting the deadline for the borrower is a guarantee of obtaining a loan.

The payability of the loan expresses the need for the borrower to pay for the right to use credit resources. The economic essence of the payment for a loan is manifested in the actual distribution of additional income received when using a loan between the borrower and the lender. The payment of the loan acts in the form of loan interest.

Paying for a loan stimulates the borrower to use it more efficiently.

Security of the loan - the necessary protection of the property interests of the lender from a possible violation by the borrower of the obligations assumed in the contract. This principle in practice finds expression in such forms as a loan secured by inventory items or financial guarantees in the form of securities. It is especially important in a period of general economic instability.

The target nature of the loan is used for most credit relations and expresses the need for the targeted use of the lender's funds. Usually, the loan agreement specifies the specific purpose of using the loan received. With the help of such a condition, the lender not only controls compliance with the loan agreement, but also gains confidence in the return of the loan and interest, i.e. the implementation of this principle is an additional loan security. Violation of this obligation may become the basis for early withdrawal of the loan or the introduction of an increased (penalty) loan interest.

Loan differentiation is applied by a lender, usually a lending institution, to different categories of borrowers. The lender can divide borrowers based on individual interests, depending on security, use of loans, etc., applying differentiated terms of the loan agreement to each group.

The basic principles of credit are used by participants in credit relations (borrowers and lenders) to influence all stages of the production cycle.

53. BASIC FORMS AND TYPES OF LOAN

Credit is classified according to various basic features. The elements of the structure of the loan are the lender, the borrower and the loaned value, so the forms of credit can be considered depending on the nature:

- lender and borrower;

- loaned value;

- target needs of the borrower.

Depending on the loaned value, there are commodity, monetary and mixed (commodity-money) forms of credit.

Depending on who is the creditor in the credit transaction, the following forms of credit are distinguished: banking, economic (commercial), state, international, civil (private, personal).

Forms of credit can also be distinguished depending on the target needs of the borrower. In this regard, there are two forms of credit: productive and consumer. The productive form of credit is associated with the peculiarity of the use of funds received from the lender. With this form of credit, loans are used for the purposes of production and circulation, for productive purposes.

The consumer form of credit, in contrast to its productive form, is used by the population for the purpose of consumption, such a loan is not directed to create new value, but must satisfy the consumer needs of the borrower.

In some cases, other forms of credit are also used, in particular:

- direct and indirect;

- explicit and hidden;

- old and new;

- main (primary) and additional;

- developed and undeveloped, etc.

The direct form of credit reflects the direct issuance of a loan to its user without mediated links. An indirect form of credit occurs when a loan is taken to lend to other entities.

An explicit form of credit is understood as a loan for predetermined purposes.

A hidden form of credit arises if the loan is used for the purposes stipulated by the mutual obligations of the parties.

The old form of credit can be modernized and acquire modern features.

Leasing loans can be attributed to new forms of credit.

The main (primary) form of modern credit is cash credit, while commodity credit acts as an additional form.

Developed and undeveloped forms of credit characterize the degree of its development.

The type of loan is a more detailed description of its organizational and economic characteristics.

The loan is divided into types depending on the sectoral focus (industrial, agricultural, commercial).

The classification of credit by type also depends on its security. According to the nature of security, loans with direct and indirect security are distinguished. According to the degree of security, it is possible to distinguish loans with full (sufficient), incomplete (insufficient) security.

A loan is also classified depending on the urgency of lending. Allocate short-term, medium-term and long-term loans.

A loan can be classified by type and depending on the charge for its use. Allocate paid and free, expensive and cheap loans.

In world banking practice, other criteria for classifying loans are also used. In particular, loans can be divided into loans issued in national and foreign currency to legal entities and individuals, etc.

54. LOAN INTEREST

Loan interest is an objective economic category, which is a kind of price of value loaned for temporary use. Its emergence is due to the presence of commodity-money relations, which, in turn, are determined by property relations. Loan interest arises where one owner transfers to another a certain value for temporary use, as a rule, for the purpose of its productive consumption.

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

In the transition economy, the prerequisites have not yet been created that would allow interest to realize this function in full. At the same time, in the conditions of the modern Russian economy, there are separate elements of economic regulation associated with loan interest. This is manifested in the role that interest plays in the economic sphere:

- through the rate of interest, the ratio of demand and supply of credit is balanced. It promotes a rational combination of own and borrowed funds;

- the rate of payment for resources set by the Bank of Russia, along with the required reserve ratio and the conditions for the issuance and circulation of government securities, is gradually becoming an effective means of managing commercial banks;

- by means of interest, the volume of deposits attracted by the bank is regulated;

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

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

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

Macroeconomic factors: the ratio of supply and demand for borrowed funds, the level of development of money markets and securities markets, international capital migration, the state of national currencies, the state of the balance of payments, the risk factor, the monetary policy of the Bank of Russia, inflationary depreciation, taxation.

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

55. BANK CREDIT

A bank loan is the most common form. Banks most often provide loans to business entities that are temporarily in need of financial assistance. The creditors are specialized financial institutions that have licenses from the Central Bank to carry out such operations. Borrowers are usually legal entities. The instrument of credit relations is a credit agreement. Income - loan interest, the rate of which is determined by agreement of the parties, taking into account its average rate for a given period.

A bank loan always acts in the form of money, and the object of lending is money capital. Because of this, in bank credit, loan capital is finally separated from industrial capital and carries out its movement independently of it. Speaking in monetary form, a bank loan overcomes the limitations of a commercial loan in many ways - size, timing, direction.

A bank loan has its own characteristics:

- its source is, as a rule, attracted capital, i.e., received at the expense of bank customers' funds;

- the bank lends value, i.e., temporarily free funds of economic entities placed on bank accounts;

- the bank provides not just cash, but money capital, which, after circulating in the production process, returns incrementally.

Bank credit plays a different role in the process of social reproduction. If it is used to expand production, to invest in the fixed and working capital of the borrower, then a bank loan is called a capital loan. If a bank loan is used to make payments, repay old debt obligations, then a bank loan is called a loan of money.

Bank credit provided to enterprises and corporations mediates the reproduction process as a whole. According to the timing of the provision, it is divided into short-term, medium-term and long-term. A short-term loan is provided for a period of up to one year and serves the movement of the enterprise's working capital, facilitates timely settlements, increases the solvency of enterprises, and strengthens their financial position. Medium-term and long-term loans are intended to meet investment needs, i.e., the loan serves the movement of fixed capital, is used for construction and reconstruction, the development of new industries, the introduction of new technologies and other activities related to the expanded reproduction of fixed assets.

A bank loan to the population is provided in cash for various purposes: the purchase of expensive goods, housing, major repairs of residential buildings, household equipment, etc.

A special kind of bank loan is a loan provided by one bank to another, or an interbank loan. Creditor banks provide loans either to maintain their profitability at the required level, or to ensure the development of correspondent relations with other banks. For borrowing banks, interbank loans serve as a means of regulating liquidity, as well as an additional source of financial resources for expanding profitable investments.

56. COMMERCIAL LOAN

Commercial (economic) credit is one of the earliest forms of credit relations. It is based on a delay by the seller of payment for the goods and the provision by the buyer of a bill of exchange as its debt obligation to pay the purchase price after a certain period. Commercial credit became widespread in the era of capitalism, which was associated with a frequent shortage of funds to pay for the supply of raw materials, goods and services provided. The most common are two types of bills: simple, containing the borrower's obligation to pay a certain amount directly to the lender, and transferable (draft), providing for a written order from the lender to the borrower to pay a specified amount to a third party or the bearer of the bill. The circulation of bills of exchange expands the possibilities for the provision of commercial credit, since it can change hands. At the same time, an endorsement is made on the bill - an endorsement. The more endorsements on a bill, the wider the circle of its circulation and the more guarantees of its payment.

Commercial credit is the basis of the entire credit system. The need for a commercial loan stems from the very process of reproduction: the discrepancy between the timing of production and sale. As a result, some manufacturers entered the market with goods, while others had a need to buy goods. However, having not sold their products, they do not have the funds, and therefore a trade transaction will take place only with a sale with installment payment. Hence the purpose of this form is to accelerate the sale of goods and the entire process of circulation of capital and to extract additional profit.

A commercial loan has certain disadvantages:

- limited by the size of the reserve capital of the loan. Sale with installment payment is possible if the entrepreneur has a surplus of capital;

- depends on the condition of its return flow. With a decline in production, loans are not returned and the chain of credit links is broken, and its size is reduced;

- has a strictly defined direction, i.e., is provided by one enterprise to another, associated with the first technological chain. In the opposite direction, commercial credit is not possible.

Economic credit, regardless of its commodity or monetary form, is provided mainly for short periods.

In Russia, commercial credit until recently had a limited scope. The expansion of its application is hampered by inflation, the crisis of non-payments, and the unreliability of partnerships.

In practice, the following types of commercial loans are used:

1) with a fixed maturity;

2) with a return after the actual sale of goods received on credit;

3) on an open account, when the secondary delivery of goods on the terms of a commercial loan is carried out to pay off the debt on the previous delivery.

In the presence of a developed credit system, a commercial loan is intertwined with a bank loan, since the lender, having a bill of exchange - the obligation of the borrower, can take it into account in the bank and receive a bank loan against it. But in this case, the essence of a commercial loan does not change.

57. STATE LOAN

A distinctive feature of the state loan is the participation in the credit relations of the state represented by its authorities at various levels as a lender or borrower. Initially, such a state credit arose and began to develop, in which the state acted as a debtor. The reason forcing the state to borrow money in the loan capital market was the state budget deficit.

Government credit is different from other types of credit. When a bank loan is granted, some specific values ​​act as collateral - goods in stock, work in progress; when borrowing funds by the state, the loan is secured by all property owned by it, the property of a given territorial unit or any of its income.

At the government level, government loans do not have a specific target character. Whereas borrowing at lower levels quite often has a clearly defined target orientation.

Acting as a creditor, the state, through the central bank or the treasury system, lends:

1) priority sectors, regional or local bodies that are in need of financial resources when it is impossible to provide budget financing from commercial banks due to market factors;

2) commercial banks and other credit institutions in the process of direct or auction sale of credit resources in the interbank credit market.

A characteristic feature of state credit is the unproductive use by the state of funds mobilized through loans. As a borrower, the government places government loans through banks or on the government short-term securities market. The reason for the growth of such credit is the budget deficit, which is mainly associated with unproductive military and administrative expenses. This is the main form of public credit. Its expansion, associated with a chronic budget deficit, makes it necessary to increase the cost of servicing loans - their repayment and interest payments, which ultimately leads to a huge public debt. As a result, state credit becomes a regenerator for its further growth.

Government loans can be classified as follows.

1. Depending on the subjects of loan relations, state loans are divided into placed by central and local governments.

2. Depending on the location - internal and external.

3. Depending on the circulation in the market, government loans are divided into market and non-market.

4. Depending on the period of attraction of funds, they are divided into short-term, medium-term and long-term.

5. Depending on the security of debt obligations, government loans are mortgaged and unsecured.

6. Depending on the nature of the paid income - interest-bearing, winning, interest-winning, no-losing and interest-free loans.

7. Depending on the terms of circulation - loans with the right of early repayment and without it.

8. According to the placement methods, loans are placed on a voluntary basis, by subscription and involuntarily.

58. CONSUMER LOAN

Consumer credit is valid for targeted lending to individuals in commodity or monetary form. The lenders are entrepreneurs in the retail sale of goods on an installment basis, as a rule, durable goods, and credit organizations that provide cash loans to the population to purchase land and other real estate, pay for expensive medical care, etc.

The specificity of a broadly understood consumer loan is the fact that the borrower here is an individual who takes out a loan to meet their personal needs.

Consumer credit is closely related to bank credit, as debt obligations of buyers are used by trading firms and financial companies to obtain bank loans. Thanks to this connection, an extended interpretation of consumer credit has arisen. In accordance with this, consumer credit is understood as a set of commodity and monetary loans provided by firms, banks and the state to the population to meet its personal needs. In developed countries, consumer credit has become widespread. In Russia, such a loan is provided both in commodity and in cash. The commodity form in the form of installment payment has a loan provided to the population for the purchase of durable goods, housing construction, and the purchase of apartments. In cash, a loan is issued for the construction and repair of individual houses, garden houses, for urgent needs. In this case, the loan can be issued in cash or in the form of transfers.

A consumer loan can be used for investment purposes and for the current needs of individual borrowers. Banks do not directly participate in credit relations between citizens and trading firms. This consumer loan differs from the bank, provided to the population in cash.

Lending to the consumer needs of the population is carried out on the same principles as lending to legal entities: repayment, urgency, target orientation, payment, security. An important condition for issuing loans is the solvency of the borrower. Consumer credit for current needs is short-term. It is provided for up to two years. Consumer credit for investments is long-term. The borrower is required to provide a report on the use of the loan, documents confirming its intended purpose.

The use of consumer credit has become widespread abroad, which is associated both with a wide range of goods offered for sale and with an increase in their cost. The demand for durable goods depends on the level of income, so consumer credit, by increasing the opportunity to purchase goods, artificially increases the demand for them. An increase in income levels may lead to a reduction in lending.

Prospects for the development of consumer credit in Russia depend on many factors, primarily on the degree of stabilization of the credit and financial markets, as well as the growth in the regularity of receiving income by the main part of the population.

59. INTERNATIONAL LOAN

International credit is the latest form of development, when economic relations went beyond the national framework. It operates at the international level, the participants of which can be individual legal entities, the governments of the respective states, as well as international financial and credit institutions. International credit plays an important role in implementing the requirements of the law of value and other economic laws.

An international loan operates on the principles of repayment, urgency, payment, security, targeted nature at the expense of external and internal sources.

This loan is classified according to several basic criteria:

- by sources - internal and external;

- by appointment - commercial, which are directly related to foreign trade and services; financial, i.e., direct investment, construction of facilities, purchase of securities, repayment of external debt, foreign exchange intervention; intermediate - loans for servicing mixed forms of export of capital, goods, services, "engineering", or the performance of contract work;

- by type - commodity, which are provided by exporters to importers in the form of a deferred payment for goods sold or services rendered; currency, provided by banks in cash;

- by loan currency - in the currency of the debtor country, in the currency of the creditor country, in the currency of a third country and in the international accounting currency (SDR and euro);

- by security - secured (commodity documents, bills of exchange, securities, real estate, etc.); blank, i.e. against the obligations of the debtor (solo bill with one signature);

- in terms of the form of provision - cash, certificates of deposit, bonded loans, consortium loans;

- by terms - extra-term (daily, weekly, up to three months), short-term (up to one year), medium-term (from one year to five years), long-term (over five years). When prolonging, or extending, short-term and medium-term loans, they become long-term, and often with a state guarantee. International credit in the field of international economic relations performs the following functions:

1) the redistribution of loan capital between countries, when with its help there is an overflow of capital to countries with a low rate of profit, contributing to its equalization and transformation into an average rate of profit;

2) saving the costs of circulation in the sphere of international economic relations by replacing gold as world money with such instruments of circulation as bills of exchange, checks, bank transfers, certificates of deposit, electronic money, as well as SDRs, euros and hard national currencies;

3) accelerating the concentration and centralization of capital: firstly, as a result of accelerating the process of capitalization of profits and obtaining additional profits in connection with the attraction of foreign capital, secondly, with the creation of transnational corporations and transnational banks, and, thirdly, by providing preferential international loans to large enterprises;

4) regulation of the country's economy - attracting foreign investment, and primarily the capital of international monetary and regional organizations, which contributes to the growth of GNP and its distribution.

60. LEASE LOAN

Currently, leasing activity in the Russian Federation is regulated by the Law "On Leasing", according to which leasing is a type of investment activity for the acquisition of property and its transfer on the basis of a leasing agreement to individuals or legal entities for a certain fee, for a certain period and on certain conditions, stipulated by agreement with the right to purchase property by the lessee. In leasing, you can get any non-consumable things, except for land or other natural objects. Credit relations in a leasing transaction arise between the lessor, which may be a financial company or a commercial bank, and the lessee - a company that uses leasing objects in its activities.

The subjects of a leasing transaction include the parties participating in it.

They can be divided into two groups:

- direct, directly involved in the transaction: the lessor acquiring the leasing object and transferring it for use, the lessee of the property and the supplier (manufacturer or owner of the leasing object) selling it to the lessor;

- indirect, which include commercial banks, insurance companies, brokerage and other intermediary firms that facilitate the conclusion of a leasing agreement, including by providing a loan for the acquisition of a leasing object. Leasing transactions can be classified according to various criteria.

1. By the term of submission:

- operational leasing, when the lease term of the property is less than the standard term of its service. Such leasing is used when renting machinery, equipment, and due to high risks, leasing payment rates are set at a higher level than with other types of leasing;

- financial leasing, which is provided for the entire payback period of the property. In addition, it provides for the impossibility of early termination of the leasing agreement, therefore, as a rule, it is concluded for such objects, the cost of which is high.

Both types of leasing after the expiration of the contract give the lessee the opportunity to: purchase the object of leasing at the residual value; conclude a new contract at a preferential rate; return the object of the transaction to the lessor.

2. On a territorial basis:

- internal leasing, when all participants in the transaction are representatives of one country;

- international leasing, when one or all participants in the transaction represent different countries or one of the parties has the status of a joint venture. At the same time, leasing is considered export leasing, in which the lessee represents a foreign country, and import leasing is when the lessor is a foreign company.

3. By the nature of lease payments:

- cash payments;

- compensation payments, when they are made by the supply of goods produced on the leased equipment, or in the form of the provision of counter services;

- mixed payments.

4. According to the composition of the participants in the transaction:

- direct leasing, in which the owner of the property independently leases it (bilateral transaction);

- indirect leasing, in which the transfer of property is carried out through intermediaries (tri- or multilateral transaction).

A special case of direct leasing is leaseback, in which the leasing company acquires property from the owner and leases it to him.

61. ESSENCE AND STRUCTURE OF THE CREDIT SYSTEM

The credit system is a set of banking and other credit institutions and relations between them.

In accordance with the Federal Law "On Banks and Banking Activity", the banking system of the Russian Federation is two-tier. At the first level is the Central Bank of the Russian Federation, which works mainly with credit institutions, at the second - Russian commercial banks, as well as branches and representative offices of foreign banks.

A credit organization is a legal entity that, in order to make a profit as the main goal of its activities, on the basis of a special permit (license) of the Central Bank, has the right to carry out banking operations.

The Federal Postal Service and the State Corporation "Agency for the Restructuring of Credit Organizations" (ARCO), whose banking operations are regulated by special federal laws, can be considered a separate link in the credit system.

A bank is a credit institution that has the exclusive right to carry out the following banking operations in aggregate: attract funds from individuals and legal entities to deposits, place these funds on its own behalf and at its own expense on a repayment, paid, urgent basis, open and maintain bank accounts individuals and legal entities.

Non-bank credit institution - a credit institution that has the right to carry out certain banking operations. Permissible combinations of banking operations for non-bank credit organizations are established by the Central Bank.

Non-bank credit organizations (NCOs) can be divided into two groups.

1. Settlement, which are entitled to carry out the following banking operations: opening and maintaining bank accounts of legal entities; making settlements on behalf of legal entities, including correspondent banks, on their bank accounts.

Depending on the functional purpose, NCOs can provide services to legal entities, including credit institutions, in the interbank, foreign exchange and securities markets, carry out settlements with plastic cards, collect funds, bills of exchange, payment and settlement documents, and provide cash services to legal entities, transactions for the purchase and sale of foreign currency in non-cash form. NCOs are not entitled to attract funds from legal entities and individuals as deposits for the purpose of placing them on their own behalf and at their own expense.

2. Collection organizations, on the basis of a license issued by the Bank of Russia, are entitled to carry out collection of funds, bills of exchange, payment and settlement documents.

The modern banking system of the Russian Federation has already experienced two major crises. The first - in August 1995, the second - in August 1998.

In order to restore the normal functioning of the banking system and its restructuring, the Agency for the Restructuring of Credit Organizations was established in 1999. The restructuring of credit institutions is understood as a set of measures applied to credit institutions aimed at overcoming their financial instability and restoring solvency or at the implementation of liquidation procedures.

62. BANKING SYSTEM AS A PART OF THE CREDIT SYSTEM

The banking system is part of the credit system, which is a combination of credit relations (functional form) and financial institutions that implement these relations (institutional form). The institutional form of the banking system includes central (national), emission, reserve, savings, mortgage, investment, specialized and other banks.

The banking system of Russia, corresponding to a market economy, began to take shape in 1990 after the adoption of the fundamental laws "On the Central Bank of the RSFSR" and "On banks and banking activities in the RSFSR", as well as regulations of the Central Bank regulating the activities of commercial banks in Russia.

At present, a two-level banking system is functioning: the first level covers the institutions of the Central Bank of the Russian Federation, which issues money into circulation, its task is to ensure the stability of the ruble, supervision and control over the activities of commercial banks. The second level consists of commercial banks and credit institutions, whose task is to serve customers of enterprises, organizations, and provide them with a variety of services.

The elements of the banking system are banks, some special financial institutions that perform banking operations, but do not have the status of a bank, as well as some additional institutions that form the banking infrastructure and provide elements of the banking system.

In practice, a variety of banks operate. Depending on one or another criterion, they can be classified as follows.

According to the form of ownership, they are distinguished - state, joint-stock, cooperative, private and mixed banks.

According to the legal form of organization, banks can be divided into open and closed types of limited liability companies.

According to the functional purpose, banks can be divided into issuing, deposit and commercial.

By the nature of the operations performed, banks are divided into universal and specialized.

The types of banks can also be classified according to the industries they serve. These can be diversified banks serving mainly one of the industries or sub-sectors.

According to the number of branches, banks can be divided into non-branch and multi-branch.

According to the service sector, banks are divided into regional, interregional, national, international.

According to the scale of activity, small, medium, large banks, banking consortiums, interbank associations can be distinguished.

Banks are also classified according to the amount of capital.

The elements of the banking system include the banking infrastructure. It includes various kinds of enterprises, agencies and services that ensure the vital activity of banks.

Banking legislation is a special block of the banking system. Currently, there are three laws in Russia that are directly related to the work of banks: federal laws "On the Central Bank of the Russian Federation (Bank of Russia)", "On banks and banking activities", "On the insolvency (bankruptcy) of credit organizations". The banking system cannot exist without the banking market. Banking resources are concentrated on it, and banking products are also traded.

63. CENTRAL BANK AS THE MAIN LINK OF THE BANKING SYSTEM

The Central Bank of the country is the main link in the banking system of any state. The creation of a central bank of issue was due to the processes of concentration and centralization of capital, the transition to a single national monetary system.

In all developed countries, there are several laws that formulate and fix the tasks and functions of the central bank, as well as define the tools and methods for their implementation.

Usually, the main legal act regulating the activities of the national bank is the law on the central bank of the country. It establishes the organizational and legal status of the central bank, the procedure for appointing or electing its senior staff, the procedure for relations with the state and the national banking system.

Along with the law on the central bank, the interaction between the central bank and credit institutions is regulated by the law on banking activities.

To determine the role of the central bank in the economic and political processes in the country, the degree of its independence is very important. Economic independence is usually understood as the ability of the central bank to use the instruments at its disposal without significant restrictions. The degree of political independence of the central bank is determined by the level of independence in its relations with government bodies in the choice and implementation of monetary policy.

Central banks are the regulatory link in the banking system, so the main goal of their activities is to strengthen monetary circulation, protect and ensure the stability of the national currency and its exchange rate against foreign currencies; development and strengthening of the country's banking system, ensuring efficient and uninterrupted settlements.

Traditionally, the central bank has five main tasks - it is designed to be:

1) the issuing center of the country, i.e., enjoy the monopoly right to issue banknotes;

2) the body regulating the economy by monetary methods, i.e., to conduct monetary and foreign exchange policy;

3) a bank of banks, i.e., to carry out transactions not with commercial and industrial clients, but mainly with banks of a given country: to keep their cash reserves, the amount of which is established by law; provide them with loans (lender of last resort), exercise control and supervision;

4) a government banker, i.e. to support government economic programs and place government securities; provide loans and settlement operations for the government, hold (official) foreign exchange reserves;

5) the main settlement center of the country, acting as an intermediary between other banks of the country when performing non-cash payments.

As the "bank of banks", the central bank provides credit institutions with the opportunity to refinance. At the same time, according to the law, the central bank has the right to limit the commercial banks of the country in credit funds. The most common are two types of central bank operations with credit institutions: the purchase and sale of checks and bills; pledge operations with securities, bills of exchange and payment claims.

64. LEGAL STATUS OF THE CENTRAL BANK, ITS OBJECTIVES AND STRUCTURE

The Central Bank of the Russian Federation (CB RF) operates on the basis of the Federal Law of July 10, 2002 No. 86-FZ "On the Central Bank of the Russian Federation (Bank of Russia)" dated. The Bank of Russia is a legal entity and is not registered with the tax authorities.

A necessary condition for the effectiveness of the Central Bank is its actual independence, which often conflicts with the government's short-term goals. Its independence is especially important in terms of limiting the government's ability to use money emission to cover the budget deficit.

At the same time, the independence of the Central Bank from the government is relative in the sense that economic policy cannot be successful without clear coordination and close linkage of its main elements - monetary and financial policies.

The authorized capital and other property of the Central Bank of the Russian Federation are federal property. However, the Central Bank of the Russian Federation is not financed from the budget, it carries out its expenses at the expense of its own income. At the same time, making a profit is not the goal of the Bank of Russia. The Central Bank transfers to the federal budget 50% of the received balance sheet profit at the end of the year. The Central Bank directs the remaining profit to reserves and funds for various purposes.

The Central Bank of the Russian Federation is accountable to the State Duma, which appoints and dismisses the Chairman of the Bank and members of the Board of Directors of the Central Bank. It considers the annual report of the Central Bank and the audit report, determines the audit firm to audit the annual report of the Central Bank.

Within the limits permitted to it by the Constitution and laws, the Central Bank of Russia is independent in its activities.

Federal state authorities and other authorities have no right to interfere in its activities. Moreover, the regulations issued by the Central Bank of the Russian Federation within its competence are binding on the federal authorities.

The activities of the Central Bank of the Russian Federation in modern conditions should be subordinated to three goals:

- protecting and ensuring the stability of the ruble, including its purchasing power and exchange rate against foreign currencies;

- development and strengthening of the banking system of the Russian Federation;

- ensuring efficient and uninterrupted functioning of the settlement system.

The Bank of Russia forms a single centralized system with a vertical structure. The Bank's system includes the central office, territorial offices, and local branches. The national banks of the republics are territorial institutions of the Central Bank of the Russian Federation. Territorial institutions do not have the status of a legal entity and do not have the right to make decisions of a normative nature.

A territorial institution of the Central Bank is a separate subdivision of the Central Bank that performs part of its functions on the territory of a constituent entity of the Russian Federation and is part of a single centralized system of the Central Bank.

Operations of the Central Bank of the Russian Federation are divided into two groups: passive and active. Passive operations include operations with the help of which the resources of the Central Bank are formed, and active operations are operations for the allocation of resources.

The main sources of the Central Bank's resources are the issuance of banknotes and funds of commercial banks on correspondent accounts, on the account of required reserves, deposits of commercial banks and budget funds.

The bulk of the Central Bank's funds are invested in securities and various currency values ​​placed with non-residents.

65. FUNCTIONS OF THE CENTRAL BANK OF THE RUSSIAN FEDERATION

The Bank of Russia performs the following functions:

- develops and implements a unified monetary policy;

- monopoly issues cash and organizes its circulation;

- is a lender of last resort for credit institutions, organizes a refinancing system;

- establishes the rules for making settlements in the Russian Federation;

- establishes the rules for conducting banking operations, accounting and reporting for the banking system;

- maintains accounts of budgets of all levels of the budgetary system of the Russian Federation;

- carries out efficient management of the gold and foreign exchange reserves of the Bank of Russia;

- establishes and publishes the official exchange rates of foreign currencies against the ruble;

- establishes the procedure and conditions for the implementation by currency exchanges of activities to organize transactions for the purchase and sale of foreign currency, issues, suspends and revokes permissions for currency exchanges to conduct these operations;

- carries out state registration of credit institutions, issues and revokes licenses of credit institutions and organizations involved in audit;

- supervises the activities of credit institutions;

- registers the issue of securities by credit institutions;

- carries out all types of banking operations;

- carries out currency regulation, determines the procedure for making settlements with foreign states;

- carries out currency control;

- takes part in the development of the forecast of the balance of payments, organizes its compilation;

- analyzes and forecasts the state of the Russian economy;

- Performs other functions.

The Bank of Russia is entitled to carry out the following operations with Russian and foreign credit institutions:

- provide loans for a period not exceeding one year secured by securities and other assets;

- buy and sell government securities on the open market;

- buy and sell bonds of the Bank of Russia and certificates of deposit;

- buy and sell foreign currency and payment documents in foreign currency;

- buy and sell precious metals and other currency values;

- carry out settlement, deposit and cash transactions, accept securities and other valuables for storage and management;

- issue guarantees and guarantees;

- carry out operations with financial instruments used to manage financial risks;

- open accounts in Russian and foreign credit institutions in Russia and foreign countries;

- issue checks and bills in any currency;

- carry out other banking operations. The Bank of Russia is not entitled to: carry out banking operations with legal entities that do not have a license to conduct credit operations and individuals; acquire shares of credit and other organizations; carry out real estate transactions; engage in trade and production activities; extend loans. The Bank of Russia is not entitled to provide loans to the Government of the Russian Federation to finance the budget deficit, to buy government securities during their initial placement.

66. MONETARY POLICY OF THE CENTRAL BANK OF THE RUSSIAN FEDERATION

Monetary policy is traditionally regarded as the most important direction of the state's economic policy. Monetary policy, being part of the national economic policy, should be "inscribed" in the overall goal of the development of the national economy and contribute to the achievement of macroeconomic balance. In general terms, the goal of state regulation of the economy is to achieve macroeconomic equilibrium at optimal economic growth rates for a given country.

If the goal of developing the national economy is to ensure sufficient economic growth, then this is the strategic goal of monetary policy. The supreme goal of the state's monetary policy is to ensure price stability, effective employment of the population and growth in the real volume of the gross national product. This goal is achieved through monetary policy actions that are implemented rather slowly and do not respond quickly to changing market conditions. The development of monetary policy is carried out directly by the Bank of Russia.

The interest rate policy of the Bank of Russia is used to influence market interest rates in order to strengthen the national currency.

The Bank of Russia uses the policy of reserve requirements as a method of regulating the overall liquidity of the banking system and controlling monetary aggregates by reducing the money multiplier. Reserve requirements are established in order to limit the credit capacity of banks and maintain a certain level of money supply in circulation.

Operations on the open market are operations for the purchase and sale by the Bank of Russia of government bonds, treasury bills and other government securities, short-term operations with securities with a reverse transaction later.

Refinancing of commercial banks refers to lending by the Bank of Russia to credit institutions, including the accounting and rediscounting of promissory notes. Currently, the Bank of Russia provides banks that have entered into the General Loan Agreement with the following types of secured loans: intraday loans; overnight credits; pawn loans. An integral part of the Bank of Russia's refinancing policy is its deposit operations with credit institutions.

Currency regulation implies the development and implementation by the Bank of Russia of the exchange rate policy.

When implementing the chosen currency policy, the Bank of Russia uses a wide range of methods, which can be conventionally divided into market and administrative ones.

Market methods include the carrying out by the Bank of Russia of events for the purchase and sale of foreign currency on the exchange and interbank markets (currency interventions) to influence the ruble exchange rate and the total demand and supply of money.

Administrative methods are based on forcing market participants to take actions aimed at changing the demand and supply of foreign currency in the market.

Direct quantitative restrictions may be applied by the Bank of Russia in exceptional cases in order to pursue a unified state monetary policy after consultations with the Government of the Russian Federation.

67. ESSENCE AND FUNCTIONS OF A COMMERCIAL BANK

Modern commercial banks are banks that directly serve enterprises and organizations, as well as the population - their customers. Commercial banks are the main link in the banking system. Regardless of ownership, commercial banks are independent subjects of the economy. Their relationship with clients is commercial in nature. The main purpose of the functioning of commercial banks is to maximize profits.

A commercial bank is a credit institution that has the exclusive right to carry out certain banking operations. Commercial banks provide comprehensive customer service, which distinguishes them from special non-banking credit institutions that perform a limited range of financial transactions and services.

Among the functions of a commercial bank, four stand out, which underlie the definition of a bank and determine its essence:

1) the function of accumulation and mobilization of temporarily free funds is one of the most important functions of the bank. Commercial banks play a leading role in attracting free funds of all economic agents and turning them into capital in order to attract profit. In performing this function, banks act as borrowers;

2) the function of mediation in the loan. The performance of this function contributes to the expansion of production, financing of industry, facilitating the creation of reserves, expanding consumer demand, facilitating the financial activities of the government, reducing distribution costs;

3) the function of intermediary in making payments and settlements;

4) the function of creating means of payment.

In addition to the four fundamental functions, an additional function of a commercial bank is often distinguished - the function of organizing the issuance and placement of securities. It is carried out through investment operations and is of great importance in an elastic credit system, which is a necessary condition for maintaining a relatively stable growth rate of the economy. The expansion of the significance of this function has led to the fact that banks become direct competitors to the stock exchanges, through which the bulk of the retail sale of securities is realized.

The main operations that a commercial bank performs are raising capital, placing it on favorable terms, as well as providing a number of services to customers.

The operations of a commercial bank are a concrete manifestation of banking functions in practice. All banking operations and transactions are carried out in rubles, and in the presence of an appropriate license from the Bank of Russia - in foreign currency.

Federal law prohibits commercial banks from engaging in industrial, insurance and trading activities.

A commercial bank, like any enterprise, institution, has a certain management structure. The main governing body is the meeting of shareholders or the meeting of shareholders. The supreme governing body is the meeting of shareholders. The most operational management body is the board of directors of the bank, which is elected at the meeting of shareholders of the bank. The board of the bank is headed by the chairman, who is elected from among the members of the board of the bank by secret ballot.

68. PRINCIPLES OF ACTIVITY OF COMMERCIAL BANKS

The first and fundamental principle of a commercial bank is to work within the limits of available resources. A commercial bank can make non-cash payments in favor of other banks, provide loans to other banks and receive money in cash within the balance of funds on its correspondent accounts.

Working within the limits of actually available resources means that a commercial bank must ensure not only a quantitative correspondence between its resources and credit investments, but also ensure that the nature of bank assets matches the specifics of the resources it has mobilized. First of all, this applies to the terms of obligations and requirements of banks.

To ensure self-sufficiency and profit, the bank must seek to agree on the price of attracting resources and the profitability of their placement. Attracting expensive resources implies that the bank has highly profitable areas for their placement, since otherwise it will incur losses from its core activities. The rigid dependence of the bank's assets on the nature of its liabilities should be taken into account when determining the economic standards for the activities of banks and when regulating their operations.

Within the limits of the resources available to banks, it is free to conduct its active operations. Administrative restrictions may be of a one-time, emergency nature. A commercial bank can work within the limits of actually attracted resources, while maintaining its liquidity, only with a high degree of economic freedom, combined with full economic responsibility for the results of its activities.

The second most important principle on which the activities of commercial banks are based is complete economic independence, which implies the economic responsibility of the bank for the results of its activities. Economic independence implies the freedom to dispose of the bank's own funds and attracted resources, the free choice of clients and depositors, the disposal of income remaining after taxes. The current banking legislation has provided all commercial banks with economic freedom in the disposal of their funds and income. The economic responsibility of a commercial bank is not limited to current income, but also extends to its capital. The commercial bank assumes all risk from its operations.

The third principle is that the relationship of a commercial bank with its customers is built as normal market relations. When providing loans, a commercial bank proceeds primarily from market criteria of profitability, risk and liquidity. Orientation towards "general state interests" is incompatible with the commercial nature of the bank's work and will inevitably result in a liquidity and solvency crisis for it.

The fourth principle of the operation of a commercial bank is that the regulation of the bank's activities can be carried out only by indirect economic (rather than administrative) methods. The state determines the "rules of the game" for commercial banks, but cannot give them orders and directives regarding the directions and conditions for placing and attracting resources.

69. TYPES OF COMMERCIAL BANKS

The type of commercial bank is determined, along with the content of its operations, by the degree of development of the country's economy, credit relations, money and financial markets.

Commercial banks can be classified as follows.

1. According to the nature of economic activity, issue, commercial, specialized banking institutions are distinguished. An issuing bank is a bank that issues banknotes - banknotes and is the center and regulator of the banking system (Central Bank). Commercial banks are credit organizations that provide credit and settlement services to industrial, commercial and other enterprises and organizations, as well as the population. Specialized banking institutions may engage in lending to any particular type of activity. These include mortgage, investment, savings, industry and other banks.

2. Depending on the ownership of capital (according to the form of ownership), the following are distinguished:

- state-owned banks, when the capital of a commercial bank belongs to the state. There are two types of state banks: central banks and state commercial banks;

- joint-stock banks - the most common form of ownership of banks at the moment. The equity capital of such banks is formed through the sale of shares. Joint-stock commercial banks are subdivided into an open joint-stock company, when an open sale of shares takes place, and a closed joint-stock company, whose shares are distributed only among its founders or other predetermined circle of persons;

- cooperative (share) banks, the capital of which is formed through the sale of shares;

- municipal banks formed at the expense of municipal (city) property or managed by the city. The main task of such banks is to serve the needs of the city in banking services;

- mixed banks, when the bank's own capital combines different forms of ownership;

- joint banks, or banks with the participation of foreign capital, i.e. their authorized capital belongs to foreign participants or branches of banks in other countries.

3. According to the volume and variety of operations, banks are divided into universal banks that carry out all types of operations and serve a variety of clients, and specialized banks that focus on conducting one or two types of operations and serve a specific clientele (mortgage bank, investment bank, innovative bank, consumer credit banks, savings banks). bank).

4. On an economic basis, depending on the industry that banks serve in the first place, there are industrial banks, commercial agricultural banks.

5. According to the terms of the loans issued, there are banks of short-term and long-term loans. Long-term lending banks, such as mortgage banks, issue loans for a period of more than five years. Short-term credit banks issue loans for up to three years, as a rule, these are universal commercial banks.

6. Large, medium and small banks are distinguished by size.

7. By the presence of a branch network, banks are distinguished with branches and without branches.

8. By territory, banks are divided into local banks, federal, republican and international.

70. TYPES OF BANKING OPERATIONS AND TRANSACTIONS

The operations of a commercial bank are a concrete manifestation of banking functions in practice. According to the Law of the Russian Federation of February 3, 1996 No. 17-FZ "On banks and banking activities", banking operations include:

- attracting funds from individuals and legal entities in demand deposits and for a specified period;

- granting credits on its own behalf and at its own expense;

- opening and maintaining bank accounts of individuals and legal entities;

- making settlements on behalf of individuals and legal entities, including correspondent banks, on their bank accounts;

- collection of funds, bills, payment and settlement documents and cash services for individuals and legal entities;

- purchase and sale of foreign currency in cash and non-cash forms;

- attracting deposits and placement of precious metals;

- issuance of bank guarantees;

- implementation of money transfers on behalf of individuals without opening bank accounts (except for postal orders). In addition to the above, banks have the right to carry out the following transactions:

- issuance of guarantees for third parties, providing for the fulfillment of obligations in cash;

- trust management of funds and other property under an agreement with legal entities and individuals;

- carrying out operations with precious metals and precious stones;

- leasing to individuals and legal entities of special premises or safes located in them for storing documents and valuables;

- leasing operations;

- provision of consulting and information services. The credit organization is entitled to carry out other transactions in accordance with the legislation of the Russian Federation.

All banking operations and other transactions are carried out in rubles, and in the presence of an appropriate license from the Bank of Russia - in foreign currency. The rules for carrying out banking operations and their material and technical support are established by the Bank of Russia in accordance with federal laws.

A credit organization is prohibited from engaging in production, trade and insurance activities.

A commercial bank has the right to issue, buy, sell, record, store securities, transactions with which do not require a special license in accordance with federal laws, and also have the right to exercise trust management of these securities under an agreement with individuals and legal entities.

There are three groups of operations of commercial banks: passive, active and commission-intermediary.

The division of banking operations into passive and active is based on their influence on the formation and placement of banking resources.

Bank resources - this is the amount of money that is available to him and can be used by him to carry out active operations.

As a result of passive operations, the cash balances on the passive accounts of the bank's balance sheet increase. Active transactions lead to an increase in funds in active accounts. There is a close relationship between passive and active operations of a commercial bank. For successful operation, the bank must ensure the coordination of passive and active operations.

71. ACTIVE OPERATIONS OF COMMERCIAL BANKS

Active operations - operations through which banks place the resources at their disposal to generate profits and maintain liquidity. Active operations are divided into two types: credit operations and investments.

Credit operations are the relationship between the lender and the borrower to provide the first to the last with a certain amount of money. Credit operations are divided into active (the bank issues loans) and passive (the bank takes loans) and can be carried out in two forms - a loan and a deposit.

Bank lending is carried out in strict compliance with the principles of lending. These include repayment of loans, urgency, security of the loan (in Russia, the following types of security are used - pledge, bank guarantee, surety, insurance liability of the borrower for loan repayment). Bank lending is divided into direct (credit relations of economic entities directly with the bank) and indirect (credit relations arise first between economic entities, which subsequently apply to the bank for loans). The main types of indirect bank lending are operations with bills of exchange, factoring, leasing.

Direct and indirect lending has its advantages and disadvantages. The advantage of direct lending is the simplicity of organizing the credit process, which has a positive effect on the organization of credit relations between the bank and the borrower. The negative factor is a slightly higher level of risk than with indirect lending.

The price of the loan is the rate of bank interest. Due to this percentage, the bank covers its costs and makes a profit. A number of factors affect the interest rate:

- Demand for credit from borrowers;

- the refinancing rate of the Central Bank of the Russian Federation;

- credit term;

- type of loan;

- average interest rate of attraction in the interbank credit market;

- the state of money circulation in the country (in the period of inflation, the interest rate rises, in the period of deflation - falls).

Bank loans can be classified according to the following criteria:

- according to the terms of the loan, loans are divided into short-term, medium-term and long-term;

- by types of collateral - secured and unsecured;

- by types of borrowers - agricultural, industrial, municipal, trade, etc.;

- by directions of use - for the formation of working capital, investment, for the elimination of temporary financial difficulties, export, import, etc.;

- by size - small, medium, large;

- according to the method of provision - bills of exchange, with the help of open accounts, seasonal, etc. The credit process consists of four stages.

I stage. Assessment of the economic situation in the country, region, industry. On its basis, the credit policy of the bank is developed.

II stage. Providing bank loans. The borrower submits the necessary documents to the bank, and a loan agreement is concluded between the bank and the borrower.

III stage. Credit control.

IV stage. Repayment of a bank loan and interest on it. To issue loans to customers, loan accounts are opened: a simple loan account, a special loan account, a checking account.

Investment operations of banks are long-term investments of funds for profit (investments in securities).

72. PASSIVE OPERATIONS OF COMMERCIAL BANKS

Passive operations - these are operations to raise funds in banks, the formation of their resources.

In a market economy, the process of forming bank liabilities, optimizing their structure and, in connection with this, the quality of management of all sources of funds that form the resource potential of a commercial bank are of particular importance.

The passive operations of the bank include: 1) attraction of funds to settlement and current accounts of legal entities and individuals;

2) opening urgent accounts of citizens and organizations;

3) issue of securities;

4) loans received from other banks.

All passive operations of the bank related to raising funds, depending on their economic content, are divided as follows:

- deposit, including obtaining interbank loans;

- issuance (placement of shares or securities of the bank).

The bank's resources consist of borrowed funds and equity.

Equity is funds owned directly by the bank, as opposed to borrowed funds that the bank has attracted for a while. The bank's equity capital performs a number of important functions: protective, operational, regulatory.

Equity management plays an important role in ensuring the sustainability of the bank's liabilities and profitability. One of the ways to manage the bank's own capital is the dividend policy.

Large banks widely use the issuance of shares as an effective way to raise funds. Commercial banks issue both common shares and preferred shares.

In foreign practice, the issue of bonds is often used to increase the amount of equity capital.

The bank's reserves are formed at the expense of its profit and include:

- reserve fund - designed to cover large losses;

- a reserve fund for the depreciation of securities, the funds of which are used to cover losses arising from a fall in the price of securities;

- provision for loans used to cover possible losses on loans and charged to the bank's expenses;

- an economic development fund formed in the amount established by the meeting of shareholders and intended for the development of the bank. Attracted funds occupy a predominant place in the structure of banking resources. Attracted funds are divided into deposits and other attracted funds according to the method of their accumulation.

Modern banking practice is characterized by a wide variety of deposits (deposits) and, accordingly, deposit accounts: demand deposits, time deposits, savings deposits, deposits in securities.

Deposits can also be classified by terms, categories of depositors, conditions for depositing and withdrawing funds, interest paid, the possibility of obtaining benefits on active bank operations, etc.

Other borrowed funds are resources that the bank receives in the form of loans or by selling its own debt obligations on the money market. Other borrowed funds differ from deposits in that they are acquired on the market on a competitive basis. Usually these are significant amounts, due to which the corresponding transactions are considered wholesale.

In modern conditions, the main sources of funds of a commercial bank are deposits of organizations and interbank deposits.

73. CHARACTERISTICS OF BANKING TRANSACTIONS

According to the Federal Law "On Banks and Banking Activities", in addition to the types of operations indicated in it, banks can provide the following services.

1. Issuance of guarantees for third parties, providing for the fulfillment of obligations in cash. Third parties can be the bank's own clients, and business partners of their clients, and various public organizations, and individuals. The decision to guarantee or guarantee the repayment of obligations is based on the established traditions of relationships with debtors, the study of their credit history, common interests, the presence of collateral or other security, the availability of an insurance certificate of non-fulfillment of obligations, stability in obtaining income and business development prospects.

2. Acquisition of the right to demand from third parties the fulfillment of obligations in cash (factoring). The supplier of the goods credits the buyer against the security of the promissory note, which contains an unconditional obligation to repay its obligations under the promissory note within the prescribed period. The supplier applies to the bank for the purpose of buying the obligations of the buyer. The bank evaluates and pays the supplier approximately 70-80% of the debt immediately, the remaining amount - after the debtor fulfills its obligations. There are two types of factoring: open (or conventional) and hidden (or confidential).

3. Trust management of funds and other property under an agreement with individuals and legal entities (trust). Trust operations are performed on behalf of the owner of the subject matter of the trust management agreement or his authorized representative. In relations with individuals, the bank offers the following types of contracts: property management of persons who do not have the right to do so; inheritance management; acquisition of securities, real estate, etc. For legal entities: property management of various funds or public organizations; temporary property management of enterprises undergoing reorganization or bankruptcy; managing blocks of shares of enterprises, conducting conversion operations with securities, etc.

4. Carrying out transactions with precious metals and precious stones in accordance with Russian legislation. Banks carry out operations for the purchase and sale of precious stones, coins made of precious metals, gold bullion, lending to gold mining in case of receiving the principal and interest on it in kind.

5. Renting out to individuals and legal entities special premises or safes located in them for storing documents and valuables.

6. Leasing operations are based on the provision of expensive equipment, machines or tools for rent. By providing loans for leasing transactions, banks receive tax benefits on income received in the form of interest on the use of credit resources.

7. Provision of consulting and information services. Advising clients on various issues helps the bank understand the development trends of clients, identify possible problems at the initial stage of their development, and thereby reduce economic risks.

74. INVESTMENT ACTIVITIES OF COMMERCIAL BANKS

Banks, as the leading institutions of the modern credit system, are actively engaged in investment activities. For most countries with a developed market economy, the division of functions between financial and credit institutions in the investment sphere is typical. Along with investment banks that organize long-term lending for investment projects, there is another type of investment banks that operate exclusively with securities in the financial market. It is the second type of operations that is called banking investments.

In international banking practice, investment is an investment by a bank in securities in order to ensure an inflow of funds over a long period of time. Clients are the initiators of such transactions.

The interest of the bank lies in the fact that long-term preservation of the bank's funds, their diversification, profitability and liquidity are ensured.

Such division of functions is not typical for Russian banks. From the point of view of the possibilities of carrying out investment operations, they can be universal.

In addition, in the context of a deep economic downturn, special hopes are placed on credit resources as the most rational and effective source of investment resources necessary for economic growth in the country.

From the standpoint of the elements in the investment structure, real (direct) and portfolio (financial) investments are distinguished. In the first case, investments are made in some area of ​​the economy, the result of which is an increase in real capital in the form of real estate, equipment, inventory, etc.

In Russia, the most striking illustration of the real (direct) investments of commercial banks are investments in the construction complex.

In the second case, investments are made in various securities. These investments are not characterized by a real increase in capital, since only the title of ownership is fixed or resources are redistributed across industries using the mechanism of changing the title of the owner. The same is observed when investing resources in the purchase of land and real estate.

The entire set of funds invested in securities of legal entities and acquired by the bank constitutes the investment portfolio of the bank.

A portfolio of securities can be characterized as diversified, i.e. containing several types of securities, and as non-diversified, consisting of one type of financial assets.

Portfolio management is the investment policy and strategy of the bank to increase the bank's profit, maintain an acceptable level of risk and liquidity of assets.

Bank investments are characterized by the following risk factors: credit, market and interest.

The need for income and liquidity are the main factors that determine the objectives of investment policy.

As a rule, the bank's investment policy is a written document that sets out instructions to the bank's employees regarding the structure of the investment portfolio, types of securities, the bank's strategy in terms of their purchase and sale, etc. As the economic situation changes, the bank's policy regarding investment.

75. CLASSIFICATION OF BANK LOANS

Most often in the economic literature there is a classification of loans according to the following criteria:

- purpose (purpose of the loan);

- scope of use;

- terms of use;

- provision;

- method of issuance and repayment;

- types of interest rates.

By purpose, bank loans can be divided into the following groups: industrial, agricultural, trade, investment, consumer, mortgage.

Industrial loans are provided to enterprises and organizations for the development of production, covering the costs of purchasing materials, etc.

Agricultural loans are provided to farmers, peasant households in order to facilitate their activities in cultivating the land, harvesting, etc.

Consumer loans are provided to individuals to cover urgent needs, repair and purchase of apartments, houses, etc.

Mortgage loans are issued secured by real estate for the purpose of building, acquiring or renovating housing.

Depending on the scope of use, bank loans can be of two types: loans to finance fixed or working capital. In turn, loans to working capital are divided into loans to the sphere of production and to the sphere of circulation. According to the terms of use, bank loans are on-call (on demand) and urgent.

On-call loans are repayable within a fixed period of time following formal notice from the lender. Term loans are usually divided into short-term, medium-term and long-term.

By security, loans are divided into unsecured (blank) and secured. Depending on the type of security, they are usually divided into collateral, guaranteed and insured. It is accepted to allocate secured, insufficiently secured and unsecured loans.

A secured loan is a loan secured by collateral.

The category of secured loans includes loans issued under the guarantee of the Government of the Russian Federation, constituent entities of the Russian Federation, the guarantee of the Bank of Russia.

Undersecured loan - a loan secured by collateral that does not meet at least one of the requirements for collateral for a secured loan.

An unsecured loan is a loan that is unsecured or secured by collateral that does not meet the requirements for collateral for secured loans.

According to the method of issue, bank loans can be divided into loans that are compensatory and payment in nature. A back-to-back loan involves the direction of loan funds to the current account of the borrower in order to reimburse the expenses incurred by him earlier. The essence of a payment loan is that the borrower, as necessary, provides the bank with the settlement and payment documents that come to him and the loan proceeds directly to pay for these documents.

According to the methods of repayment, bank loans are divided into loans repaid at a time and loans repaid in installments.

According to the types of interest rates, bank loans can be divided into loans with a fixed or floating interest rate.

76. CASH SETTLEMENT SERVICE

Settlement transactions are operations for crediting and debiting funds from clients' accounts, including for paying their obligations to counterparties.

Commercial banks carry out settlements according to the rules, forms and standards established by the Bank of Russia; in the absence of rules for conducting certain types of settlements - by agreement among themselves; when making international settlements - in the manner prescribed by federal laws and rules adopted in international banking practice.

To carry out settlements, enterprises and organizations open settlement or current accounts in the bank. These accounts are intended and used for crediting proceeds from the sale of products (works and services), accounting for their income from non-operating transactions, amounts of loans received and other receipts, making settlements with suppliers, budgets for taxes and equivalent payments, with workers and employees for wages and other payments, as well as for payments by decisions of courts and other bodies that have the right to make decisions on the recovery of funds from the accounts of legal entities in an indisputable manner.

In order to open a settlement (current) account, it is necessary to conclude a bank account agreement with the bank, according to which the bank undertakes to accept and credit funds incoming to the account, to fulfill the client's instructions to transfer and issue the appropriate amounts from the account and to carry out other operations on the account.

To open a settlement (current account), a set of documents is provided to the bank, which include: an application for opening an account, a certificate of state registration, copies of constituent documents confirming the status of a legal entity, a certificate of registration with a tax authority, etc.

Closing of the settlement (current) account is carried out on the basis of the termination of the bank account agreement, which is possible at the request of the client at any time.

Cash transactions are transactions related to the movement of cash, as well as the formation, placement and use of funds on various active bank accounts and accounts of commercial bank customers.

The procedure and terms for the delivery of cash are established by the bank for each enterprise in agreement with its head, based on the need to accelerate the turnover of money and their timely receipt at the bank's cash desks.

In the cash desks of the enterprise, cash can be kept within the limits set by banks in agreement with the heads of enterprises annually. Businesses are required to deposit all cash in excess of the established limits with the bank. Exceptions are made only for the issuance of wages, social payments and scholarships.

Banks at least once every two years check compliance with the procedure for conducting cash transactions by their customers. In the course of the audit, the following are considered: the completeness of the posting of cash received from the bank; the completeness of the delivery of money to the cash desk of the bank; compliance with the conditions agreed with the bank for spending cash received at the cash desk; compliance with the established maximum amounts of cash settlements between legal entities; compliance with the cash limit.

77. ESSENCE AND PRINCIPLES OF ORGANIZATION OF CASHLESS SETTLEMENTS

In the process of economic activity between various subjects of economic relations, cash settlements are carried out in the form of the movement of cash and money in a non-cash form.

Non-cash settlements are carried out without the participation of cash through the movement of funds through bank accounts and by offsetting mutual claims.

The organization of the system of cashless payments is based on three components:

1) a set of principles for the organization of cashless payments, mandatory for all subjects of economic relations to comply with it;

2) a system of accounts that allows making payments and settlements in a non-cash form;

3) a system of payment forms, documents and workflow rules.

Non-cash payments should be carried out in such a way that payments are made as soon as possible, allowing to ensure the continuity and acceleration of the reproduction process, the circulation of capital and the turnover of funds.

For normal functioning, the system of cashless payments should be based on general and binding principles and regulations. The procedure for conducting non-cash settlements should be uniform for all credit institutions and economic entities throughout the country and fit into international settlement relations.

The fundamental principle of the organization of non-cash payments is the legal regime for the implementation of settlements and payments.

Currently, the main documents regulating non-cash transactions in the Russian Federation are:

Civil Code of the Russian Federation; Federal Law "On banks and banking activities in the Russian Federation"; Federal Law "On the Central Bank of the Russian Federation". The procedure for conducting non-cash payments in our country is regulated by the Regulations on non-cash payments.

The system of cashless payments should be organized in such a way that the term for making a payment is as short as possible, therefore one of the most important principles for making cashless payments is the principle of urgency. The significance of this principle lies in the fact that the funds constantly spent by enterprises for production needs must be reimbursed in a timely manner at the expense of payments from buyers. Failure to meet these deadlines leads to a slowdown in the circulation of funds, which can result in a payment crisis.

One of the principles of organization of non-cash settlements is the principle of unconditional fulfillment of obligations by participants in settlements. Compliance with this principle makes it possible to ensure the unconditional fulfillment of contractual obligations and the continuity of payments in the economy.

Violations of contractual obligations in the field of settlements entail the application of civil liability. The party that violated the terms of the contract must compensate the other party for the damage caused, while paying a penalty. This is the principle of property liability for compliance with contractual obligations.

It is also necessary to designate the principle of the variety of forms of non-cash payments. The possibility of a free choice of forms of non-cash payments allows enterprises to find the instrument that would best meet the requirements of the transaction being made.

78. TYPES OF BANK ACCOUNTS

The types of bank accounts that the bank opens to its customers are determined by their legal status and the nature of their activities.

The current account is the main account of the company. It is opened to enterprises, regardless of the form of ownership, having the rights of a legal entity, it is intended for making payments, primarily for its main activity.

The current account concentrates the results of all banking operations on the main activity. The balance on the account indicates the free funds available to its owner.

Enterprises that have various non-self-supporting subdivisions outside their location may open settlement sub-accounts in banks at their location.

Most Russian banks do not charge a fee for settlement servicing of accounts of legal entities.

Current accounts are opened for enterprises that do not have the characteristics that give them the right to have a current account. The following operations are carried out on this account: transfer of funds from the current account of the head enterprise for the issuance of wages and travel expenses; issuing them; non-cash transfers to deposits of citizens, as well as deductions from wages.

Budget accounts are opened for organizations (enterprises) financed from the federal budget (off-budget funds). Depending on the nature of the accounted transactions, they are divided into revenue, expenditure, current accounts of local budgets and current accounts of extra-budgetary funds.

The funds received on the accounts are subject to strictly designated use on behalf of the financial authorities in accordance with the objectives of the activities of these enterprises. By agreement of the parties, a fee may be charged on the balances of funds on the specified accounts.

Deposit accounts of legal (individual) persons are opened for keeping for a certain period of time a part of the enterprise's funds at its request in a servicing bank or in any other bank. These funds are credited by transferring the corresponding amounts from settlement and current accounts.

In accordance with the laws "On Banks and Banking Activity" and "On Insurance of Deposits of Individuals in Banks of the Russian Federation", operations related to a deposit account can only be carried out by banks that have a special license to attract funds from individuals in deposits in rubles or foreign currency. Responsibilities for the payment of the amounts received and accrued interest on the deposit lie with the commercial bank.

Loan accounts can be opened for legal entities to reflect on them the amount of a loan issued by a bank. The issuance of a loan is carried out by transferring the amount from loan accounts to settlement (current) accounts of bank customers. These operations are formalized by the conclusion of credit agreements.

The loan agreement is bilateral. In this case, the borrower undertakes the obligation to perform certain actions to return the received, and the bank has the right to demand the execution of the loan agreement.

Banking rules govern the opening of other types of accounts, such as foreign exchange, securities transactions, bank cards, etc., in accordance with the types of banking operations.

79. DOMESTIC RUSSIAN FORMS OF NON-CASH PAYMENTS

The forms of non-cash payments made in Russia differ depending on the payment document used (excluding letters of credit).

For non-cash payments, the following forms of settlements between the payer and the recipient of funds can currently be used: payment orders; payment requests; collection orders; letters of credit; checks.

A payment order is an order of the account holder (payer) to the bank serving him, executed by a settlement document, to transfer a certain amount of money to the account of the recipient of funds opened in this or another bank. With the help of payment orders, settlements are made in the economy both for commodity and non-commodity transactions.

Settlements by payment orders have a number of advantages compared to other forms of payment: a relatively simple document flow, faster cash flow, the ability of the payer to pre-check the quality of paid goods and services, the ability to use this form of payment for non-commodity payments.

A payment request is a settlement document containing a requirement of the creditor - the recipient of funds under the main agreement to the debtor (payer) to pay a certain amount of money through the bank.

Collection settlements are a banking operation through which the bank (issuing bank), on behalf of and at the expense of the client, on the basis of settlement documents, performs actions on behalf of the payer of the payment.

Settlements in the manner of collection are carried out on the basis of payment requests, the payment of which can be made at the order of the payer (with acceptance) or without his order (in a non-acceptance manner), and collection orders, the payment of which is made without the order of the payer (in an indisputable manner).

Settlements by checks are not widely used in Russia. A check is a security containing an unconditional order of the drawer of the check to the bank to pay the amount specified in it to the holder of the check. The issuer of a check is a person (legal or natural) who has money in the bank, which he has the right to dispose of by issuing checks, the holder of a check is a person (legal or natural) in whose favor a check is issued, the payer is a bank in which the funds of the drawer are located.

Unlike settlements by payment orders, the check is transferred by the payer (drawer), bypassing the bank, directly to the payee (check holder) at the time of the business transaction, which presents the check to the bank for payment.

A letter of credit is a conditional monetary obligation accepted by a bank (issuing bank) on behalf of the payer, to make payments in favor of the recipient of funds upon presentation of the latter documents that comply with the terms of the letter of credit, or to authorize another bank (executing bank) to make such payments. Unlike other forms of non-cash payments, the letter of credit guarantees payment to the supplier either at the expense of the buyer's own funds or at the expense of his bank.

Banks can open covered (deposited) and uncovered (guaranteed), as well as revocable and irrevocable letters of credit.

80. CONTENT AND PRINCIPLES OF THE ORGANIZATION OF INTERBANK SETTLEMENTS

Interbank settlements are a set of settlements between credit institutions and between their branches.

Interbank settlements occur when the payer and the recipient of funds are serviced by different banks, as well as when banks mutually lend.

The organization of interbank settlements is based on specific relations that arise between banks - correspondent relations. When conducting interbank settlements, three main methods are used:

- debiting and crediting funds on accounts opened by banks with the Central Bank;

- conducting interbank payments on NOST-RO and LORO accounts, which are opened by banks from each other on a bilateral basis;

- settlements between banks are carried out through accounts opened either with a correspondent bank, which is a third party, or with a specialized settlement or clearing organization. Interbank settlements are carried out according to the principles that are characteristic of the system of cashless payments as a whole, however, their manifestation in settlements between banks has certain specifics.

Since banks are the initial and final link in the chain of settlements between various economic entities, they could not be completed if there were no system of settlements between the banks themselves. In this regard, the principle of maintaining by banks their liquidity at a level that ensures uninterrupted and full settlements with other banks is of great importance for the organization of interbank settlements.

Compliance with the considered principle of interbank settlements is the key to preventing payment risks, which are most dangerous for the economy if they develop into systemic risks.

Of great importance is the principle of control over the correctness of interbank settlements. Its specificity and special role lie in the constant mutual control over the synchronicity and complete identity of the amounts held on customer accounts in banks and on correspondent accounts of banks in the RCC, on the accounts and balances of the settlement participants themselves. With the development of interbank settlements, especially the widespread use of interbank clearing, the importance of the principle of control over technological risks, which also reflects the specifics of these settlements, increases.

The general principle of organizing interbank settlements is the principle of unconditional payment for interbank obligations.

The most important principle of interbank settlements is the payment within the funds of the correspondent account. This principle consists in maintaining the optimal balance of funds on the correspondent account of the credit institution and observing the liquidity requirements of the bank's balance sheet.

The existing principles of interbank settlements help credit institutions to carry out settlement operations in a timely manner and in full, transfer payments through the system of correspondent accounts.

In the Russian Federation, settlements between banks are carried out through cash settlement centers established by the Central Bank of the Russian Federation in the republics, territories, regions, cities and districts. In addition, banking transactions for settlements can also be carried out on correspondent accounts of banks opened by them with each other on the basis of interbank agreements.

81. SETTLEMENTS FOR EXPORT-IMPORT OPERATIONS

If it is necessary to quickly make a payment for goods delivered or services rendered in settlements with foreign partners, Russian enterprises can use checks. Check payments have a high execution rate. The most widespread is a warrant check, which can be transferred from one owner to another with the help of an endorsement, which, like a bill, has various types. With a blank endorsement, the check becomes a bearer document. A nominal check is less common. In the practice of check circulation, crossed and certified checks are used, which differ from ordinary checks in additional details introduced in order to protect them from fraud.

With the help of a check, a non-cash transfer of funds is made, and the holder of a check can also receive cash on it, for which appropriate notes are made on the check. In addition to checks, foreign practice has developed other ways for a private person to receive cash at a given moment and in a given place: letters of credit and traveller's checks.

A letter of credit is a document issued by a bank to its client and confirming his creditworthiness. By presenting this letter at any bank that has a correspondent relationship with his bank, the client can receive cash. The payment is made at the expense of the bank that issued the letter of credit. These letters are convenient for clients, but require close ties between banks, which narrows their scope. In addition, letters can be lost, stolen, forged.

A more convenient way to get cash is a traveler's check, which can be described as a specific form of a unified letter of credit, as a hybrid of cash and a payment document.

The development of the check form of non-cash payments using computer technology led to the creation of plastic cards. The essence of these settlement tools is to replace the paper carrier of check information with electronic signals. Depending on the type of accounts used and the settlement mechanism, cards are divided into debit and credit. The debit card is the most widespread in Russia. It is also called a cash card, asset card.

A significant share of payments between Russian and foreign counterparties is carried out with the help of collection and letters of credit.

Collection is a settlement operation in which the supplier's bank, on behalf of its client, undertakes to receive payment and (or) its acceptance from the buyer. There are clean and documentary collections.

Exporters often demand payment guarantees from first-class banks. Banks charge significant fees to importers for issuing such guarantees. Therefore, in settlements with Russian importers, foreign suppliers often refuse collection in favor of a letter of credit.

Settlements by payment orders used in domestic non-cash payment transactions in international settlements correspond to a bank transfer.

The transfer of information between banks related to non-cash payments is currently carried out most often using the SWIFT system (Society for International Interbank Financial Telecommunications).

82. SECURITIES MARKET: ESSENCE, FUNCTIONS AND TYPES

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

The financial market is divided into two parts: the equity capital market and the debt capital market, represented by the credit and banking system.

The equity capital market is a securities market, that is, that part of the financial market that provides the possibility of prompt transfer of funds to various sectors of the economy and promotes investment. The securities market is one of the most important instruments of the state budget policy.

The securities market performs a number of functions that can be divided into two groups: 1) general market functions inherent in any market; 2) specific features that distinguish it from other markets.

The general market includes:

- a commercial function associated with making a profit from operations in this market;

- price function, which ensures the process of formation of market prices, their constant movement, etc.;

- information function, on the basis of which the market produces and communicates to its participants information about the objects of trade;

- a regulatory function associated with the creation of rules for trade and participation in it, the procedure for resolving disputes between participants, setting priorities and forming management and control bodies.

Specific ones include:

- a redistributive function that ensures the transfer of funds between industries and areas of activity and financing the budget deficit;

- the function of insurance of price and financial risks, or hedging, which is carried out on the basis of a new class of derivative securities: futures and options contracts. The securities market is a complex structure with many characteristics, and therefore it can be viewed from different angles.

Depending on the stage of circulation of a security, primary and secondary markets are distinguished.

The primary market is the purchase of securities by their first owners. The secondary market is the circulation of previously issued securities, that is, the totality of all acts of purchase and sale or other forms of transfer of securities.

Depending on the level of regulation, securities markets consist of organized and unorganized.

An organized securities market is an exchange based on the rules established by the governing bodies between licensed professional intermediaries. An unorganized market is the circulation of securities without observing the rules that are uniform for all market participants.

Depending on the place of trading, there are exchange and over-the-counter securities markets.

The exchange market is based on the trading of securities on stock exchanges, so it is always an organized securities market. The over-the-counter market is the trading of securities without going through the stock exchange. It can be organized or unorganized.

Depending on the terms for which transactions are concluded, the securities market is divided into cash and urgent.

The cash market for securities is a market with immediate execution of transactions within one to two business days.

Derivatives is a market in which transactions are concluded with a maturity exceeding two business days.

83. THE CONCEPT OF SECURITIES AND THEIR CLASSIFICATION

There are economic and legal concepts of securities. The legal concept of a security is a document of the established form and details, certifying property rights, the exercise or transfer of which is possible only upon its presentation.

The economic concept is a special form of the existence of capital. Capital in the form of a security can be transferred, circulated on the market as a commodity, replace money in settlements and, most importantly, generate income.

A security has a number of properties that bring it closer to money. The main property is the possibility of exchange for money in various forms.

A security performs a number of functions:

- redistributes funds between sectors of the economy, territories and countries, groups and strata of the population, economic entities and the state, etc.;

- grants certain additional rights to its owners, in addition to the right to capital;

- ensures the receipt of income on capital and (or) the return of the capital itself.

Securities existing in modern world practice are divided into two large classes: 1) basic (shares, bonds, bills, mortgages); 2) derivatives (warrants, depositary receipts, futures contracts, options, etc.) securities.

There are registered, bearer and order securities.

A registered security, unlike a bearer one, has two important properties: 1) its owner is always known; 2) all operations with this paper are available for control and taxation by the state, as they are subject to registration. Therefore, in a developed market, there is a tendency to increase the issuance of registered securities, since issuers are interested in this, on the one hand, because this allows the transfer of property rights, and on the other hand, the state, as it expands its tax base.

Depending on the form of property relations expressed by a security, equity and debt securities are distinguished.

Each type of securities is a certain set of them, for which all the features inherent in securities are common.

A security is characterized by a certain set of characteristics:

1) the period of existence of a security - the time of issuance into circulation, for what period of circulation or indefinitely;

2) form of existence - documentary or non-documentary;

3) nationality - domestic or foreign;

4) territorial affiliation - the region of the country in which the given security is issued;

5) the type of asset underlying the security or its underlying basis;

6) the order of possession - a security to a bearer or to a specific person;

7) the form of issue - issuance, i.e., issued in separate series, within which all securities are exactly the same in their characteristics, or non-issue (individual);

8) form of ownership and type of element;

9) the nature of negotiability - is freely traded on the market or there are restrictions;

10) economic essence in terms of the type of rights that a security provides;

11) risk level - high, low, etc.;

12) availability of income - whether some income is paid on the security or not;

13) form of investment - investing money in debt or for the acquisition of property rights.

84. MAIN TYPES OF SECURITIES

A share is an issuance security that secures the rights of its owner to receive part of the JSC's profit in the form of dividends, to participate in management and to part of the property remaining after its liquidation.

In full, all rights on shares are exercised in ordinary shares, which entitle the holder to a share in the authorized capital of the company, to participate in the management of the company by voting when decisions are made by the general meeting of shareholders, to receive a share of the profit from the company's activities after payment to holders of preferred shares.

The holder of preferred shares has an advantage over the holder of ordinary shares in the distribution of dividends and property of the company in the event of its liquidation. Unlike ordinary shares, preference dividends are usually set at a fixed rate.

To make investment decisions in the process of analyzing securities, various valuations of shares are used. In practice, the following types are distinguished: 1) nominal value; 2) book value; 3) market value.

The bond certifies the deposit of funds by its owner and confirms the obligation to reimburse him the face value of this security within the stipulated period with the payment of a fixed percentage. The fundamental difference between a bond and a share is that bondholders are not co-owners of a joint-stock company, but its creditors.

The current price of a bond is the value of the expected cash flow, adjusted to the current point in time.

An important security is a bill. Currently, financial markets operate with two main types of bills: promissory notes and transferable ones.

A promissory note (solo-bill) is an unconditional debt obligation of the established form, expressing the obligation of the drawer to pay a certain amount of money to the creditor (bill holder) at a certain time and in a certain place. A promissory note is issued by the borrower.

A bill of exchange (draft) is a written order from the drawer (drawer) to the drawee (payer) to pay the latter a certain sum of money to a third party.

Another type of securities is deposit and savings certificates, which are a written certificate of the issuing bank on the deposit of funds, certifying the right of the depositor (beneficiary) or his successor to receive the amount of the deposit (deposit) and interest on it after the expiration of the established period.

Only banks can act as issuers of deposit and savings certificates. Deposit certificates are intended exclusively for legal entities, and savings certificates - for individuals. Certificates must be current.

A check containing a written request of the drawer of the check to the payer to pay the holder of the check the amount specified in it is also a security.

Securities also include: 1) warehouse certificate - a document certifying a storage agreement concluded between the parties; 2) bill of lading - a document of title certifying the right of its holder to dispose of the cargo specified in the bill of lading and to receive the cargo after the completion of transportation.

85. ORGANIZATION OF THE SECURITIES MARKET

The issue of securities is carried out under strict control by the authorities regulating the securities market. Securities are traded at market prices. The issued securities enter the securities market, where they are further circulated. There are primary and secondary securities markets.

The primary market is the acquisition of securities by their first owners. Speaking of the primary market, the term placement of securities should be used.

The primary market is the market for the first and repeated issues of securities, where their initial placement among investors is carried out.

As a result of the sale of shares and bonds in the primary market, the issuer receives the funds he needs, and the papers end up in the hands of the original buyers.

The most important feature of the primary market is the full disclosure of information to investors, allowing them to make an informed choice of a security for investing money.

The mechanism of sale (placement of securities) in the primary market can be different:

- in direct (private) contact without intermediaries;

- through financial intermediaries (underwriters);

- in the street market.

A private placement is characterized by the sale (exchange) of securities to a limited number of previously known investors without a public offer and sale.

A public offer is the placement of securities during their initial issue by public announcement and sale to an unlimited number of investors. The relationship between a public offering and a private offering is constantly changing and depends on the type of financing that enterprises in a particular economy choose, on the structural changes that the government is implementing, and other factors.

A public subscription or public offering of securities applies if a corporation decides to go from a private company to a public company with a large number of shareholders. A public offering of a large number of replicated shares provides the issuer with huge funds.

The secondary market is the relationship that develops during the sale and purchase of securities previously issued in the primary market.

The basis of the secondary market is made up of transactions that formalize the redistribution of investment areas for investors, as well as individual speculative transactions.

The most important feature of the secondary market is its liquidity, i.e. the possibility of successful and extensive trading, the ability to absorb significant volumes of securities in a short time with small fluctuations in rates and low implementation costs.

In the secondary market, operators are only investors, i.e. those who invest in securities in order to generate income. In the secondary market, there is no accumulation of new financial resources for the issuer, but only a redistribution of resources among subsequent investors.

Without a full-fledged secondary market, it is impossible to talk about the effective functioning of the primary market.

In the absence of a secondary market or its weak organization, the subsequent resale of securities would be impossible or difficult, which would discourage investors from buying all or part of the securities.

86. EXCHANGE SECURITIES MARKET

The exchange securities market is a stock exchange, which is the organizer of trading in the securities market, which does not combine this activity with other activities, except for depository and activity for determining mutual obligations. The Stock Exchange is a non-profit organization. The activities of stock exchanges in Russia are regulated by the Federal Law "On the Securities Market". Stock exchanges and stock departments of commodity and currency exchanges - an organized securities market, functioning on the basis of centralization of offers for the purchase and sale of securities put forward by brokers - members of the exchange on the basis of instructions from institutional and individual investors. Any professional participants in the securities market can be members of the stock exchange. The stock exchange has the right to establish quantitative restrictions on the number of its members. The stock exchange independently establishes the amount and procedure for collecting deductions in favor of the stock exchange.

Stock exchange functions:

- purchase and sale of securities;

- identification of the equilibrium exchange price;

- accumulation of temporarily free cash;

- provision of arbitration (dispute resolution mechanism);

- ensuring publicity and openness of exchange trading, availability of information;

- providing guarantees for the execution of exchange transactions;

- quality control of securities;

- mediation in settlements;

- development of ethical standards, a code of conduct for participants in exchange trading. The stock exchange independently establishes the procedure for inclusion in the list of securities admitted to circulation on the exchange, the procedure for listing and delisting. The following are allowed to be traded on the stock exchange:

- securities in the process of placement and circulation that have passed the issuance procedure provided for by federal law and are included by the stock exchange in the list of securities admitted to circulation on the stock exchange in accordance with its internal documents;

- other financial instruments in accordance with the legislation of the Russian Federation. The supreme body of the exchange is the general meeting of its members. In the intervals between meetings, the supreme body is the exchange council. In addition to the above-mentioned management bodies, certain divisions are created at the exchange.

Members of the exchange or their representatives can act on the exchange as a broker (concludes a deal on behalf of the client or on their own behalf and at the expense of the client) or dealer (purchases and sells on their own behalf and at their own expense). A bidder is also a broker (trading and executing a deal).

Methods for conducting exchange trading:

1) open auctions, when there is a continuous comparison of purchase prices and sale prices. The transaction is made when the prices of the buyer and the seller converge;

2) trading on orders. The essence of this method lies in the fact that brokers leave written orders to brokers to buy and sell, indicating the price and quantity of securities.

Making transactions goes through four stages: 1) making the transaction itself; 2) reconciliation of parameters and conclusion of a deal; 3) clearing (multilateral clearing); 4) execution of the transaction.

In general, the role of the exchange depends on the capacity and diversity of the securities market, bank credit. The stock exchange is only part of the securities market, organized and most strictly regulated.

87. REGULATION OF THE SECURITIES MARKET

The securities market as an integral part of the financial and credit system is subject to state regulation, the main purpose of which is to protect the interests of investors from illegal actions by issuers or intermediaries.

There are three main directions in the state regulation of the securities market.

1. Development of certain rules governing the issue and circulation of securities and the activities of professional participants in the securities market, as well as control over compliance with the relevant regulations in force in the country.

In Russia, the functions of developing regulations on securities, control and supervision in the field of financial markets (with the exception of insurance, banking and auditing activities) are assigned to the Federal Financial Markets Service (FFMS), which is a federal executive body. The FFMS of Russia is directly subordinate to the Government of the Russian Federation. The FFMS develops the main directions for the development of the securities market and coordinates the executive authorities on market regulation, approves the standards for the issue of securities, prospectuses for the issue of securities, establishes mandatory requirements for transactions with securities, settlement and deposit activities and the procedure for maintaining the register .

2. Issuance of licenses by state authorities for the right to engage in any type of activity in the securities market. In Russia, licensing is carried out by the FFMS or bodies authorized by it on the basis of a general license. In addition to licensing, state control over the activities of professional participants in the securities market is also carried out through certification of specialists working with securities.

3. Taxation of income from operations with securities. The state influences the securities market through the taxation system, the introduction of a system of tax incentives and sanctions.

The procedure for taxation (tax rates, terms of their payment, as well as the responsibility of taxpayers) is established by the current legislation of the Russian Federation and may vary depending on the economic situation in the country.

For the taxation of transactions with securities, the stage of initial placement and the secondary market are of great importance. The tax base for transactions with securities circulating on the organized market is defined as income from securities purchase and sale operations, reduced by the costs of these transactions, and for transactions with securities not circulating on the organized securities market - as income from transactions of purchase and sale of these securities, reduced by the costs of these transactions.

A feature of the current stage in the development of the stock market is the lack of a large set of state regulation tools due to the insufficient time for the development of this segment of the economy. This is also manifested in the fact that the main emphasis in the development of the securities market is placed on maximum self-regulation by professional market participants. Currently in Russia there is an insufficient legislative framework regulating the stock market.

88. CURRENCY SYSTEM: ESSENCE, TYPES, ELEMENTS

The monetary system is a form of organization of monetary relations, enshrined in national legislation (national system) or interstate agreement (world and regional systems).

The monetary system is a combination of two main elements - the currency mechanism and currency relations.

The currency mechanism refers to the legal norms and institutions that represent them at the national and international levels.

Currency relations are a kind of monetary relations arising from the functioning of money in international circulation.

There are national, world and regional currency systems.

The national currency system was formed within the framework of the national monetary system, which regulated the procedure for monetary settlements of a given country with other states. Gradually, she isolated herself from the monetary system.

The main elements of the national monetary system:

- National currency;

- national regulation of international currency liquidity;

- regime of the national currency exchange rate;

- national regulation of currency restrictions and conditions for the convertibility of the national currency;

- regime of national currency and gold markets;

- national authorities exercising currency regulation.

The national monetary system is based on the national currency. National currency - the monetary unit of the country.

With the internationalization of economic relations on the basis of national currency systems, the mechanisms of interstate regulation of international and currency relations are formed - the world (MWR) and regional currency systems.

Historically, there have been four AIM systems. The first one was created in 1867 by the Paris Agreement, the second IAM was the result of an agreement between 30 countries at the Genoa International Economic Conference in 1922, the third IAM was formalized as a result of the Bretton Woods agreements of 1944. Now the fourth IAM is in operation, the foundations of which were laid in 1976

The main elements of the world and regional monetary systems:

- international means of payment, performing the role of world money;

- conditions and regimes of convertibility of currencies;

- the mechanism and regime of exchange rates;

- forms of international payments;

- credit instruments of circulation and the procedure for their use in international settlements;

- international liquid assets and the procedure for their regulation;

- the regime of international currency and gold markets and interstate institutions that regulate currency relations.

The main element of any monetary system is international means of payment that perform the role of world money within this system. In the conditions of the dominance of non-exchangeable credit relations, the role of world money is taken over by reserve currencies - fully convertible currencies of countries in which there are practically no currency restrictions on all types of transactions for all currency holders.

In addition to fully convertible currencies, there are partially convertible (in countries where restrictions remain on certain types of transactions and for individual currency holders) and non-convertible (in countries where almost all types of restrictions apply, and above all a ban on the purchase and sale of foreign currency, its storage, export and import) of currency.

89. INTERNATIONAL FINANCIAL INSTITUTIONS

In order to develop cooperation and ensure the integrity and stabilization of the world economy, mainly after the Second World War, international monetary and financial organizations were created. Among them, the leading place is occupied by the International Monetary Fund (IMF) and the World Bank Group (WB).

The IMF and the WB group have common features. They are organized by analogy with a joint-stock company. Therefore, the share of the contribution to the capital determines the possibility of the country's influence on their activities. The headquarters of the IMF and the WB group is located in Washington. The WB Group includes the International Bank for Reconstruction and Development (IBRD) and three of its branches.

The main tasks of the IMF are as follows:

- promoting the balanced growth of international trade;

- provision of loans to member countries to overcome currency difficulties associated with the deficit of their balance of payments;

- abolition of currency restrictions;

- interstate currency regulation by monitoring compliance with the structural principles of the world monetary system, fixed in the charter of the fund.

The IBRD, like the IMF, provides not only stabilization, but also structural loans. Their activities are interconnected.

The specifics of the IBRD is that it has three branches:

1) International Development Association (IDA, established in 1960), provides preferential interest-free loans;

2) International Finance Corporation (IFC, established in 1956), stimulates the direction of private investment in the industry of developing countries;

The Multilateral Investment Guarantee Agency (MIA, established in 1988) provides insurance.

International financial institutions - the IMF and the WB group - play an important role in regulating international credit relations.

The European Bank for Reconstruction and Development (EBRD) was established in 1990 and is based in London. The main goal of the EBRD is to promote the transition to a market economy in the countries of the former USSR, countries of Central and Eastern Europe. The EBRD lends to projects only within certain limits.

The EBRD specializes in lending to production, providing technical assistance for the reconstruction and development of infrastructure, and equity investments, especially for privatized enterprises. The EBRD's primary areas of activity, including in Russia, are the financial and banking sectors, energy, telecommunications infrastructure, transport, and agriculture.

Regional monetary and financial organizations of Western European integration are an integral part of its institutional structure. They aim to strengthen integration and create an economic, monetary and political union (EU). The main regional organizations of the EU are: European Investment Bank (EIB, Luxembourg), European Development Fund (EDF, 1958), European Fund for Guidance and Guarantee for Agriculture (1969), European Regional Development Fund (ERDF, 1975). ), European Monetary Institute (EMI, Frankfurt am Main, 1994).

A special place among international monetary organizations is occupied by the Bank for International Settlements (BIS, Basel, 1930). Essentially it is a bank of central banks. The BIS facilitates their cooperation, accepts their deposits and provides loans.

90. EXCHANGE RATE AS AN ECONOMIC CATEGORY

An important element of international monetary relations is the exchange rate as a measure of the value of currencies. It represents the ratio between the monetary units of different countries, determined by their purchasing power and a number of other factors. The exchange rate is necessary for international currency, settlement, credit and financial transactions.

The exchange rate is not a technical conversion factor, but the "price" of a given country's currency expressed in foreign currency or international currency units (SDRs).

The cost basis of the exchange rate ratios of currencies is their purchasing power, which expresses the average national price levels for goods, services, and investments. Factors affecting the exchange rate include the following:

- the state of the economy (macroeconomic indicators, inflation rate, interest rates, activity of foreign exchange markets, currency speculation, foreign exchange policy, the state of the balance of payments, international capital migration, the degree of use of the national currency in international settlements, acceleration or delay in international settlements);

- the political situation in the country;

- the degree of confidence in the currency in the national and world markets.

These factors determine the demand and supply of currency.

A depreciation of the national currency (devaluation) is usually beneficial for exporters, since they receive an export premium (surcharge) when exchanging the proceeds of a more expensive foreign currency for a cheaper national one.

Importers lose during devaluation, as it costs them more to buy the currency of the contract price. When the exchange rate of the national currency falls, the real debt expressed in it decreases, but the external debt in foreign currency increases, the acquisition of which is more expensive.

An increase in the exchange rate of the national currency in relation to foreign monetary units (revaluation) has, in principle, the opposite effect on international economic relations.

In modern conditions, most countries use floating exchange rates oriented to the leading key currencies. A number of countries use freely floating exchange rates.

The exchange rate is an object of state and interstate regulation. The problem of exchange rate formation occupies an important place in the monetary and economic policy of the country, since the change in the exchange rates of currencies affects the redistribution of part of the country's GDP through the world markets for goods, services, and capital.

There are national and interstate regulation of exchange rates.

The main national regulatory bodies are central banks and ministries of finance.

Interstate regulation of exchange rates is carried out by the IMF, the EMU (European Monetary System) and other organizations. The regulation of exchange rates is aimed at smoothing out sharp fluctuations in exchange rates, ensuring a balance in the country's foreign payment positions, creating favorable conditions for the development of the national economy, stimulating exports, etc.

The main methods of regulating exchange rates are foreign exchange interventions, discount policy and foreign exchange restrictions.

Authors: Myagkova T.L., Myagkova E.L.

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The stereotype that women prefer "bad boys" has long been widespread. However, recent research conducted by British scientists from Monash University offers a new perspective on this issue. They looked at how women responded to men's emotional responsibility and willingness to help others. The study's findings could change our understanding of what makes men attractive to women. A study conducted by scientists from Monash University leads to new findings about men's attractiveness to women. In the experiment, women were shown photographs of men with brief stories about their behavior in various situations, including their reaction to an encounter with a homeless person. Some of the men ignored the homeless man, while others helped him, such as buying him food. A study found that men who showed empathy and kindness were more attractive to women compared to men who showed empathy and kindness. ... >>

Random news from the Archive Philips Hue Secure series cameras and sensors 07.09.2023 The Philips Hue Secure series expands with new products, including smart cameras and sensors. The Philips Hue Secure range now includes a master camera, a battery-powered wireless camera, a camera with a flashlight and contact sensors. All cameras are capable of recording 1080p video and have night vision and motion detection capabilities. They also support two-way communication, allowing you to interact with visitors at the door. The Philips Hue Secure range also includes contact sensors that can be placed on doors and windows to monitor their status (open/closed). Sensors can be used to set alarms and automate other smart devices. The launch of new devices on the market is scheduled for autumn 2023. The wired camera will be available for $200 or $230 with a desktop mount. The battery powered camera will cost $250 and the camera with flashlight will cost $350. Contact sensors are available for $40 for one or $70 for two.

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