Money, credit, banks. Cheat sheet: briefly, the most important

Lecture notes, cheat sheets
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Money, credit, banks. Cheat sheet: briefly, the most important

Lecture notes, cheat sheets

Table of contents

1. ORIGIN AND ESSENCE OF MONEY

Money - this is a special kind of universal commodity, used as a universal equivalent, through which the value of all other goods is expressed. Money is a unique commodity that performs the functions of a means of exchange, payment, measurement of value, accumulation of wealth.

An important discovery in the study of the nature of money was the proof of their natural origin. Money arose under certain conditions for the implementation of production and the level of development of economic relations in society. The immediate prerequisites for the emergence of money are:

▪ transition from subsistence farming to the production of goods and commodity exchange;

▪ property isolation of producers of goods, who become the owners of the products they produce.

The development of exchange took place by changing the following forms of value:

1) simple and random form of value, corresponding to the early stage of development of exchange. The exchange was random: one commodity expressed its value in another, opposing commodity;

2) full or expanded form of costassociated with the development of exchange, which is caused by the first major division of labor, and therefore many objects of social labor are included in the exchange process;

3) universal form of value, associated with the fact that the further development of exchange led to the separation of individual goods from the multitude of goods, playing the role of the main objects of exchange in local markets;

4) monetary form of valueassociated with the allocation as a result of further exchange of one product as a universal equivalent. With the development of exchange, this role was assigned to noble metals (gold and silver). This is due to the fact that these metals most closely met the requirements that the market placed on the product - money. Thus, precious metals have a number of natural properties that make them most suitable for performing social functions as a universal equivalent. These properties include:

▪ homogeneity;

▪ divisibility;

▪ waste-free;

▪ portability;

▪ ease of transportation;

▪ storability (wear resistance);

▪ a universal means of storage. As an economic category, money expresses a certain form of economic relations between people in the process of commodity exchange. Unlike all other goods, money has:

a) total use value;

b) the universal equivalent of value. The essence of money as a universal equivalent of value is manifested in the unity of their three properties.

1. The property of universal direct exchangeability, which means the exchangeability of money for any goods: both goods are directly exchanged for money, and money is exchanged for goods.

2. Money is an external measure of labor.

3. Money is an independent form of exchange value (the movement of money can be separated from the movement of goods, and then there is a one-way movement of money).

In this way, essence of money lies in the fact that this is a historical category that resolves the contradictions of commodity production between use value and value due to the fact that they are a specific commodity, with the natural form of which the social function of the universal equivalent grows together.

2. TYPES OF MONEY

In its evolution, money has gone through the following stages:

1) metal;

2) paper;

3) credit;

4) electronic money.

Historically paper money arose from metal circulation and acted as substitutes for silver and gold coins previously in circulation.

During the centuries-old history of the use of silver and gold coins, it has been noticed that worn and damaged coins, that is, containing less weight, are in circulation along with full-fledged coins and express the same value. This led to the idea of replacing metal coins with paper ones.

Essence paper money consists in the fact that these are banknotes issued by the state to cover the budget deficit, and are usually not exchangeable for metal, but endowed by the state with a forced exchange rate. Currently, only 10 countries (USA, Italy, India, Indonesia, etc.) have preserved paper money in the form of treasury notes.

In the Russian Federation, in accordance with the Law on the Bank of Russia, the issue of cash and the organization of cash circulation are carried out directly by the Bank of Russia (Article 4).

The expansion of the scope of commercial and bank credit in the context of the acquisition by commodity relations of a general nature led to the emergence credit money.

loan money have gone through the following stages of development: bill, banknote, check, electronic money and their latest variety - credit card.

Bill - a security of a strictly established form, certifying an unconditional obligation of the drawer (promissory note) or other payer specified in the bill (bills of exchange) to pay a certain amount of money upon the due date of the bill.

Distinctive features of the bill:

▪ abstractness;

▪ indisputability;

▪ negotiability.

Depending on the nature of the origin of the bill, there are private (commercial and financial) and treasury.

Bill is a debt obligation of the bank. Currently, the banknote is issued by the central bank by rediscounting bills, lending to various credit organizations and the state.

Types of banknotes: classical; a banknote that has a limited exchange for gold; banknote not redeemable for gold.

The next loan instrument is check, which appeared with the creation of commercial banks and the concentration of funds in current accounts.

Check - this is a monetary document of the established form, containing an instruction from the drawer to the payer to make payment to the holder of the check for the amount specified in it.

Check happens bearer, nominal, order.

A check as a short-term monetary document does not have the status of legal tender, and unlike the issue of money, the issuance of checks into circulation is not regulated by law, but is entirely determined by the needs of commercial circulation.

The mechanization and automation of banking operations, the transition to the widespread use of computers in the practice of banking transactions contributed to the emergence of new methods of repayment or transfer of debt using electronic money.

The highest achievement of modern banking practice is the possibility of replacing checks with electronic credit cards, which not only replace cash and checks in settlements, but also give their owner the right to receive a short-term loan from the bank.

3. THEORIES OF MONEY

The connection between money and production has been noticed for a long time. Money is an important element of any economic system, contributing to the functioning of the economy.

Depending primarily on the assessment of the role of money and the monetary system in the development of the economy, there are various theories of money. To date, there are three main theories of money: metallic, nominalistic and quantitative.

Metal theory of money. This theory arose in England during the period of primitive accumulation of capital in the 16th-17th centuries. One of the founders of the metal theory was W. Stafford. The metal theory of money was characterized by the identification of the wealth of society with precious metals, which were credited with the monopoly of all the functions of money. Proponents of this theory did not see the need and logic of replacing full-fledged money with paper money, so later they opposed paper money that could not be exchanged for metal.

Nominalistic theory of money. The first representatives of this theory were the Englishmen J. Berkeley and J. Stewart. Their theory was based on two principles: first, money is created by the state; secondly, the value of money is determined by its face value. The main mistake of representatives of nominalism is the position that the value of money is determined by the state. This denies the labor theory of value and the commodity nature of money.

The further development of this theory occurred at the end of the 19th - beginning of the 20th century. The most famous representative of this theory was the German economist G. Knapp. In his opinion, money has purchasing power, which is given to it by the state. Thus, when analyzing the money supply, he took into account only state treasury bills and small change coins, excluding credit money from it.

The main mistake of the nominalists was the separation of paper money from gold and the value of the goods, but they endowed them with "value", "purchasing power" through an act of state legislation.

Quantity Theory of Money. The founder of this theory was the French economist J. Bodin. It was further developed in the works of the Englishmen D. Hume and J. Mill, as well as the Frenchman C. Montesquieu. Proponents of the quantity theory saw money only as a means of exchange. They erroneously argued that in the process of circulation, as a result of the collision of the money and commodity masses, prices are allegedly set and the value of money is determined.

The foundations of the modern quantitative theory of money were laid by the American economist I. Fisher, who denied labor value and proceeded from the "purchasing power of money."

A variation of the quantity theory of money is monetarism.

Monetarism - economic theory, according to which the money supply in circulation plays a decisive role in the stabilization and development of a market economy. The founder of this theory is M. Friedman. In accordance with the monetarist concept, modern market relations are a stable, self-regulating system that ensures economic efficiency.

4. THE FUNCTION OF MONEY AS A MEASURE OF VALUE

In this function, money acts as an external measure of the cost of socially necessary labor. The form of manifestation of money as a measure of value is its price. By equating commodities to a certain amount of money, we are able to quantify the magnitude of the value of commodities.

The function of money as a measure of value has the following features.

1. This function is performed by full-fledged money.

2. Money performs the function of a measure of value as ideal (i.e., mentally represented).

This function is characterized by the fact that thanks to it happens:

▪ measurement of labor costs;

▪ monetary valuation of goods through the pricing mechanism;

▪ there is a redistribution of part of the national income due to deviation of prices from value. The function of money as a measure of value serves the production, circulation, and distribution of the total social product. Accounting and planning are carried out, and production costs are also generated. In addition, thanks to this function, economic relations of enterprises with other enterprises, with their employees, are maintained, since this is done in value form.

The use of money as a universal equivalent means that it is enough to express the price of any product only in terms of a monetary unit. Moreover, the value of goods, expressed in money, is called price of the goods.

Commodity prices and their measurement are based on law of value. The price of a product is formed on the market, and if supply and demand for goods are equal, it depends on the cost of the product and the value of money. When there is a mismatch between supply and demand on the market, the price of a product inevitably deviates from its value, which indicates overproduction or underproduction of certain goods.

To compare the prices of goods of different value, it is necessary to reduce them to the same scale, that is, to express them in the same monetary units.

price scale in metallic circulation, the weight of the money metal is called, which is accepted in a given country as a monetary unit and serves to measure the prices of all other commodities.

The prices of goods in the circulation of gold coins and free market pricing changed in direct proportion to the value of the goods and inversely to the value of gold.

When fiat credit money is in circulation, the mechanism of action of the value measure function changes and under these conditions the price of goods is formed depending not only on supply and demand for a given product, but also on the value of a banknote and the number of banknotes in circulation.

measure of value - This is the economic function of money, the operation of which does not depend on the will of the state. The scale of prices is of a legal nature and serves as an expression not of the value, but of the price of goods. They interact through the scale of prices, and the mentally imagined price of the product (ideal) as an indicator of its value is converted into a list (or market) price, expressed in national monetary units.

The conditions for the correct performance by money of the function of a measure of value are:

▪ a sufficient level of development of market relations and competition;

▪ the presence of unity in pricing in a single economic space;

▪ exchange equivalence;

▪ stability of the national currency.

5. MONEY AS A MEDIA

The development of commodity exchange leads to the fact that an intermediary is wedged into it. As a result, the exchange process takes on the form C - D - C. Thus, the exchange breaks up into two independent, simultaneously performed and complementary acts:

▪ the product enters the sphere of circulation, the product is transformed into money through its sale T - D;

▪ the reverse transformation of money into goods takes place, the purchase of useful goods D - T with the proceeds. As a result, the goods go into the sphere of consumption. The appearance of an intermediary in the exchange of goods transforms it into commodity circulation.

Commodity circulation - exchange of goods through money. When making a commodity transaction, money performs a special function as a medium of exchange.

Movement of goods in the sphere of circulation - starting and ending point, the movement of money is subordinate. In the course of commodity circulation, there is a gap between the purchase and sale of goods in time, space, and individual actions. Thus, the evolution of commodity exchange into commodity circulation gives rise to the possibility of commodity crises and delays in sales.

Money in the function of a medium of circulation has not only qualitative, but also quantitative certainty. It depends on a number of factors:

▪ movements in commodity prices;

▪ the mass of goods in circulation and the number of transactions concluded;

▪ the mass of circulating money;

▪ money circulation velocity.

As a medium of exchange (or exchange), money allows society to avoid the inconvenience of barter. Money is universally and easily accepted as a means of payment. This social invention allows producers to be paid with a special commodity (money), which can later be used to purchase any commodity available on the market. By providing a convenient way to exchange goods, money enables society to enjoy the fruits of regional specialization and the division of labor in society. In contrast to the first function, where commodities are ideally valued in money before their circulation begins, money must actually be present when commodities circulate. The features of money as a means of circulation are their real presence in circulation and the transience of their participation in the exchange, in connection with this, the function of a means of circulation is also performed by defective money - paper and credit. Currently, credit money has occupied a dominant position in monetary circulation: bills of exchange, banknotes, checks, bank credit cards.

The main features of money as a medium of circulation are as follows:

1) acts of "purchase" and "sale" can be separated from each other and be independent;

2) acts may not coincide either in time or in space;

3) acts can go beyond the framework of two individuals, i.e., intermediaries can appear.

The sphere of functioning of money as a means of circulation is commodity circulation between commodity organizations and the population, as well as groups of the population.

Conditions for the correct circulation of money:

1) the presence of a correspondence between the structure of demand and the structure of supply;

2) the correct organization of trade and advertising;

3) ease of use of money and the correct organization of money circulation;

4) stability of the national currency.

6. THE FUNCTION OF MONEY AS A MEANS OF PAYMENT

The main feature of the function of money as a means of payment is the existence of a gap in time between the movement of money and the movement of goods and services.

On the basis of the functioning of money as a means of payment, the following types of monetary obligations arise, the repayment of which is associated with the function of money as a means of payment:

▪ obligations arising in connection with the use of the loan;

▪ obligations for wages, payment of pensions and other similar obligations as monetary obligations of the state or non-state structures in relation to the population;

▪ various debt financial obligations (for example, paying taxes);

▪ insurance obligations;

▪ obligations arising from decisions of administrative and judicial authorities. The peculiarity of money performing this function is that the movement of value is independent and is not directly related to the simultaneous movement of goods (or the movement of money is separated from the movement of goods):

▪ there is a discrepancy in time and space between the movement of money and the movement of goods;

▪ cash or non-cash money is used;

▪ money must be real (with the exception of ideal money in the case of offsetting mutual claims);

▪ this function can be performed by signs of value, i.e. inferior money.

Money in this function is used to pay off various kinds of monetary obligations, to control the distribution of gross domestic product. Control is carried out by financial authorities and credit organizations in the process of financing and lending to the economy, cash management services for enterprises. Failures in the performance of this function by money lead to an increase in non-payments in the economy, which can cause a so-called payment crisis.

If the conditions for the fulfillment of the function of a medium of circulation and the function of payment derivative from it, the so-called surrogate money may appear in the economy. Surrogate money is a substitute for money officially circulating in the territory of a given country. Objectively, the possibility of the appearance of surrogate money is connected with the fact that money, in the function of a medium of circulation, acts as a "fleeting intermediary of exchange", therefore, it becomes possible to replace real money with their surrogates. In the absence of official money (or its inability to perform its functions), a wide variety of substitute money can come into circulation. Surrogate money can be securities (primarily bills of exchange), gold, foreign currencies and even all kinds of coupons - the main thing is that they are accepted by exchange partners.

In fact, surrogate money can be called anything that is not legal tender for a given country. Under legal tender refers to banknotes that, by law, are required to be accepted on the territory of a given state. All banknotes issued exclusively by the central bank are legal tender. All legal tender is money, but not all money is legal tender. Foreign currency is not legal tender for another country.

7. THE FUNCTION OF MONEY AS A MEANS OF STORAGE AND SAVINGS

Money that is not directly involved in circulation, including in the functions of a medium of circulation and a means of payment, forms cash accumulations and performs function as a store of value.

The main condition for the fulfillment of the function of a store of value by money is the stability of its purchasing power, i.e. e. the ability of money to be exchanged for goods and services.

The performance of the function of a means of accumulation by money has its own specifics and depends on the form in which this accumulation occurs: in the form of a bank or in the form of cash (hoarding).

Banking form - accumulation of funds in accounts in banks and other non-bank credit institutions. Credit accumulation can be not only in accounts, but also in the form of placing funds in securities. With the banking method of storing funds, the state has information about how much the population has temporarily abandoned consumption, the state has the ability to regulate effective demand, and can use savings to finance the economy.

Accumulation in cash leads to the fact that the demand for goods and services in the market of goods and services is reduced. As a result, firms' sales revenue falls. But the fall in sales revenue leads to the fact that firms reduce the demand for factors of production. Hence the rise in unemployment and the reduction in incomes of the population, which means that the demand for goods and services is further reduced.

Saving wealth in the form of cash can lead to so-called opportunity costs, or opportunity costs, since the preservation of wealth in the form of money does not bring its owner interest income for the period of storage.

Regardless of the form of money storage, in this function they influence effective demand in the following areas:

▪ the structure of demand changes (at first it decreases, and then, as it accumulates, it increases);

▪ the volume of effective demand changes (increases);

▪ the distribution of effective demand changes (by population groups). During the period of circulation of metallic money, the treasure served as a spontaneous regulator of monetary circulation. If the scale of production and commodity circulation expanded, metallic money, in the form of treasure, entered the market to purchase goods, i.e., it served as a means of circulation. Thus, money in the form of a means of storage is a certain stimulant and regulator of the economy, having the ability to expand demand and turn into money as a means of circulation.

Acting as a means of accumulation, money mediates the formation, distribution and redistribution of national income, is used in the accumulation, including depreciation deductions from enterprises, funds from state and local budgets, and funds from the personal sector. Money in the function of accumulation affects the volume and structure of effective demand and its distribution by groups of economic entities. Deformation in the performance of this function by money is associated with inflation, when the purchasing power of the monetary unit decreases.

8. FUNCTION OF WORLD MONEY

World money function is carried out within the framework of international economic relations, when money is used to determine world prices for goods and services, as an international settlement and means of payment, as well as to form foreign exchange reserves of individual states and international financial institutions. In fact, we are talking about the performance by money of all the functions of money on an international scale.

The main feature of world money consists in the fact that they perform their functions outside the single national economic space and outside the jurisdiction of any one state.

When full-fledged money was used in the conditions of gold-coin circulation, this function could be performed by any national currencies exchanged for gold. In the transition to inferior money, the function of world money is performed by individual freely convertible, as well as collective currencies (international units such as SDRs, euros, etc.).

When using individual freely convertible currencies as world money, the question actually arises of the international recognition of a particular national currency. In this case, recognition should be understood not as some kind of international agreement, but as a real willingness of the subjects of the world economy (foreign firms, banks, states) to accept this money as a settlement, means of payment and an official reserve asset.

Money in this function is used to determine the profitability of operations for the export and import of goods, cash settlements for such operations, settlements for credit and other non-commodity transactions. To characterize the role of money in foreign economic relations, it is also important that in the balance of trade, exports and imports are compared in monetary terms. As a result of such a comparison for a certain period, an active (excess of exports over imports) or passive (excess of imports over exports) balance sheet is displayed. Trade balance data are used not only to assess the current ratio between imports and exports of goods, but also to develop and implement measures to optimize their ratio. A similar approach is taken with regard to the balance of payments, which includes payments for commodity transactions, settlements on credit relationships and other obligations.

The role of money in the foreign economic relations of the country is influenced by the exchange rate of the national currency against the currencies of other countries. Depending on the exchange rate, either there is an interest in expanding export or import operations, or such operations are curtailed as unprofitable. At the same time, a depreciation of the national currency stimulates exports, and an increase causes a reduction in exports. Therefore, measures can be taken to change the exchange rate of the national currency within the framework of the currency regulation policy, which creates prerequisites for an increase or decrease in exports. In the course of currency regulation, it is possible to change the exchange rate of the national currency, which indicates both the role of money in foreign economic activity and the possibility of using money in managing such processes.

9. THE ROLE OF MONEY IN A MARKET ECONOMY

The results of the application and impact of money on various aspects of the activity and development of society characterize their role.

Money plays a key role in a market economy. This appears in the following.

1. The social role of money, their function in the economic system is that they act as a link between producers.

Being concretized in a certain subject, they are, as it were, a general condition for social production, an "instrument" of the social economic ties of independent commodity producers, an instrument for the spontaneous accounting of social labor in the commodity economy.

2. Money also plays a qualitatively new role: it becomes capital, or self-increasing value. Money is transformed into money-capital in the reproduction of individual capital by virtue of the fact that its functioning is included in the circuit of industrial capital, and it is the starting point and result of the circuit of the latter.

Money also serves the production and sale of social capital, acting as cash flows that move both within the first division (production of means of production) and within the second (production of consumer goods), as well as between them.

The role of money as capital is manifested through their functions. Thus, the value of goods produced by enterprises is expressed in money. At the same time, money serves both as a measure of value and as money capital. If the products are sold for cash, and the means of production are bought with the proceeds, then the money serves both as a means of circulation and as capital. If products are sold on credit, and at the expiration of the credit, debt obligations are repaid in money, then here they serve both as capital and as a means of payment.

If money is accumulated with the aim of buying further means of production and expanding the volume of production, then they act both as a treasure and as capital. And finally, if an enterprise opens a subsidiary abroad, then money in this case acts both as world money and as capital.

3. With the help of money, the formation and redistribution of national income takes place through the state budget, taxes, loans and inflation.

4. Money is the object of monetary regulation of the economy of industrialized countries, based on the monetarist theory of money. In these countries, taking into account general economic tasks, a monetary benchmark for changing the money supply is set for the year and, in accordance with it, its regulation is carried out with the help of credit instruments of the central bank.

Increasing the efficiency of economic development determines the implementation of measures to strengthen the role of money. For this purpose, it is of paramount importance to overcome inflation, as well as to expand the scope of the use of money, improve the organization of their circulation, and consistently link the money supply with the needs of circulation. To consistently strengthen the role of money in improving the efficiency of economic development, reasonable measures are needed to ensure the circulation of money in means of payment in accordance with the need for them, as well as measures to achieve the stability of the monetary unit, expressed in its constant purchasing power.

10. CONCEPTS "MONEY EMISSION" AND "MONEY RELEASE INTO ECONOMIC TURNOVER". EMISSION FORMS

Issue of money - this is, firstly, a set of measures for the development, manufacture and issuance of banknotes in the form of treasury notes, banknotes and coins by the treasury or the central (issuing) bank (cash issue), and secondly, the effect of increasing the amount of money in circulation, created as a result of an increase in the speed and number of revolutions of the same banknotes by commercial banks (non-cash issue).

In Russia, the issue of money is monopoly carried out by the Central Bank of the Russian Federation.

Issue of money under the influence of various factors means distribution of means of payment through credit institutions among the participants of economic turnover who are in need of money. With the active release of means of payment, in comparison with their return, there is a tendency to increase the money supply. But the release of money into economic circulation occurs constantly and may not be accompanied by an increase in the money supply.

The forms of money emission are as follows.

Deposit issue of money represents an increase by the central bank of its credit investments by issuing loans that increase account balances, that is, on deposits of credit institutions.

Budget issue of money It appears as the issue of money to cover the state budget deficit, government spending by acquiring government securities by the central bank during their initial placement or placement on the secondary market.

Banknote issue of money (issue of banknotes and coins) is directly carried out by central banks, treasury issue of money (issue of treasury notes and coins) - by treasuries with the issuing right.

Most of the money is created through the expansion of commercial bank loans due to the increase in their deposit basis.

This process has been named deposit issue, or releasing money into economic circulation by creating non-cash means of payment.

The issue of non-cash money is primary and is carried out by crediting additionally issued money to correspondent accounts in credit institutions (banks) in the form of central bank loans or budget allocations.

stand out external and internal non-cash money issue.

Sources of external non-cash money issue are:

▪ purchase of foreign currency by the central bank;

▪ revenue from the use of foreign property;

▪ obtaining loans from international financial organizations;

▪ foreign investment;

▪ purchase and sale of cash foreign currency by the population, stimulated by unorganized imports.

Sources of internal non-cash money issue within the country's borders are loans provided by the banking system: to the economy, to the state; foreign state. The credit nature of the money issue is one of the fundamental principles of the organization of the state's monetary system.

In a market economy, the emission function is concentrated and divided between participants in economic turnover as the difference between the inflow and outflow of means of payment within a two-tier banking system: non-cash money is issued by the banking system (completely commercial banks and partly the central bank); issuance of cash by the central bank.

11. ESSENCE AND MECHANISM OF THE BANKING MULTIPLIER

With the existence of a two-tier banking system, the emission mechanism operates on the basis of banking (credit, deposit) multiplier, which represents the process of increasing money in the deposit accounts of commercial banks during the period of their movement from one commercial bank to another. Banking, credit and deposit multipliers characterize the multiplication mechanism from different positions.

Bank multiplier characterizes the process of animation from the perspective of the subjects of animation. This process is carried out by commercial banks (the system of commercial banks).

Credit multiplier reveals the engine of the multiplication process, that multiplication can only be carried out as a result of lending to the economy.

Deposit multiplier reflects the object of animation - money in the deposit accounts of commercial banks.

Bank multiplier mechanism can exist only in conditions of two-level (and more) banking systems, and the first level - the central bank operates this mechanism, and the second level - the commercial bank forces him to act, and act automatically regardless of the wishes of specialists of individual banks. The banking multiplier mechanism is directly related to the free reserve.

Free reserve represents a set of resources of commercial banks, which at a given time can be used for active banking operations.

Commercial banks can carry out their active operations only within the limits of their

resources. The free reserve of the system of commercial banks is made up of the free reserves of individual commercial banks, therefore, from an increase or decrease in the free reserves of individual banks, the total amount of the free reserve of the entire system of commercial banks does not change. The amount of free reserve of an individual commercial bank

Cp \uXNUMXd K + PR + CC ± MBC - OCR - Ao,

where K is the capital of a commercial bank; PR - attracted resources of a commercial bank (funds on deposit accounts); Central Committee - a centralized loan provided to a commercial bank by a central bank; IBC - interbank credit; ORC - deductions to the centralized reserve, which is at the disposal of the central bank; Ao - resources that have already been invested in the active operations of a commercial bank.

Since the multiplication process is continuous, the multiplication factor is calculated for a certain period of time (a year) and characterizes how much the money supply in circulation has increased over this period of time.

The bank multiplier works regardless of whether loans are provided to commercial banks or they are provided to the federal government.

Management of the bank multiplier mechanism, therefore, the emission of non-cash money is carried out exclusively by the central bank, while the emission is carried out by the system of commercial banks. The Central Bank, controlling the mechanism of the bank multiplier, expands or narrows the issuing capacity of commercial banks, thereby performing one of its main functions - the function of monetary regulation.

12. MONEY TURNOVER: CONCEPT, STRUCTURE

The process of continuous movement of banknotes in cash and non-cash forms is called money turnover. It is part of the country's payment turnover, while money, while in circulation, performs the functions of payment, circulation and accumulation.

Money turnover consists of separate channels of money movement, through which they move towards each other (moreover, flows that are quantitatively unequal in absolute value), for example, between the Central Bank and commercial banks; between enterprises and organizations; between banks and enterprises; between banks and the population; between individuals, etc.

Issue of money into circulation happens all the time.

Cash are issued into circulation when banks issue them to their customers in the course of cash transactions.

Non-cash money are released into circulation by commercial banks when a loan is granted to a client. At the same time, customers repay loans and deposit cash at the bank's cash desk. As a result, the total amount of money in circulation may not increase.

Under issue of money is understood as such release of money into circulation, which leads to a general increase in the money supply in circulation.

The structure of cash flow can be characterized according to different criteria: according to the economic content and according to the form of money functioning in it.

According to the economic content of the individual parts of the money turnover, serving different areas of monetary relations, it can be divided: - into money and commodity turnover (monetary settlement), serving the market for means of production, the market for consumer products and services, the labor market;

▪ for cash turnover associated with non-commodity payments (monetary and monetary turnover), serving the credit market, the securities market, and the foreign exchange market.

At the same time, money freely moves from one part of the money turnover to another in accordance with the emerging market conditions as a result of the law of supply and demand.

The most common is the classification of money circulation depending on the form of money functioning in it - into cash и non-cash.

Cash turnover - part of the money turnover, equal to the sum of all payments made in cash for a certain period of time, this is the process of continuous circulation of cash banknotes (banknotes, treasury notes, small change). Cash circulation in the Russian Federation is organized by the state represented by the Central Bank. This turnover serves the receipt and expenditure of most of the population’s cash income. In Russian reality, cash also serves most of the economic relations of legal entities, especially private entrepreneurs.

Cashless turnover - the amount of payments for a certain period of time made without the use of cash by recording accounts in credit institutions or by mutual settlements of economic agencies.

All transactions related to the supply of material assets and the provision of services are completed cash payments, which can take both cash and non-cash forms.

13. LAW OF MONETARY CIRCULATION. MONEY SUPPLY AND VELOCITY OF MONEY

The law of money circulation expresses the economic interdependence between the mass of circulating goods, the price level and the velocity of money circulation.

This relationship is a combination of two types of dependence: a direct relationship between the amount of money needed as a medium of exchange and the sum of prices of goods and services sold; inverse relationship between the amount of money needed as a medium of exchange and the rate of turnover of money. All this can be expressed by the following formula:

K = S/C,

where K is the amount of money needed as a medium of circulation; S is the sum of prices of goods and services sold; C is the average number of turnovers of money as a medium of circulation.

With the emergence of the function of money as a means of payment, the formula becomes somewhat more complicated and the law determining the amount of money in circulation takes on the following form:

where S1 is the sum of the prices of goods and services; S2 - the sum of the prices of goods sold on credit; S3 - the amount of payments on obligations; P - mutually repaying payments.

In economics, there is another point of view, which is shared by representatives of the quantitative theory of money and supporters of the monetarist concept. The American economist I. Fisher formulated the following exchange equation:

M x V = P x Q,

where M is the mass of money in circulation; V - velocity of money circulation; P - average price of goods and services; Q - the number of goods sold and services provided.

The amount of money in circulation, multiplied by the number of turnovers in sales acts per year, equals the volume of the gross national product.

From the equation of exchange, you can derive the amount of money needed for circulation: M = P x Q x V, where M is the amount of money in circulation, the money supply; V is the velocity of money circulation; P x Q \uXNUMXd V - nominal volume of GNP.

Thus, enough money is needed for circulation to be able to sell at current prices the entire volume of goods and services produced within the national economy.

Money supply - this is the amount of cash and non-cash funds, as well as other means of payment.

Taking into account the experience of foreign countries, the Central Bank of the Russian Federation conducts calculations of the following monetary aggregates: M0 - cash in circulation; M1 = M0 + funds on settlement, current and special accounts of legal entities, funds of insurance companies, demand deposits of the population in banks; M1 = M0 + time deposits of the population in Sberbank; М2 = М1 + certificates and government bonds.

The change in the volume of the money supply is determined not only by the increase in the amount of money in circulation, but also by the acceleration of their turnover.

Currently, to characterize the money supply, the indicator is used monetary base, which is essentially equivalent to the M2 unit.

Velocity of money - this is the speed of their turnover when servicing transactions.

The main indicators characterizing the velocity of money circulation are: the indicator of the velocity of money circulation in the circulation of income - the ratio of the gross national product to the money supply (aggregate M1 or M2); an indicator of the turnover of money in the payment turnover, i.e. the ratio of the amount of funds transferred on bank current accounts to the average value of the money supply.

As follows from the law of money circulation, an increase in the velocity of money is equivalent to an increase in the money supply.

14. NON-CASH MONEY TURNOVER

Non-cash money turnover represents a part of the money turnover, in which the movement of funds is carried out in a non-cash form in the order of transfer (transfer) of funds from the payer's bank account to the recipient's account, by offsetting mutual claims, as well as using other banking operations. Non-cash money turnover is the main type of money turnover. Non-cash money turnover covers: the movement of the social product; distribution and redistribution of national income; payments for goods, services and work performed; payments related to the formation of budget revenues and the implementation of budget expenditures; payments related to sources of capital investments; settlements related to the financing of enterprises; budgetary, intra-industry, intra-economic redistribution of funds; obtaining and repayment of bank loans; payment and use of part of the monetary income of the population; other payments and receipts. The participants in these relations are organizations, including banks and non-banking financial and credit institutions, and the population.

The predominant development of non-cash money circulation in comparison with cash circulation is explained both by objective reasons and by measures deliberately carried out by the state in order to create a rational system of cash settlements and save social costs of circulation, since the speed of money movement in non-cash money circulation is much higher than the speed of money movement in cash circulation.

The replacement of cash payments with non-cash payments and their rational organization in a market economy are important for the regulation of money circulation, the formation of banking resources, the organization of credit relations, the control over the operation of enterprises and the reduction of distribution costs associated with cash settlements.

Non-cash money turnover is associated with credit relations that arise in the process of replacing real money with credit operations. In the absence of funds on the payer's account, non-cash money turnover can be carried out at the expense of a bank loan.

The system of cashless payments, like any system, consists of a number of elements. The main elements of the system of cashless payments are:

▪ types of settlement (payment) documents;

▪ document flow procedure;

▪ principles of organizing non-cash payments;

▪ payment methods;

▪ forms of non-cash payments.

Non-cash payments are carried out, as a rule, on the basis of settlement documents, which are an order from the client to the bank to transfer funds from one account to another or to offset mutual claims.

The settlement document is drawn up on paper, in established cases - in electronic form. Settlement documents are:

▪ the payer’s order to write off funds from his account and transfer them to the recipient’s account;

▪ an order from the recipient of funds to write off funds from the payer’s account and transfer them to the account specified by the recipient of funds. The following payment documents are used: payment orders, letters of credit, checks, payment requests, collection orders.

15. PRINCIPLES OF THE ORGANIZATION OF CASHLESS SETTLEMENTS

Non-cash payment turnover in the country is organized on the basis of certain principles.

Principles of organizing settlements - fundamental principles of their implementation. Compliance with the principles in the aggregate makes it possible to ensure that the calculations meet the requirements: timeliness, reliability, efficiency.

Fundamental Principle modern system of cashless payments - legal regime for settlements and payments. In accordance with the legislative and regulatory acts adopted in the Russian Federation, the organization and continuity of payments ensures compliance with the following principles:

▪ non-cash payments are made through bank accounts that are opened by clients (both legal entities and individuals) in credit institutions for storing and transferring funds;

▪ maintaining liquidity calculations by participants at a level that ensures uninterrupted payments;

▪ the presence of the payer’s acceptance (consent) to the payment. Only in certain cases determined by law, direct debiting of funds is allowed.

Another essential principle organization of cashless payments - urgency of payment - follows from the very essence of a market economy, an essential condition of which is the timely and complete fulfillment of payment obligations. The implementation of this principle allows enterprises to organize the liquidity management of their balance sheet, rationally plan cash flow, and determine the need for borrowed funds.

Third principle organization of cashless payments - principle of unconditional fulfillment of obligations, or, otherwise, security principle.

Compliance with this principle makes it possible to ensure the unconditional fulfillment of contractual obligations and the continuity of payments in the economy.

Next principle - control all participants in the settlements (supplier, consignor, recipient of funds, consignee, payer, bank) for the correctness of their commission, compliance with the established provisions on the procedure for their implementation. Control is divided into preliminary, current, subsequent, internal and external.

Closely related to the principle of mutual control of settlement participants the principle of civil or property liability of settlement participants for violation of contractual obligations.

It means that the party that violated the terms of the contract must compensate the other party for the penalty.

One of the principles of organizing cashless payments are variety of payment forms and freedom for counterparties to choose the instrument that best meets the terms of the transaction.

All principles of organization of non-cash payments are interconnected and interdependent. Failure to comply with one of them may lead to violation of others.

Currently, the main documents regulating non-cash turnover in the Russian Federation are the Civil Code of the Russian Federation, the Federal Law “On Banks and Banking Activities in the Russian Federation”, and the Federal Law “On the Central Bank of the Russian Federation”. The procedure for conducting non-cash payments in Russia is regulated by the Regulations on Non-Cash Payments.

16. FORMS OF NON-CASH PAYMENTS

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.

Payment order represents the order of the owner of the account (payer) to the bank serving him, drawn up 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.

Settlements for collection represent 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 collection procedure are carried out on the basis of payment requests, the payment of which can be made by order of the payer (with acceptance) or without his permission (without acceptance), and collection orders, payment for which is made without the order of the payer (in an indisputable manner).

Payment request is a settlement document containing the 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.

The collection form of payment is also used for the indisputable debiting of funds from accounts. In this case, a settlement document called "collection order" is used.

Letter of credit represents a conditional monetary obligation accepted by the bank (issuing bank) on behalf of the payer, to make payments in favor of the recipient of funds upon presentation by the latter of 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) letters of credit, as well as revocable and irrevocable.

Check, like a payment order, is issued by the payer, but unlike settlements with payment orders, the check is transferred by the payer, bypassing the bank, at the time of the business transaction directly to the payee, who presents the check to the bank for payment.

The check is paid by the bank at the expense of the funds on the drawer's account or at the expense of the funds deposited by the drawer on a separate account.

The Regulation on non-cash payments in the Russian Federation provides for the possibility of using checks issued by credit institutions in non-cash payments, which can only be used in relations between banks and their customers, as well as in interbank settlements in the presence of direct correspondent relations with other banks.

17. CASH TURNOVER

Cash turnover - the movement of cash in the sphere of circulation and their performance of the functions of a means of payment and a means of circulation. This is a part of the money turnover, equal to the sum of all payments made in cash for a certain period of time, this is the process of continuous circulation of cash (banknotes, treasury notes, change coins). This turnover serves the receipt and expenditure of most of the monetary income of the population. In Russian reality, cash also serves most of the economic relations of legal entities, especially private entrepreneurs.

Cash is used:

▪ for the circulation of goods and services;

▪ for calculations of wages and equivalent payments;

▪ for payment for securities and payment of income on them;

▪ for household payments for utilities. Cash circulation in the Russian Federation is organized by the state represented by the Central Bank.

Acceptance and disbursement of cash cash settlement centers at the territorial main departments of the Bank of Russia, which form a revolving cash desk for this purpose, as well as reserve funds.

Reserve funds banknotes and coins represent a stock of banknotes not issued in circulation for the regulation of cash resources.

Cash is issued into circulation by the Bank of Russia on the basis of an issuing permit - a document that gives the Bank of Russia the right to support the circulation cash at the expense of reserve funds of banknotes and coins. This document is issued by the Board of the Bank of Russia within the issuance directive, i.e. e. the maximum issue of money into circulation, established by the Government of the Russian Federation.

An important role in stabilizing money circulation in Russia was played by the Regulation “On the Rules for Organizing Cash Circulation on the Territory of the Russian Federation”, approved by the Bank of Russia, which is obligatory for the territorial offices of the Bank of Russia, cash settlement centers, credit institutions and their branches, including institutions of the Savings Bank Russian Federation, as well as organizations, enterprises and institutions on the territory of the Russian Federation.

Basic principles of organizing cash circulation in the Russian Federation are as follows:

▪ all enterprises and organizations must keep cash in commercial banks (except for the amount of the limit established by the servicing bank);

▪ banks set cash balance limits for enterprises of all forms of ownership;

▪ in excess of the limit, cash can be kept at enterprises to issue funds for wages and social payments for no more than three days;

▪ cash circulation is the object of forecast planning;

▪ monetary circulation is managed centrally;

▪ the organization of cash circulation is aimed at ensuring the stability, elasticity and economy of cash circulation. Regional branches of the Bank of Russia control the work of bank institutions in organizing cash turnover, compliance by enterprises with the procedure for conducting cash transactions and working with cash in accordance with the above Regulations.

18. ESSENCE, TYPES AND FORMS OF INFLATION

Inflation (from Latin inflatio - inflation) is a depreciation of money, a drop in their purchasing power caused by price increases, commodity shortages and a decrease in the quality of goods and services.

Inflation is characteristic of any models of economic development in which government revenues and expenditures are not balanced, and the ability of the central bank to conduct an independent monetary policy is limited. Economists interpret the essence of inflation in different ways:

▪ as the overflow of monetary circulation channels with excess paper money, causing their depreciation in relation to gold, goods, foreign currency, which retains the same real value or has depreciated to a lesser extent;

▪ like any depreciation of paper money;

▪ as an increase in the general price level;

▪ as a multifactor process that does not have an unambiguous interpretation.

The underlying causes of inflation are both in the sphere of circulation and in the sphere of production and are very often determined by economic and political relations in the country (disruption of reproductive processes, disproportionate development of the national economy, peculiarities of state policy, issuing and commercial banks).

In modern conditions, inflation throughout the world is chronic, ubiquitous, all-encompassing. This is caused not only monetarybut non-monetary factors, often political.

There are the following types and forms of manifestation of inflation.

1. According to the degree of manifestation:

▪ creeping inflation - inflation, expressed in a gradual long-term increase in prices, when the average annual rate of price growth is 5-10%;

▪ galloping inflation - inflation in the form of an abrupt increase in prices, when the average annual rate of price growth is from 10 to 50%;

▪ hyperinflation - inflation with a very high rate of price growth, when price growth exceeds 100% per year (the IMF takes 50% price growth per month for hyperinflation).

2. By way of occurrence:

▪ administrative inflation - inflation generated by "administratively" controlled prices;

▪ cost inflation - inflation, which is manifested in the growth of prices for factors of production (in particular, resources), as a result of which the costs of production and circulation grow, and with them the prices for manufactured products;

▪ demand inflation - inflation, which is manifested in the excess of demand over supply, which, of course, leads to an increase in prices;

▪ supply inflation - inflation, which manifests itself in rising prices due to an increase in production costs in conditions of underutilization of production resources;

▪ imported inflation - inflation caused by the impact of external factors, such as excessive inflow of foreign currency into the country and an increase in import prices;

▪ credit inflation - inflation caused by excessive credit expansion.

3. According to the manifestations inflation happens:

▪ open, i.e., inflation due to the free (open) rise in prices of consumer goods and production resources;

▪ hidden (suppressed)when inflation occurs as a result of a commodity shortage, accompanied by the desire of the state to keep prices at the same level. In this case, goods are “washed out” from open markets and transferred to shadow, “black” markets, where prices certainly rise.

19. MAIN FACTORS GENERATING INFLATION

Inflation is a complex multifactorial phenomenon caused by disruption of reproduction processes, disproportionate development of the national economy, specifics of state policy, issuing and commercial banks.

An important role in the development of inflationary processes is played by external economic factors. They appear when a country actively uses imported goods. A natural increase in world prices for raw materials and energy always provokes an increase in cost inflation. Import prices not only “push up” the prices of national products, but also lead to an increase in production costs when using imported components, increasing the cost of finished products.

Inflationary processes have a special impact influx of foreign loans, currency, since the import of foreign currency and its purchase by the central bank increases the money supply in the country, thereby causing the depreciation of money and increased inflation. Therefore, a balanced monetary policy pursued by the country’s central bank in terms of creating foreign exchange reserves, using the mechanism of regulation and formation of the exchange rate and at the same time reducing its inflationary pressure on the economy is of considerable importance.

The role of imported inflation increases with the growth of the openness of the economy and its involvement in world economic relations.

Inflation can be caused adaptive inflation expectationsassociated with political instability, media activity, and loss of trust in the government. In conditions of high inflation expectations and rising foreign exchange rates, the population prefers to keep their savings not in the national currency. Manufacturers, fearing increased prices from suppliers, factor into the price of their goods the expected increase in prices for raw materials and components.

Inflation can be triggered state tax policy. In conditions of inflation, the formation of budget revenues occurs on an inflationary basis: in the event of a decline in production, profit is generated mainly due to rising prices, and not due to the creation of real material assets. If a large part of the farm’s profits is withdrawn from the budget, the tendency to evade taxes increases and the possibilities for investment activity decrease.

When production volumes fall, the value added tax only exacerbates inflation - it directly affects the increase in prices.

Inflation can also be reproduced due to political instability in the state and social activity of the population associated with strikes in basic sectors of the economy.

In Russia, the political factor played an important role in the development of inflation.

In the process of transforming the planning and distribution system into a market one, the Russian economy manifested itself to the greatest extent in corrective inflation, caused by objective processes of transformation of the structure of domestic prices. In the new economic conditions it was impossible to leave the old pricing system.

Changing the structure of domestic prices is a long and ambiguous process. It depends on many factors related to the development of production within the country, in the regions, as well as the volume and structure of imports, changes in the ruble exchange rate against other currencies.

20. SOCIOECONOMIC CONSEQUENCES OF INFLATION

Inflation belongs to the system of general economic categories and manifests itself in those socio-economic formations in which commodity-money relations exist. Inflation is the depreciation of money, the fall in their purchasing power, caused by price increases, commodity shortages and a decrease in the quality of goods and services.

Inflation leads to disruption of the reproduction process in all its links: both in the sphere of production and in the sphere of circulation.

Having become a constant factor in economic life, inflation significantly complicates the system of economic relations, it requires constant attention and special measures to keep it at a "normal" level. The decisive characteristic of inflation is its magnitude. The degree of impact on the economy and on the whole society depends precisely on the level of inflation.

The socio-economic consequences of inflation are expressed as follows:

1) the volume of production decreases, since fluctuations and rising prices make the prospects for the development of production uncertain;

2) there is a transfer of capital from production to trade and intermediary operations, where the turnover of capital is faster and more profit is made, and it is also easier to evade taxation;

3) speculation expands as a result of sharp and uneven price changes;

4) credit relations are limited, since no one believes in debt;

5) depreciate the financial resources of the state. The main negative social consequence of inflation is the redistribution of wealth and income,

if incomes are not indexed, and loans are issued without taking into account the price index. The redistribution of GDP and NI occurs in various directions:

▪ between different spheres of production, economic sectors, regions of the country due to uneven price increases;

▪ between the population and the state, which uses the excess money supply as additional income (an inflation tax arises);

▪ between layers and classes of the population. Uneven price growth leads to social stratification, worsening property inequality, which negatively affects savings and current consumption. Inflation is especially dangerous for people with fixed incomes (pensioners, dependents, government employees);

▪ between debtors and creditors. Debtors benefit from the depreciation of the monetary loan.

Inflation, especially hyperinflation, leading to an aggravation of economic and social contradictions, requires the state to take measures to overcome inflation and stabilize the monetary system. Overcoming inflation is a necessary condition for normal economic development and effective functioning of the monetary and financial systems. But the reduction of inflation cannot be regarded as an end in itself, a way of automatically raising production. The processes of reducing inflation and raising production must go on simultaneously, since they condition each other. This is especially true for Russian conditions. The protracted inflation in Russia is the result of an unsuccessful general economic policy that did not ensure the growth of production, although the sharp restriction of the money supply had a temporary effect of lowering inflation.

21. MAIN DIRECTIONS OF RUSSIAN ANTI-INFLATION POLICY

The unique nature of Russian inflation requires the use of special methods of its regulation, corresponding to the current real conditions of management.

The main goal of anti-inflationary policy - to make inflation manageable and to weaken its negative social and economic consequences.

The main factors in the fight against inflation are overcoming the economic downturn, the payment crisis, reducing investment activity, the formation of a stable market infrastructure. Of particular importance for the economy is the support of priority sectors of the national economy, stimulation of exports of products, a reasonable protectionist policy and the exchange rate policy, which will help increase the competitiveness of domestic goods.

Great importance in anti-inflationary policy have a structural restructuring of the economy and its adaptation to the needs of the market due to the competent conversion of the military-industrial complex, demonopolization and regulation of the activities of existing monopolies, stimulation of competition in production, distribution, the service sector, etc.

Under the circumstances decisive factor in the fight against inflation it will be possible to restore state structures of management and control over prices and incomes, distribution and redistribution of material and financial resources while pursuing a course towards the predominant use of free market prices.

Special attention in anti-inflationary policy should be given improvement \/ tax system:

▪ reducing the number of taxes levied;

▪ refusal to use inflation as a source of budget financing;

▪ revision of tax payments included in production costs that stimulate price increases (contributions to the pension fund, social insurance fund, employment fund, land payments, property taxes, etc.);

▪ changes in taxation methods.

An important direction in anti-inflationary policy are further development and state regulation of the foreign exchange and financial markets, as well as improvement of the mechanism for forming the exchange rate.

The basis of foreign economic activity continue to be the development of exports and the strengthening of its base, which requires the provision of effective export and foreign exchange controls in order to stop the "flight" of capital abroad and ensure the timeliness and completeness of tax payments on these operations.

The restructuring of exports and imports can be of great importance for curbing inflation.

One of the decisive roles in the implementation of anti-inflationary policy plays the Central Bank of the Russian Federation, which carried out monetary regulation. There is a need for direct management of credit emission, aimed at restoring economic ties and the banking system, and raising production. To curb inflation, it is necessary to support the investment activity of commercial banks, as is customary in world practice.

Successful implementation of anti-inflationary policy is possible only on the basis of the development of regulations governing all areas of market relations and the unconditional implementation of existing legislation.

22. MONETARY SYSTEM. CLASSIFICATION OF TYPES OF MONETARY SYSTEMS

Monetary system - this is a form of organization of monetary circulation in the country, which has developed historically and is enshrined in national legislation.

The type of monetary system depends on in what form does money function? - as a commodity or as signs of value. In this regard, the following types of monetary systems are distinguished:

▪ a system of metal circulation, in which the monetary commodity is directly circulated and performs all the functions of money, and credit money is exchanged for gold;

▪ a system of circulation of credit money that is not redeemable for gold.

Depending on the metal, which in a given country was accepted as a universal equivalent and base of monetary circulation, bimetallism and monometallism are distinguished.

Bimetallism - a monetary system in which the state legislates the role of a universal equivalent for two precious metals (usually gold and silver), provides for the free minting of coins from both metals and their unlimited circulation. There are three types of bimetallism:

▪ parallel currency systemwhen the ratio between gold and silver coins is spontaneously established on the market;

▪ dual currency systemwhen the ratio between gold and silver coins was established by the state depending on various factors (demand for metals, economic and political situation in the country, etc.);

▪ lame currency system, in which gold and silver coins served as legal tender, but not on equal terms, since the minting of silver coins was carried out in a closed manner, in contrast to the free minting of gold coins.

The development of a commodity economy required stable money, a single universal equivalent, so bimetallism gave way to monometallism.

Monometallism - a monetary system in which one metal serves as a universal equivalent and the basis of monetary circulation, functioning coins and tokens of value (banknotes) are exchanged for metal. Historically, there have been three types of monometallism: copper, silver and gold.

Depending on the nature of the exchange of signs of value for gold, there are three types of gold monometallism:

▪ gold coin standard (free circulation of gold coins);

▪ gold bullion standard (provided for the possibility of exchanging tokens of value for gold only upon presentation of an amount corresponding to the price of a standard bullion);

▪ gold exchange standard (when banknotes were allowed to be exchanged for foreign currency redeemable for gold).

Since the mid 1930s. in the world, monetary systems are beginning to function, built on the turnover of banknotes that are not exchangeable for gold, and the gold standard is being dismantled.

The characteristic features of modern monetary systems based on the circulation of credit money are:

▪ cancellation of the official gold content, collateral and exchange of banknotes for gold, transition to credit money not redeemable for gold;

▪ development of non-cash money turnover and reduction of cash;

▪ Strengthening government regulation of money circulation. The issue of modern banknotes is not related to gold, but there are certain instruments that restrain this issue - most notably the monetary policy of the central bank.

23. PRINCIPLES OF MONETARY MANAGEMENT

К principles of monetary system management can include the following.

1. The principle of centralized management of the monetary system assumes the existence of a single state center (represented by the central bank, the ministry of finance or the treasury), which determines the basis for the organization of money circulation and regulates it. In market conditions, the centralized management of the monetary system is based mainly on economic methods based on the motivation of economic entities, although administrative methods are also of great importance, since a well-developed legal framework is important for the stable functioning of the monetary system.

2. The principle of predictive planning of cash flow is directly related to such principles of the organization of the monetary system as the stability and elasticity of money circulation. Ensuring stability and elasticity requires preliminary planning of the volume and structure of the money supply and money circulation. In the conditions of a command economy, the result of the planning process is rigid centralized plans; in the conditions of the market, this process consists in making appropriate forecasts. An exception can be considered the formation of such a financial plan of the state as the budget; it takes the form of a law, remains a directive plan, for the implementation of which the government is responsible.

3. The principle of security of issued money and the nature of money issue. The issue of unsecured money provokes inflation of the monetary system, but money can be backed by gold and central bank assets, which leads to differences in the forms and types of money and, accordingly, monetary systems. The modern principle of the credit nature of money emission means that the issue of cash and non-cash money is carried out on the basis of credit transactions. Moreover, any covering of the budget deficit and government expenditures by issuing money from the central bank (budget emission) leads to a violation of this principle and is prohibited by law in all countries.

4. The principle of dependence or independence of the central bank from the state in the field of issuing operations, solving the problem of ensuring the stability of the national currency, the integrated use of monetary regulation tools, providing funds to the government in the form of lending.

5. The principle of providing the government with funds only through lending. The application of this principle makes it possible to prevent the use of money to cover the deficit of federal local budgets and thereby not give an incentive to the development of the inflationary process, forcing the government to seek other sources of budget revenues to cover federal and local expenses.

6. The principle of integrated use of monetary regulation instruments.

7. The principle of supervision and control over money circulation: the state through the banking, financial system, tax authorities must ensure constant supervision and control over the money turnover and the main cash flows in the economy.

24. ELEMENTS OF THE MONETARY SYSTEM

Any monetary system is a set of elements regulated by state laws.

Modern monetary systems include the following elements.

1. Monetary unit as an element of the monetary system, it represents a banknote established by law, which serves to measure and express the prices of all goods and, as a rule, is divided into small and multiple parts. The currency is legal tender. The name of the monetary unit is formed historically, but in some cases (for example, during revolutions, political upheavals, the division of the country into independent countries or, conversely, the unification of countries into an economic and political union), the state may establish a new name for the monetary unit.

Types of banknotes are credit bank notes (banknotes), government paper money (treasury notes) and small change serving as legal tender in the country.

2. The procedure for securing banknotes inventory items, gold, freely convertible currency, securities and other debt obligations in the assets of banks.

3. Emission mechanism, which is a legally established procedure for releasing money into circulation and withdrawing it from circulation. Non-cash money is issued by commercial banks in the process of performing credit transactions. When loans are repaid, money is withdrawn from circulation. Cash issuance is carried out through the central bank's cash settlement centers.

Withdrawal of cash occurs when commercial banks transfer cash to cash settlement centers.

4. Structure of money supply in circulation. It is viewed in two ways. This is either the ratio between cash and non-cash money supply, or the ratio between banknotes of different denominations in the entire volume of the money supply.

5. Monetary regulation mechanism, which is a set of monetary regulation tools (methods); rights and responsibilities of bodies carrying out monetary regulation; tasks and objects of monetary regulation.

6. The procedure for establishing the exchange rate, which is determined based on the quote. Quotation - determination and establishment of the exchange rate of a foreign currency in relation to the national currency. Currency quotation allows you to determine the ratio of two monetary units offered for exchange. This ratio cannot be constant, since supply and demand in the foreign exchange market change. Quotations are carried out by central (national) banks and the largest commercial banks. Distinguish official and free (market) currency quotes.

7. Cash discipline - this is a set of general rules, forms of primary cash documents, reporting forms that enterprises and organizations of all forms of ownership should be guided by when organizing cash circulation passing through their cash desks. Control over observance of cash discipline is entrusted to commercial banks.

8. The procedure for conducting cashless payments involves the regulation of accounts for which non-cash payments are made in the economy, forms of payment, obligations that arise with non-cash payments.

25. MONETARY SYSTEM OF THE RUSSIAN FEDERATION

The legal basis for the functioning of the monetary system in Russia is determined by the federal laws "On the Central Bank of the Russian Federation (Bank of Russia)" and "On Banks and Banking Activity". These laws determined the legal foundations of the monetary system, as well as the tasks, functions and powers of the Bank of Russia in organizing monetary circulation and the monetary system.

According to these laws:

1) the official currency in the country is the ruble;

2) the Bank of Russia has the exclusive right to issue cash, organize its circulation and withdrawal on the territory of the Russian Federation, it is responsible for the state of money circulation in order to maintain normal economic activity in the country;

3) the ratio between the ruble and gold or other precious metals is not established by law, and the exchange rate of the ruble against foreign monetary units is determined by the Central Bank of the Russian Federation;

4) types of money that have legal tender value are banknotes and metal coins, which are backed by all assets of the Bank of Russia, including gold reserves, government securities, and reserves of credit institutions held in the accounts of the Central Bank of the Russian Federation;

5) samples of banknotes and coins are approved by the Bank of Russia;

6) cash and non-cash money operate on the territory of Russia.

In order to organize cash circulation on the territory of the Russian Federation, the Bank of Russia has the following obligations:

1) forecasting and organization of production, transportation and storage of banknotes and coins, as well as the creation of their reserve funds;

2) establishment of rules for the storage, transportation and collection of cash for credit institutions;

3) determination of signs of the solvency of banknotes and the procedure for replacing damaged banknotes and coins, as well as their destruction;

4) development and approval of rules for conducting cash transactions in the national economy.

Currently, the Regulations of the Central Bank of the Russian Federation "On the procedure for conducting cash transactions in credit institutions on the territory of the Russian Federation" are in force.

The Government of the Russian Federation, together with the Central Bank of the Russian Federation, develops the main directions of economic policy, including monetary and credit policy. The Central Bank carries out monetary regulation of the economy by using tools generally accepted in a market economy: changing interest rates on loans to commercial banks, reserve requirements and conducting open market operations. It regulates the size and growth rate of the money supply. To carry out issuance and cash regulation, cash services for credit institutions, as well as enterprises and organizations, the main territorial departments of the Central Bank, cash settlement centers have circulating cash desks for accepting and issuing cash and reserve funds of banknotes and coins. Reserve funds of banknotes and coins are stocks of unissued banknotes and coins in the vaults of the Central Bank.

Thus, the monetary system of Russia is a typical modern monetary system using credit tokens of value, not redeemable for gold, regulated by the Central Bank of Russia through economic regulations and monetary policy instruments.

26. ESSENCE, TYPES AND METHODS OF MONETARY REFORM

Monetary reform - this is a transformation of the monetary system carried out by the state in order to streamline and strengthen the country's monetary circulation.

Radical monetary reforms, associated with changes in the principles of organization of the monetary system, as a rule, are focused on long-term stabilization of the monetary unit.

Partial transformations of the monetary system eliminate for a short time certain negative phenomena in the monetary sphere.

Monetary reforms are carried out by various methods, depending on the form of circulating money, the socio-economic structure of the country, the complete or partial transformation of the monetary system, and state policy.

All methods for stabilizing the monetary system are as follows.

Nullification - declaration by the state of depreciated old banknotes as invalid and the issuance of new paper banknotes in smaller quantities.

Nullification is usually carried out during the period of stabilization of the economy after hyperinflation to restore confidence in the national currency.

Denomination (change in the scale of prices) - a change in the nominal value of banknotes with their exchange at a certain ratio for new, larger monetary units with the simultaneous recalculation of all monetary obligations in the country.

The denomination also provides for the replacement of old banknotes with new ones, but no limit on amounts. Formally, it is of a technical nature, since it facilitates and simplifies accounting, reduces circulation costs and does not affect the economic foundations of stabilizing money circulation. At the same time, it can be an important stage in strengthening the monetary system if it is carried out at the final stage of stabilizing the economy, finances and suppressing hyperinflation, since it is an important point in increasing confidence in the national currency.

Devaluation - under the gold standard, a decrease in the metallic content of the monetary unit, with the cessation of the exchange of credit money for gold - a decrease in the rate of national banknotes in relation to foreign currency.

After the cessation of the exchange of credit money for gold, devaluation began to be used to strengthen the competitive positions of countries in foreign markets, improve the state of the balance of payments, and attract foreign investment.

Devaluation does not eliminate the problems of money circulation and in modern conditions, does not restore the stability of the national currency. It leads to a decrease in the purchasing power of money as a result of an increase in prices for imported goods and unwinds inflationary processes in the country. It stimulates the export of products and intensifies competition in the foreign market.

Revaluation (restoration) - an increase in the metal content of monetary units or the exchange rate of paper banknotes in relation to metal or foreign currency. Revaluation restrains inflationary processes in the country, as imported goods become cheaper, but it is unprofitable for exporters who lose on the exchange rate difference when exchanging cheaper foreign currency for a strengthened own currency under previously concluded contracts.

In modern conditions, denomination and revaluation are used as methods of monetary and foreign exchange policy.

27. NEED, ESSENCE AND ELEMENTS OF CREDIT

Credit (lat. сreditum - loan) - a loan in cash or commodity form on terms of repayment, payment and urgency. The predecessor of the loan was a usurious loan, which was characterized by a high interest rate and was used as a means of purchase.

Credit arises from the function of money as a means of payment when selling goods not for cash, but with installment payment, which is due not to the poverty of the buyer, but to the peculiarity of the production process, hence credit relations appear in the sphere not of production, but of circulation, where the owners of the goods oppose each other as owners of goods and money.

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.

As an economic category, credit to the population is a certain type of social relations associated with the movement of value. This movement involves the transfer of funds - loans for a while, and the borrower retains the right of ownership.

When analyzing the essence of a loan, three elements should be distinguished:

▪ subject;

▪ object;

▪ loan interest.

Subjects credit relations - the lender and the borrower.

The lender grants a loan for a period of time, remaining the owner of the loaned value. 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, attracted funds stored in the accounts of its clients, as well as mobilized through the issue of securities.

The borrower receives the loan and undertakes to repay it by the due date. He is not the owner of the loaned capital, but only its temporary owner. The borrower pays interest on the loan, he must have certain property or other security that guarantees the return of the loan at the request of the lender.

Object credit relations - loaned value (loan capital).

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 the population, voluntarily transferred by financial intermediaries for subsequent capitalization and profit.

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

Loan interest - 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.

Loan interest is a part of surplus value, the value of which depends on the cost of production, representing the costs of living and materialized labor.

28. GENERAL PRINCIPLES OF LENDING

Credit relations in the economy function in accordance with the basic principles, which, along with the elements of credit, reveal its essence. The basic principles of the loan: repayment, urgency, payment, security, target character, differentiation.

Loan Repayment means the need for a timely return of funds to the lender after the completion of their use in the borrower's economy. The borrower cannot dispose of the received loan as its own capital. He is obliged to return the amount received by transferring the appropriate amount of money to the account of the creditor, which ensures that he is able to continue commercial activities.

The loan is returned at the moment when the released funds enable the borrower to return the funds received for temporary use. The return process is important for both the lender and the borrower.

Urgent credit assumes that the borrower should return the loan amount not 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), it is possible to provide financial claims in court. Meeting the deadline for the borrower is a guarantee of obtaining a loan.

Loan Repayment 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 loan repayment is in the form loan interest.

Security of credit - the necessary protection of the property interests of the creditor 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.

Purpose of the loan used for most credit relations and expresses the need for targeted use of the creditor'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 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.

29. FUNCTIONS OF CREDIT

The functions of credit, like any economic category, express its essence. They are objective in nature and show interaction with the external sphere.

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

Credit acts as a spontaneous regulator at the macroeconomic level, redistributing the value temporarily released between industries and territories.

In special cases, the redistributive function can cause a disproportionality in the structure of the market.

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

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

3. Function of replacing cash with credit. Credit accelerates not only commodity circulation, but also money circulation, displacing cash from it. In the sphere of money circulation, credit instruments such as bills of exchange, checks, and credit cards arise. As a result of replacing cash with non-cash transactions, the mechanism of economic relations in the market is simplified and money turnover is accelerated.

4. Capital concentration acceleration function. The development of production is accompanied by a process of concentration of capital. Borrowed capital gives an entrepreneur the opportunity to expand the scale of production and gain additional profit. Despite the need to pay interest on the loan, raising capital on loan terms is always profitable. The concentration of capital, even on a small scale, brings positive economic results in Russian conditions.

5. Stimulating function. Credit stimulates the development of productive forces, accelerates the formation of sources of capital to expand reproduction based on the achievements of scientific and technological progress. Closely related to this is the ability of credit to accelerate the concentration of capital. Borrowed funds added to one's own expand either the scale of production or the scale of business operations, which makes it possible to obtain additional profit, i.e., an additional source.

Credit at the present stage acts as the most powerful means of regulating the economy. The states, through central banks, in order to ensure the stability of the national currency, the country's balance of payments, reduce inflation and other macroeconomic indicators, pursue a unified state monetary policy.

30. THE ROLE OF CREDIT

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 (commercial, banking, consumer, international, state) 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. Loans satisfy temporary discrepancies between the current cash receipts and expenses of enterprises. As a result, repeated delays in the reproduction process are overcome and continuity and acceleration are ensured. This role of credit is especially important in seasonal production and the sale of certain types 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.

The role of credit can be both quantitative and qualitative. Often, in order to characterize the significance of credit, society uses absolute and relative indicators of its use in the economy. Among them are indicators of the size of credit investments in general and in the context of sectors of the national economy, as well as by borrowers. As indicators of the role of credit, its share as a source of working and fixed capital formation, loan turnover, the ratio of the amount of credit to GDP, etc. are often used.

The specific purpose of the loan is to increase and accelerate the movement of capital. The borrower has a chance, by attracting additional credit, to increase the scale of functioning capital, to ensure not only the continuity, but also the acceleration of the reproduction process. The creditor has the opportunity to fully not only maintain the continuity of the functioning of resources as capital, but also increase the mass of the increasing value, as well as accelerate its movement.

The role of credit can be viewed from the standpoint of what its purpose is not only for reproduction in general, but also for its individual phases: production, distribution, exchange and consumption.

The credit can be used in the exchange-only or consumption-only phase. In this case, at each separate phase of the application of credit, there is an acceleration of the movement of a mass of increasing value. Acceleration due to credit is characteristic of every phase of reproduction.

Credit, by virtue of its objective qualities, has been and remains the greatest economic force contributing to economic and social progress.

31. LIMITS OF CREDIT

Definition reasonable limits for the application of the loan and their observance are important for individual participants in credit relations and for the economy as a whole.

The impact of credit on the economy can be positive only with an optimal level of credit investments. Excessive provision of credit has a negative impact on the development of the economy, including a slowdown in the rate of reproduction; weakens the interest of enterprises in the economical use of resources, the acceleration of production processes and the sale of products.

The amount of credit provided affects the provision of turnover in means of payment. Excessive limitation of the amount of bank credit provided can lead to difficulties in acquiring material assets, reduce effective demand and, accordingly, affect the containment of price growth. Excessive expansion of the provision of credit can lead to exactly the opposite results.

Reasonable definition and observance of credit boundaries are important for all forms and types of credit relations. This is of particular importance for a bank loan, which occupies a dominant place in the system of credit relations and the boundaries of which are absent in the activities of banks.

With excessive lending, the formation of unrealistic resources is quite possible, and with insufficient lending, there is also a lack of resources. This emphasizes the need to consider the features of determining the boundaries of the application of the loan, which involves the establishment of: - the range of needs for funds that can be met at the expense of the loan;

▪ the limits of the use of credit for the national economy as a whole, including for increasing working capital, fixed assets, consumer needs, and government needs;

▪ quantitative limits for the provision of credit (volume of credit investments of individual banks, etc.);

▪ the boundaries of providing credit to individual borrowers, determined by the characteristics of the relationship between the lender and the borrower, taking into account the interests and needs of the borrower, as well as the capabilities and interests of the lender.

When determining the boundaries of the loan, it is important to provide loans based on the availability of the necessary conditions for the return of borrowed funds.

When determining the boundaries of the application of the loan, the following should be taken into account:

▪ the need for the participation of borrowed funds in solving the problems of ensuring the continuity and development of production processes and sales of products;

▪ the quality of the enterprise’s commercial activities;

▪ economical use of farm resources;

▪ issues of improving the well-being of the population;

▪ needs to ensure circulation of means of payment, etc.

In the complex of factors and indicators influencing the boundaries of the application of credit at the micro level, the need of enterprises for funds, combined with their interest in economically attracting credit, the desire of lenders to observe their own interests when lending to borrowers, and the need to comply with established standards, with the help of which the activities of banks, the requirements for the repayment of loans provided are observed.

32. FORMS OF LOAN

Credit is classified according to various basic indicators. Forms of credit are closely related to its structure and, to a certain extent, to the essence of credit relations.

Forms of credit can be considered depending on the nature of: the lender and the borrower; loaned value; target needs of the borrower.

Depending on the loaned value it is advisable to distinguish between commodity, monetary and mixed (commodity-money) forms of credit.

Commodity form of credit historically precedes its monetary form. In modern practice, the commodity form of credit is not used both when selling goods with an installment payment, and when renting property (including leasing equipment), renting things.

Monetary form of credit the most typical, prevailing in the modern economy. This form of credit is actively used by the state and citizens both within the country and in external economic turnover.

If the credit was granted in the form of a commodity and returned in money or vice versa (provided in money and returned in the form of a commodity), then in this case it is more correct to assume that mixed form of loan.

Depending on who is the lender 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.

productive form the loan is related to 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.

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

There are no pure forms of credit isolated from one another.

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

▪ direct and indirect;

▪ explicit and hidden;

▪ old and new;

▪ main (predominant) and additional;

▪ developed and undeveloped, etc.

Direct form of credit reflects the direct issuance of a loan to its user without mediated links.

Indirect form of credit occurs when a loan is taken to lend to other entities.

Under the explicit form of credit refers to a loan for a predetermined purpose.

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

Old form of credit - a form that appeared at the beginning of the development of credit relations (for example, a commodity loan secured by property, a usurious form of credit). The old form can be modernized, acquire modern features.

Towards new forms of credit include a lease loan.

The main (primary) form of modern credit - monetary credit, while commodity credit acts as additional form.

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

33. TYPES OF LOAN

Loan type - this is a more detailed description of its organizational and economic characteristics, used to classify loans. There are no uniform world standards for their classification. In each country, the loan has its own characteristics. In Russia, loans are classified according to:

▪ from the stages of reproduction served by the loan;

▪ industry focus;

▪ lending objects;

▪ its security;

▪ lending terms;

▪ payment. The loan serves the exchange. As an important payment instrument, credit is used to meet the diverse needs of the borrower. These needs arise not only during exchange, when the gap in payment turnover manifests itself to the greatest extent, but also at other stages of reproduction. Acting as a category of exchange, credit is also used to meet the needs of production, distribution and consumption of the gross product.

The loan is divided into types and depending on the industry focus. When a loan serves the needs of industrial enterprises, it is an industrial loan. There is also agricultural and trade credit.

The classification of the loan is also determined by the objects of lending. The object expresses what is opposed to credit. Most often, credit is used to purchase various goods (in industry - raw materials, basic and auxiliary materials, fuel, containers, etc., in trade - goods of a varied assortment, among the population - durable goods); in this case, the loan is opposed by various inventory items.

The classification of a loan by type also depends on its security.. Typically, security is distinguished by nature, degree (completeness) and forms. Based on the nature of the security, loans are divided into those that have direct and indirect security. Based on the degree of security, loans with full (sufficient) and incomplete (insufficient) security can be distinguished. The loan may not have collateral. This type of loan is called a blank loan.

The loan is classified depending on the urgency of the loan. There are short-term, medium-term and long-term loans.

Short term loans serve the current needs of the borrower related to the movement of working capital. Short-term loans are those loans, the repayment period of which, according to international standards, does not exceed one year.

Medium and long term loans serve long-term needs due to the need to modernize production, the implementation of capital expenditures to expand production.

Credit can be classified by type and depending on payment its use. Allocate paid and free, expensive and cheap loans. This division is based on the interest rate established for using the loan.

Most often, the lender differentiates the amount of the fee depending on the term of the loan, the quality of the collateral, and the solvency of the borrower. The payment varies with the economic cycle: recovery, depression or economic crisis.

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 currencies, to legal entities and individuals, etc.

34. COMMERCIAL LOAN

commercial loan - practically one of the first forms of credit relations in the economy, which gave rise to bill circulation and thereby actively contributed to the development of non-cash money circulation, is financial and economic relations between legal entities in the form of sales of products or services with deferred 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, so a trade transaction will take place only with a sale with installment payment. Hence the main purpose of a commercial loan is to accelerate the sale of goods and the entire process of capital circulation and to extract additional profit.

A commercial loan instrument is a bill expressing the financial obligations of the borrower towards the lender.

The two most common types of bills are:

▪ simple - direct obligation of the borrower to pay the established amount directly to the lender;

▪ transferable (draft) - a written order from the lender to the borrower to pay a specified amount to a third party or to the bearer of the bill. The circulation of bills expands the possibilities of providing commercial credit, since it can change hands. At the same time, an endorsement is made on the bill of exchange - an endorsement. The more endorsements on a bill, the wider the range of its circulation and the greater the guarantee of its payment.

A commercial loan has certain disadvantages:

▪ limited by the size of the loan reserve capital. Selling by installments is possible if the entrepreneur has excess capital;

▪ depends on the condition of its return inflow. When production declines, loans are not repaid, and the chain of credit connections is broken, and the size of the loan is reduced;

▪ has a strictly defined direction, i.e. it is provided by one enterprise to another, connected with the first technological chain. A commercial loan in the opposite direction is not possible.

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) a loan with a fixed maturity;

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

3) lending 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.

35. BANK CREDIT AND ITS CLASSIFICATION

Bank loan form - the most common form, since it is banks that most often provide their loans to entities in need of temporary financial assistance. In terms of volume, a loan with a bank form of lending is significantly larger than loans issued with each of the other forms of credit, since the bank is a special entity whose fundamental activity is most often the lending business. It organizes multiple circulation of funds on a repayable basis.

Features of the banking form of the loan:

▪ the bank operates not so much with its own capital as with attracted resources;

▪ the bank lends idle capital, temporarily free funds placed in the bank by business entities on accounts or deposits;

▪ the bank lends not just money, but money as capital. The borrower must use the funds received from the bank in such a way as to not only return them to the lender, but also make a profit sufficient to pay the loan interest. The repayment of a bank loan becomes its integral attribute.

Banks provide loans to various categories of borrowers: enterprises, firms and corporations, individuals, banks and other credit organizations, as well as local authorities.

Bank credit provided to enterprises and corporations mediates the reproduction process as a whole. In terms of delivery time у subdivided into short, medium and long term.

Short term loan is provided for a period of up to one year and serves the movement of the working capital of the enterprise, contributes to the timely implementation of settlements, increases the solvency of enterprises, strengthens their financial position.

Medium 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.

Bank loan to the population provided in cash for various purposes: the purchase of expensive goods, housing, overhaul of residential buildings, household equipment, etc.

A special type of bank loan is a loan provided by one bank to another, or interbank loan. Lending 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 monetary resources for expanding profitable investments.

In modern conditions for the bank, the main criteria for granting a loan are the degree of risk, liquidity and profitability of credit operations. In this regard, banks pay great attention to the analysis of the creditworthiness of their customers, the effectiveness and payback of lending activities. The importance and expansion of the forms of ensuring the repayment of bank loans has increased.

36. STATE LOAN

The form of credit relations in which the state acts as a creditor or debtor is government loan. The state budget deficit, forcing the state to borrow money on the loan capital market, led to the emergence of a form of state credit in which the state acted as a debtor.

Government credit is different from other types of credit. So, if when providing a bank loan, some specific values usually act as collateral - goods in a warehouse, work in progress, then when borrowing funds by the state, all property owned by it, the property of a given territorial unit or any of its income.

At the central government level, government borrowing is not specifically earmarked, while borrowing at lower levels is quite often well-earmarked.

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, if it is impossible for budgetary 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 public credit - unproductive use by the state of funds mobilized by means of 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 payment of interest, 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, loans 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 income paid - interest-bearing, winning, interest-winning, win-win 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.

37. INTERNATIONAL LOAN

International credit represents the movement of loan capital in the sphere of international economic relations, associated with the provision of commodity and foreign exchange resources.

This is the latest form of development, when economic relations have gone beyond the national framework. It functions at the international level on the principles of recurrence, urgency, payment, security, targeted nature at the expense of external and internal sources. Individual legal entities, the governments of the respective states, as well as international credit institutions can act as participants.

An international loan is classified according to several basic criteria:

▪ by sources - internal and external loans;

▪ according to its intended purpose - commercialthat are directly related to foreign trade and services; financial, i.e. direct capital investment, construction of facilities, acquisition 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 deferred payment for goods sold or services provided; currencyprovided by banks in cash;

▪ by loan currency - in the currency of the debtor countryIn currency of the creditor countryIn third country currency and international currency (SDR and euro);

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

▪ from the point of view of the form of provision - cash, certificates of deposit, bonds, consortium loans;

▪ by timing - overtime (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. Redistributions loan capital between countries, when with its help there is an overflow of capital into countries with a low rate of profit, contributing to its equalization and transformation into an average rate of profit.

2. Savings circulation costs in the field 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. Accelerations 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 concessional international loans to large enterprises .

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

38. CONSUMER LOAN

Consumer credit - This is the provision of payment by installments to the population when buying durable goods. Credit is provided by trading firms and specialized financial companies in commodity form. 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. However, consumer credit is closely related to bank credit, as merchants and installment finance companies use consumer debt to obtain bank loans.

The specificity of a broadly understood consumer loan is the fact that the borrowers here are individuals who take out a loan to meet their personal needs.

Lending to 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. A consumer loan for investment 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.

39. LEASE LOAN

Leasing - a form of financial investment in fixed assets, in which a special leasing company (bank department) acquires property for the lessee and transfers it for use for a certain period with subsequent redemption. 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.

Leasing object - any movable and immovable property from the category "fixed assets" (machinery, equipment, computers, production lines).

К subjects leasing transaction includes the parties involved in it. They can be divided into two groups:

▪ directthose directly involved in the transaction: the lessor, who acquires the leased object and transfers it for use, the lessee of the property and the supplier (manufacturer or owner of the leased object), who sells 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 purchase of the leased object. Leasing transactions can be classified according to various criteria.

1. By due date:

▪ operational leasingwhen the rental period of the property is less than its standard service life. Such leasing is used when leasing machinery and equipment, and due to high risks (the risk of not finding the next lessee, the risk of breakdown of the object of the transaction, the risk of early termination of the contract), lease payment rates are set at a higher level than for 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 objects whose cost is high. Both types of leasing, after the end of the contract, give the lessee the opportunity to: purchase the leased object at its 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 leasingwhen all parties to the transaction are representatives of one country;

▪ international leasingwhen one or all participants in the transaction represent different countries or one of the parties has the status of a joint venture. Wherein export leasing is considered in which the foreign country is represented by the lessee, and imported - when the foreign company is the lessor.

3. By the nature of lease payments:

▪ cash payments;

▪ compensation payments when they are made by supplying goods produced on leased equipment, or in the form of providing 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 (tripartite or multilateral transaction).

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

40. CONTENT AND STRUCTURE OF THE CREDIT SYSTEM

The modern credit system is a combination of various financial institutions operating in the loan capital market.

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.

Credit organisation 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.

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 the terms of repayment, payment, urgency, open and maintain bank accounts of individuals and legal entities.

Non-bank credit organization - a credit institution that has the right to carry out certain banking operations. Acceptable combinations of banking operations for non-bank credit institutions 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, payment and settlement documents and provide cash services to legal entities, operations for the purchase and sale of foreign currency in non-cash form. NCOs are not entitled to attract funds from legal entities and individuals in 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 2 major crises. The first - in August 1995, the second - which began in August 1998.

In order to restore the normal functioning of the banking system and its restructuring, in 1999 a Agency for Restructuring of Credit Institutions. 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 implementing liquidation procedures.

41. STATE REGULATION OF CREDIT AND FINANCIAL INSTITUTIONS

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

The main directions of state regulation are:

▪ policy of the Central Bank (CB) in relation to credit and financial institutions;

▪ state tax policy;

▪ state participation in mixed or state credit institutions;

▪ legislative regulation of the activities of various institutions of the credit and financial system. In most industrialized countries Central Bank policy extends mainly to commercial and savings banks and is carried out in the following forms.

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

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

3. The third form of regulation is the operations of the Central Bank on the open market with government bonds through their purchase and sale by credit and financial institutions. All credit and financial institutions are required by law to buy a certain portion of government bonds from the Central Bank, thus financing the state budget deficit.

The main methods of monetary policy of the Central Bank of Russia:

▪ interest rates on Bank of Russia operations;

▪ standards of required reserves deposited with the Bank of Russia;

▪ open market operations;

▪ refinancing of banks;

▪ currency regulation;

▪ establishing benchmarks for money supply growth;

▪ direct quantitative restrictions.

State tax policy is

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

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

Significant influence on the regulation of the credit system is exerted by legislative measurescarried out by the central government and local authorities. They develop packages of laws and instructions regulating various areas of activity of credit and financial institutions.

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

42. PROBLEMS OF THE FORMATION OF THE CREDIT SYSTEM IN RUSSIA

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

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

At the last stage of administrative-command functioning, six absolute monopolists dominated the USSR credit market, dividing this market among themselves: the USSR State Bank, the USSR Stroybank, the Bank for Foreign Trade, the Gostrudsberkass system, Gosstrakh and Ingosstrakh.

Long-term command and administrative functioning of the credit system showed its low efficiency. Most of the loans were not repaid by enterprises, and banks practically performed the function not of lending, but of financing enterprises. Under these conditions, in the mid-1980s. an attempt was made to form a rather specific two-tier credit system in the country.

At the top level was the State Bank of the USSR, at the second level there were five specialized banks. The system of non-bank credit institutions was practically non-existent.

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

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

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

1) the Central Bank of Russia;

2) banking system: commercial banks, Savings Bank of Russia, other specialized banks;

3) specialized credit and financial institutions: insurance companies, non-state pension funds, investment companies, financial and construction companies.

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

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

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

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

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

▪ lack of a real legislative framework to regulate the market of specialized non-banking institutions.

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

43. CONCEPT AND ROLE OF LOAN INTEREST

Loan interest (credit price) is a part of the surplus value, the value of which depends on the cost of production, representing the costs of living and materialized labor. This is part of the surplus value that entrepreneurs-borrowers give to creditors.

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 loan interest performs the following functions:

▪ redistribution of part of the profits of legal entities and individuals;

▪ regulation of production and circulation through the redistribution of credit resources.

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

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

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

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

▪ the interest rate policy of a commercial bank is already aimed at appropriate management of the liquidity of its balance sheet. Differentiation of the level of loan interest on active operations depending on the liquidity of investments leads to compliance of the demand for risky credit on the part of borrowers with the liquidity requirements of the banks' balance sheets. The role of interest on deposit transactions as an incentive to attract the most stable funds into the circulation of a credit institution can be seen in a similar way.

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.

44. FACTORS DETERMINING THE LEVEL OF MARKET INTEREST RATES

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

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

2. The level of development of money markets and securities markets. The most important parameters of the securities market and the money market are directly dependent on each other. With the growth of profitability on operations with securities, financial institutions are forced to adjust rates accordingly.

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

4. The risk factor is inherent in any credit transaction. The nature and level of risks vary with specific operations, but while internal risks can be more mitigated, external risks are often unmanageable. They are taken into account when forming the level of interest rates, primarily for international transactions.

5. Monetary policy of the Bank of Russia. The main instruments of monetary policy are the accounting policy of the Bank of Russia, regulation of the required bank reserve ratio, and open market operations. Through the use of these instruments, the volume of money supply in circulation and, accordingly, the level of market interest rates are regulated.

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

7. Taxation. The taxation system affects the amount of profit remaining at the disposal of the enterprise. By changing the procedure for levying taxes, tax rates, applying a system of benefits, the state stimulates certain economic processes. This system is also valid for the monetary market.

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.

45. SYSTEM OF INTEREST RATES

Interest rate - this is the relative amount of interest payments on loan capital for a certain period of time (usually a year). It is calculated as the ratio of the absolute amount of interest payments for the year to the amount of loan capital.

Interest rates can be fixed or floating.

Fixed interest rate is established for the entire period of use of borrowed funds without the unilateral right to review it.

floating interest rate - this is the rate on medium- and long-term loans, which consists of two parts: a mobile basis, which changes in accordance with market conditions, and a fixed amount, usually unchanged during the entire period of lending or circulation of debt securities.

The interest rate system includes the rates of the monetary and stock markets: rates on bank loans and deposits, treasury, bank and corporate bills, interest on government and corporate bonds, interest rates on the interbank market, and many others.

Types of interest rates are the following.

Accounting percentage is the official lending rate for commercial banks by the Central Bank. The discount rate is one of the main tools by which the central banks of different countries regulate the amount of money in circulation, inflation rates, the state of the balance of payments and the exchange rate.

Refinancing of commercial banks can be carried out either through direct short-term lending or through rediscounting of commercial bills. In Russia, only one method of refinancing is currently used - direct lending to commercial banks by the Bank of Russia.

Bank interest - one of the most developed forms of loan interest in Russia. This form appears in the case when one of the subjects of credit relations is a bank.

The share of income received by the bank represents the compensation for intermediation, the risk of default assumed by the bank, and the credit rating of the borrower. The risk of non-fulfillment of obligations to the bank on its assets exceeds the risk of non-fulfillment of obligations to the depositor on liabilities. The Bank assumes the risk of default on loans. In addition, depositors allow a lower interest rate on funds transferred to the bank, so as not to search for customers and assess their creditworthiness.

When determining the rate of interest in each specific transaction, a commercial bank takes into account:

▪ level of the base interest rate;

▪ risk premium.

Deposit rates on passive operations of banks subject to the influence of the same market processes as the rates on active operations, so the direction of their fluctuations is approximately the same. The deposit rate is always several points lower than the credit rate, the difference is called the "spread", or "interest margin"; at the expense of it, the costs of ensuring the work of the bank are covered and profit is formed.

Deposit rates are closely related to other monetary and stock market rates.

Interbank interest rate - interest rate on loans in the interbank market. Such rates are the most flexible and are more focused on market conditions.

46. FEATURES OF LOAN INTEREST IN RUSSIA

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

Key factorsfactors affecting the use of loan interest in Russia are as follows.

A large gap in profitability between individual sectors of the economy determines the preferential lending to enterprises in those industries, the rate of return in which allows the most free use of borrowed funds: the oil and gas industry, mining, trade and a number of others. At the same time, in general, the Russian economy in recent years, in contrast to the pre-crisis period, is characterized by a higher profitability of the real sector of the economy compared to the financial one.

A high level of inflationary depreciation of money, characteristic of a transitional economy, is also observed in Russia.

The development of the securities market in Russia can already be considered as one of the factors influencing the level of loan interest.

The increase in the volume of attracting resources from international capital markets has a positive effect on the dynamics of the movement of market interest rates.

The degree of risk is one of the most significant factors determining the level of loan interest. Some stabilization of the economy in recent years, GDP growth, the official refusal of the country's leadership to revise the results of privatization should be considered as a favorable basis for lowering interest rates.

The policy of the Bank of Russia is currently aimed at lowering the discount rate and reducing the required reserve ratio in order to stimulate investment as much as possible and, accordingly, economic growth. At the same time, a further reduction in the discount rate may cause an outflow of capital from the country.

The influence of the described factors is not always unambiguous. Their interaction is a complex economic process, the result of which is one or another trend in the movement of interest rates.

The main features of loan interest in modern Russia are as follows:.

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

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

The mechanism for using floating interest rates has not been widely adopted, primarily due to the lack of recognition of monetary market indicators that could be used as a floating basis for such rates.

The state currently uses interest on a limited scale as a tool to stimulate certain economic processes.

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

47. MARKET OF LOAN CAPITAL: ESSENCE, STRUCTURE, FUNCTIONS

Loan capital - this is money given on a loan for a certain percentage, subject to repayment. The form of movement of loan capital is a loan. Loan capital is a special historical category of capital that arises and develops under the conditions of the capitalist mode of production.

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

▪ depreciation fund of enterprises for renewal, expansion and restoration of fixed assets;

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

▪ funds generated as a result of the gap between receiving money from the sale of goods and paying wages;

▪ profit used to update and expand production;

▪ cash income and savings of all segments of the population;

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

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

The loan capital market as one of the financial у markets can be defined as a special sphere of financial relations associated with the process of ensuring the circulation of loan capital.

The main players in this market are: primary investors, i.e., owners of free financial resources, mobilized by banks on various conditions and converted into loan capital; specialized intermediaries represented by credit and banking institutions that directly attract funds and convert them into loan capital; borrowers - in the person of legal entities and individuals, as well as states experiencing a temporary lack of financial resources.

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

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

On institutional feature the modern loan capital market presupposes the existence of an equity capital market (or securities market) and a debt capital market (credit and banking system).

The main function loan capital market:

▪ servicing commodity circulation through credit;

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

▪ transformation of monetary funds directly into loan capital and its use in the form of capital investments to service the production process;

▪ serving the state and the population as sources of capital to cover government and consumer expenses;

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

48. LOAN POLICY OF THE BANK

Credit policy - this is the strategy and tactics of the bank in the field of credit operations. There is no single credit policy for all banks. Each bank forms its own credit policy, taking into account economic, political, geographical, organizational and other factors that affect its activities.

The credit policy creates the necessary general prerequisites for the effective work of the personnel of the bank's credit division (understanding the priorities, goals, tools, methods of organizing credit transactions), unites and organizes the efforts of the personnel, reduces the likelihood of errors and making irrational decisions.

When forming its credit policy, a commercial bank must take into account the nature of the fluctuations and the category of the deposit. To reduce the degree of riskiness of a loan, banks need to develop methods for calculating the coefficient of connectedness of deposits, taking into account the reasonableness of banks. It is also important to use various techniques and methods for assessing the liquidity of the bank's balance sheet, rating assessment, compliance with the economic standards of the Central Bank, and take into account the interest rate risk arising from the formation of deposits and credit operations. Of great importance in the formation of the credit policy of the bank are external risks that characterize the level of the economy as a whole, the stability of its monetary relations and other factors that are not directly related to the activities of a commercial bank and its client:

▪ political risks;

▪ risks of natural disasters. In many ways, the credit policy of a commercial bank is determined by the monetary and fiscal policies of the state. The expansion and provision of interbank loans contributes to a more liberal lending policy and a reduction in interest rates. Credit policy includes such elements as:

▪ the bank’s field of activity;

▪ the scope of services provided by the bank;

▪ collateral for loans;

▪ analysis of the borrower’s creditworthiness;

▪ loan repayment period;

▪ interest rate policy of the bank.

The directions of the credit policy of regional banks are different, but the principles of the credit policy of banks differ little from each other.

The purpose of the credit policy of any bank is to make a profit in the conditions of effective risk management of banking activities in compliance with the requirements of the law.

Objectives of credit policy specify the goal and can determine the improvement of the composition of bank loans, the need to accelerate their turnover, increase the share of secured loans, etc.

Choice of direction also follows from the goal and can determine the concentration of efforts on lending services to organizations of certain sectors of the economy, or specialize in lending to individuals, interbank loans, or develop international lending operations to a greater extent, etc.

Technology and control ensure the successful solution of the tasks set and the achievement of the intended goal.

All of these elements are closely related, and the violation of one of them inevitably leads to difficulties or losses from the bank's lending activities.

49. ORGANIZATION OF THE LENDING PROCESS

To implement lending activities

commercial banks create credit divisions in their structure, the direct work of which is the organization of the credit process. The following stages of the lending process can be distinguished:

▪ consideration of a loan application and interview with the client;

▪ study of the client’s creditworthiness;

▪ preparation and conclusion of a loan agreement, issuance of a loan;

▪ formation of a reserve for possible loan losses;

▪ control of the bank over compliance with the terms of the agreement and repayment of the loan (loan support);

▪ the bank’s work with problem loans.

A client applying to the bank for a loan must submit an application-petition (loan application) in any form, which indicates: the purpose of the loan with a brief description of the enterprise and the possible economic effect as a result of using the loan, the loan amount, the period of use, the expected security, acceptable interest rate for the company.

The Bank requires that the required documents and financial statements are attached to the loan application, serving as a justification for the loan request and explaining the reasons for applying to the bank. These documents are a necessary part of the application. Their thorough analysis is carried out at subsequent stages, after the bank representative conducts a preliminary interview with the applicant and concludes that the transaction is promising.

An application for a loan goes to the appropriate loan officer and within one or two days must be considered by him for acceptance or refusal.

After checking the submitted documents, the loan officer conducts an interview with the client, which allows the borrower to personally justify the need for a loan, and the bank employee to assess the nature and sincerity of his intentions.

If the bank decides to continue working with the client based on the results of consideration of the loan application and the preliminary interview, then the next stage begins - the stage of determining the creditworthiness of the borrower.

After determining the creditworthiness of the borrower, the loan officer proceeds to the development of a loan agreement (loan structuring), during which the bank determines the type of loan, amount, term, repayment method, collateral, loan price and other conditions.

The next step after the signing of the loan agreement is the formation by the bank of a reserve for possible losses on the loan due to deductions attributable to the bank's expenses.

The main goal of monitoring compliance with the terms of the loan agreement is the regularity of interest payments and timely repayment of the loan.

Repayment of a loan is a complex, purposeful activity of banking institutions, which includes a set of organizational, economic and legal measures.

The main reasons for difficulties in repaying loans can be the fault of both the bank and the borrower.

If the set of measures planned by the bank is successful, then the loan is quickly repaid. If the situation becomes more complicated, then there may be the following options:

1) the loan can be repaid after the sale of the collateral;

2) repayment of the loan is preceded by a court decision on bankruptcy and the sale of the borrower's assets;

3) if the bank did not take timely measures, it incurs losses.

50. ASSESSMENT OF CREDIT POSITION OF BANK BORROWERS

When granting a loan to a borrower, the bank's attention is focused on assessing the client's creditworthiness. Creditworthiness analysis aims to assess the client’s ability and willingness to repay borrowed funds in accordance with the terms of the loan agreement, as well as to weigh the feasibility of loan investments and the continuation of the relationship between the bank and the borrower.

The creditworthiness of the enterprise is expressed through a system of certain indicators: liquidity, turnover, raising funds, profitability.

Creditworthiness is determined through analysis. The content of the banking analysis of creditworthiness consists in the study of various factors that may lead to non-repayment of the loan or, conversely, its timely return.

The creditworthiness analysis should include:

▪ assessment of the borrower, which is determined by the bank before deciding on the possibility and conditions of lending;

▪ forecasting the client’s ability and willingness to repay the borrowed funds in accordance with the terms of the loan agreement;

▪ assessment of the validity and feasibility of loan investments and further relations in the field of lending between the bank and the borrower.

The tasks of analyzing the creditworthiness include assessing the financial position of the enterprise, preventing losses of credit resources due to the inefficient economic activity of the borrower, stimulating the work of the enterprise in order to increase its efficiency, and increasing the efficiency of lending.

The main direction of the study of creditworthiness is the forecast of the future state of affairs of the borrower and the general economic situation.

Work on assessing the creditworthiness of enterprises includes the following steps.

The first stage - determination of the period of activity of the enterprise to be studied; checking the relationship between report indicators and assessing their comparability.

The second stage work during external analysis includes preliminary analytical calculations. These include calculations of absolute and relative deviations of reporting indicators from the base ones; determination of the proportions of individual articles to the totals; calculations of relative indicators for assessing creditworthiness, profitability, etc.

The third stage - the analysis itself. As a result of the analysis, based on quantitative indicators, a qualitative assessment of the state of solvency of the enterprise, directions of its development is given to resolve the issue of granting a loan to the borrower and determining the conditions for lending.

The limits of the analysis of creditworthiness depend on the size and timing of loans, the results of the past activities of the borrower, the available collateral for the loan, the presence or absence of a relationship between the bank and the borrower in the past. There are five factors that the bank must take into account when issuing a loan: the legal capacity of the borrower, his reputation, the ability to earn income, the property security of the loan, the state of the economic situation.

The factors taken into account when analyzing the creditworthiness of a bank client determine the content of the methods for assessing it. These methods include: business risk assessment, management assessment, assessment of the client's financial stability based on a system of financial ratios, cash flow analysis, collection of information about the client.

51. TYPES OF LOAN SECURITY

The banking legislation of the Russian Federation provides that the issuance of a loan by commercial banks should be carried out under various forms of its security. The most important types of credit security are: collateral, guarantees, guarantees, assignment of claims (cession), etc.

Bail is one of the most effective ways to encourage the borrower to fulfill its obligations under the loan agreement to repay the debt to the lender.

The subject of pledge may be any property, including things and property rights (claims), with the exception of property withdrawn from circulation, claims that are inextricably linked with the personality of the creditor.

The use of collateral in the practice of organizing credit relations implies the existence of a special mechanism for its application. The pledge mechanism is the process of preparing, concluding and executing a pledge agreement. The real appeal to the execution of the collateral mechanism occurs at the final stage of the movement of the loan - the stage of repayment of the loan - and only in some cases when the client cannot repay the loan with revenue or income.

Surety there is also a form of securing the repayment of the loan. It is used in the relationship of the bank with both legal entities and individuals.

The guarantee can be full or partial (for example, only for interest). The law provides for the liability of the guarantor.

In case of performance or improper performance by the debtor of the obligation secured by the surety, the surety and the debtor shall be liable to the creditor jointly and severally, unless the law or the surety agreement provides for subsidiary liability of the surety.

In accordance with the Civil Code of the Russian Federation as bank guarantee a bank, other credit institution or an insurance organization (guarantor) give, at the request of another person (principal), a written obligation to pay the principal's creditor (beneficiary) in accordance with the terms of the obligation given by the guarantor, a sum of money upon presentation by the beneficiary of a written demand for its payment.

A guarantee is formalized either by signing a bilateral agreement or by sending a letter of guarantee to the lender by the guarantor.

Assignment (cession) - this is a document of the borrower (assignor), in which he assigns his claim (accounts receivable) to the creditor (bank) as security for the repayment of the loan. The assignment agreement complements the loan agreement, creating a legal basis for ensuring the repayment of the loan received by the bank's client. The cession agreement provides for the transfer to the bank of the right to receive funds on the assigned claim.

In the conditions of market relations in the Russian economy and the creation of new enterprises that do not have sufficient capital to guarantee the fulfillment of their obligations to the bank in terms of repayment of loans, a new form of repayment was introduced into practice - insurance of borrowers' liability for loan failure. In accordance with the established procedure, the borrower enters into an insurance agreement with the insurer, which stipulates that in case of failure to repay the loan within the established time frame, the insurer will pay the bank from 50 to 90% of the loan amount outstanding by the borrower, including interest for using the loan.

52. SIGNS AND ELEMENTS OF THE BANKING SYSTEM

The modern banking system of Russia is a system of transition. It acts as a market model, divided into two tiers: the first tier covers the institutions of the Central Bank of the Russian Federation, which issues money into circulation (issue). Its tasks are to ensure the stability of the ruble, supervision and control over the activities of commercial banks. The second tier consists of commercial banks and credit institutions, whose task is to serve customers of enterprises and organizations, providing them with a variety of services (such as lending, settlements, cash, deposit, foreign exchange transactions, etc.).

Signs of the banking system:

▪ includes elements subordinated to a certain unity and meeting common goals;

▪ has specific properties;

▪ capable of interchangeability of elements;

▪ is a dynamic system;

▪ acts as a “closed” type system;

▪ has the character of a self-regulating system;

▪ is a managed system. 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, various banks operate. Depending on one or another criterion, they can be classified as follows.

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

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

By 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.

Types of banks can be classified and by industries they serve. These can be diversified banks serving primarily one of the industries or sub-sectors.

By number of branches banks can be divided into non-branch and multi-branch.

By service sector banks are divided into regional, interregional, national, international.

By scale of activity it is possible to distinguish small, medium, large banks, banking consortia, interbank associations.

Special purpose banks and credit organizations (not banks) also operate in the banking system.

The elements of the banking system include banking infrastructure. It includes various types of enterprises, agencies and services that ensure the functioning of banks. Banking infrastructure includes information, methodological, scientific, personnel support, as well as means of communication, communications, etc.

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: "On the Central Bank of the Russian Federation (Bank of Russia)", "On banks and banking activities", "On the insolvency (bankruptcy) of credit institutions".

The banking system cannot exist without banking market. Banking resources are concentrated on it, and banking products are also traded.

53. DEVELOPMENT OF THE BANKING SYSTEM

The development of the banking system is influenced by a number of macroeconomic and political factors. Among them are the following:

▪ degree of maturity of commodity-money relations;

▪ social and economic order, its purpose and social orientation;

▪ legislative framework and acts;

▪ a general understanding of the essence and role of the bank in the economy.

For the development of banks affects:

▪ development of national markets and international trade. The demand for banking services expands as production increases and the scale of exchange between commodity producers increases;

▪ protracted economic crises that have a negative impact on the banking system;

▪ social and economic order;

▪ various prohibitions by local authorities;

▪ legislative framework of a particular country. In accordance with the legislation in some countries, central banks can be widely involved in servicing the economy; in other countries, the main function of banks is to issue money into circulation and strengthen their solvency;

▪ general ideas about the essence and role of the bank in the economy. In a market economy, the banking system becomes two-tier, ownership of banks acquires a character that is adequate to the variety of forms of ownership in the economy, and the system offers society a wider range of operations and services.

The evolution of the banking system can be considered not only in the historical context, but also from the standpoint of its current position. Here you can also у highlight some factors: the state of economic development, interbank competition, etc. Political factors also affect the state of the banking system and its current development. What is important, first of all, is the general direction of state policy. The uncertainty of the state's political motives leads to a delay in the development of banks and the outflow of capital abroad.

The development of the banking system may be constrained by factors such as excessive tax pressure on bank profits, lack of sufficient resources for active banking operations, and lack of qualified personnel.

The banking system cannot exist without the banking market. The weakness of this market hinders the development of the banking system.

The banking system of Russia, being part of the general economic system, has gone through a difficult path of formation and development of market relations. Macroeconomic factors, combined with the political instability of the transition period, weak legislative support for economic, including banking, activities gave rise to inevitable contradictions. The decline in production observed in the 90s. In the XNUMXth century, a sharp reduction in investment, a budget deficit, and a decline in the living standards of citizens noticeably narrowed money circulation and destabilized economic relations. Non-payments between economic entities undermined confidence in banks, the national currency, led to the emergence of money surrogates, barter, the passage of cash flows past the channels of monetary institutions.

At present, the country's banking system has restored the value of the main indicators of its activity. By its design and general economic principles, the Russian banking system is a market-oriented sector.

54. BANK MARKETING

Bank Marketing is a process that includes planning the production of a banking product, researching the financial market, establishing communications, setting prices, organizing the promotion of a banking product and deploying a banking service.

The main tasks of banking marketing

are: forecasting customer requirements for a banking product; study of demand for a banking product; release of a banking product that meets the requirements of customers; setting the price level for a banking product, taking into account the conditions of competition; improving the image of the bank; increase in the share of the financial market controlled by this bank.

Marketing activities is a set of actions to develop a typology of consumption, to study demand, to plan the production of a banking product and organize work for its implementation.

In the marketing research of banking activities, specific indicators of the analysis of supply and demand for banking products are used, for example, such as the absolute value rendita (relative rate of return on a security), absolute value spread (the gap between the minimum bid price and the maximum bid price), its level as a percentage of the maximum bid price, the ratio of supply and demand volumes, the weighted average bid and offer price, etc.

The banking marketing process includes the following steps: study of the needs of buyers of a particular banking product; a comprehensive study of the financial market by sector; study of the possibilities of the current and prospective implementation of banking marketing; marketing planning; planning the life cycle of banking innovation; advertising; organization of work of departments and structural subdivisions of banks.

The main functions of banking marketing are:

▪ collection of information;

▪ marketing research;

▪ planning activities for the production and sale of banking products;

▪ advertising;

▪ sales of banking products.

Marketing research includes a range of activities:

▪ study of the behavior of buyers and competing banks in the financial market;

▪ analysis of the opportunities of the financial market and its sectors;

▪ study of banking products based on their quality, attractiveness, etc.;

▪ analysis of data on the sale of banking products;

▪ study of competitors;

▪ selection of a “niche,” i.e., the most favorable segment of the financial market.

Part of any business plan is a marketing plan, and for banking products and operations, a banking marketing plan.

Drawing up a bank marketing plan begins with the development of the bank's marketing strategy and ends with the marketing tactics used.

Bank Marketing Strategy is the process of analyzing the bank's capabilities to release a particular banking product, determining the purpose of the product release, substantiating banking innovation and its characteristics, marketing research of the financial market and the possibilities of implementing a banking product both in the current period and in the near future.

Bank Marketing Tactics - these are specific techniques to achieve the goal of a bank marketing plan.

55. STRUCTURE AND MAIN DIRECTIONS OF BANK MANAGEMENT

bank management considers the problems of organization and management of the bank and its personnel, ensures the effective operation of the bank in the most rational ways.

bank management consists of two major blocks:

▪ management of the financial and economic activities of the bank (financial management);

▪ HR management.

Contents of banking management make up:

▪ planning;

▪ analysis;

▪ regulation;

▪ control.

General planning allows look into the future of the bank, provide for the goals, scope, scale and results of its activities in relation to sources and costs. The planning process includes the preparation of long-term and current forecast plans.

The plans make it possible to determine the direction of the search for new areas and methods of activity in the conditions of competition in the money market.

The result of planning is the development of a business plan (a master plan for the development of the bank), as well as operational plans for individual areas (such as credit, investment, deposit, interest, personnel and other policies).

Analysis directed to assess the performance of the bank as a whole and its individual areas based on a comparison of the actual results achieved with the forecast, with the results of past periods and the results of the best banks.

The analysis materials allow us to identify positive and negative trends in the development of the bank, losses, unused reserves, deficiencies in planning and failures in decision-making.

The main direction of the analysis is the assessment of the dynamics of volume indicators of the bank's activity: assets, deposits, equity, loans, profits.

Along with this, commercial banks carry out analytical developments in certain areas:

▪ analysis of the bank’s loan portfolio;

▪ analysis of the securities portfolio;

▪ analysis of customer creditworthiness;

▪ analysis of equity capital adequacy;

▪ analysis of interest margin, etc.

Regulation in the banking management system has certain features due to the presence of state supervision over the activities of commercial banks. In this regard, the system of intra-bank regulation (self-regulation) is aimed primarily at compliance with the requirements and standards established by state supervision bodies.

Control in banking divided into external and internal. External control is carried out by the Central Bank of the Russian Federation and external auditors. Internal control is organized by the bank itself. It is intrabank control that is part of the bank's management. Its functions are performed by managers in accordance with their authority, as well as internal audit bodies. The main purpose of intrabank control is to create an operational system for detecting negative trends and shortcomings in the bank's activities in order to take measures to eliminate them.

Internal banking control is interconnected with external control and consists in checking compliance with the laws and regulations of the Central Bank of the Russian Federation, intrabank instructions and rules, and instructions from external regulatory authorities.

56. THE CENTRAL BANK AND ITS PLACE IN THE BANKING SYSTEM

A key element of the financial system of any developed state today is the central bank, which acts as the official conductor of monetary policy. In turn, monetary policy, along with the budget policy, forms the basis of all state regulation of the economy. Therefore, the effective operation of the central bank is one of the conditions for the effective functioning of a market economy.

The Bank of England established in 1694 is considered to be the first issuing bank. Subsequently, in addition to the role of the issuing center, the role of the state treasurer, intermediary between the state and commercial banks, and the conductor of the state's monetary policy was assigned to central banks. Central banks, created on the basis of commercial banks, were then nationalized. Currently, their capital is fully or partially owned by the state.

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.

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

2) economic regulator monetary methods, i.e., to conduct monetary and foreign exchange policy;

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

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

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

57. CENTRAL BANK OF THE RUSSIAN FEDERATION

The State Bank of Russia was established in 1860 on the basis of banknote and loan state banks founded under Catherine II.

The beginning of a new, "market" stage in the activities of the Central Bank of the Russian Federation (CB RF) can be considered 1990, when the state monopoly in banking was liquidated in Russia and the banking system legally became a two-tier one.

The status, tasks, functions, powers and principles of organization of the Central Bank of the Russian Federation are determined by the Constitution of the Russian Federation, Federal Law No. 10-FZ of July 2002, 86 "On the Central Bank of the Russian Federation (Bank of Russia)" and other federal laws.

The actual independence of the Central Bank of the Russian Federation of the country is a necessary condition for the effectiveness of its activities. 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 of the Russian Federation from the government is relative in the sense that economic policy cannot be successful without clear coordination and close coordination of its main elements - monetary and financial policy.

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 the Russian Federation is independent in its activities. Federal state authorities and other authorities do not have the right to interfere in its activities. Normative acts issued by the Central Bank of the Russian Federation within its competence are obligatory for 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 in relation to foreign currencies;

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

▪ ensuring the 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.

Regional office of the Central Bank - this is a separate division of the Central Bank, which carries out 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. To passive include operations by which the resources of the Central Bank are formed, to active - resource allocation operations.

58. FUNCTIONS OF THE CENTRAL BANK OF THE RUSSIAN FEDERATION

The Bank of Russia performs the following functions.

1. Develops and implements a single monetary policy.

2. Monopoly issues cash and organizes its circulation.

3. Is a lender of last resort for credit institutions, organizes a refinancing system.

4. Establishes the rules for making settlements in Russia.

5. Establishes the rules for conducting banking operations, accounting and reporting for the banking system.

6. Maintains accounts of budgets of all levels of the budgetary system of the Russian Federation.

7. Carries out efficient management of the gold and foreign exchange reserves of the Bank of Russia.

8. Establishes and publishes the official exchange rates of foreign currencies against the ruble.

9. 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.

10. Carries out state registration of credit organizations, issues and revokes licenses of credit organizations and organizations involved in audit.

11. Supervises the activities of credit institutions.

12. Registers the issue of securities by credit organizations.

13. Carries out all types of banking operations.

14. Carries out currency regulation, determines the procedure for making settlements with foreign states.

15. Carries out currency control.

16. Takes part in the development of the forecast of the balance of payments, organizes its compilation.

17. Conducts analysis and forecasting of the state of the Russian economy.

18. 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 of no more than one year, secured by securities and other assets;

▪ buy and sell government securities on the open market;

▪ buy and sell Bank of Russia bonds and certificates of deposit;

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

▪ buy and sell precious metals and other currency values;

▪ conduct settlement, deposit and cash transactions, accept securities and other valuables for storage and management;

▪ issue guarantees and warranties;

▪ carry out transactions with financial instruments used to manage financial risks;

▪ open accounts with 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.

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

Money-credit policy is an integral part of the economic policy of the state, the main strategic goals of which are to improve the welfare of the population and ensure maximum employment. In this regard, the main guidelines for the government's macroeconomic policy are usually to ensure GDP growth and reduce inflation.

In accordance with the goals of macroeconomic policy adopted for the current year, the final goals of the monetary policy of the Bank of Russia are formulated.

The final goals of monetary policy determine its intermediate goals in the form of setting certain benchmarks for the growth of the money supply, calculated taking into account the ratio between the dynamics of GDP and the money supply that is necessary in given economic conditions.

The development of monetary policy is carried out directly by the Central Bank of the Russian Federation (Bank of Russia). The implementation of the approved monetary policy is also entirely entrusted to the Bank of Russia. The law regulates the tools and methods that the Bank of Russia can use in this case.

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

reserve requirement policy The Bank of Russia uses 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.

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

Under refinancing of commercial banks refers to lending by the Bank of Russia to credit institutions, including the accounting and rediscounting of promissory notes. At present, the Bank of Russia provides the banks that have entered into the General Loan Agreement with the following types of secured loans: intraday loans, overnight loans, pawnshop loans. An integral part of the refinancing policy pursued by the Bank of Russia is its deposit transactions 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.

К market methods can be attributed to the conduct by the Bank of Russia of operations for the purchase and sale of foreign currency on the stock exchange and interbank market (currency intervention) 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 used by the Bank of Russia in exceptional cases for the purpose of conducting a unified state monetary policy after consultations with the Government of the Russian Federation.

The adoption of current decisions in the field of monetary policy is within the competence of the Board of Directors of the Bank of Russia.

60. LOANS FROM THE BANK OF RUSSIA

The Bank of Russia is also a participant in the interbank lending market, whose loans are one of the forms of refinancing of commercial banks.

The essence of refinancing is the provision by the Bank of Russia of loans to commercial banks in order to restore their own resources and funds invested in various sectors of the economy.

The refinancing loan is provided only to stable banks that are temporarily experiencing financial difficulties due to the impossibility of increasing liquidity in the interbank and open markets, and is the last instrument for regulating the liquidity of banks, and the Bank of Russia, in accordance with the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" acts as a lender of last resort.

The forms of refinancing credit used by the Bank of Russia underwent significant changes as market methods of economic regulation developed and in accordance with the objectives of the monetary policy pursued.

Lombard loans in a broad sense, they are loans secured by securities deposited with a bank; in a narrow sense, pawnshop loans are short-term loans provided by the Central Bank of the Russian Federation to credit institutions secured by securities to meet the needs of banks for liquidity in order to maintain and regulate the liquidity of the banking system. Only those securities that have an official quotation and are accepted for accounting with the Central Bank of the Russian Federation are accepted as collateral for a pawnshop loan. Lombard loans in Russia are provided in accordance with the Regulations "On the procedure for granting

Lombard Credit to Banks by the Bank of Russia" and the Regulations "On the Procedure for the Bank of Russia to Grant Credits to Banks Secured by a Pledge of Government Securities".

Loans are issued on the terms of security, urgency, repayment, payment. The collateral is a pledge (blocking) of government securities included in the Lombard List of the Bank of Russia.

Loans are provided on behalf of the Bank of Russia by the territorial offices of the Bank of Russia and their settlement subdivisions.

Lombard credit can be provided both at a fixed interest rate and on an auction basis.

Overnight credits are secured loans that have replaced overnight settlement loans. The purpose of overnight loans is to ensure the smooth functioning of the settlement system. Credits are provided only to those banks with which the general agreement has been signed.

Interest rates on overnight loans are set by the Board of Directors of the Bank of Russia. Overnight loans are repaid at the expense of current receipts to the correspondent account of a commercial bank on the next day.

The purpose intraday loans along with loans "overnight" is to ensure the smooth functioning of the payment system. The provision of an intraday loan is the carrying out by the settlement unit of the Bank of Russia during the current business day of bank payments in excess of the funds available on its correspondent account. The provision of intraday loans to banks makes it possible to speed up the process of prompt replenishment of the correspondent account, which allows maintaining the solvency of the bank and thereby avoiding a chain of non-payments in the settlement system.

61. DEPOSIT OPERATIONS

Purpose of deposit operations - regulation of liquidity (withdrawal of excess liquidity) of the banking system by attracting bank funds to deposits.

The Bank of Russia has the right to choose counterparty banks with which it carries out deposit operations. He may suspend for an indefinite period the operation of the previously concluded general agreement with the bank, the financial condition of which has deteriorated or in the activities of which violations have appeared.

The Bank of Russia carries out the following types of deposit operations:

▪ holding deposit auctions;

▪ carrying out deposit operations at a fixed rate.

Deposit operations are carried out by the Bank of Russia on standard terms stipulated in the general agreement concluded for an indefinite period. Within the framework of the general agreement, separate agreements are also concluded on the terms of a specific deposit.

Interest on deposits opened with the Bank of Russia is calculated according to the simple interest formula for the period of the actual term of raising funds. Interest is accrued on incoming balances on separate personal accounts for accounting deposits.

Deposit auctions are held in Moscow as a percentage competition of contracts-bids of banks to participate in the auction. The notice on the terms of the auction is published in the Bulletin of the Bank of Russia.

Contracts-bids of banks accepted for the auction are ranked by the value of the interest rate offered by banks, starting from the minimum up to the level recognized by the Bank of Russia as the cut-off rate.

Deposit auctions can be held in the "American" or "Dutch" way. The results of the auction are published in the Bulletin of the Bank of Russia.

When deciding to carry out deposit operation at a fixed interest rate The Bank of Russia publishes an official statement in the Bulletin of the Bank of Russia, which indicates the list of authorized institutions of the Bank of Russia in those regions whose banks take part in the deposit operation, the dates of transfer and return of funds with payment of interest, the minimum deposit amount, and the fixed interest rate.

The Bank of Russia may limit the number of deposit transactions concluded with a counterparty bank during a business day on the same standard terms. The fact of the transaction is documented.

Documents confirming the proper fulfillment by the bank of its obligations under a deposit transaction are a bank payment order for transferring funds to a deposit and an extract from the bank's correspondent account reflecting the fact of debiting and transferring funds to a deposit account with the Bank of Russia, as well as an extract from a deposit account opened in Bank of Russia.

For non-fulfillment of the terms of the deposit transaction, the Bank of Russia, on the next business day after the deadline for transferring funds to the deposit, charges a fine for the amount of the deposit established by the application agreement for each day of the term of the deposit transaction in the amount of double the current refinancing rate. The fine is collected without acceptance by collection order from the correspondent account of the bank.

If the agreement is not executed due to the fault of the Bank of Russia, it pays a fine to the bank for each day of delay in returning the deposit amount and paying interest in the amount of the double refinancing rate.

62. RESERVE POLICY

In most developed countries, commercial banks are required to place minimum reserves in the central bank. However, in the application of specific forms of this instrument in different countries, there are significant differences depending on the national characteristics of the development of the financial market. Central banks use a different structure of minimum reserves with a different amplitude and frequency of changes in their value, the specifics of interest calculation, etc.

Minimum reserve requirements appeared as insurance for the liquidity of credit institutions, as a guarantee of the central bank on customer deposits.

This goal of using minimum reserves exists today, although it is no longer a priority, since most countries have established other deposit guarantee systems.

As a rule, the accounts in which the reserves are placed are interest-free. As compensation for the need to keep interest-free reserves in the central bank, commercial banks are provided with a number of incentives. Rates on minimum reserves vary considerably by country. In countries with a high reserve ratio, minimum reserve obligations are usually not interest-free.

When setting standards for minimum reserves, direct negotiations between the central and commercial banks can play an important role. The mechanisms for calculating the norms, as well as the criteria by which these norms are differentiated, differ significantly in different countries.

The effectiveness of the reserve requirement instrument depends on the breadth of coverage of the different categories of liabilities. By increasing the range of such obligations, the central bank reduces the possibility of non-compliance with its requirements by credit institutions. According to the banking law, the rates on minimum reserves have an upper limit, and the limits are not the same for different types of deposits. Rates on required reserves are classified not only by types of liabilities, but also by amount, maturity and origin (relative to residents and non-residents).

In most developed countries, in recent years, the activity of using the policy of minimum reserves as a tool for regulating bank liquidity and for controlling the profitability of banking operations has decreased.

The desire of central banks to achieve a clear implementation of the requirements for the deduction of minimum reserves runs into attempts by commercial banks to evade, within the framework of the law, payments to maintain required reserves.

The central bank of a particular country either does not use the mechanism of minimum reserves at all, or deposits of non-residents are exempted from obligations under minimum reserves, or those deposits of non-residents that are compensated by loans to non-residents are not included in the base of minimum reserves.

With new ways around minimum reserve requirements emerging, central banks are increasingly forced to change the way they are enforced.

The mechanism of mandatory reserve requirements is used as an instrument of monetary policy in almost all economically developed countries.

63. OPEN MARKET POLICY

Open market policy represents the execution of transactions for the purchase or sale of fixed-interest securities by the central bank at its own expense in the open market. The underlying securities are typically treasury bills, interest-free treasury bills, government bonds, industrial bonds, first-class short-term securities.

Traditional means of conducting operations on the open market - transactions with government securities on the secondary market. Such operations are typical for the countries of the European Economic and Monetary Union and the United States.

For most industrialized countries, open market operations are the main instrument of monetary regulation; other instruments are used irregularly. Individual countries concentrate on two main operations: as part of a long-term policy - on operations with government bonds, with short term policy - on operations with treasury bills. This policy is carried out through discount houses by setting fixed rates for the purchase and sale of securities. The money market creates a shortage of liquid resources, which, in turn, contributes to the successful implementation of accounting policies. Operations in the primary market with non-government securities are not widely used within the framework of the open market policy.

The mechanism for conducting operations on the open market in most countries is as follows.

To revive the economy, the central bank pursues an expansionary policy and increases the demand for securities. He either fixes the rate at which he buys any offered volume, or acquires a certain amount of securities of this type, regardless of the offer rate. Commercial banks and other owners have the opportunity to receive additional funds by relatively profitably selling part of government securities from their portfolio.

If the central bank does restrictive (contractive) policy, then he acts on the open market on the supply side. He has at least two possibilities for realizing his goal: either announce a rate at which he will offer any number of securities; or offer a certain number of securities additionally. Commercial banks and their clients, by purchasing government securities, are deprived of part of the funds that, under other circumstances, could be used for the development of the real sector of the economy.

Restrictive policy an open market leads to an increase in income from government securities and the use of part of their reserves by credit institutions.

With all the existing differences in the conduct of policies regarding open market operations, it is possible to identify a general trend, which is expressed in the fact that the central banks of countries seeking to regulate the economy by market rather than administrative methods are increasingly resorting to the use of this particular instrument.

64. SAVINGS BANK OF THE RUSSIAN FEDERATION

The Savings Bank of the Russian Federation was established in the form of an open joint stock company. The founder of Sberbank of Russia is the Central Bank of the Russian Federation, which owns a controlling stake. Shareholders are individuals and legal entities.

In terms of its organizational structure, Sberbank of Russia is a multi-level system that has no analogues among other joint-stock banks. It includes territorial banks, as well as grassroots institutions: branches, branches and agencies.

Sberbank occupies a monopoly position in the financial resources market and has practically no competitors among commercial banks, since the state provides guarantees for deposits; has the status of a general authorized agent for servicing accounts and accounting for income and federal budget funds; actively participates in the implementation of the international program for the development of small and medium-sized businesses in Russia.

supreme governing body Sberbank is a meeting of shareholders that elects the Supervisory Board and the Board of the Bank.

For the general management of the work of this institution a council is elected that determines the directions of the Bank's business policy, controls the work of the department, approves the annual report, exercises control over the credit and investment policy, and elects the chairman. They work with the council credit and audit committees.

Territorial banks and branches of Sberbank of Russia also enjoy the rights of legal entities and have a balance sheet, which is included in the balance sheet of Sberbank. In accordance with the model regulation, they are included in the unified organizational structure of Sberbank, have the rights of legal entities, and carry out their function, guided by acts of the Central Bank of the Russian Federation and Sberbank of Russia.

Feature of the activity of Sberbank of the Russian Federation - Working primarily with individuals.

The purpose of Sberbank of Russia - attraction of funds from the population and settlement and cash services for individuals, the implementation of a full range of banking services for legal entities and individuals.

Functions of Sberbank of the Russian Federation:

▪ placement of raised funds into the economy;

▪ mobilization of temporarily free funds of the population and enterprises;

▪ settlement and cash services for the population;

▪ credit and settlement services for the population;

▪ lending to consumer needs of the population;

▪ issue, sale, purchase of securities;

▪ provision of commercial services (such as factoring, trust, leasing);

▪ issuance of plastic cards;

▪ consulting services and provision of economic and financial information;

▪ international settlements of foreign exchange transactions.

Active operations of Sberbank:

▪ operations to place funds in securities;

▪ interbank lending;

▪ loans to legal entities and individuals. Largest share in active operations

Sberbank owns operations for lending to the population (loans for construction, purchase of housing, transport, purchase of household items, tuition fees, etc.).

Passive operations of Sberbank:

▪ formation of own capital;

▪ acceptance and storage of public deposits;

▪ acceptance of deposits from legal entities;

▪ sale of government securities;

▪ sale of deposits and savings deposits.

65. COMMERCIAL BANK: ESSENCE AND FUNCTIONS

Commercial Bank - a credit institution that has the exclusive right to carry out certain banking operations.

The concept of a credit institution is defined in the Federal Law "On Banks and Banking Activity".

Credit organisation - a legal entity that, in order to make a profit as the main goal of its activity, on the basis of a license from the Bank of Russia, has the right to carry out banking operations provided for by federal law.

A credit organization can be formed on the basis of any form of ownership as a business company, i.e. a commercial bank can be created in the form of an open joint stock company, a closed joint stock company, a limited liability company.

There are two types of credit institutions in Russia:

▪ commercial bank;

▪ non-bank credit organization. A non-bank credit organization carries out a limited range of operations.

In addition to commercial banks and non-bank credit institutions, foreign banks may be registered in Russia.

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

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. Functions of a commercial bank:

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

2) credit intermediation function. Performing this function helps expand production, finance industry, facilitate the creation of inventories, expand consumer demand, facilitate the financial activities of the government, and reduce 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 - function of organizing the issue 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 relatively stable economic growth rates. The expansion of the importance of this function has led to the fact that banks have become direct competitors of stock exchanges, through which the bulk of retail sales of securities are realized.

66. PRINCIPLES OF ACTIVITY OF COMMERCIAL BANKS

The first and fundamental principle of the activity of a commercial bank is work within 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 limits of the balance 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 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 also implies the bank’s economic responsibility for the results of its activities. Economic independence presupposes freedom of disposal of the bank's own funds and attracted resources, free choice of clients and depositors, and 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 the risk from its operations.

The third principle is that relationships between a commercial bank and its clients are built as normal market relations. When providing loans, a commercial bank proceeds primarily from market criteria of profitability, risk and liquidity. The focus on “national interests” is incompatible with the commercial nature of the bank’s work and will inevitably result in a crisis of liquidity and solvency for it.

The fourth principle of the commercial bank is that regulation of a bank's activities can be carried out only by indirect economic (and not administrative) methods. The state determines the “rules of the game” for commercial banks, but cannot give them orders and instructions regarding the directions and conditions for placing and attracting resources.

67. TYPES OF COMMERCIAL BANKS

Commercial banks can be classified.

1. By ownership. Depending on the ownership of capital, there are:

▪ public 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 there is an open sale of shares, and a closed joint stock company, the shares of which are distributed only among its founders or other predetermined circle of persons. This form is progressive, since it makes it possible to expand the bank through additional attraction of funds through the issuance of shares and a corresponding increase in equity;

▪ cooperative (share) banks whose capital 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.

2. By nature of economic activity it is possible to allocate issuing, commercial, specialized banking institutions.

Emissive a 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.

3. By terms of loans allocate banks short-term and long-term credit. 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. These are, as a rule, universal commercial banks.

4. On an economic basis depending on the industry that banks serve in the first place, there are industrial, commercial, agricultural banks.

5. By territory banks are divided into local banks, federal, republican and international.

6. Distinguished by size large, medium and small banks.

7. By 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, investment, innovation bank, consumer credit banks, savings bank).

8. By the presence of a branch network A distinction is made between banks with and without branches.

68. TYPES OF BANKING OPERATIONS AND TRANSACTIONS

The functions of banks are realized through their operations. According to the Federal Law of the Russian Federation of February 3, 1996 No. 17-FZ "On Banks and Banking Activity", banking operations include:

▪ attracting funds from individuals and legal entities into deposits (on demand and for a certain period);

▪ placement of raised funds on your own behalf and at your own expense;

▪ opening and maintaining bank accounts for individuals and legal entities;

▪ carrying out 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;

▪ attraction of deposits and placement of precious metals;

▪ issuance of bank guarantees;

▪ carrying out money transfers on behalf of individuals without opening bank accounts (except for postal transfers). In addition to the above, banks have the right to carry out the following transactions: issuing guarantees for third parties, providing for the fulfillment of obligations in cash; trust management of funds and other property under agreements with legal entities and individuals; carrying out transactions with precious metals and precious stones; leasing to individuals and legal entities 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, including 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 at his disposal 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 Operations 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.

69. PASSIVE OPERATIONS OF COMMERCIAL BANKS

Under passive operations refers to such operations of banks, as a result of which their resources are created.

К 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 associated with 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 - these are funds owned directly by the bank, in contrast 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.

The bank's own funds (capital) are made up of the authorized capital and profit, from which the bank pays taxes, forms reserve and other funds, and pays dividends to its shareholders in the remaining amount.

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 dividend policy.

Major banks are widely used issue of shares as an effective way to raise funds. Commercial banks issue common sharesAnd preference shares.

In foreign practice, to increase the amount of equity capital, it is often used bond issue.

Bank reserves formed at the expense of its profits and include: Reserve fund, intended to cover large losses; reserve fund for depreciation of securities, the funds of which are used to cover losses arising from a fall in securities prices; loan reserve, used to repay possible loan losses and attributed to bank expenses; economic development fund, formed in the amount established by the meeting of shareholders, and intended for the development of the bank.

Involved funds occupy a predominant place in the structure of banking resources. Attracted funds according to the method of their accumulation are divided into deposits and other attracted funds. The bulk of the funds raised by commercial banks are Deposits.

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.

70. ACTIVE OPERATIONS OF COMMERCIAL BANKS

Active Operations - these are operations by which banks place the resources at their disposal. Making active operations, the bank must solve two interrelated problems: how to achieve the maximum possible profit and ensure the liquidity of the invested capital.

Active operations are divided into two types: credit operations and investments.

Credit operations - this is the relationship between the lender and the borrower to provide the first to the last with a certain amount of money on the terms payment, urgency, repayment, security. Credit transactions are divided into active и passive.

Credit transactions can be carried out in two forms - in form of loans and form of deposits. Credit operations can be carried out by banks and other business entities.

Bank lending is divided into direct и indirect. Direct lending - this is a credit relationship of business entities directly with the bank.

Indirect lending means that credit relations arise first between business entities, which subsequently apply to the bank for loans.

Main types indirect bank lending are transactions with bills, factoring, leasing.

Bank lending is carried out in strict compliance with the principles of lending. These include return lending, urgency, safety loan (in Russia, the following types of security are used - pledge, bank guarantee, surety, insurance liability of the borrower for repayment of the loan).

Credit price - bank interest rate. 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;

▪ refinancing rate of the Central Bank of the Russian Federation;

▪ loan term;

▪ type of loan;

▪ average interest rate on the interbank credit market;

▪ the state of money circulation in the country (during a period of inflation, the interest rate rises, during a period of deflation, it falls).

Bank loans can be classified according to the following criteria:

▪ according to loan terms, loans are divided into short-term, medium-term and long-term;

▪ by type of security - secured and unsecured;

▪ by type of borrower - agricultural, industrial, municipal, commercial, etc.;

▪ by areas of use - for the formation of working capital, investment, for eliminating temporary financial difficulties, export, import, etc.;

▪ by size - small, medium, large;

▪ by the method of provision - bills of exchange, using open accounts, seasonal, etc. To issue loans to clients, loan accounts are opened

accounts: simple loan account, special loan account, checking account.

Investment operations of banks It is a long-term investment of money in order to make a profit. The Bank acts as an investor, investing resources in securities or acquiring rights for joint economic activities. These operations generate income for the bank through direct participation in the creation of profits. A variety of investment operations of banks is investing in buildings, equipment of banking premises necessary to ensure the conditions for banking activities.

71. TYPES AND PURPOSE OF BANK ACCOUNTS

On the basis of a bank account agreement, depending on the nature of their activities and sources of financing, various types of accounts can be opened for clients: settlement, current, budget, deposit, loan, etc. Types of accounts opened with a bank for clients are predetermined by their legal status and nature of activity.

Checking account is the main account of the company. It is opened to enterprises, regardless of the form of ownership, that have the rights of a legal entity. It is designed to make settlements, primarily for its core business.

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.

Most Russian banks do not charge a fee for settlement servicing of accounts of legal entities.

Current accounts open to enterprises that do not have the characteristics that give 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 to organizations (enterprises) financed from the federal budget (extrabudgetary 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 storage for a certain time of 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 to legal entities to reflect on them the amounts of the loan issued by the bank. The issuance of a loan is carried out by transferring the amount from loan accounts to settlement (current) accounts of bank customers. These transactions are documented loan 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.

72. CASH SETTLEMENT SERVICE

Settlement services - these are services for the implementation of settlement operations through settlement networks, in which a commercial bank is a participant in accordance with the settlement technology used. Settlement involves the receipt of settlement documents from payers, their processing, forwarding, bringing funds to the final recipient, crediting them to a bank account and issuing statements on the state of the account to its owner.

For settlements, enterprises and organizations open in the bank calculated or current accounts. These accounts are intended and used to credit revenue from the sale of products (works and services), record their income from non-sales operations, amounts of loans received and other income, make settlements with suppliers, budgets for taxes and equivalent payments, with workers and employees for wages and other payments, as well as for payments based on decisions of courts and other bodies that have the right to make decisions on the collection of funds from the accounts of legal entities in an indisputable manner.

To open a settlement (current) account, it is necessary to conclude with the bank bank account agreement, under which the bank undertakes to accept and credit funds received to the account, carry out the client’s orders to transfer and withdraw the corresponding amounts from the account and 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 settlement (current) account is carried out on the basis of termination of the bank account agreement, which is possible at the request of the client at any time.

Cash service assumes that the bank issues and accepts cash from the client. 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 established 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, which can be kept at the cash desks of enterprises for no more than three working days, including the day the money is received from the bank.

Banks at least once every two years check compliance with the procedure for conducting cash transactions by their customers. The range of enterprises subject to verification is determined by the head of the bank.

During 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.

73. CLASSIFICATION OF BANK LOANS

Most often, loans are classified according to the following criteria:

▪ purpose (loan purpose);

▪ area of use;

▪ terms of use;

▪ security;

▪ method of issuance and repayment;

▪ types of interest rates.

By appointment bank loans can be divided into the following groups: industrial, agricultural, trade, investment, consumer, mortgage.

Industrial provided to enterprises and organizations for the development of production, covering the costs of purchasing materials, etc.

Agricultural provided to farmers, peasant farms 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 areas of use bank loans can be of two types: loans for financing of fixed or working capital. In turn, working capital loans are divided into loans in the sphere of production and the sphere of circulation. According to the terms of use, bank loans are oncol (on demand) и urgent.

On-call loans are subject to return within a fixed period after receipt of an official notification from the creditor.

Term loans taken to be divided into short, medium and long term.

Based on collateral, loans are divided into unsecured (blank) and secured. Depending on the type of security, they are usually divided into collateral, guaranteed и insured. Selection Accepted wealthy, underprivileged и unsecured loans.

secured loan - 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.

Unsecured loan - a loan that is unsecured or secured in the form of 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.

Compensatory a loan involves the direction of loan funds to the current account of the borrower in order to reimburse the expenses incurred by him earlier. Essence payment the loan consists in the fact that the borrower, as necessary, provides the bank with the settlement and payment documents that come to him and the loan funds are received directly to pay for these documents.

According to the methods of repayment, bank loans are divided into repayable in one lump sum, repayable in installments.

According to the types of interest rates, bank loans can be divided into loans with fixed or floating interest rate.

74. LEASING OPERATIONS

Leasing means a form of long-term lease associated with the transfer of property (i.e., an object, an object) for use for entrepreneurial activity.

Leasing items there may be any non-consumable things, i.e. enterprises, property complexes, buildings, structures, equipment, vehicles and other movable and immovable property that can be used for business activities, with the exception of property prohibited by federal laws for free circulation, and property for which a special procedure for circulation is established, as well as land plots and natural objects.

In its economic content, leasing is a category much broader than the simple concept of rent.

Actually Leasing - this is a single complex of three simultaneously performed operations: rent, lending and material and technical supply of the enterprise.

In the Russian Federation, leasing operations are regulated by the Civil Code of the Russian Federation and the Federal Law "On Leasing".

The leasing transaction involves: the lessor, the lessee and the seller of the leased asset.

lessor is an economic entity or an individual entrepreneur engaged in leasing activities, i.e. transferring property specially acquired for this purpose under a leasing agreement. In other words, the lessor is the lessor of the property.

Lessee - this is a citizen or an economic entity receiving property for use under a leasing agreement. Thus, the lessee is the tenant.

Seller of leased property - an economic entity - a manufacturer of machinery and equipment, as well as another economic entity or a citizen who sells property that is the subject of leasing.

Leasing has two forms:

▪ internal;

▪ international.

Under internal leasing, the lessor, the lessee and the seller are residents of the Russian Federation. In international leasing, the lessor or lessee is a non-resident of the Russian Federation.

The types of leasing are:

▪ long-term (up to 3 years);

▪ medium-term (from 1,5 to 3 years);

▪ short-term.

The types of leasing are:

▪ financial;

▪ operative.

financial leasing is direct and return.

Direct leasing it is preferable when the lessee needs to re-equip the already existing technical potential. Under this transaction, the lessor provides 100% financing of the acquired property.

Essence leaseback in that the lessor acquires property from the lessee and immediately provides this property to him on lease.

Lessee chooses operational leasing, as a rule, in two cases:

▪ when he needs leased property only for a while, for example, to perform one-time work or to implement one individual project;

▪ when the leased property is subject to rapid obsolescence and the lessee assumes that after the expiration of the operating lease agreement, new, more advanced and efficient property will appear.

In terms of economic content, leasing refers to direct investments, during the execution of which the lessee is obliged to reimburse the lessor for investment costs (expenses) incurred in material and monetary forms, and pay remuneration.

75. MORTGAGE OPERATIONS

Mortgage is a pledge of real estate to secure the monetary claim of the creditor (mortgagor) to the debtor (mortgagor).

There are other concepts of mortgage.

Mortgage This is a loan secured by real estate. In the Russian Federation, the procedure for implementing a mortgage is regulated by the Federal Law "On Mortgage (Pledge of Real Estate)".

A mortgage is established on property that belongs to the pledgor on the basis of ownership or economic management.

The property on which the mortgage is established remains with the mortgagor in his possession and use.

A mortgage can be established on property that is in common joint ownership (without determining the share of each of the owners in the ownership right), with the consent of all owners. Consent must be given in writing.

The subject of mortgage is determined in the agreement, indicating its name, location and description sufficient to identify this subject.

The mortgage agreement must specify the right by virtue of which the property that is the subject of mortgage belongs to the pledgor, and the name of the body for state registration of rights to immovable property that registered this right of the pledgor.

The valuation of the subject of mortgage is determined in accordance with the legislation of the Russian Federation by agreement between the mortgagor and the mortgagee.

When state and municipal property is mortgaged, its appraisal is carried out in accordance with the requirements established by federal law and in the manner determined by it.

The mortgage agreement must be notarized and subject to state registration. Failure to comply with the rules on notarization and state registration of a mortgage agreement shall entail its invalidity.

The mortgage agreement is considered concluded and comes into force from the moment of its state registration.

The rights of the pledgee under the obligation secured by the mortgage and under the mortgage agreement may be certified mortgage.

A mortgage bond is a registered security certifying the following rights of its legal owner:

▪ the right to receive performance under a monetary obligation secured by a mortgage of property specified in the mortgage agreement;

▪ the right of pledge on the specified property. The obligors under the mortgage are the debtor for the obligation secured by the mortgage and the mortgagor.

The mortgage bond is drawn up by the mortgagor, and if he is a third party, also by the debtor under the obligation secured by the mortgage.

The mortgage bond is issued to the initial mortgagee by the body carrying out the state registration of the mortgage after the state registration of the mortgage.

In the process of mortgage lending, it is important to analyze the condition and efficiency of the loan. Such an analysis is carried out both in the traditional way and using financial ratios, with the leading role being played by the mortgage debt ratio and the mortgage constant.

For a mortgage loan to be fully repaid, the mortgage constant must be greater than the nominal rate of interest for the loan. The excess of the mortgage constant over the interest rate ensures the repayment of the principal amount of the loan.

76. FACTORING OPERATIONS

Factoring (from the English factor - agent, intermediary, broker) is the activity of an intermediary bank or factoring company to collect funds from its client's debtors and manage its debt claims.

There are three parties involved in factoring transactions:

1) factoring company (or factoring department of the bank);

2) client (creditor, supplier of goods);

3) an enterprise (firm) is a consumer of goods.

The main goal factoring service -

collection of accounts receivable of its clients and collection of payments due in their favor.

In world practice, there are the following types of factoring operations:

▪ factoring with and without financing;

▪ open and closed factoring;

▪ without recourse and with recourse;

▪ domestic and international, etc.

When factoring with financing the client cedes to the intermediary factor the right to receive subsequent payments from buyers. The intermediary factor provides the client with a credit in the form of early payment for the delivered goods.

Under factoring without financing understand the collection by the intermediary factor of the customer's accounts receivable. In this case, the client of the factoring company or bank, having shipped the products, presents invoices to his buyer through an intermediary factor, whose task is to receive payments due in favor of the client within the terms agreed by the client and specified in the business contract.

Open factoring - this is a type of factoring in which the payer (debtor) is notified of the participation in the calculations of the intermediary factor. Notification is carried out by writing on the invoice about the direction of payment to the factor.

RџSЂRё closed or confidentialIn factoring, the buyer is not notified at all about the assignment of claims by the supplier to the intermediary factor. In this case, the debtor settles payments with the supplier himself, and the latter, after receiving payment, must transfer the corresponding part of it to the factoring company to repay the loan.

Non-recourse factoring means that the intermediary factor, when the buyer pays bills within a certain period, must pay all the costs of debt collection in favor of the creditor (supplier). In this case, the supplier does not bear the risk of the receivable factor sold by him.

The contract between the client and the intermediary factor may also provide for the right of recourse, i.e. the right of the factor to return to the client the invoices paid by the buyer with the requirement to repay the loan.

Distinguish factoring internal, when the supplier, his client and the bank carrying out factoring operations are located within the same country. At export (international) factoring the supplier, his client and the bank that carries out factoring operations are located in different countries.

Modern Western factoring companies not only lend to their clients, but also provide them with a wide variety of services: keep accounts receivable; carry out consultations on sales markets, selling prices, organization of settlements, conclusion of business contracts; carry out legal, transport, storage, advertising, insurance and other services.

Under these conditions, factoring becomes a universal system of financial customer service, and it is called conventional.

77. TRUST OPERATIONS

Trust operations - this is a banking service for clients seeking to dispose of their free funds with the greatest benefit, the relationship between the bank and the client, in which the bank assumes obligations to dispose of property in favor of the principal or a third party.

By concluding a trust agreement, the principal instructs the bank to manage its temporarily free funds in order to obtain maximum income. At the same time, the client remains their full owner, the bank is only given the authority to dispose of these funds for a certain period.

Trust transactions fall into three main categories:

1) personal trust services (for individual citizens);

2) institutional trust services provided on the basis, firstly, of an agreement between the issuer of long-term debt obligations or the pledgor and the legal entity managing these obligations; secondly, an agreement between the owner company and a trust company offering qualified services for the management of this property;

3) services of the “master trust” type (provided by the bank to a pension fund or a group of other companies by managing the general account of the trustees in order to maximize the latter’s income). Master trust services are provided to companies that are accumulating funds for their shareholders (usually for pension purposes) and wish to receive higher income.

The most common are the following personal trust services:

▪ testamentary trust, drawn up on the basis of a citizen’s will;

▪ irrevocable a trust made by an agreement under which the settlor cannot terminate у contract and seize trusted property;

▪ revocable trust, drawn up by an agreement that can be terminated by the principal at any time. According to the nature of the disposal of the entrusted property, trusts are divided into active and passive. Property located in active trust, you can sell, lend, or mortgage without additional consent of the principal.

Passive Trusts are services for the management of certain property that can be sold or mortgaged by a trustee.

The most common are the following trust services provided by banks:

▪ maintaining the client’s personal bank accounts;

▪ management of the client’s securities for the purpose of profitable sale, obtaining guaranteed income, and replacing some securities with others;

▪ collection of income for the benefit of clients;

▪ carrying out the functions of a depository, as well as performing operations related to this activity;

▪ temporary operational management of the company in the event of reorganization.

Bank trust departments usually perform the following types of services:

▪ storage of cash, securities and other valuables;

▪ maintaining accounting documents of a client represented by an individual firm;

▪ receiving payments on behalf of the client by proxy, including interest, dividends, lease payments;

▪ purchase and sale of securities for the account and on behalf of the client, settlements with sellers and buyers, consulting services;

▪ creation of private pension funds and citizens’ association funds;

▪ Acceptance of targeted contributions from citizens and organizations for the purchase of real estate;

▪ issuance of guarantees and warranties.

78. ECONOMIC CONTENT AND TYPES OF BANKING RISKS

As an economic category risk represents the possibility of an event that can lead to three economic results: negative (loss, damage, loss); null; positive (gain, benefit, profit).

В banking risk - this is the threat of the bank losing part of its resources, shortfall in income or additional unforeseen expenses as a result of certain financial transactions.

The lower the risk level, the lower the probability of making a profit. In practice, one should choose the optimal ratio between the degree of risk and the level of profitability.

All banking transactions are subject to risk. During the transition period in Russia, the risks in the banking business increase under the influence of the following factors: the crisis state of the economy in the transition period; incomplete formation of the banking system; imperfection of the legal base, performed operations; inflation; political instability.

In the course of the activities of credit institutions, bank managers try to minimize risk and maximize profits. In this case, it is especially important to determine the level of risk. Making a decision related to the placement of capital in a particular type of asset necessitates an assessment of the level of risk.

According to the level of banking risks can be divided into low, moderate, full.

Economic risks are external and internal. External risks depend on the development of economic processes in the country, political events.

Internal risks depend on the level of activity, the development of the marketing service, the policy and tactics of the bank's chief manager.

In the conditions of normal business activity, the main type of income-generating operations are credit operations, in connection with this, there appears credit risk problem.

Credit risk - this is the potential for loss of principal and interest on it, resulting from a violation of the integrity of the movement of the value being lent.

Degree of credit risk depends on many factors:

▪ the state of the economy in the country;

▪ lack of practical experience among bank managers in developing the lending business;

▪ the share of loans in total assets;

▪ unreliable composition of clients served by this bank;

▪ uncertainties in credit policy;

▪ inability to evaluate collateral and guarantees that are not used as collateral for a loan.

The risk of lending also depends on the type of loans provided. Long-term loans are more risky than short-term ones. Secured loans differ in terms of risk from unsecured ones.

Ways of risk management (its minimization):

▪ diversification of the bank’s loan and investment portfolio;

▪ preliminary analysis of creditworthiness, i.e. the borrower’s ability to repay the loan;

▪ evaluation of the cost of loans issued and control over loans issued previously.

The main direction of reducing credit risk - this is the formation of reliable customers who have settlement accounts in this bank.

In recent years, the Bank of Russia has issued a number of regulations governing the credit risk insurance system. One of the methods of insurance against credit risks is the creation of a reserve for possible losses on loans.

79. THE CONCEPT OF THE SECURITIES MARKET, ITS STRUCTURE AND FUNCTIONS

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

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, there are primary and secondary markets.

Primary The market is the acquisition of securities by their first owners. This is the first stage in the process of selling a security and the first appearance of a security on the market.

Secondary the market is the circulation of previously issued securities, i.e., the totality of all acts of sale and purchase or other forms of transfer of securities from one owner to another during the entire period of circulation of the security.

Depending on the level of regulation, securities markets consist of organized and unorganized.

Organized the securities market is a circulation on the basis of the rules established by the governing bodies between licensed professional intermediaries - market participants on behalf of other participants.

Unorganized market - this is the circulation of securities without observing the rules uniform for all market participants.

Depending on the place of trading, there are exchange and over-the-counter securities markets.

Exchange The market is based on the trading of securities on stock exchanges, therefore it is always an organized securities market, since trading is carried out strictly according to the rules of the exchange and only between exchange intermediaries, which are carefully selected among all other market participants.

OTC The 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.

Cash the securities market is a market with immediate execution of transactions within one to two business days.

Urgent is a market in which transactions are concluded with a maturity exceeding two business days.

The securities market performs a number functions, which can be divided into two groups:

1) general market functions inherent in any market;

2) specific functions that distinguish it from other markets.

К general market relate:

▪ commercial functionrelated to making a profit from operations in a given market;

▪ price function, with the help of which the process of formation of market prices, their constant movement, etc. is ensured;

▪ information function, on the basis of which the market produces and communicates to its participants information about the objects of trade;

▪ regulatory functionrelated to the creation of rules for trade and participation in it, the procedure for resolving disputes between participants, establishing priorities and the formation of management and control bodies.

К specific can be attributed:

▪ redistribution function, ensuring the flow of funds between industries and areas of activity and financing the budget deficit;

▪ insurance function price and financial risks, or hedging, which is carried out on the basis of a new class of derivative securities (futures and options contracts).

80. STATE REGULATION OF THE SECURITIES MARKET

Principles of state regulation:

▪ respecting the interests of all participants;

▪ openness and transparency;

▪ public trust and benefit;

▪ maximum use of information;

▪ Ensuring healthy competition to improve the quality of services.

Goals of regulation securities market:

▪ protection of market participants from fraud;

▪ ensuring free pricing based on supply and demand;

▪ maintaining order.

Main directions in the state regulation of the securities market are as follows.

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 audit activities) are assigned to the Federal Service for Financial Markets (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 issues, 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.

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 determined 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 operations purchase and sale of these securities, reduced by the costs of these operations.

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.

81. MAIN TYPES OF SECURITIES

Promotion - this is an issuance security that secures the holder's rights to receive part of the profit of the joint-stock company in the form of dividends, to participate in management and to part of the property remaining after its liquidation.

According to the form of assignment of income, ordinary shares are distinguishedwhich give the holder the right to a share in the authorized capital of the company, to participate in the management of the company by voting when making decisions at the general meeting of shareholders, to receive a share of the profit from the company’s activities after payment to holders of preferred shares.

Holder 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, the dividend on preferred shares is usually set at a fixed rate.

To make investment decisions in the process of analyzing securities, various valuations shares In practical activities, the following types are distinguished:

1) nominal value;

2) accounting value;

3) market value.

Bond certifies the deposit of funds by its owner and confirms the obligation to reimburse him the face value of this security with the payment of a fixed percentage. The fundamental difference between a bond and shares is that bondholders are not co-owners of a joint-stock company, but its creditors.

Current price bonds represents the value of the expected cash flow, adjusted to the current point in time.

An important asset is bill. Currently, financial markets operate with two main types of bills: promissory notes and transferable bills.

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.

Bill of exchange (draft) is a written order of the drawer (drawer) to the drawee (payer) on the payment by the latter of a certain sum of money to a third party.

Another type of securities deposit и savings certificates, representing a written certificate of the issuing bank on the deposit of funds, certifying the right of the depositor (beneficiary) or his successor to receive, upon expiration of the established period, the amount of the deposit (deposit) and interest on it.

Only banks can act as issuers of deposit and savings certificates.

Deposit certificates are intended exclusively for legal entities, and savings - for physical. Certificates must be urgent.

The security is also check, containing a written request from the drawer to the payer to pay the check holder the amount specified in it.

Securities also include:

1) warehouse certificate - a document certifying the 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 transportation is completed.

82. STOCK EXCHANGE AND ITS ACTIVITIES

Stock Exchange - this is a part of the securities market organized in a certain way, on which purchase and sale transactions are made with these securities through the mediation of members of the exchange.

The stock exchange is created in the form of a non-commercial partnership. It is a closed organization, only its members can trade on it.

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 that operates on the basis of centralization of offers for the purchase and sale of securities issued by brokers - members of the exchange on the basis of instructions from institutional and individual investors. Members of the stock exchange can be any professional participants in the securities market, state executive bodies, commercial banks - legal entities.

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. The stock exchange independently establishes the procedure for inclusion in the list of securities admitted to circulation on the exchange, the procedure listing and delisting.

Functions stock exchange:

▪ purchase and sale of securities;

▪ identification of the equilibrium exchange price;

▪ accumulation of temporarily available funds;

▪ ensuring arbitration (dispute resolution mechanism);

▪ ensuring transparency and openness of exchange trading, availability of information;

▪ providing guarantees for the execution of exchange transactions;

▪ security quality control;

▪ mediation in settlements;

▪ development of ethical standards, a code of conduct for exchange trading participants. The following are allowed to be traded on the stock exchange:

▪ securities that, during the process of placement and circulation, have undergone 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 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 general meeting its members. Between meetings, the supreme body is stock exchange council. In addition to the above-mentioned governing bodies, certain divisions are created at the exchange, each of which performs specific functions.

Exchange members or their representatives may act on the exchange as broker (to enter into a transaction on behalf of the client or on his own behalf and at the expense of the client) or dealer (purchase and sell on its own behalf and at its own expense). The bidder is also broker (conducts a bargain and draws up a deal).

Methods for conducting exchange trading:

1) open auctions, when there is a continuous comparison of buying prices and selling prices. A transaction is completed when the buyer and seller prices converge;

2) trading by orders. The essence of this method is that brokers leave written orders to buy and sell, indicating the price and quantity of securities.

In the organized securities markets, stock indices - methods for measuring stock prices in comparison with averages. When calculating indices, shares of many companies are taken into account, and both composite indices and industry indices are compiled.

83. CURRENCY RELATIONS AND MONETARY SYSTEM

International currency relations - a set of social relations that develop during the functioning of the currency in the world economy. They serve the mutual exchange of the results of the activities of national economies. The state of currency relations depends on the process of reproduction and, in turn, has an inverse effect on it, depending on the degree of their stability.

As foreign economic relations developed, a monetary system - state-legal form of organization of currency relations, regulated by national legislation or an interstate agreement. At first there was national currency system. It is characterized by the following elements:

▪ national currency;

▪ conditions for the convertibility of the national currency, i.e. its exchange for foreign currencies;

▪ currency parity regime - the relationship between two currencies;

▪ exchange rate regime (fixed or floating);

▪ presence or absence of currency restrictions;

▪ regulation of a country’s international currency liquidity, which includes four components (official gold and foreign exchange reserves of countries, SDR accounts, reserve position in the IMF) and reflects the country’s ability to repay its external debt;

▪ regulation of the use of international credit means of circulation and forms of international payments;

▪ regimes of the foreign exchange market and gold market;

▪ status of national authorities regulating foreign exchange relations.

With the development of world economic relations у was created world monetary system, which pursues the global goals of the world community, is designed to ensure the interests of the participating countries, and has a special regulatory and functioning mechanism.

Historically, there have been four MVS. 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 Genoese 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 operating, the foundations of which were laid in 1976

The main elements of the world monetary system:

▪ international means of payment, acting as world money;

▪ conditions and regimes of currency convertibility;

▪ the mechanism and regime of exchange rates;

▪ forms of international payments;

▪ credit instruments of circulation and the procedure for their use in international payments;

▪ international liquid assets and the procedure for their regulation;

▪ regime of international currency and gold markets and interstate institutions regulating 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 assumed 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 a fully convertible currency, there are partially convertible (in countries where restrictions remain on certain types of transactions and for certain currency holders) and non-convertible (in countries where there are practically all types of restrictions, primarily a ban on the purchase and sale of foreign currency, its storage, export and import) currencies.

84. CURRENCY SYSTEM OF THE RUSSIAN FEDERATION

National currency system - the form of organization of the country's currency relations, fixed by national legislation; part of the country's monetary system.

The basis of the national monetary system is the legally established monetary unit of the state.

Money used in international economic relations becomes currency.

The basis of the monetary system of the Russian Federation - Russian ruble, introduced in 1993 and replacing the USSR ruble. With the transition to the Russian ruble, its gold content was not fixed.

Currently in Russia there is a regime floating exchange rate, which depends on supply and demand on the country’s currency exchanges, primarily on the MICEX (Moscow Interbank Currency Exchange). The official exchange rate of the US dollar to the ruble is set by the Central Bank of Russia based on the results of trading on the MICEX.

The main legislative act in the field of currency relations of the Russian Federation is the Law "On currency regulation and currency control", as well as other laws and by-laws.

The movement of cash flows in the foreign exchange market of Russia is carried out through:

▪ foreign exchange transactions;

▪ currency, credit and settlement services for the purchase and sale of goods and services;

▪ transactions with securities;

▪ foreign investments. Currency transactions in Russia are carried out only by authorized commercial banks, i.e. banks and other credit institutions that have received licenses from the Central Bank of Russia to conduct currency transactions. There are three types of currency licenses: internal, extended and general. The greatest rights are granted by a general currency license.

A special license from the Bank of Russia is also required to conduct operations with gold.

Currency values can be owned by both residents and non-residents.

Purchase and sale of foreign currency are carried out through authorized commercial banks. Foreign currency purchase and sale transactions may be carried out directly between authorized banks, as well as through currency exchanges operating in the manner and on the terms established by the Bank of Russia. At the same time, the purchase and sale of foreign currency, bypassing authorized banks, is not allowed.

Currency regulation carried out by the Central Bank of Russia. It establishes the procedure for the mandatory transfer, export and transfer of foreign currency and securities in foreign currency belonging to residents; issues foreign exchange licenses; conducts foreign exchange interventions on the main currency exchanges of the country - the MICEX and the St. Petersburg Stock Exchange.

Currency control carried out by the currency control authorities and their agents. The bodies of currency control are the Central Bank of Russia, as well as the Government of the Russian Federation.

Currency control agents there are organizations that, in accordance with legislative acts, can exercise the functions of currency control. Currency control agents are accountable to the relevant currency control bodies.

To strengthen the monetary position of Russia, it is necessary:

▪ overcoming the economic crisis;

▪ ensuring economic growth based on increased investment in the production sector;

▪ liquidation of the budget deficit;

▪ improving the balance of payments;

▪ control over the growth of internal and external public debt.

85. CURRENCY OPERATIONS

Currency transactions should be considered not only transactions with currency values, but also transactions in rubles, including a foreign element, primarily the opening and maintenance of ruble accounts of non-residents by authorized Russian banks. Currency operations in accordance with the law have the right to perform any economic entities.

Banking foreign exchange operations can be classified according to various criteria into the following groups.

К current foreign exchange transactions relate:

▪ transfers to and from the Russian Federation of foreign currency for simple payments for the export and import of goods, works and services, as well as export-import operations related to lending for a period of up to 180 days;

▪ issuance and receipt of foreign currency loans for a period of up to 180 days;

▪ transfers to and from the Russian Federation of interest, dividends and other income on deposits, investments, loans and other operations related to the movement of capital;

▪ non-trade transfers to and from the Russian Federation, including transfers of wages, pensions, alimony, inheritance, and other similar transactions.

Currency transactions related to the movement of capital:

▪ direct investments, i.e. investments in the authorized capital of an enterprise in order to generate income and obtain rights to participate in the management of the enterprise;

▪ portfolio investments, i.e. e. acquisition of securities;

▪ transfers of other rights to real estate in payment for ownership of a building and other real estate (including land and its subsoil);

▪ deferment of payment for export and import of goods and services for a period of over 180 days;

▪ issuance and receipt of foreign loans for a period of more than 180 days;

▪ all other currency transactions that are not current.

Operations of a current nature are carried out by residents and non-residents without any restrictions. To perform operations related to the movement of capital, a license from the Bank of Russia is required.

Conversion operations - these are purchase and sale transactions of one cash or non-cash foreign currency against another.

Depending on the period of execution of transactions, they are divided into:

▪ on instant delivery deals or cash deals: "today" (with the value date on the day of the transaction), "tomorrow" (with the value date of the next day), "spot" (with a value date on the second day from the date of the transaction);

▪ urgent or "forward" (with a value date more than two days after the conclusion of the transaction);

▪ futures transactions - transactions for the purchase (sale) of foreign currency, for which there is a requirement or obligation to compensate for the exchange rate difference (margin) between the transaction rate and the rate that will be fixed on the market on the closed date of the contract;

▪ option - granting the counterparty the right to sell or buy at a predetermined rate one amount of currency in exchange for another on a predetermined date in the future. A currency option is not a liability, it only provides the right to buy or sell. A type of forward transaction is deal

"swap". This is a foreign exchange banking transaction consisting of two opposite conversion transactions for the same amount, concluded on the same day, while one of them is urgent, and the second is for immediate delivery.

86. THE ESSENCE OF THE FOREIGN MARKET, ITS PARTICIPANTS

Foreign exchange market - this is an official financial center where the purchase and sale of currencies and securities in foreign currency is concentrated on the basis of supply and demand and the exchange rate of a foreign currency is determined relative to the monetary unit of a given country. The foreign exchange market operates through a number of numerous institutions.

FOREX - International currency market, whose participants are: central and commercial banks, investment and pension funds, brokerage and insurance companies, transnational corporations, participants in currency exchanges, firms engaged in foreign trade operations, and individuals. Transactions are made on electronic trading platforms around the clock, rates are formed when participants exchange one currency for another.

Currency markets localized in different countries are called "domestic (national) currency markets"; the markets of individual groups of countries in which operations are carried out with many currencies are called regional markets. Together they form world foreign exchange market.

The largest centers of the world currency markets are London, New York, Tokyo, Frankfurt and Zurich.

Modern currency markets have the following features: internationalization; variety of transaction instruments used; unification of technique of operations; continuity of operations during the day, alternately in all parts of the world; widespread use of electronic means of communication.

The largest foreign exchange market participants: commercial banks licensed by central banks to carry out currency transactions; financial institutions classified under the laws of countries as credit institutions, as well as non-ban

banking institutions, which, on the basis of licenses, have been granted the right to carry out transactions with currency or other currency values; central banks that establish the rules for conducting currency transactions in the domestic markets of their countries for banks and other economic entities, as well as independently conducting operations in the foreign exchange markets; economic entities, government ministries and departments that participate in the foreign exchange market through banks or other authorized financial institutions.

A wide range of transactions takes place in the foreign exchange market:

▪ for external trade settlements;

▪ capital migration;

▪ insurance (hedging) of currency risks;

▪ diversification of foreign exchange reserves;

▪ foreign exchange liquidity management;

▪ speculative transactions designed to make a profit from changes in exchange rates.

Currency - This is the monetary unit used to measure the magnitude of the cost of goods. The concept of "currency" is used in three meanings:

1) the monetary unit of the given country;

2) banknotes of foreign states, as well as credit and means of payment, expressed in monetary units and used in international settlements;

3) international monetary unit of account or means of payment.

In addition to the concept of "currency" and "foreign currency", there is the concept "currency values"... These include:

▪ foreign currency;

▪ securities in foreign currency - payment documents, stock values and other debt obligations denominated in foreign currency;

▪ precious metals;

▪ natural precious stones.

87. EXCHANGE RATE AND METHODS OF ITS REGULATION

Exchange rate - an important element of the MVS. This is the price of the national currency of one country, expressed in the national currencies of other countries or in international currency units. Exchange rates are set in international currency markets depending on the supply and demand of national currencies, which, in turn, depend on many factors. First of all, the position of the currency of any country depends on the state of its economy and GDP growth rates, the relative inflation rates in different countries, the place and role of the country in the world markets for goods, services, and capital. These conditions determine the purchasing power of national currencies in world markets, which underlies the formation of exchange rates.

In modern conditions, most countries use floating exchange rates, focused on leading key currencies. A number of countries use free floating courses.

The development of credit relations and the emergence of credit money accelerated the process of displacing gold not only from domestic money circulation, but also from the international monetary sphere.

Distinguish national and interstate regulation of exchange rates.

Main organs national regulation - central banks and ministries of finance.

Interstate regulation of exchange rates carried out by the IMF, 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 - foreign exchange interventions, discount policy and foreign exchange restrictions.

1. Currency interventions central banks are aimed at counteracting the depreciation of the national currency or, conversely, its increase. Currency interventions can be an effective method of influencing exchange rates in the short term, since it is not only interventions that cannot ensure such levels of rates that correspond to basic economic and financial indicators. The most effective are foreign exchange interventions accompanied by appropriate measures in the field of the general economic policy of the state.

2. Widely applied in foreign countries discount policy, which consists in manipulating the discount interest. In an effort to increase the exchange rate, the central bank increases the discount rate, which stimulates the influx of foreign capital. The balance of payments is improving and the exchange rate is rising. If the government sets a goal to lower the exchange rate, the central bank reduces the discount rate, capital moves to foreign countries, and as a result, the exchange rate depreciates.

3. The exchange rate is affected currency restrictions, i.e., a set of measures and regulatory rules of the state established by legislative or administrative procedure, aimed at limiting transactions with currency, gold and other currency values. Currency restrictions on current account balances do not apply to freely convertible currencies, which the IMF includes the US dollar, Swiss franc, Canadian dollar, Swedish krona, Japanese yen, British pound sterling and euro.

88. BALANCE OF PAYMENTS AND ITS ELEMENTS

Payment balance - this is the ratio of payments made by a country abroad and receipts received from abroad for a certain period of time (month, quarter, year).

Country's overall balance of payments form the balance of payments for current operations, the balance of movement of capital and loans, as well as the movement of gold and foreign exchange reserves. The country's overall balance of payments is always balanced, i.e., its active and passive operations are equal.

Distinguish payment current account balance, capital and credit balance and balancing items.

The most important component of the balance of payments for current operations is trade balance, reflecting the ratio of the value of exports and imports of goods for the corresponding period. The balance of payments for current transactions also includes payments and receipts for insurance, commission transactions, tourism, interest and dividends on investments, and payments for licenses for the use of inventions. The balance of payments also reflects the country's military expenditures abroad.

Balance of movement of capital and credits reflects payments and receipts on export-import of public and private long-term and short-term capital. This includes direct and portfolio investments, bank deposits, commercial loans, special financial transactions, etc.

The state of the balance of payments on current transactions has a direct impact on the exchange rate of the country. With a chronically passive balance of payments, the exchange rate falls, with an active one, it rises. It should be borne in mind that for the dynamics of the exchange rate, the balance of payments on current transactions is of primary importance not between two countries, but overall balance this balance in relation to all countries participating in the country's international settlements.

Important elements of the balance of payments are balancing items, which include state gold and foreign exchange reserves, external government loans, loans from international monetary and financial organizations.

should be distinguished from the balance of payments settlement balance, which represents the country's demands and obligations towards foreign countries. These requirements and obligations include government (gold and foreign exchange, etc.) and private assets, direct investments, loans received and provided, liabilities of financial and non-financial corporations. Unlike the balance of payments, the current balance includes all claims and obligations towards other countries for which payments have not been made.

The balance of payments is one of the objects of state regulation.

State regulation of the balance of payments - this is a set of economic, including currency, financial, monetary measures aimed at the formation of its main articles.

The interstate means of regulating the balance of payments include:

▪ agreement on the terms of export loans;

▪ bilateral government loans, short-term mutual loans from central banks in national currencies under swap agreements;

▪ loans from international monetary and financial organizations, primarily the IMF.

89. INTERNATIONAL SETTLEMENTS

International payments - regulation of payments for monetary claims and obligations arising between legal entities (states, organizations) and citizens of different countries on the basis of their economic, political and cultural relations. Settlements are carried out in a non-cash way in the form of entries on bank accounts. To do this, on the basis of correspondent agreements with foreign banks, correspondent bank accounts are opened: "loro" (an account of foreign banks in a national credit institution) and "nostro" (an account of a given bank in a foreign bank). Since there is no world credit money accepted in all countries, international payments are used mottos - means of payment in foreign currency. These include:

▪ commercial bills of exchange (drafts) - written orders to pay certain amounts to a certain person within a certain period, issued by exporters to foreign importers;

▪ ordinary (simple) bills - debt obligations of importers, borrowers;

▪ bank bills - bills issued by banks of a given country to their foreign correspondents;

▪ bank checks - written orders from the bank to its correspondent bank to transfer a certain amount from its account abroad to the check holder;

▪ bank transfers - postal and telegraphic transfers abroad;

▪ bank cards - nominal monetary documents, giving the right to the owners to use them to purchase goods and services abroad on a non-cash basis.

In international settlements, mainly leading freely convertible currencies are used.

Gold is used only as emergency world money under unforeseen circumstances.

Main forms of international payments

are similar to the forms of internal settlements, but have the following features:

▪ there are certain relations between participants in foreign economic transactions and their banks regarding the execution, forwarding, processing and payment of documents provided for in the contract;

▪ international settlements are documentary in nature;

▪ are regulated by unified rules and customs of the main forms of international payments. The main forms of international payments are:

▪ collection payment form - client’s order to the bank to receive payment from the importer for goods and services and credit these funds to the exporter’s bank account;

▪ letter of credit payment form - an agreement on the bank’s obligation, at the client’s request, to pay for documents or to accept or take into account (negotiate) a draft in favor of a third party (beneficiary) for whom the letter of credit is opened;

▪ bank transfer - an order from one bank to another to pay the transfer recipient a certain amount;

▪ advance payment - payment for goods by the importer in advance before shipment, and sometimes before their production;

▪ open account settlements - calculations providing for periodic payments on time from the importer to the exporter for regular deliveries of goods on credit under this account;

▪ settlements using bills of exchange, checks, bank cards;

▪ currency clearings - settlements in the form of mandatory mutual offset of international claims and obligations on the basis of intergovernmental agreements.

90. INTERNATIONAL MONETARY AND FINANCIAL ORGANIZATIONS

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 International Monetary Fund (IMF) and group World Bank (WB).

The IMF and the WB group have common features. They are organized by analogy with a joint-stock company, so 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 balanced growth of international trade;

▪ providing loans to member countries to overcome foreign exchange difficulties associated with their balance of payments deficit;

▪ abolition of currency restrictions;

▪ interstate currency regulation by monitoring compliance with the structural principles of the global monetary system, as set out in the Fund’s Charter.

The IBRD, like the IMF, provides not only stabilization, but also structural loans. Their activities are interconnected.

The specificity of the IBRD is that it has three branches, such as:

▪ International Development Association (IDA, established in 1960), provides preferential interest-free loans;

▪ International Finance Corporation (IFC, established in 1956), stimulates the direction of private investment in the industry of developing countries;

▪ Multilateral Investment Guarantee Agency (MAGI, established in 1988), carries out insurance.

International financial institutions - the IMF and the WB group - play an important role in regulating international credit relations.

European Bank for Reconstruction and Development

(EBRD) established in 1990, location - 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, credit and financial organizations of Western European integration are an integral part of its institutional structure. They pursue the goal of strengthening integration and creating an economic, monetary and political union (EU). The main regional organizations of the EU include: European Investment Bank (EIB, Luxembourg), European Development Fund (ERF, 1958), European Guidance and Guarantee Fund for Agriculture (1969), European Regional Development Fund (ERFR, 1975), European Monetary Institute (EVI, 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.

Authors: Myagkova T.L., Myagkova E.L.

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