Banking system: types and their features
Banking systems are an integral part of various economic models. In this case, there may be significant differences between them.
Before proceeding to the study of whichthere are types of banking world systems, it is necessary to understand the definition itself. This terminology is used to describe the aggregate of non-bank credit institutions and the banks themselves, which function within the framework of a single legal and financial-credit mechanism.
This system is treated as a national bank,and private structures, including various credit and settlement centers. The key function of the national bank is to conduct a state currency and issuing policy. It is the center of the country's reserve system.
The banking system can also be related to those specialized companies that support the activities of credit institutions.
Within the framework of the theme "The banking system - the concept, types, levels, elements" it is worth considering the institutional components that form the system.
You can start with credit organizations. We are talking about a legal entity, the main purpose of which is to make a profit by conducting banking operations. To carry out such activities, a license is required, which is issued by the central bank. In this case, all operations of such organizations are conducted in strict accordance with national legislation.
If we talk about Russia, then the laws of the Russian Federation allowto open credit organizations using any form of ownership. It is also possible to form various associations and unions that are oriented towards protecting the interests of their members, while leaving aside tasks related to the extraction of profits.
Understanding what is of itselfbanking system, its elements and types, it is necessary to determine the following institutional component, which is its component. It's about the bank. This term is understood as a credit institution that has the right to carry out certain financial transactions in strict accordance with the legislation of the Russian Federation. Such operations include the following services and processes:
- opening and maintaining bank accounts of legal entities and individuals;
- attraction of deposits of various persons;
- placement of these funds at their own expense and on their own behalf on terms of urgency, pay and return.
It is important to understand the following fact: if in the activities of the organization there is not even one of the operations listed above, it is considered a non-banking structure.
Foreign bank. This term is used in some countries to determine a credit institution that has been recognized by the bank on the basis of the laws of the state where it was registered.
A non-bank credit institution is also apart of the common system. As its distinctive feature, it is possible to determine the possibility of carrying out individual banking operations, which are provided for by national legislation.
The types of banking system are differentforms of its organization. One of the most common species is market. This system has the following characteristics: the state is not a monopolist in the sphere of banking and its influence on various credit structures is limited to the establishment of basic parameters and development principles.
With such a model, decentralizationmanagement of the banking sector. Also, there is no mutual responsibility: the state is not responsible for the financial performance of the above-mentioned organizations, and private credit institutions, in turn, are not responsible for transactions conducted by the state.
With such a system, the state hasobligation to maintain order in the national economy. This fact, as well as a large number of private credit organizations in the system, leads to the need to form a central bank or an organization that will perform its functions. One of the main tasks of such a bank is to monitor other structures that take part in credit relations.
Attention deserves the following fact: the status of the central bank is so special that it is singled out as a separate banking type of financial systemor, more precisely, the level. It is for this reason that market systems are in fact always multilevel.
Accounting and distribution model
This type of organization of banking activity is used mainly in those countries where the democratic system is unpopular.
Such a system is characterized by a monopolyThe state to establish banking institutions and conduct operations. The distinctive qualities of this model include the appointment of bank managers by the state and the definition of state responsibility for the results that were obtained as a result of banking activities.
As a consequence, under such a model the range of creditorganizations is rather narrow. This means that the provision of banking services is handled by either a small number of credit institutions that specialize on a sectoral basis, or a single state bank.
Levels of systems
Considering the types of building a banking system,we need to take into account the fact that some of them are based on the principle of determining the order of relationships that are formed between different credit organizations.
These are multilevel and single-tier banking systems.
A single-level model is used predominantlyin countries with a totalitarian system, where one state bank operates. Such a model is also relevant in the initial stage of the development of the banking system.
As for the multilevel system, itscharacterizes the differentiation of credit organizations by levels. At the same time, the central bank is always on the first place, regardless of the number of allocated levels and credit organizations in general.
The system operating in Russia
If you pay attention to the types of banking systemRussia, we can come to the conclusion that a multi-level model operates on the territory of the CIS. At the same time, this system has the following structure: the Bank of Russia, various credit organizations, as well as representations and branches of foreign banks.
But this is not limited to the Russian bankingsystem. Types, which it includes, imply the operation in the territory of the state of specialized organizations that do not conduct banking operations. At the same time, such organizations are focused on ensuring the activities of credit institutions and banks.
Given that the modern banking system in Russia is a system of typecorresponding to the market model, the direction of credit activity, functioning with it, consists of several levels:
- central bank;
- Banking sector (savings, mortgage and commercial banks);
- insurance sector (pension funds, non-bank specialized credit institutions and insurance companies).
American and Japanese models
There are other areas in which the banking system was implemented. Their types differ markedly depending on the region.
The American model is characterized by the parallel effect of the federal reserve system, as well as investment, savings, commercial banks and forensic savings associations.
The Japanese bankingsystem. Types of financial institutions operating in this country can be described as follows: central bank, postal savings banks and commercial banks.
With all the abundance of possible models through which a banking system can be organized, types that imply several levels, it makes sense to define how more progressive.