The credit and banking system of the Russian Federation

To date , the banking system is represented as a set of banks and various lending organizations. The most powerful functions are owned by the central state bank, it deals with the issue of money, also lends the entire banking system, uses cash-settlement tools, serves capital construction, and carries out foreign trade. The entire banking system, structure and functions are regulated by the central bank of the Russian Federation.

The credit and banking system of the Russian Federation

Banks are divided into business and issuance, this allows creating new economic mechanisms in the country. Organizes monetary circulation and serves the customers of the Central Bank. He has a special position - it is central to all legal entities, which deals with economic and managerial activities. Acts as a commercial bank, but profit is not the main goal of the activity. No commercial bank has such resources. The main task of the Central Bank is to implement the state policy in the area of money circulation, ensure a stable purchasing power of money, regulate at the legislative level and subsequently control commercial banks. Influencing the liquidity of banks, the Central Bank regulates macroeconomic proportions

This division of functions enables the Central Bank of the Russian Federation to concentrate most of its attention on the regulation of issuing activity, supporting the stable operation of the entire banking system, dealing with monetary regulation of the entire economy, and lawmaking.

The credit and banking system is quite functional, it includes all credit relations and accumulates the country's monetary unit, subsequently providing money in the form of loans.

To date, the country's credit system consists of several links:

• The banking sector;
• The Central Bank;
• Insurance sector;
• Various specialized financial institutions.

The Bank is a credit organization that has the right to accept deposits from legal entities and individuals with their subsequent placement at their discretion and return to the owner. The bank also opens and maintains bank accounts of legal entities and individuals. Money and the banking system are completely dependent on the Central Bank, followed by public and private banking structures. They perform such functions:

• Issuance of long-term and short-term loans, accepting deposits are handled by commercial banks;
• Placement of borrowed and own funds in the Central Bank are engaged in commercial banks;
• On the security of real estate provide long-term loans to mortgage banks;
• Pensions are provided by pension funds,
• Credit system is also engaged in credit societies.

The entire credit and banking system primarily depends on the Central Bank, and with the help of commercial, investment, mortgage banks, there is a regulation of cash flows, which helps the state to influence the macroeconomics of the country as a whole. The credit and banking system is extremely important for any state.