The term "credit system" is considered by experts from several points of view. On the one hand, it includes all credit institutions of various levels involved in the provision of certain banking services. And on the other hand, this is a set of rules and principles on the basis of which the entire banking system functions .
Currently, the credit system of almost all countries includes three main levels. The first level is the central or national bank of the country. It performs the function of control over other levels, in addition, such a bank is vested with the right to issue cash. And this means that he is responsible for regulating the money supply in circulation. The country's central bank performs one of the most important functions: it is engaged in the storage of the gold and foreign exchange reserve. In some cases, it provides loans to government agencies or commercial banks at the lowest levels, and also places government securities. The credit system is designed so that the national bank and the state act together to achieve the same goals, but at the same time do not affect each other's interests. For example, the country's main bank implements the tasks developed by the government and indicated in the monetary policy of the state.
The second level of the credit system belongs to the aggregate of commercial banks. The main goal of their activities is considered to maximize profits. This is also their main difference from the central bank, since its functions are in regulation and control. Commercial credit institutions form the basis of the entire banking system, as they act as intermediaries between the population and the state. According to economic theory, a bank in the full sense of the word can only be considered an organization that performs three main operations: deposit, settlement, and credit. The Central Bank, at its discretion, decides on the advisability of issuing a license to a particular bank. And without a license, the latter does not have the right to carry out its activities, that is, any operations will be declared invalid and illegal.
The credit system of the Russian Federation also implies the presence of a third level, which includes specialized financial institutions. As a rule, these are organizations that have received the right to offer certain types of transactions, but cannot be called a bank in the full sense. Such institutions include pension funds, insurance and leasing companies, investment and savings organizations. Thus, the basis of their activities includes individual banking services. For example, savings organizations are usually created by banks as a separate entity with the goal of accumulating household funds and redistributing them in the form of loans and borrowings issued on a short-term basis. Pension funds can be considered a type of long-term lending, as they accumulate funds over time with the condition of periodic payments in the future. But until the deadline has come, the invested amounts can be managed at your own discretion, for example, by providing loans.
Such a division into levels allows you to streamline existing financial institutions, which greatly facilitates the process of control over them. However, not all countries have a financial and credit system divided into three main levels. Some people prefer to single out only the first two, depending on the degree of development of the economy of a country. In addition, the system of each country has its own characteristics. For example, in the USA there is a state division into separate states, and each state has its own central bank. Thus, the credit system of America at the first level includes 12 national banks.