Successful development of the national economy of the state requires an effective banking system in the country. There are a large number of ways to build it. But first, the country's leadership has to decide what type of banking system is supposed to be developed. What guidelines in this case can the state pay attention to?
What is a banking system?
Before exploring the grounds on which the banking system can be classified (types, structure of each model), we will determine the essence of the term in question. What are the common approaches of researchers to the disclosure of the corresponding concept?
In the Russian expert environment, the banking system is most often understood as the environment of interaction between the state, various institutions and organizations, individuals and legal entities, in which operations with money and financial assets prescribed by law are carried out. These communications can occur through a variety of mechanisms. The banking system is a financial institution, which is an integral part of the country's national economy.
The essence of these communications with the participation of the state, legal entities and individuals is largely determined by the type of banking system. We will study what they can be.
Classification of banking systems
There are many reasons for the classification of banking systems. In Russian practice, a concept has been disseminated according to which the relevant financial institutions can be represented in the following main varieties:
- distribution (or single-level) system;
- transition system;
- market (or two-tier) system.
We study their specifics in more detail.
Single level system
The noted types of banking systems thus suggest the allocation of single-level financial institutions.
Their specificity lies in the presence of horizontal communications between credit institutions, the implementation of capital management operations based on universal standards and norms. The noted type of banking system is characteristic mainly for states with underdeveloped economies, as well as for countries in which administrative methods of managing the economic system are practiced.
Two-level system
The concept under consideration, in the framework of which various types of banking systems are determined, also involves the allocation of two-tier financial institutions.
Within the framework of the latest communications between credit organizations, they are carried out both horizontally and vertically. Regarding the second mechanism, the interaction between the Central Bank - the key financial structure in the state - and lower banks is implied. Within the framework of the horizontal mechanism, communications are established between equal credit institutions in terms of their legal status. The role of the Central Bank in a two-tier system is to ensure the liquidity of accountable financial structures, as well as in the implementation of macroeconomic regulation.
Soviet model of banking system organization
The types of banking systems discussed above do not completely correlate with the corresponding financial institution that existed in Soviet times - due to the fact that it has a number of unique characteristics. What is this expressed in? We noted above that a single-level banking system assumes the existence of a single communication mechanism between individual credit institutions - horizontally. The two-level assumes that the Central Bank is also connected to the process of interaction of financial structures.
Speaking of the Soviet model, one cannot say that it is fully characterized by the features of the first or second type of systems. The fact is that banks in the USSR worked in conditions of pronounced centralization and strict subordination to the State Bank. That is, there were practically no horizontal communications between them. In turn, any criteria to distinguish two levels of interaction of financial institutions in the USSR are also difficult to detect. The fact is that the State Bank was part of a single national banking system, and its role, similar to that currently performed by the Central Bank of Russia , was not limited to issues of maintaining liquidity and regulation. Its functions were actually expressed in providing a full range of banking services prescribed by law through a network of subordinate regional banks.
At the same time, some researchers are still inclined to classify the Soviet model of organizing the work of credit and financial organizations as single-level. What is the argument of experts in this regard? The fact is that the State Bank of the USSR, possessing a monopoly on almost all types of banking services, in fact, became thereby the “single level” of capital transactions. There are researchers who classify the credit and financial system of the USSR and other states, which are characterized by the administrative model of economic management, as a separate variety - centralized.
Transition system
What are the characteristics of a transitional banking system? In it, one can trace communications that are characteristic of both a single-level variety of financial institutions and a two-level one. In the first case, it may be a question of the presence of banks in the state that, according to the turnover indicator, occupy a significant share in the entire national credit and financial system and at the same time maintain pronounced independence from the Central Bank in terms of implementing financial policy, promoting the market, and determining development priorities. On the other hand, institutions may be present in the country's banking system, which, in turn, are directly accountable to the Central Bank and maintain sovereignty within the limits established by law.
The modern banking system of the Russian Federation
So, we examined the main types of banking systems in the framework of concepts that have become widespread among modern researchers. Speaking of modern financial institutions in Russia, how can they be classified?
By most indications, the banking system of the Russian Federation is two-tier. It practically does not operate financial institutions that are not accountable to the Central Bank. In turn, the banking system of the Russian Federation involves the functioning of a large number of credit organizations that actively interact among themselves in a horizontal plane. The Central Bank of the Russian Federation carries out both emission and regulatory functions. It provides banks with liquidity by providing them with loans in accordance with the key rate.
However, some researchers believe that the type of banking system in Russia now is still mixed. But not in terms of the combination of signs of single-level and two-level models, but in the aspect of the presence of some signs, which are characteristic of the centralized Soviet system of organization of the corresponding financial institution. Experts argue this point by the fact that in Russia the leading banks are state-owned. These include Sberbank, VTB, Russian Agricultural Bank. This predetermines the fact that the state, like the USSR State Bank, actually keeps the national credit and financial system under control. In turn, the Russian Federation has developed a banking system of a market type, suggesting that a large number of players interacting horizontally will be present in the corresponding segment of commercial activities. This feature is characteristic of a two-level model.
Note that before the USSR - during the time of the Russian Empire - our country also had a sufficiently developed banking system. It was characterized, according to many researchers, by a very effective interaction of public and private financial institutions. According to some experts, the historical experience of those years is to a certain extent applicable to modern Russia.
international experience
Having studied the basic principles by which banks and the banking system of the Russian Federation operate, we will consider the most noteworthy facts regarding the work of the corresponding financial institution in foreign countries. It will be especially useful to draw attention to the experience of advanced Western economies. The development of the banking system of Russia is carried out within the framework of the capitalist model. Obviously, the experience of Western states in this sense is incomparably greater.
Approaches to Defining the Role of Banks
Among the most noteworthy trends that characterize modern banking in Western countries is the rethinking of approaches to understanding the role of banks in the national economy. The fact is that in Western countries, classical credit and financial organizations are not the only players in the corresponding market segment. The role and significance for the national economy of non-banking organizations is planned. These structures can carry out activities to a certain extent close to that which is typical for classical banks: for example, to provide payment acceptance services, to facilitate the implementation of cash settlement transactions. At the same time, the work of such structures may not require a Central Bank license and, in this case, is not subject to the same rigorous verification of compliance with financial legislation that is practiced by supervisory authorities with respect to banks.
Of course, such organizations are already active in Russia. These include, first of all, electronic payment systems, as well as microcredit organizations. Indeed, they cannot be ranked among banks, but at the same time they can provide services that are characteristic of classic financial institutions. According to some researchers, the specifics of the activities of EPS, microfinance organizations and other non-banking structures in Russia is that the legislator seeks to unify the provisions that regulate the activity of the structures of this type and classical banks. What is the argument of experts who hold this view? So, the researchers believe that the Law “On the electronic payment system” just implies the noted unification of regulatory standards. For example, in terms of consumer identification of relevant services. If in the first years of the operation of EPS in Russia for a full use of electronic payment services in the Russian Federation, a person did not need to confirm his identity, then from the moment the law in question was adopted, such a need arose.
In turn, in the West, the role of the banking system, as some analysts note, is considered in a slightly different context. EPS and other players that do not belong to the category of classical credit and financial organizations should, in accordance with one of the popular concepts, have to occupy a separate niche that is not directly related to banking. But what criteria can underlie the separation of two segments?
So, according to researchers, banks and the banking system are designed to perform the following range of functions:
- custody services for individuals and legal entities with a full guarantee of the preservation of capital;
- organization of cash settlement operations for businesses with all the signs of legal significance;
- the provision of "long" loans (mortgages, loans for entrepreneurs).
In turn, non-bank structures should, in accordance with one of the popular concepts, concentrate on the following activities:
- providing fast and reliable money transfers, accepting payments for private and public services;
- providing technological infrastructure for paying for tickets for various modes of transport;
- the provision of "short" loans (mainly those classified as microloans);
- promoting the effective operation of online stores.
These are the key principles that reflect the differentiation of the role of traditional credit and financial institutions and non-banking organizations in Western countries. To what extent is this concept compatible with the Russian practice of financial communications? According to some experts, the key principles discussed above are quite suitable for the Russian Federation. The most important thing is that the legislator ensures the proper level of support for the activities of market players in terms of relevant services.
Commercial and investment banks
In many Western countries, the practice of distinguishing between banks (and this is another possible reason for classifying the corresponding systems) into those that perform credit and financial functions, and those that practice mainly investment activities (related to the sale of shares, securities, etc.) . d.). So, for example, in the USA these are actually two different types of organizations. The situation is similar in Japan. In Russia, there is a practice in which, under a single brand, units can be formed that are responsible for both banking and investment activities. For example, in the structure of VTB holding there are structures VTB24 and VTB Capital. The first is engaged in banking, the second - just the same investment activities.
The role of the Central Bank
Features of the National Banking System are largely determined by the specifics of the Central Bank, its role in the state economy. What are the approaches to understanding it in developed capitalist economies?
There are states in which the Central Bank is the sole regulator of the national financial system. Among them - Australia, Ireland, Italy. In some countries, the Central Bank shares the noted function with other organizations - a similar practice has developed in the United States, Germany, and France. Among the most interesting models for organizing the national banking system is the American one.
So, in the structure of the corresponding financial institution in the United States there are actually four types of institutions:
- national credit organizations;
- state banks included in the structure of the Federal Reserve System;
- banks that are not members of the Fed, but are affiliated with the Federal Deposit Insurance Corporation;
- credit structures that do not interact with these organizations.
The Fed in this case acts as an analogue of the Central Bank, which carries out emission functions and maintains liquidity. However, credit institutions that are not associated with the activities of the Federal Reserve System may also operate in the United States.
Prospects for the development of the banking system of the Russian Federation
So, we have studied the concept and types of banking systems. Which of the development concepts of a financial institution is best for Russia? The answer to this question involves a complex analysis of economic, social, and in many ways also cultural and historical factors characterizing the specifics of the development of the Russian Federation as a state. According to many researchers, the problems of the Russian banking system that are currently observed, in particular, the relatively high percentage of loans, the relatively large dependence of Russian financial institutions on foreign loans, are determined precisely by the fact that many Western standards are being introduced into banking practice in the Russian Federation without taking into account the national specifics of communications of the state, business and citizens in this area.
In this regard, many experts consider it useful to study not only the experience of Western countries in the development of the corresponding financial institution, but also the historical models of the functioning of credit organizations in Russia. Moreover, they, as we noted above, existed for long periods and were characterized, according to some researchers, by a high degree of development. Thus, the historical types of banking systems operating in Russia and their characteristics can become an equally significant source of experience in terms of improving the current model of state management of national capital.