In modern models of a developed market economy, the monetary system occupies an important position in the work of the economic mechanism. It is practically a system of economic blood circulation that regulates money supply, controls financial flows, accumulates and redistributes cash flows, conducts settlements between economic entities, and lends to the population and individual sectors of the economy.
There are two concepts of the monetary system: the first means the totality of credit relations, methods and forms of financing (functional form); the second is the totality of financial and credit institutions, which tend to accumulate temporarily surplus cash and then provide loans (institutional form).
In the first case, we are talking about such relations as bank, commercial, state, consumer, international credit.
The second case comes down to the following parameters. The modern monetary system is a complex mechanism that has several levels, which accumulates and redistributes financial assets. The main links of the system are: the Central Bank, the system of state and semi-state banks; banking sector, which includes commercial banks, savings, specialized banks in the field of trade; mortgage loans, investment, specialized credit and financial non-banking institutions: pension funds, insurance and investment companies, financial companies, various types of loan and savings associations, charity funds.
Such a three-tier scheme is typical for most developed countries (USA, Japan, countries of Western Europe). Individual countries differ in the degree of development of individual links in this system. The most developed monetary system in the United States, in connection with which it is developed countries that are guided by it when forming their own credit systems.
The state regulates the monetary system in two main ways: through direct administrative intervention (by setting strict prices, rationing goods, etc.) and indirect administrative intervention (conducting monetary policy).
So it becomes obvious that the monetary system of the state is designed to satisfy the needs of the economy in the distribution of free cash and its overflow into the most developed and promising sectors. Some business entities periodically experience temporary free funds (surplus money), while others require additional funds. This contradiction is successfully resolved by the country's monetary and credit system.
The monetary system of the Russian Federation is represented by three tiers: the Central Bank; banking system (banks of a commercial nature); specialized credit and financial institutions. Such a structure reflects well the needs of the national economy, it approaches the model of credit systems of developed countries and begins to adapt to new processes of economic realities.
Such a credit system so far has certain shortcomings in almost all levels (the number of small banks, insurance companies, investment funds is growing, and commercial banks continue to specialize in short-term credit operations, which leads to insufficient redirection of funds in the development of industrial and other sectors of the economy. Therefore, today still quite a lot of aspects of the credit system of the Russian Federation require further improvement. This system is designed to provide a stable state of the national economy.
The banking system of Russia has two levels, represented by the Central Bank of the Russian Federation (Bank of Russia) and commercial banks.