The banking system is an aggregate of all credit organizations included in the country's economy, each of which has its own special function. They carry out their list of operations, satisfying the need of society for banking services and products. The structure of the banking system is reduced to the distribution of all banking institutions in a hierarchy depending on their functions.
The banking system of the Russian Federation still has many contradictions. Banks are engaged in various types of operations. Their functions include not only the organization of money circulation and the establishment of credit relations. They finance the national economy, operations for the sale of securities, organize insurance operations, conduct intermediary transactions, manage property, etc.
The concept and structure of the banking system begins with the definition of the concept of “bank” itself.
Bank is an independent commercial enterprise. Its main product is the formation and management of means of payment or a lot of money, as well as the provision of services in the form of guarantees, loans, advice, sureties, etc. Banks trade in money and analyze the market. They are very close to the business and its needs. Therefore, banks are a key element of economic regulation.
Today, a bank is defined as a financial enterprise that focuses available funds in the form of deposits, provides them for use in the form of loans, acts as an intermediary in settlements between business entities and individuals, regulates the circulation of money and issues the missing funds.
The banking system , therefore, is a combination of different types of national banks, as well as all credit institutions. It includes such elements as the Central Bank, commercial banks and other credit and settlement centers. This is the structure of the banking system.
The Central Bank pursues an emission policy and carries out currency regulation, controls the economy and, in fact, acts as the main core of the reserve system of the economy. Commercial banks conduct various types of banking services and operations.
The main function of the banking system is to mediate in the transfer of loans and cash from sellers to buyers and from lenders to borrowers.
The role of the banking system in Russia is great, with its help monetary settlements are regulated, and all cash flows are mediated.
The structure of the banking system is reduced to the distribution of all banking and credit institutions in a hierarchical order. Like all other sectors of the economy, the banking system needs a hierarchical structure of its components. It distinguishes the central link and the lower functional organs.
The structure of the banking system of Russia is characterized by two levels.
At the highest level of the hierarchy is the Central Bank of the Russian Federation . Its functions are to organize the circulation of money and non-cash payments, manage gold and foreign exchange reserves, provide credit and settlement services to the government, carry out monetary regulation, and implement the policies of the Central Bank among institutions in this sector. Subdivisions of the Central Bank are the Central Office, the central institute of the sector, and the regional institutions of the Central Bank.
At the lower level of the banking hierarchy are commercial and specialized banks . Their functions include credit and settlement customer service in an integrated form, specializing in certain types of services.
The structure of the banking system also has a sector division. To increase the efficiency and effectiveness of regulatory measures of the Central Bank, the banking system is divided into sectors that include institutions similar in function. For example, consumer credit banks, land banks, the sector of leasing institutions and others. The main purpose of this division is to establish regulatory procedures depending on the particularities of operations of institutions in a particular sector.