Banks give the population undeniable advantages. They accumulate financial resources, conduct various payment transactions, issue loans and serve different categories of securities. This review will examine the history of banks.
The origin of banks
The first money-lenders began to appear in ancient times. They loaned their fellow tribesmen valuable things with an obligation to return them after a while with interest. After that, financial organizations began to form that carried out various operations with valuable items. That is how the history of the bank was born.
Bank ("banko") in translation from Italian means "money table". The very first body in the modern concept was the Bank of Genoa (1407). In England, the first financial institution was created in 1664, after which trade and economic policies immediately began to be pursued. In the USA, this event occurred in 1781 (with the advent of the bank in Philadelphia).
The emergence of banks in Russia
The history of banks in our country has its roots in 1665. Governor Athanasius Ordin-Nashchokin made an attempt to establish the organization in question, but his efforts were not approved by the government. The idea was realized in 1733, during the reign of Anna Ioannovna, which allowed to issue a loan. In 1754, a state and merchant bank was created under Elizabeth in St. Petersburg. Security was considered jewelry or possessions with serfs, as well as the guarantee of wealthy people. In 1757, bill circulation was introduced in Russia . In 1769, during the reign of Catherine II, banknotes were introduced. Over time, the history of Russian financial authorities was supplemented by new events.
Information on the formation of commercial banks
The history of commercial banks begins from the distant past. The first organization was created in 1817. It was intended for merchants and carried out exchange operations, payments. Later it became possible to issue short-term loans for the manufacturing sector, and traders could take loans for working capital, factors of production, payment of salaries. The terms of loans gradually increased.
In Russia, the first commercial bank appeared in St. Petersburg (1864). Its authorized capital was 5 million rubles. Banks began to officially register in August 1888. They influenced the economic situation in the state, but at first they enjoyed very low confidence and many people did not dare to invest their savings there. Over time, the situation changed and customers often turned to commercial banks, so they became more popular. Within a year, there were 43 of them in our country. In the future, this number increased.
Later, two laws were passed that informed of the conditions for opening a bank and methods of control over them. An act on a two-tier banking system was adopted, led by the Central Bank. History is further supplemented by a new event: commercial organizations received an independent status in attracting deposits. They are officially allowed to engage in credit policy, as well as have their own interest rates. The organizations in question received the right to carry out currency transactions on a documentary basis. Despite the fact that the history of commercial banks is rich in changes, the structure of financial bodies remains constant.
The formation of the banking system. 1st and 2nd stages
Russia lagged far behind the Western countries, so the development of banks took place in several stages. The first begins with the creation of a state loan bank (XVIII century) and lasts until 1860. Since the development of the economy required the expansion of credit opportunities, already in 1754 banks were created for the nobility and merchants. However, the bulk of the loans were not repaid, so these organizations ceased to operate.
At the second stage (1860-1917), the State Bank of Russia was created , at the same time many credit companies were opened. In 1872, the banking system included public urban, land, and private organizations. In 1880, there were 49 branches, 83 credit companies, 729 loan and savings partnerships, 32 commercial banks. There were offices, money changers, trading houses.
The expansion of the banking system. 3rd-5th stages
The First World War impeded the active growth of banking, but after the end of hostilities it gradually recovered. The third stage began in 1917 and lasted until 1930. After the reorganization of the banking structure, the State Bank of the RSFSR was created (1921), joint-stock companies, industry and regional financial bodies. Many new cash vaults formed.
At the fourth stage (1932-1987), a national bank for short-term loans and a system for capital investments appeared. During this period, cash accumulations increased to 968 billion rubles. and the first mortgage financial authorities were formed, providing loans secured by real estate.
The fifth step lasts from 1988 to the present. During this period, there was a gradual improvement of the banking system. It has become more developed as the number of branches inside the country and abroad has increased. The policy of the Central Bank was aimed at the stability of the banking system.
How did Alfa-Bank develop? (1990-2002)
The history of Alfa-Bank begins in 1990. Over the course of four years, the infrastructure was formed, the first customers and partners appeared. In August 1995, a crisis in the interbank market came. Thanks to the correct financial policy and a competent method of asset management, which strengthened financial stability, this period did not affect Alfa-Bank, which successfully continued to gain credibility with Russian as well as foreign partners.
Alfa-Bank: historical data from 1997
In 1997-1998, the financial institution in question held high positions in all leading international rating organizations and was the first among its competitors to issue Eurobonds. During this period, a business merged with Alfa Capital (an investment firm). That is how the Alfa Bank LLC leasing agency appeared. In 1999, business growth and improvement of the regional network were noticeable. Two years later, Alfa-Bank continued to diversify, and the Alfa-Insurance brand appeared on the domestic market.
How did Alfa-Bank develop after 2002?
In 2003-2007, the history of Alfa-Bank was supplemented by new events: the expansion of branches, the issuance of subordinated Eurobonds, the creation of a new version of the Alfa-Forex web page. The first branches of the new retail format were opened in Tolyatti, Nizhnevartovsk, Murmansk, Saratov, Lipetsk. During this period, the Alfa-Click Internet Bank was formed, the Alfa-TV service was created, and a video conferencing system was introduced. Positions in the credit rating have increased and new awards have been received.
In 2008-2012, new achievements appeared: the issuance of MasterCard and Umembossed payment cards, the launch of a targeted corporate financing program for wholesale deliveries of cars, the creation of a company plastic card, and new branches were opened. A banking application for smartphones and Android has appeared, and new advanced technologies have been introduced. Many prizes and awards were awarded.
Brief historical data on the Bank of Moscow
The Bank of Moscow, whose history dates back to the spring of 1994, was initially registered as commercial. Later, the organization received many awards, and in 2004 it became known as the Bank of Moscow.
In April 2010, by order of Yury Luzhkov, the bank was allocated 7.5 billion rubles from the city budget for the issue of shares, 47% of which were sold to VTB. The Bank received Retail Finance 2010, Financial Olympus Prizes, and also won the third annual competition, Collective Investment Market. That is how the history of the bank developed.
The Bank of Moscow is currently represented in almost many regions of Russia. As of April 1, 2014, 172 units are operating in the regions, and 136 offices are located in Moscow and the region. The organization in question has a network outside the country: BM Bank JSC operates in Ukraine, and Estonian Credit Bank in Estonia.
Data on the Central Bank 1990-2003
The history of the creation of banks has data on the Central Bank. It was formed on 07/13/1990 and was originally called the State Bank of the RSFSR. A few months later, an order was issued to create a legal entity of a financial organization.
In 1991-1992, a wide network of commercial organizations was formed, changes were made to the account system, RCCs (cash settlement centers) were formed, and computerization was introduced. The period under review was the beginning of the purchase and sale of foreign currencies and setting quotes in relation to the ruble.
The history of the bank (Bank of Russia) has the following data: in 1992-1995, a system of supervision and verification of commercial organizations was created in order to stabilize the banking system. With the onset of the economic crisis (1998), the Bank of Russia restructured to improve the work of commercial financial bodies and increase their liquidity.
In 2003, the organization in question began to engage in a project to improve banking control and prudential reporting. To counter artificial overstatement or understatement of mandatory standards, a number of normative acts were adopted next year.
Central Bank: development from 2005 to 2011
In 2005, the Central Bank, whose history is of interest to many, set the following goals: to strengthen the protection of the interests of depositors, increase competitiveness, prevent unfair commercial activity, and strengthen the trust of creditors, depositors, and investors. Three years later, due to the crisis in mortgage lending and lower liquidity in international markets, monetary policy has changed. The financial authority has concentrated its efforts on preventing massive bankruptcy of organizations.
The history of the Bank of Russia reports that in 2009 interest rates, including refinancing, were repeatedly reduced (from 13% to 8.75%). A mechanism has been formed to support the interbank market during the economic crisis. The Bank of Russia provided loans to other financial bodies without collateral, but a year later this decision was changed. Interest rates have been reduced (from 8.75% to 7.75%). Since mid-2010, inflation began to rise and interest rates increased by 0.25%. Further, monetary policy became more stringent. That is how the history of the bank developed. The Bank of Russia is currently continuing to improve financial mechanisms and introduce innovative systems that ensure stability.
Bank Development History: Credit Rating
Customers planning to take a loan from a bank should find out more about it. Not only feedback from previous borrowers is important, but also a credit rating: the larger it is, the more reliable the financial authority. All this can be viewed on the relevant web resources, but some of the data as of May and June 2014 is provided in this review.
Ranking place | Bank's name | Indicator (thousand rubles) | Indicator (thousand roubles.) | deviation |
06.2014 | 05.2014 | thousand roubles. | % |
1 | Sberbank of Russia | 17 916 590 200 | 17 827 517 760 | +89 071 420 | + 0.5 |
2 | VTB | 6 255 620 150 | 6 247 881 360 | +7 738 790 | + 0.12% |
3 | Gazprombank | 3 912 130 000 | 3 909 019 620 | +3 109 880 | + 0.08% |
6 | Bank of Moscow | 1 910 534 000 | 1 858 973 470 | +51 560 042 | + 2.77 |
7 | Alfa Bank | 1,553,548,000 | 1 533 393 750 | +20 154 490 | +1.31 |
Are there any banks issuing loans to customers with bad credit history?
A person can apply to small banking institutions that do not require information on past stable payments. Usually these are young organizations whose goal is to attract customers by any means. They can give money even to people with an outrageous
credit history, but they do it at high interest rates. It is difficult to imagine modern life without a loan. Sometimes the client cannot pay the required amount on time (job change, reduction, decrease in salary, etc.) and even if the debt is returned later, the payment data is entered in a special database informing about the unreliability of the citizen. If he again needs to take loans, no matter what banks he contacts, it is very difficult to get a loan again with a bad credit history. However, there is a way out of this situation.
Banking technologies do not stand still, but are in constant development. Thus, the quality of service is being improved, many financial operations are being simplified, and the reliability system is being improved. Therefore, after 5 years, the banking system will certainly rise to a new level.