Every country has its own system of management and regulation of the country's economy. A similar system applies to the banking system of the Russian Federation. This system is part of the credit system of the whole country. It includes not only banks, but also all credit organizations, both commercial and state.
If we talk about credit organizations, we can give a simple definition of this structure - this is a legal entity that has the right to engage in banking activities. Moreover, this type of activity is possible only with the permission of the Central Bank of Russia in accordance with the law.
Banks can be both commercial and specialized. Specialized ones act as a kind of commercial bank, the possibilities of which are limited. Unlike them, commercial banks are full-fledged credit organizations that are entitled to attract and place deposits of both legal entities and individuals on certain conditions of repayment, maturity and payment.
Directly, the banking system of the Russian Federation is specialized and universal. The classification is based on the functions that banks perform, as well as on the type of license that the bank has. If you understand the definitions, then we can say for sure that in its pure form there is no universal or specialized system. As a rule, in any of them there are certain functions of both systems.
In the case when the banking system of the Russian Federation is considered from the point of view of the organization, it can be divided into one-level and two-level. A single-level system implies equal rights among all banks located in the country, as well as the absence of a single supervisory authority. As for the two-tier system, there is a place to be a central bank, which establishes certain rules and norms that all commercial organizations of the country must reckon with.
The modern banking system of the Russian Federation is a two-level system, as in most other developed countries, which consider this type of organization of the system the most profitable. However, in Russia, such a system has been operating only since the 80s of the 20th century. For a long time, the banking system of the USSR was considered by right to be single-level, in which there were only a small number of banks and one credit institution. But at the moment, things are completely different.
The modern banking system of our country provides for state regulation of the entire monetary sphere, and this system is able to protect the interests of not only the population, but also the entire banking sector. All operations and activities are based on two laws: “On the Central Bank of Russia” and “On Banks and Banking Activities of the Russian Federation”.
The entire banking system of the Russian Federation includes not only the Bank of Russia, but also the foreign trade bank, Sberbank of Russia, commercial banks and other credit organizations. Nevertheless, the Bank of Russia is the main financial institution in which all other banks are required to keep reserves, as well as comply with the rules and regulations that are established by the Central Bank.
Few people know, but in light of the current economic situation in the country, the Central Bank of Russia has adopted a program of restructuring the entire banking system. This was done in order to improve the quality of the system, as well as to create a base that will improve not only the structure itself, but also the service processes. And it is even possible to restore confidence in the entire banking system.
An advantage of the Central Bank of Russia is its status such as independence, which is explained primarily by its powers, namely the possibility of issuing the country's money supply, regulating the entire circulation of the money supply and the possibility of pursuing its monetary and credit policy.