Nazarova J.P., Usachev V. A.

Donetsk National University of Economics and Trade named after Mikhailo

Tygan-Baranovsky

Banks and banking system

The modern economy is a very complex system, each of which is closely connected with others, and plays an important role. But one of the most important roles played by the banking system, providing at the present stage of development of economic relations between the normal functioning of the economy as a whole.

To date, banks are encouraged to:

-Accumulate free cash;

-To serve as cashiers business entities;

-Producing emissions.

Now it is impossible to state without a harmoniously developed an extensive network of banks. In fact, banks play a role in today's economy many hearts, with which it is possible the development and establishment of economic and political power of the state.

But as a rule, directly subordinate to the government, there is one central bank, for example, the National Bank of Ukraine, and the other banks only guided by the recommendations. And the Ukrainian government cannot directly affect all banks in Ukraine. Impact on them is possible through the government of the land to which they are "attached". Thus, the government cannot rigidly dictate terms (often guided by political motives of the ruling party) to the banks.

Due to political and economic transformations in our country came

many private banks, which are regulated on the one hand - the objective economic laws, but on the other - letters of the Central Bank and imperfect until the legislation.

Modern Ukrainian banks are developing very rapidly, given that the first non-financial institutions appeared in 1988, the emergence in 1993 as a credit card on the magnetic and electronic media can be viewed as great progress.

Despite the shortcomings of the banking legislation, Ukrainian banks occupy a firm position in the domestic capital market, and open branches abroad. True, to talk about Ukrainian banking expansion is not yet time, as economic difficulties in our country do not allow to form a full-fledged banking system.

Central banks - a bank, issuing banknotes and are centers of the credit system. They occupy a special place and are usually government agencies.

The main functions of the central bank are the following: emission feature, function of accumulation and storage of cash reserves for commercial banks, function of lending to commercial banks, loans and execution of payment transactions for government agencies as the budgets of various levels accumulated up to half or more of GDP and clearing a feature or function of non-cash payments.

Commercial banks are private and state banks exercising universal lending operations of industrial, commercial and other enterprises, mainly at the expense of money capital, which they receive as deposits.

Allocate some of their functions:

-Storage demand deposits or current accounts, and payment of checks drawn on these banks.

-Loans to entrepreneurs.

The special merit of commercial banks is also making payments on the scale of the entire national economy. On the basis of their operations, there is credit money (checks, bank drafts).

Specialized credit financial institutions include banks and nonbanks, specializing in certain types of lending. Thus, foreign banks specialize in lending to the export and import goods, and mortgage banks and companies - to provide long-term loans secured by real estate (land and buildings).

Thus, the credit system in Ukraine is, firstly, from the banking system, which usually has two levels:

-The central bank;

- And commercial banks.

Multi-level and complexity of relationships within this structure creates opportunities for its widespread use, allows implementing a large set of different monetary instruments of regulation, affecting the economic mechanism as a system. It follows from this comprehensive credit policy.