Bolstering the Business Activity and the Fundamental Problem of the National Banking System Reform

2018 ◽  
Vol 11 (3) ◽  
pp. 20-26
Author(s):  
Yu. A. Kropin
Keyword(s):  
Fundamental Problem ◽  
Banking System ◽  
System Reform ◽  
National Interests ◽  
Private Interests ◽  
Monetary System ◽  
Russian Economy ◽  
Current State ◽  
State Of Affairs ◽  
National Banking System

The subject of the research is the national banking system as part of the country’s monetary system. The purpose of the research was to prove that the national banking system in its current state is fundamentally incapable of supporting business activities in the Russian economy. The paper reveals the reason for such incapability; it is due to the existing contradiction between the whole and the part where the whole is the monetary system of the country having a market nature, and the part is the national banking system that has not changed its structure with the transition from the gold standard to the above-mentioned nature of the monetary system. Within the framework of the latter, banks, in their essence, act as functioning “banknotes”, and as such, they should not be in private ownership or have an interest in making a profit. Meanwhile, they actually behave as commercial companies pursuing their own private interests that do not coincide with the interests of the market (country). Therefore, the modern structure of the national banking system is hampering the country’s economic development. The paper concludes that the current state of affairs must be overcome; the contradiction between the whole and the part should be removed through the conversion of the banking system to a state system in form, private in content and national in essence. In this case, the functioning of the banking system will be directed towards the realization of national interests, the actual support of business activities in the Russian economy.

The Current State of the Monetary Sphere of Kazakhstan, Kyrgyzstan, Tajikistan within the Framework of Changes in the Legislation

2019 ◽  
Vol 9 (5) ◽  
pp. 1708
Author(s):  
Malik Rsbaevich MUKANOV ◽  
Ernar Nurlanovich BEGALIEV
Keyword(s):  
Soviet Union ◽  
Central Asia ◽  
Banking System ◽  
Legal Framework ◽  
Monetary System ◽  
Current State ◽  
The Soviet Union ◽  
Central Asian ◽  
Emission Activity ◽  
Second Tier

The article discusses the current state of the monetary – credit sphere in the former states of the Soviet Union. The authors note that, the collapse of the Soviet Union in 1991, which led to the defragmentation of the monetary system, is an important event in the formation of the financial sector in Central Asia. The single monetary and financial system, which was adapted to the conditions of the planned economy, had started rapidly falling apart. The result was a break of the traditionally existing economic ties. It is important to note that the monetary policy has a direct impact on the major macro-economic indicators such as GDP, employment and the level of prices. It is thus important to have a solid legal base. The accelerated formation of national monetary systems in Central Asian states has required the creation of genuinely independent emission center as the Central Banks of Central Asia. Since 1994, Central Asian governments have begun to carry out macroeconomic regulation, mutual settlement in the economy and emission activity. The next step was a reform of the banking system in Central Asia. At the beginning of the independence of the Central Asian states a legal framework was created and a transition was made to a two-tier banking system. According to the adopted laws in the countries of Central Asia, a two-tier banking system was formed, where the upper level was represented by the State Bank of the region (with emission rights), and the bottom were - commercial and government specialized. Creating second tier banks was a response to the needs of the Central Asian countries.

scholarly journals Russian Banking Sector: Key Points of International Expansion

2011 ◽  
Vol 2 (1) ◽  
pp. 63-74 ◽  
Author(s):  
Andrei Panibratov ◽  
Cyril Verbá
Keyword(s):  
Banking Sector ◽  
International Expansion ◽  
Entry Modes ◽  
Russian Economy ◽  
Political Independence ◽  
Current State ◽  
Key Points ◽  
Business Entities ◽  
State Of Affairs ◽  
Economic Motives

Banking industry is traditionally seen as strictly regulated and driven to avoid political context. While Russian economy in general lacks both well developed regulatory framework and political independence of business entities, we would like to analyze the current state of affairs in an industry for which these attributes have become a hallmark. As Russian non-resource-based industries in general and the banking sector in particular are becoming more and more active players worldwide, the question arises, how exactly do Russian banks internationalize. We analyze four cases of international expansion by Russian banks in order to determine the main destinations for expansion, the entry modes used and whether they resemble resource-based companies in their internationalization. The results show that banks, even while being significantly state owned, are most likely guided by economic motives (as opposed to political ones), are leaning towards safer expansion destinations and are in several ways suffering from home market immaturity.

scholarly journals Adjustment of prudential norms, determining vector of the banking sector development

Upravlenie ◽  
2020 ◽  
Vol 7 (4) ◽  
pp. 32-43
Author(s):  
N. V. Gryzunova
Keyword(s):  
Internal Control ◽  
Business Models ◽  
Banking Sector ◽  
Banking System ◽  
System Reform ◽  
Banking Supervision ◽  
Interest Rate Policy ◽  
Credit Line ◽  
Russian Economy ◽  
Credit Institutions

Currently, the Bank of Russia carries out radical reforms in the administration system of banking supervision and regulation. You can observe the interaction between monetary policy and macro prudential policy. The purpose of the traditional regulator is protection of investors', shareholders', customers' capital. The main problem of the Russian economy is the shortage of investment and working capital from non-credit institutions and the difficulty to get a foothold lending. The main objective of the banking system reform is to create additional sources of investment for non-credit institutions. The tightening Supervisory requirements although eliminate the total bank risks, but reduce business activity and agility of the banking system. The curve of investment demand in the Russian economy is flat, that characterizes the low profitability of investments and the weak dependence on interest-rate policy. In this connection, it has been suggested to consider investment companies as the main criterion of competitiveness and the main argument in decision-making about granting a credit line.The feasibility of the allocation of investment criteria in the monetary rule has been shown in the article. The urgency proportional distribution of regulatory indicators of banking supervision by tier banking system, which are formed from the pacing of functional and regional specificity, – has been substantiated. The mechanism of price stability based on the clustering of financial institutions has been offered. It has been suggested to use the investment criteria as justification for a transfer service of non-bank organization to another bank cluster. Possible trends and implications of key planned reforms of the banking system including the bank's tier and the distribution tier of powers and functions have been analysed.Due to measures of preventive supervision and bank clustering, it is possible to expect regional market segmentation, improving the effectiveness of internal control systems, based on the distribution of the control functions in bank tiers, simplify management and risk reduction in accordance with the profile of the company and the level of the bank's operations. It has been proved in the paper that a focused segmentation of the credit market allows us to reduce the credit risks for banks, as well as to link market characteristics with the business models of each cluster.

scholarly journals Proyecto de una herramienta de análisis para evaluar la competitividad financiera de las MiPEs

2019 ◽  
Vol 3 (2) ◽  
pp. 107-118
Author(s):  
María Teresa Lugardo Bravo ◽  
Gisela Janeth Espinosa Martínez ◽  
María Guadalupe Galván Robles
Keyword(s):  
Fundamental Problem ◽  
Banking System ◽  
Small Enterprises ◽  
Financial Products ◽  
Efficient Management ◽  
Current State ◽  
Lack Of Information ◽  
Money Flow ◽  
El Sistema ◽  
Micro And Small Enterprises

El trabajo busca determinar las dificultades que enfrentan los empresarios en el ámbito financiero agrupados en MiPEs en el manejo eficiente del flujo de dinero. Los excedentes financieros no son optimizados por el área de Tesorería al no utilizar el sistema bancario adecuadamente. El objetivo de esta investigación es identificar los constructos que reflejarán el estado actual de la capacidad financiera de las MiPEs. La Metodología de investigación radicó en el diseño de un instrumento que fue validado a través del sistema SPSS Statistics 21; como resultado de este análisis se encontró como problema fundamental la falta de información de los diferentes productos financieros ofertados por el sistema. AbstractThe work seeks to determine the difficulties faced by financial entrepreneurs in the financial field grouped in micro and small enterprises (MiPEs) in the efficient management of money flow. Financial surpluses are not optimized by the Treasury area by not using the banking system properly. The objective of this research is to identify constructs that will reflect the current state of financial capacity of MiPs. The Research Methodology was based on the design of an instrument that was validated through the SPSS Statistics 21 system; as a result of this analysis, the lack of information on the different financial products offered by the system was found as a fundamental problem.

scholarly journals The B.N.A. Act and the Near Banks: A Case Study in Federalism

1969 ◽  
pp. 155
Author(s):  
Patrick N. McDonald
Keyword(s):  
Banking System ◽  
Financial Intermediaries ◽  
Complex Task ◽  
Legislative Authority ◽  
Monetary System ◽  
National Economic ◽  
Legislative Control ◽  
Basic Concepts ◽  
National Banking System

The achievement of national economic goals through the management of our monetary system is a complex task. The regulation of banking is fundamental to that task and appropriately banking and the incorporation of banks have been placed within the exclusive legislative authority of the Parliament of Canada. However, the question of regulation does not end there as there exist numerous provincially incorporated entities whose functions correspond in varying degrees to those of chartered banks, but are neither called banks nor subject to federal legislative control. Professor McDonald attributes the escape of these institutions from federal influence, not to any confusion as to which level of government has authority to enact banking legislation but rather to the lack of "clear concept of the banking function". The author goes on to distinguish and examine the basic concepts of banking and assess the assistance which they may offer in clarifying the "banking function" for constitutional purposes. Through this analysis certain similarities or "common denominators" between the chartered banks and "near" banks are discovered. However, it is the lack of concrete distinctions between the two which leads Professor McDonald to call for the integration of "specialist" banks into national banking system. The present hybrid system of regulation of financial "intermediaries" is confusing, and in many cases inadequate. Further, the uncontrolled competition which it allows between chartered banks and the "near" banks may seriously hamper Canadian monetary policy.

DIRECTIONS OF DEVELOPMENT AND IMPROVEMENT OF THE STATE SYSTEM OF COUNTERING THE SHADOW ECONOMY IN ORDER TO ENSURE THE ECONOMIC SECURITY OF RUSSIA

2021 ◽  
Vol 1 (175) ◽  
pp. 24-32
Author(s):  
O.L. Taran ◽  
◽  
I.L. Taran ◽  
E.V. Berezhnaya ◽  
G.N. Ter-Akopov ◽  
...  
Keyword(s):  
Economic System ◽  
Shadow Economy ◽  
Economic Security ◽  
The State ◽  
State System ◽  
Scientific Article ◽  
Russian Economy ◽  
Current State ◽  
State Of Affairs ◽  
Goals And Objectives

The article discusses some areas of improvement and development of the state system of counteraction to the shadow economy in order to ensure the economic security of Russia. Based on the study of modern trends in the development of the socio-economic system of Russia, it is shown that the current state of affairs in the socio-economic system of Russia requires the development and adoption of a socio-economic policy (strategy) to counteract the shadow economy of the state, which can be understood as the activity defined by strategic and tactical plans. bodies of state power and management to dedenevize the country’s economy with clearly defined goals and objectives of each involved department. Within the framework of the proposed study, it was determined that in Russia there is no complex regulatory act that determines the policy of the state with clearly defined goals and objectives of countering the shadow economy. In the absence of such a regulatory legal act, all measures to counter the shadow economy implemented in Russia can be characterized as targeted measures to counteract individual manifestations of the shadow economy without taking into account both regional specifics and strategic interests of ensuring the economic security of the state. To solve the problems highlighted in the study and in order to improve and develop the state system for countering the shadow economy in order to ensure the economic security of Russia, within the framework of the proposed article, a mechanism for countering the shadow economy has been developed, which will ensure the coordination and participation of all interested parties in the de-shadowing of the Russian economy. The mechanism of the state system of counteraction to the shadow economy proposed in the scientific article will give an economic and social effect when introduced, which can be calculated as the ratio of the obtained positive effect from reducing the scale of the shadow sector of the economy and increasing the economic security of the state to the costs incurred for the implementation of the proposed mechanism.

scholarly journals ISRAELI BANKING SYSTEM: CURRENT STATE AND FUTURE DEVELOPMENT PERSPECTIVES

2020 ◽  
pp. 87-100
Author(s):  
Dmitry Maryasis ◽  
Keyword(s):  
Technological Progress ◽  
Banking Sector ◽  
Banking System ◽  
Digital Transformation ◽  
Central Component ◽  
Digital Platforms ◽  
The Third ◽  
Current State ◽  
Modern Economy ◽  
National Banking System

Being the foundation of the financial system of the state, the banking sector is key in a number of development areas. Since money is an extremely sensitive instrument, banks are generally fairly conservative institutions. However, the acceleration of the pace of scientific and technological progress, the expansion of its scope more and more affect the financial sector of the economy as a whole and banks as its central component. The article shows that in the first two decades of the XXI century Israel’s banking system has undergone a significant transformation. The main objective of the reforms was to reduce the level of concentration in this sector. It was also essential to improve the transparency of the functioning of the country’s banking system. In general, it should be noted that, despite the rather strong resistance from the leadership of the largest banks in Israel, by the beginning of the third decade of this century, the country’s banking system came up in much better “shape” than it was before the reforms began. Meanwhile, nevertheless, the level of concentration in it is still quite high. It seems that the processes of digital transformation, which, albeit slowly, but occur in the country’s banking system, will make it even more efficient and adequate to the requirements of the modern economy. Digital platforms are democratic and transparent by their very nature. Their introduction by Israeli banks will significantly increase the transparency and decentralization of the national banking system. At the time of this writing, digitalization processes in this area are only at the very beginning, so at this stage it is difficult to say how successful their results will be, despite, of course, the high transformational potential of digital technologies, which was mentioned earlier.

scholarly journals Assessment of the State of Competition in the Banking Market in the Russian Federation

2016 ◽  
Vol 62 (3) ◽  
pp. 13-19
Author(s):  
Anna Rabdanova ◽  
Vera Bulatova
Keyword(s):  
Russian Federation ◽  
Financial Services ◽  
Banking System ◽  
The State ◽  
Banking Competition ◽  
Monetary System ◽  
Current State ◽  
Banking Market ◽  
The Russian Federation ◽  
The Stability

Abstract Competition is one of the factors directly influencing the development of the banking market, the stability of the banking system, and the monetary system as a whole. This article describes the features of banking competition, methods of analysis of banking competition, and an analysis of the current state of competition in the banking market in the Russian Federation. The analysis of banking competition in the Russian Federation was performed using the concentration ratio for the top three companies and the Herfindahl-Hirschman Index. The research concludes with an assessment of the state of competition in the banking market and identification of the barriers to entering the financial services market.

scholarly journals Proyecto de una herramienta de análisis para evaluar la competitividad financiera de las Mipes

2018 ◽  
Vol 2 (3) ◽  
pp. 8-19
Author(s):  
María Teresa Lugardo Bravo ◽  
Gisela Janeth Espinosa Martinez ◽  
Ma. Guadalupe Galván Robles
Keyword(s):  
Research Methodology ◽  
Fundamental Problem ◽  
Banking System ◽  
Financial Capacity ◽  
Financial Products ◽  
Efficient Management ◽  
Current State ◽  
Lack Of Information ◽  
El Sistema

El trabajo busca determinar las dificultades que enfrentan los empresarios en el ámbito financiero agrupados en MiPEs en el manejo eficiente del flujo de dinero. Los excedentes financieros no son optimizados por el área de Tesorería al no utilizar el sistema bancario adecuadamente. El objetivo de esta investigación es identificar los constructos que reflejarán el estado actual de la capacidad financiera de las MiPEs. La Metodología de investigación radicó en el diseño de un instrumento que fue validado a través del sistema SPSS Statistics 21; como resultado de este análisis se encontró como problemafundamental la falta de información de los diferentes productos financieros ofertados por el sistema.   AbstractThe work seeks to determine the difficulties faced by entrepreneurs in the financial field grouped in MiPEs in the efficient management of the flow of money. The financial surpluses are not optimized by the Treasury area due to not using the banking system adequately. The objective of this research is to identify the constructs that will reflect the current state of the financial capacity of the MiPEs. The research methodology was based on the design of an instrument that was validated through the SPSS Statistics 21 system; As a result of this analysis, the lack of information on the different financial products offered by the system was found to be a fundamental problem. KeywordsEntrepreneurs, surplus, financial products, Treasury.

scholarly journals Import Substitution in the Agro-Industrial Complex: Implementation Mechanism and Development Prospects

2021 ◽  
pp. 63-73
Author(s):  
Natalya Gorshkova ◽  
Ekaterina Shkarupa ◽  
Aleksej Eltoncev
Keyword(s):  
Rural Areas ◽  
Financial Stability ◽  
Import Substitution ◽  
Industrial Complex ◽  
Agricultural Producers ◽  
National Interests ◽  
Russian Economy ◽  
Current State ◽  
Effective Development ◽  
Favorable Conditions

The problems and prospects of the import substitution policy continue to be a strategic priority for the development of the Russian economy. This is due to the presence of imports of certain types of food, which pose a threat to the food security of the territory and the infringement of national interests of the country. The current state support of the agro-industrial complex is aimed at increasing agricultural production in order to ensure import substitution. All this determines the need to improve the process of supporting the agro-industrial complex, create favorable conditions for the effective development of rural areas, increase the financial stability of agricultural producers, ensure a sufficient level of their profitability, create and develop a full-fledged production infrastructure. The purpose of this study is to consider the mechanism for the implementation of import substitution in the agro-industrial complex and possible prospects for its development in modern conditions. The article presents an overview of the existing interpretations of the “import substitution” concept which made it possible to indicate the author’s position regarding the studied phenomenon. The mechanism of import substitution is manifested in the unity of its component mechanisms: organizational and economic, which in turn include certain forms, methods, tools. The potential for further development of the agro-industrial complex import substitution mechanism is represented by the following directions: expansion of grant financing of agro-industrial complex enterprises, the list of targeted preferential short-term lending, strengthening of tax incentives, implementation of projects based on public-private partnership.

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