What is the Russian banking system?

In any country there is a system of management and regulation of the country's economy. The banking system of the Russian Federation also applies to such a system. This system is part of the whole country's credit system . It includes not only banks, but also all credit institutions, both commercial and public.

If we talk about credit organizations, we can give a simple definition of this structure - it is a legal entity that has the right to engage in banking activities. However, 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 act as a type of commercial bank, whose possibilities are limited. In contrast to them, commercial banks are full-fledged credit organizations that are entitled to attract and place deposits of both legal entities and individuals under certain conditions of repayment, urgency and payment.

The banking system of the Russian Federation itself is specialized and universal. The classification is based on the functions performed by banks, as well as on the type of license that the bank has. If you understand the definitions, then you can definitely say 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 viewed from the point of view of the organization, it is possible to divide it into a single-level and two-level one. A single-level system implies equal rights among all banks in the country, as well as the absence of a single controlling body. As for the two-level system, here there is a central bank that establishes certain rules and norms with which all commercial organizations of the country must be considered.

The modern banking system of the Russian Federation is a two-tier system, as in most other developed countries, which consider this type of organization of the system to be the most profitable. However, in Russia such a system has been effective only since the 80s of the 20th century. For a long time, the banking system of the USSR was considered by right of one-level, in which only a small number of banks and one credit institution were present. But at the moment everything is quite different.

The modern banking system of our country provides for a state regulation of the entire monetary and credit sphere, and this system is able to protect the interests not only of the population, but of the whole banking sphere. 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, the Sberbank of Russia, commercial banks and other credit organizations. Yet the Bank of Russia is the main financial institution in which all other banks are required to keep reserves, and also comply with the rules and regulations that are set by the Central Bank.

Few people know, but in light of the current economic situation in the country, the Central Bank of Russia adopted a program for the restructuring of the entire banking system. This was done to improve the quality of the system, as well as to create a database that will improve not only the structure itself, but also the maintenance processes. And perhaps even restore confidence in the entire banking system.

The advantage of the Central Bank of Russia is its status as independence, which is primarily due to its powers, namely, the possibility of issuing the money supply of the country, settling the entire circulation of the money supply and the possibility of carrying out its monetary and credit policies.