Banking services in Russia: theory and fact.
The economic situation in Russia, due to the historic and unprecedented
on-going changes in this country, is one of the most interesting fields
of analysis and research. I have chosen the banking system for the topic
of my essay as it is one of the most important instruments of the
economy. While studying materials on the banking system in Russia I came
across many deviations from the well-established standards of the
banking system in Europe and some facts showing that in real life banks
in Russia does not follow the laws and regulations. In my research I
have tried to answer two questions.
Is the banking system in Russia fully developed?
Banking services in Russia: theory and fact. Do they differ?
In order to answer the first question I compared the European banking
system and the current banking system in Russia as it is regulated by
laws and by governmental acts and decisions.
In order to answer the second question I analyzed the information I
received while studying the activity of the ‘’Incombank’’ branch in
Chelyabinsk and while interviewing clients of other banks in Chelyabinsk
in the summer of 1997.
Banks are the most important link in the world of money. This is
because, first of all, banks nowadays perform the main part of the work
of transferring money from a customer to a seller, by operating the
system of payments in the economy. Almost everyone in the world uses or
has used banking services. Families keep their savings there, and banks
pay them interest rates on their deposits and give them loans to buy
expensive goods. Companies conduct payments through them. Commercial
organizations, which work at the market and in production, take loans
for their needs and conduct all payments with buyers and sellers
through them. Landowners and owners of real estate take loans from the
banks to buy an estate or to make use of it and pay back loaned money.
As we can see, everything in the economy is controlled by money, and
banks are a tool-kit for the economy - controlling the money circulation
between firms, depositors and loaners, and offering services to make
that circulation easier for them. Banking services also have a
productive nature. Even such a simple operation as the admission of
money on deposits from people and companies involves a huge productive
force. A bank does not just collect money - it converts non-working,
unused money resources, to working assets. This is also true of credits
given to companies and firms for the development of their productive and
financial activity. A healthy and stable economy of any country depends
on healthy banking services. Now we will see if the banking system in
Russia and, in particular, in my home city of Chelyabinsk gives any
chances for our economy to develop.
All banking services can be divided into specific and nonspecific
services. Specific services include: 1) deposit operations; 2) credit
operations; 3) payment operations.
Deposit operations are the operations of placing clients’ money into
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