current legislation does not provide a clear definition of "banking".However, it can be concluded that it is the activities carried out by banks and other credit institutions and covers the entire spectrum of their operations.
most developed banking gained after the transition to a market economy, because in this period began to form commercial banks.Modern economic theory holds that the bank can only be called an organization that performs three basic operations: granting of loans, deposits and the implementation of payment transactions of their customers.However, in addition to the basic functions, the lending institution has the right to provide other services, for example, to carry out operations on the securities market, to advise the client and so on.
Banking involves implementation of exchange transactions, guarantees a first-class customers, opening and closing of various accounts, granting of loans, credits and loans, as well as to raise funds on deposit accounts from businesses and individuals.In some cases, credit institutions offer such services as leasing or renting.
arranging bank of each agency begins with obtaining a license, which is issued by the central bank.The National Bank supervises the activities of other levels of the banking system through the establishment of norms and standards, to which all credit institutions.To obtain a license must apply to the bank, after considering that the decision on the expediency of licensing.As with any economic entity, the bank's authorized capital shall be formed from contributions of shareholders.
bank credit institution operating on a commercial basis, as the main purpose allocates profit and its maximization.But the central bank focusing all their efforts to stabilize the economic situation, the strengthening of the national currency, to maintain its rate at the desired level.In addition, it is engaged in production of cash in circulation, and thus controls the money supply.The central bank is trying to achieve the goal outlined in monetary policy.
main principles of banking activities include compulsory licensing of each credit institution.If it operates without a permit, this activity will be invalidated.Not having a license, the economic entity has no right to continue.Each bank operates on the basis of self-financing and self-sufficiency, and thus is an independent organization.Neither the government nor the central bank can not intervene in the affairs of the credit institution except in situations stipulated by the current legislation.As mentioned above, the central bank only sets certain standards in order to maintain the solvency of each economic entity.
Commercial Bank is entitled to decide on issuing a loan to the client or to refuse it.No one should influence its decision or to challenge it.Similarly, the consumer banking products may, in its sole discretion to choose the credit institution, the most satisfying its needs.According to the principles of banking, bank employees are not entitled to disclose information is a trade secret, as well as information about the customer or its cash flows.
