In order to sort out what are the credit markets, we turn to the fundamentals of the economy.
money - one of the most important inventions of mankind.In ancient times the money replaced the various goods that are used in daily life.Some economists believe that the money, in fact, can be absolutely anything to their function remained unchanged.
Functions of money:
- medium of exchange;
- storage means (ie preservation of wealth);
- measure of value.
If we consider these functions in terms of the loan, the most important is the second.There is an interesting assumption associated with the emergence of the concept of "credit".It is believed that all came from the medieval goldsmiths, people brought them jewelry and jewelers, in turn, wrote a receipt.Receipts those willing to take in all the other shops in the payment of goods.It is believed that this - the earliest form of money.At first they had taken full liquidity, but eventually the future bankers began to notice that the amount of money that people are so embedded in their shop, exceeds the amount withdrawn.It is believed that this was the beginning of lending.
lending principles
Credit - provision of funds (or goods) in debt with interest payments.Credit relations between the parties are based on the following principles:
- Obligation: loan must be repaid.
- Urgency: this should not be done at any time, and at a certain pre-established and time.
- Warranty: the borrower must provide any assurance that he is able to make the mortgage payments.At present, such as guarantees began to use loans secured.
- Purpose: credit should be targeted.
capital in the form of means of production can not move from one sector to another.This process is usually carried out in the form of cash capital.Credit in this process acts as a flexible mechanism for controlling the "overflow" of capital from industry to industry and equalizing the rate of profit.Credit markets - the markets in which there is supply and demand for means of payment.Credit institutions usually mediate the deal.In the role of credit institutions by banks.Financial and credit market provides the funds at the disposal of enterprises, thus moving them comes from sectors of the economy with excessive content of their sector with a lack of funds.
Referring to the history of the credit market in Russia.1994 was the most controversial: changed the established trends, outline new, but has not gained strength again changed.But some trends began to develop in previous years, found its logical conclusion it in 1994.For example, interest rates leveled industry and universal banks.Also, closer rates of public and commercial lending institutions.The credit market has undergone its first Russian crisis in 1995.It was just a banking crisis, so that the economic and political situation in the country were still strong enough.
time for a quick exit from the crisis the largest Russian banks have created a "skeleton" around which began to take shape a new market.Since these banks had enormous prestige, they adjusted their broken links.Another crisis occurred three years later.He taught the big banks a lesson: not the most stable market structure that is larger, but the one that has adequate and competent management level.To date, the credit markets are a major segment of the financial market.They concluded the greatest potential and cash volume.That credit markets and the associated relationship driven and accelerate the market economy as a whole.
