Let's consider the main aspects and parameters of the state's financial and credit system, and also answer the following questions:
What is the country's financial and credit system?
What organizations are included in financial institutions?
Which organizations are financial intermediaries?
What is the difference between insurance organizations and pension funds?
What are the features of financial and investment companies?
What are venture and hedge funds?
What is the history of investment banks?
What are credit and financial information institutions?

What is the country's financial and credit system?

Credit and financial system of the state form a complex of credit and financial institutions operating in credit and financial markets, credit and financial relations and the corresponding information sphere.
Credit and financial institutions- these are public and private, commercial and non-profit organizations that carry out operations for accumulating funds, lending, maintaining current accounts, buying and selling currency and securities, issuing credit means of payment, making financial investments, and providing financial services. Credit and financial institutions generate their income primarily through transactions with various financial instruments or through intermediary services in credit and financial markets.
Credit and financial relations— these are relations associated with the formation and distribution of credit and financial resources.
Financial and credit information sphere is a provider of information about the composition, structure, qualitative and quantitative characteristics of the activities of financial institutions. It is represented by information databases related to regulatory and legislative acts, information generated by statistical services, rating agencies, credit history bureaus, specialized publications, the media, etc. The developed financial and credit information sphere is a product of the long evolution of credit and financial markets.

What organizations are included in financial and credit institutions?

The composition of the main credit and financial institutions in developed countries is shown in Fig. 1.

Rice. 1. Composition of financial institutions
The institutional structure of the credit and financial sector of the Russian economy (end of 2016) consisted of 1012 operating credit organizations (including 955 banks and 57 non-bank credit organizations), 625 insurance organizations, 1444 mutual investment funds, 157 non-state pension funds.

Which organizations are financial intermediaries?

To financial intermediaries include organizations (institutions) that form their resource base primarily through the issuance of obligations and use these funds to purchase securities and provide loans. A number of functions of financial intermediaries are assigned to such financial organizations as pension funds, insurance, investment, financial and other companies. Certain functions of commercial banks are allowed to be performed by special organizations, institutions, and funds. For example, in the Russian Federation, off-budget social funds (Pension Fund, Social Insurance Fund, Federal and territorial compulsory health insurance funds) are granted the right to carry out a number of banking operations.

What are deposit-type credit institutions?

Deposit-type credit institutions include commercial banks, savings institutions and credit unions. The funds they raise are used to issue bank, consumer and mortgage loans.
Commercial banks, as a rule, offer the widest range of services for raising funds from business entities that temporarily have them, as well as for providing various loans.
Savings institutions are specialized financial organizations whose main sources of funds are savings deposits and a variety of time-based consumer deposits. They borrow money for short periods using checking and savings accounts and then lend it out for the long term. This group includes savings banks, mortgage banks and other specialized lending institutions.
In Russia, legislation does not distinguish between commercial and savings banks.
Credit unions are mutual lending institutions. They accept deposits from individuals and lend to union members in the form of short-term consumer loans. Credit union liabilities are generated from savings and checking accounts (shares). Credit unions are created based on professional characteristics (employees of the same industry, company), place of residence, religious basis, etc.
Credit unions have a number of advantages over other deposit-type financial institutions. They are usually exempt from income (profit) tax.
In Russia, the activities of credit unions have not received sufficient distribution.

What is the difference between insurance organizations and pension funds?

Insurance organizations are engaged in the formation of trust funds of funds and their use for compensation of damages for various risks. Thus, they create conditions for protecting business and people's well-being. Financial resources accumulated by insurance companies are primarily used in long-term lending systems and primarily for commercial and residential construction.
In Russia, the beginning of the insurance business is associated with the adoption of the law on the widow's treasury on November 20, 1772. In 1776, the State Loan Bank, upon its establishment, was granted the rights to insure stone houses and factories, and in 1797, an insurance office was opened at the State Assignation Bank for goods insurance.
The streamlining of insurance activities in the Russian Federation began with the adoption in 1992 of the Federal Law “On Insurance,” which established the basic principles of state regulation of insurance activities, regulated relations between insurers and policyholders, determined the status of insurance companies, etc.
Pension funds are organizations that ensure: a) collection of targeted contributions; b) capitalization of accumulated funds; c) financing the costs of paying pensions; d) organizing and maintaining records of contribution payers, etc. Pension funds can be state and non-state.
Insurance companies and pension funds are characterized by a steady flow of funds from insurance policyholders and pension fund account holders. They have the opportunity to invest in long-term, high-yield financial instruments.

What are the features of financial and investment companies?

Financial companies generate their credit resources by issuing short-term commercial bills, shares, bonds or by borrowing from banks to provide short- and medium-term loans for consumer and commercial needs. Unlike commercial banks, which accumulate small amounts of cash in deposits and make large loans, finance companies borrow large amounts and make small loans. There are three types of financial companies: trading, consumer and business-to-business companies.
Trade finance companies provide loans to customers to purchase goods from certain retailers or manufacturers. The main advantage of trade finance companies is that the parties quickly obtain a loan at the point of purchase.
Consumer credit companies can provide loans to individuals who cannot get them from a bank. A high level of risk corresponds to an interest rate.
In recent decades, the number of financial companies operating in the business sector, carrying out factoring, leasing operations, etc., has been increasing.
In the credit system of developed countries, an important place belongs to investment funds, i.e. property complexes owned by a joint stock company or in the common shared ownership of individuals and legal entities, the use and disposal of which are carried out by the management company exclusively in the interests of the shareholders of this joint stock company or the founders of trust management.
Investment funds specialize in long-term investments, issuing financial obligations of various denominations, which allows them to quickly sell and buy financial obligations for which a market already exists, or to redeem their shares (investment units) at the current market price. This allows for economies of scale in investment management and transaction costs, taking advantage of reduced tariffs on large-scale transactions. They operate in the form of joint-stock and mutual investment funds.
A joint-stock investment fund is an open joint-stock company whose exclusive activity is the investment of property in securities and other objects provided for by law.
A mutual investment fund is a separate property complex that is not a legal entity. A mutual fund consists of property transferred into trust management of a management company by the founder (founders) of trust management with the condition of combining this property with the property of other founders of trust management, and property received in the process of such management. The share in the ownership of the mutual fund is certified by a security issued by the management company.

What are venture and hedge funds?

Venture funds (English venture - risky enterprise) are investment companies that work exclusively with innovative enterprises and projects (startups). They invest in high or relatively high risk securities or businesses in anticipation of extremely high returns. Typically, such investments are made in the field of the latest scientific developments and high technologies.
A hedge fund is a private, unrestricted or less regulated investment fund that is not available to the general public and is managed by a professional investment manager. It has a special remuneration structure for asset management.
The goals of a hedge fund are to achieve a consistent rate of return above the market average while reducing the risk of loss. To do this, hedge funds form investment pools using a variety of financial models to carry out transactions in financial markets. Their activities are associated with high risks, which leads to high remunerations for hedge fund managers, which can reach up to 20% of the fund's profits.

What is the history of investment banks?

Investment banks, despite their name, are not banks in the traditional sense of the word; they do not open deposits, do not use raised funds to provide loans, etc. They perform direct financing functions in financial markets.
Investment banks arose in the United States in accordance with the Banking Act of 1933 (the so-called Glass-Steagall Act), which:
a) divided the activities of banks into commercial and investment and prohibited commercial banks from participating in the placement or trading of shares, bonds and other securities with the exception of securities;
b) commercial banks were allowed to purchase for their own account only those debt obligations that have received the approval of banking supervisory authorities;
c) prohibited individuals and firms involved in investment activities from simultaneously being involved in the work of commercial banks.
The activities of investment banks are related to the performance of issuing, founding and intermediary functions: a) brokers, dealers, depositories; b) organizers of settlements for transactions with securities; c) formation of emission portfolios; d) formation of individual portfolios of securities for individual investors; e) providing consulting services on investment issues; searching for investors and investment objects.
There is no definition of the concept “investment bank” in Russian legislation.
The system of credit and financial institutions is developing, some elements emerge again, some disappear. During the global financial crisis of 2007-2009. investment banks disappeared as independent organizations. Bear Stearns was the first to go bankrupt in the United States. Following this, Lehmans Brothers went bankrupt, and Merrill Lynch was purchased by Bank of America for $50 billion. The US Federal Reserve in September 2008 allowed Goldman Sachs and Morgan Stanley to change their status from independent investment banks to bank holding companies. Thus, there are no investment banks left in the United States. In their new status, banks will be subject to strict government control, and in return will be entitled to new government loans, and will also be able to work with private accounts, which independent investment banks cannot do.

What are credit and financial information institutions?

Credit information is information about the credit system and the processes occurring in it. It is divided into chaotic, obtained as a result of individual experience, rumors, opinions, and organized, which is collected, processed and stored by a complex of institutions of credit and financial information, which include:
a) institutions that form common databases related to regulatory and legislative acts, macroeconomic and financial statistics1;
b) institutions publishing official foreign exchange rates
(in Russia - Bank of Russia);
c) global information and analytical systems Bloomberg and Thompson Reuters;
d) divisions of the American Stock Exchange, Hong Kong Stock Exchange, Euronext (Euronext Amsterdam, Euronext Brussels, Euronext Lisbon, Euronext Paris), Closed Joint Stock Company "MICEX Stock Exchange", Irish Stock Exchange ( Irish Stock Exchange), Spanish Stock Exchange (BME Spanish Exchanges), Italian Stock Exchange (Borsa Italiana), Korea Exchange, London Stock Exchange, Luxembourg Stock Exchange, Nasdaq , German Stock Exchange (Deutsche Borse), New York Stock Exchange, Open Joint Stock Company "Stock
the Russian Trading System exchange, the Tokyo Stock Exchange Group, the Toronto Stock Exchange (TSXGroup), the Swiss Exchange, the Shanghai Stock Exchange, which publish quotation lists;
e) rating agencies, primarily Fitch-Ratings, StandarddPoor's, Moody's Investors Service,
f) credit history bureaus, etc.
Costs incurred in connection with the collection, verification and monitoring of credit and financial information are taken into account in the final price of the loan.
Not all information about the activities of a credit institution can be declared confidential. A credit institution is obliged to publish the following information about its activities in the forms and within the time limits established by the Bank of Russia:
a) quarterly - balance sheet, profit and loss statement, information on the level of capital adequacy, the amount of reserves for doubtful loans and other assets;
b) annually - balance sheet and profit and loss statement with the conclusion of the audit firm (auditor) on their reliability.
A credit organization is obliged, at the request of an individual or legal entity, to provide him with a copy of the license to carry out banking operations, copies of other permits (licenses) issued to it, if the need to obtain these documents is provided for by federal laws, as well as monthly balance sheets for the current year.
A credit institution licensed by the Bank of Russia to attract deposits from individuals is required to disclose information on interest rates under bank deposit agreements with individuals and information on the credit institution's debt on deposits from individuals.

The credit system ensures the distribution of free financial resources between enterprises, the population, industries and government agencies.

The huge capital in the hands of credit institutions is constantly growing based on the principle of payment. Thanks to this, the standard of living of the population is growing, the country’s financial resources are increasing and its position on the world stage is strengthening.

The essence of the credit system

The credit system is a set of credit institutions and the credit relations that arise between them. In science, the following approaches are traditionally used to determine the essence of this concept:

• Institutional approach. According to this approach, the credit system implies the functioning of financial and credit institutions (exchanges, banks, financial companies).
• Functional approach. It assumes as an understanding of the credit system - a set of types and methods of lending.

This concept can also be considered from the point of view of microeconomics and macroeconomics. Macro extends to the entire global credit system, the interaction of lending between different countries. Micro views the credit system as a separate national sphere.

Types of credit systems

The classification of this concept exists in the context of differences in the world community. So, macroeconomically assessing, the credit system can be of two types:

1. Anglo-Saxon or segmented species. It assumes the presence of restrictions on the functioning of credit institutions on the part of government structures.
2. Continental or universal type. It implies the absence of such restrictions and the existence of a well-functioning system of state control over the activities of institutions.

Main functions

The existence of the credit system is due to its functional significance. The credit system is appropriate due to the following functions:

• Regulatory. Executed by central banks in the form of control over interest rates and the activities of commercial banks.
• Monetary and economic. Provided by banks through the movement of financial resources between recipients.

Structure of the credit and banking system

The credit system, like any other structure, needs an organization with a hierarchy and connections between its links. There is a one-tier and two-tier structure of the credit system. The first is represented by the Central Bank, commercial banks and special financial institutions. It assumes the presence of horizontal connections between banks.

The two-tier structure is divided into banking and para-banking systems, which in turn are divided into various financial institutions and institutions. The interaction between them occurs through both horizontal and vertical connections.

System elements

The structure of the credit system consists of three main elements:

• Central banks. This is the main regulator of the economy. The Central Bank issues banknotes, lends to banks and controls their work.
• Commercial banks. These institutions are engaged in credit, intermediary, deposit and stock transactions.
• Other financial institutions. They lend to specific industries and areas. These include, in particular: pension and insurance companies, investment and savings institutions.

Today, specialized credit institutions have noticeably squeezed out commercial banks, collecting the main flow of long-term monetary assets.

The credit system is only one element of the complex structure of the country's economy. With its effective functioning, the capabilities of individuals and enterprises are significantly expanded.

Nesterov A.K. Credit system // Nesterov Encyclopedia

The credit system is one of the significant structures of the national economic system, contributing to a significant increase in overall production efficiency and influencing the growth of labor productivity, thanks to the redistribution of free funds accumulated in banks into various sectors of the economy. The capital accumulated by financial and credit organizations can be redirected for use by enterprises, the population, and government agencies on the terms of paid use.

The concept of a credit system

The credit system includes financial and credit organizations, credit relations and forms an area of ​​​​various services for bank clients, primarily credit programs that form the basis of lending, implemented in various types and forms.

The concept of a credit system can be defined from the standpoint of presenting it as a special financial and economic category, legislative and institutional, functional and fundamental approaches.

The concept of a credit system

An approach to defining the concept of a credit system		Comments
This approach is focused on describing the credit system as a set of credit relations that arise and exist within the economic system in the form of forms and methods of lending, as well as financial and credit organizations that organize the conditions for the possibility of implementing these relations.	- this is part of the financial market and is represented by functional and institutional elements that carry out credit operations or regulate their implementation.	In accordance with this, the credit system includes the central bank, commercial banks and specialized financial and credit institutions. At the same time, the main credit system is the banking system itself, which bears the main burden of providing credit and financial services to participants in credit relations.
Legislative-institutional approach. In fact, it reflects the structure of the credit system.	is a legally established set of financial and credit institutions headed by the country’s central bank.	This definition seems to be quite narrow, since it does not directly include credit relations. At the same time, it does not seem appropriate to deny the institutional component of the credit system.
Functional approach. Reflects the essence and content of the credit system.	is a set of credit and settlement relations, operations, as well as forms and methods of lending.	In contrast to the previous definition, this approach focuses on the functional aspect of the credit system. At the same time, the institutional component of the credit system is given secondary importance, limited to an exclusively servicing nature.
Fundamental approach. Reflects the basic aspects of this category.	is a systemic set of financial and credit relations that arise between lenders and borrowers in the process of granting, using and repaying loans on the terms of repayment, payment and urgency.	It should be noted that the fundamental approach is very similar to the definition of the credit system as a special financial and economic category. At the same time, its focus solely on credit relations seems insufficiently objective.

Thus, it should be concluded that the credit system is a set of fundamental, institutional and functional aspects that reflect its financial and economic essence.

The following definition of the concept seems objective:

is a set of financial and credit institutions, credit relations that arise in the process of granting, using and repaying loans using various forms and methods of lending.

This definition reflects the fundamental, institutional and functional essence of the credit system.

Structure of the credit system

Structure of the credit system- this is a set of financial and credit organizations operating in the loan capital market that accumulate funds in order to, through credit, settlement and payment relations implemented in specific forms of credit, make a profit from providing loans to borrowers. Thus, the structure of the credit system reflects the movement of loan capital as various forms of credit.

The credit system, like any sector of the economy, needs an appropriate organization of links and a hierarchical structure. As a rule, there is a central management body, as well as grassroots or functional bodies.

The structure of the credit system can be one-tier or two-tier, but in any case it will in any case include a set of financial institutions serving the entire sphere of credit relations. At the same time, depending on the institutional organization, all credit institutions are interconnected and are included in the structural hierarchy.

Single-level structure of the credit system

A one-tier credit system assumes the presence of horizontal connections between commercial banks of the second level and special credit and financial institutions of the third level, then there are only vertical connections between the levels. The Central Bank performs the functions of a regulator and determines all aspects of the functioning of the credit system. At the same time, a single-level credit system is characterized by an increased degree of universalization of credit operations carried out by banks and functions performed by special credit and financial institutions.

Two-tier structure of the credit system

Two-tier credit system based on horizontal and vertical connections between banks. At the same time, the credit system is divided into the banking and para-banking systems. The banking part includes issuing banks, in fact this group is represented by the central bank, and non-issuing banks, which are divided into commercial and specialized banks. The parabanking part of the credit system includes specialized credit and financial institutions that are capable of accumulating temporarily available funds and placing them with the help of a loan.

The credit system consists of two groups of elements classified as the banking system and the para-banking system.

The banking system is an institutional set of elements, including various types of banks and financial and credit institutions operating within the framework of a general financial and credit mechanism. The main purpose of the banking system is to service the circulation of capital in the process of production and circulation of goods. The banking system is the main link in the financial and credit system of the state, since the burden of credit and financial services for the country’s economic turnover falls on it.

The dominant position in the banking system is occupied by issuing banks. The issuing bank issues banknotes of the country's national currency into circulation, thus, the Central Bank carries out the state emission and foreign exchange policy and is the core of the reserve system. The Central Bank, in fact, is the main regulatory body of the country's credit system.

Non-issuing banks carry out all types of banking operations, operating within the framework of established standards and national legislation. Non-issue banks are divided into commercial banks, which are universal financial and credit organizations, and specialized banks.

Commercial universal banks are banks that carry out all or most of the main types of banking operations, while combining commercial and investment activities, following the principles of diversification of their operations. The clients of universal commercial banks are both small depositors and large companies. The vast majority of Russian banks are universal.

Specialized banks carry out one or more types of banking operations. Specialized banks include:

• innovative banks specializing in lending to new types of activities, technology, scientific, technical and design developments, etc.;
• investment banks specializing in raising capital for large companies and governments of various countries, financing and long-term lending to various sectors of the economy, mainly through securities transactions;
• savings banks, which specialize in opening and maintaining savings accounts and typically deal with relatively small deposits;
• mortgage banks specializing in providing long-term loans secured by land and real estate.

The parabank part of the credit system is a functional set of non-bank credit institutions focused on servicing certain types of clientele or providing certain credit services. The parabanking part of the credit system is represented only in the form of specialized credit and financial institutions, whose activities are concentrated either on servicing or on the provision of certain types of credit, settlement and financial services. These include:

• leasing companies providing property for use under a leasing agreement;
• factoring companies that purchase client receivables with payment of up to 80% of the debt amount;
• pawnshops are credit institutions that issue loans secured by movable property, including precious metals and stones;
• credit unions that attract deposits and provide loans to their members, as well as carrying out intermediary, commission operations, consulting and auditing services for their members;
• mutual credit societies serve small businesses and form their capital through contributions from participants, which is used to issue loans secured by property;
• investment companies raise funds by issuing their own shares, which are then invested in government securities and corporate securities;
• settlement (clearing) centers are engaged in carrying out settlements between their members by offsetting claims;
• insurance companies conclude insurance contracts and service them;
• pension funds attract funds from individuals, then providing them for lending to investment programs and purchasing securities;
• mutual investment funds are based on trust management of property formed from the money of investors, each of them owns a certain number of shares.

Specialized credit and financial institutions, although not formally banks, carry out many banking operations and compete with them. However, despite the gradual erasure of differences between banks and specialized financial institutions, the core of the credit system remains its banking part.

The most preferable is the two-tier credit system, which was formed in modern conditions in Russia, as well as in almost all other developed countries. A two-tier credit system as a set of credit and financial institutions accumulates free capital, as well as income and savings of various segments of the population and lends them to firms, the government and individuals.

conclusions

The credit system regulates financial and credit relations within the national economy and provides various services to legal entities and individuals as part of credit operations.

The essence of the credit system is manifested simultaneously in the fundamental aspect, institutional implementation and functional support, and its functioning depends on the holistic formation of the organization’s conditions.

• The fundamental aspect of the credit system is manifested through a set of financial and credit relations associated with the provision and repayment of loans.
• The institutional implementation of the credit system is embodied in the form of a structural set of financial and credit institutions, headed by the country's central bank.
• At the same time, without functional support, which includes credit operations, forms and methods of lending, the functioning of the credit system seems impossible.

On the one hand, the credit system is an objectively determined set of credit and settlement relations, as well as existing forms and methods of lending. On the other hand, the credit system is a complex of credit and financial institutions interacting with each other.

The prospects for the development of the credit system as a whole are related to the role assigned to the banking system and is to ensure stable economic growth and expand the capabilities of individuals, commercial enterprises and organizations to attract financial resources.

Financial and credit system includes a set of separate but interrelated elements of the financial and credit system. Both the financial and credit systems have their own formation mechanisms and operating features.

In the pre-perestroika period, the financial and credit system was mainly the conductor of decisions made.

Currently, the financial market is being formed as a sphere of circulation (purchase and sale) of monetary resources, securities, and foreign currencies. It provides business entities with a multi-opportunity to obtain sources of financing or profitable investment of temporarily available funds.

Banks, insurance organizations and other financial and credit institutions, as well as issuers, provide financial services, attract and provide funds on a commercial basis.

Enterprises have the opportunity to make bank deposits in ruble or foreign currency accounts, on deposits, purchase or sell securities, etc. Each enterprise, based on an in-depth study of the financial market conditions, taking into account the current legislation on its regulation, forms an optimal portfolio of financial investments and borrowings.

When choosing options for operations in the financial market, its subjects take into account the differences between sales and purchase prices, rates for attracting and providing loans, which are determined both by market laws and government regulatory measures represented by the legislative and executive authorities of the Russian Federation, the Central Bank of Russia, as well as economic management in the regions.

According to its structure, the financial market is divided into several segments:

1. loan market. The general principles of modern credit policy are established by legislation on banks and the banking system, and by decrees of the President of the Russian Federation. The loan market is directly regulated by the Central Bank of the Russian Federation;
2. stock market. Until recently, the federal executive body for the implementation of state policy in the field of securities market was the Federal Commission for the Securities Market;
3. currency market.

Consideration of economic policy indicates the need to control the country’s financial and banking system, since all economic processes, on the one hand, affect the state of this system, and on the other hand, are themselves influenced by it due to significant economic power, usually concentrated in financial and banking circles.

Under these conditions, a government agency is usually created - a central bank - with a charter that gives it significant independence from the government. This fact is intended to protect the central bank from attempts to use money emission to finance the budget deficit. The study of the relationship between the government and the central bank is based on a comparison of the rights and functions of the latter, taking into account that the status of the central bank varies significantly depending on the country in question.

FCC includes a set of separate but interconnected elements of the financial and credit systems. Finance is different from money. Finance- monetary relations, cat. mediate unequal movement of money. They arise at the stage of redistribution of national income and are associated with the presence of the state. Finances classification for public and private. State including the budget system, specialized state external funds, finances of state corporations, local finances. Private on corporate finance, bank finance, finance of innovative companies, finance of insurance companies. State finance + private finance + credit authorities = FCC. FCC- the credit system of the state, which is that part of the monetary system, cat. serves unequal movement of money. At the same time, the budget system. is a link in the financial system, and the tax service is a link in the budget system. On the other hand, the banking system is a link in the credit system, the Central Bank is the center link of any banking system. The financial and credit subsystems are interconnected. The Central Bank and credit organizations service accounts for accounting for funds received from commercial activities. Banking system I am the holder of almost all the money. funds of state and local authorities, the Central Bank is the information center in the formation of the state budget. Together, 2 blocks of the Federal Tax Service are united by government expenditures. To fulfill its functions, the state needs resources, cat. receives through the tax system and Central Bank operations in the financial market. FCC Basic Principles- unity and interaction of all its elements. That. FCC- a system of purely distributed relationships, covering all stages of reproduction. It is assumed that the distribution of resources should be efficient and fair. The banking system, represented by commercial banks, is responsible for effective distribution, and the Federal Fund of the state and the Government are responsible for fair distribution. Well, effect and justice are contradictions, cat. and is the source of development of the FCC of any state. The successful development of the economy is largely determined by the state of the state's financial credit. The role and place of finance and credit have especially intensified in the 21st century. Achieving the optimal level of such indicators as real GDP growth, the unemployment rate, the inflation rate, the state of balance sheets, the exchange rate, etc. depended on the balance of the country's financial and credit system. To modernize the economy market, it is necessary to have a well-developed banking system and specialized credit institutions, which permeate all spheres of the world of economy. Our bank is based on commercial banks, which account for the majority of all global foreign exchange transactions. Banks not only facilitate the flow of existing corporate resources, but also provide credit financing in local and international markets.

2. The relationship between the monetary, credit and financial systems of the state.

This relationship can be represented schematically.

The finances of the state have a close relationship with the budget and cash. In fact, the first two elements of finance: the state budget and local budgets, as part of local finances, form the state budget. In turn, the tax on payments included in the revenue side of budgets at different levels is cash. At the junction of Finnish and credit relations stands the institution of state credit: on the one hand, state credit is a classic credit relationship between a lender and a borrower based on payment, repayment and urgency; on the other hand, the state uses the loan fund for the formation and distribution of centralized funds, fulfilling its functions, which is a financial relationship. This way, the connection between credit and finance is confirmed, which also follows from the similarity of the distribution characteristics inherent in these two categories.