The banking system of Ukraine

The banking system in Ukraine

The banking system is a set of

interconnected and cooperating banks,

each of which performs the

functions arising from his

appointment.

National Bank of Ukraine

commercial banks

The banking system has 2 levels

Summary of the National Bank of Ukraine is evident in its functions:

develop the main directions of the single monetary policy, according to which the regulation of money circulation in Ukraine;

participate in the development of the main directions and trends of economic and social development of Ukraine's economy, the state budget of Ukraine;

to authorize the establishment of commercial banks with foreign entities and foreign citizens;

servicing the public debt, to perform operations associated with the deployment of state loans and their repayment and interest payment.

National Bank of Ukraine

The main OBJECTIVE

strengthening of the

national currency - the

hryvnia

The legal status of the National Bank of Ukraine, its special legal regulation leads him to perform specific banking transactions. According to Article 8 of the Law of Ukraine "The Banks and Banking Activity" National Bank performs the following operations:

conducts operations from the reserve fund currency

buys and sells securities that are issued by the state

gives loans to commercial banks for the period in agreement with lenders

privatization certificates it issues

buys and sells foreign currency and payment documents in foreign currency

Types of banks• has the exclusive right to issue notes

(currency, bank notes)Issuing Bank

• specialize in providing long-term loans secured by real estate

Mortgage banks

• specializing in financing and long-term loans of different companies and entire industries

Investment Banks

• are simple financial and credit institutions for the promotion of free cash population

Savings Bank

• lending to all stages of the innovation process to create and implement a variety of scientific developments

Innovative banks

Commercial banks - the most versatile type of banks that are engaged in a wide range of transactions, including loans to industrial,

commercial and other businesses mainly due to cash flow in the form of deposits.

Commercial banks are classified by the number of features

ownership

private

state

Form of the organization

private open type

private close type

Depending on the operations

universal

specialized

Depending on the territorial activities

international

republican

regional

• associated with all public authorities and the Board (Prominvestbank Ukraine, Ukraine Eximbank and Savings Bank of Ukraine)

Republican banks

• formed with the participation of foreign capital and may have branches (branches) in other countries. (Ukrainian International Bank)

International banks

Commercial banks

On the one hand, they are produced to meet the interests of bank owners (shareholders or individual) and social interests of customers - businesses

and individuals served by the bank.

On the other hand, commercial forms - a special type of company that will organize and carry out the movement of loan capital for profit-owned bank.

Commercial banks have the following features:Commercial banks engaged in business for profit: offered on a contractual basis of the credit and settlement, cash management and other banking services to businesses, organizations and individuals by performing banking transactions and providing various banking services.

The presence of all the rights of a legal entity, organizational unity, participation in economic relations, self-responsibility, and the obligatory indication of the charter of the bank, the bank is a legal entity.

Owning property in the property rights or the rights of full economic management, the availability of authorized capital, which is displayed on the bank's own balance sheet.

Limitations of commercial banks

Commercial banks are prohibited activities in the

sphere of production, trade

and insurance.

The law limited ability of

commercial banks to own real estate.

Bank is not responsible for the

obligations of the state and the state is not

liable for the obligations of banks,

unless the parties take on this responsibility

(Article 5 of the Law of Ukraine "The Banks

and Banking Activity").

Functions of commercial banks

• 1. The mobilization of temporarily free funds and converting them into capital.

•   2. Lending to businesses, government and people.

•   3. Settlements and payments in the economy.

•   4. Issue of credit money.

•   5. Share-constituent activities carried out through the issuance and placement of securities.

•   6. Counseling, provision of economic and financial information.

Stock Bank - is a kind of commercial bank created a joint stock company.

Stock Bank - a credit institution which is a union under the agreement of funds of individuals and entities (including foreign) for joint economic activity and profit.

The authorized capital stock of the bank is formed only at their own expense of shareholders. The share of each shareholder shall not exceed 35 percent of the authorized fund of the bank.

Procedure for establishment and operation of commercial banks regulated by the Law of Ukraine "Banks and Banking activity",

"Business Associations", "Securities and stock exchange", "Entrepreneurship", "Foreign investments" and others, as well as temporal position of the establishment, registration of commercial

banks and the supervision of their activities, approved by the Board of the National Bank of 17 July 1992, with significant changes and

additions to it in recent years.

Development of commercial banks is constrained by the following factors:

lack of legislative support banking

activities;

many businesses over a long

period of not fulfilling its obligations

under the loan repayment, which limits the credit

resources of commercial

banks;

absence of some banks

due statutory funds of funds

does not guarantee the

security of their

depositors.

Effective functioning of the banking system of Ukraine is largely determined by the level of its legal basis and is impossible without defining the legal status of the subjects of the credit system and the detailed regulation of various aspects of banking. Creating a full-fledged banking legislation is the key to proper management of the economy of the state, the construction mechanism of the

modern credit system of Ukraine and the formation of law.

Banking law has several features

intersectional nature

of the banking law, as it contains

provisions different branches

of law

significant amount of by-laws, and laws

governing various aspects

and issues of banking,

not

problem of demarcation with other

branches of law (administrative,

financial and civil law), which is of practical

importance for the effective development

and functioning of the economy

To improve the banking laws of fundamental importance to the process of integration and differentiation.

The integration of

banking regulation

•provides strengthening the relationship and interaction between the banking laws of other branches of law (administrative, civil, financial)

Differentiation regulation of banking activities

•lies in its demarcation, especially regulation of various fields of banking (payment, credit, currency, etc.).

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