As it was previously mentioned, the society (state) has a loan fund at the macro level, the movement of which reflects the dual process of credit relations, i.e. it simultaneously reflects both the funds mobilized by the credit system and the funds placed on the repayment basis. Credit resources are constantly loaded, granted to someone in the loan.
The loan fund is always reflected in the financial balance of the whole economy - both by asset and by liability. Free cash on the settlement account of the enterprise, the debt of the enterprise to the bank on the credit - particles of a single loan fund.
Loan fund is the amount of money that is "working" all the time, serving the movement of product value. If we consider the loan fund as an economic category different from the category of loan investments, it will be difficult to prove that for the enterprise the keeping of money in the bank is an active credit operation, and for the bank - a passive one, i.e. that in this case the funds of the enterprise were transferred to the bank. In addition, it would appear that for enterprises, credit investments are of one economic category, and for the bank (when creating a loan fund) - of another. It means that if the bank has given money to another enterprise in the form of vice-loans, it is already becoming another economic category. This interpretation seems to be wrong.
Loan fund as an economic category, characterizing a single process of credit relations, consisting in simultaneous mobilization of funds in the fund and their allocation, eliminates the possibility of discrepancy between the availability of resources for lending and placement of funds in the form of loans. These amounts are equal in size, and their balancing is achieved by the type of credit relationship that determines the amount of issue.
The loan fund can be characterized most correctly as a set of funds (capital) used to meet the needs of the economy and population in financial resources on the terms of repayment. It is necessary to emphasize the completeness of the action, namely, to pay attention to the form "used" instead of "used", which is often found in the literature. This has an important meaning. The above reasoning characterizes the global loan fund movement within the whole society.
The movement of the loan fund, i.e. the distribution of the temporarily released monetary capital, is carried out with the help of intermediaries - banks and credit institutions. Under the former command and control system of economic management, the loan fund was strictly centralized and monopolized. It was managed by one center - the former USSR State Bank. However, under market conditions, such a situation could no longer exist in the credit business, the loan fund began to disperse in commercial banks and within the economy in the form of mutual commercial lending. In order to form market relations, inter bank competition was necessary as one of the conditions for creating a new economy and accelerating the process of demonopolization of banking. To this end, it was necessary to equalize the rights of state, specialized, joint-stock, cooperative, and commercial banks and to organize the activity of the banking system on the basis of common principles.
The new banking legislation ensures changes in the status of the banking system and the formation of its two levels. Commercial business banks, turning into a kind of free credit institutions, have the opportunity to conduct an independent monetary policy within the framework of economic regulators used by the Central Bank. The loan fund has been divided and decentralized among a number of credit institutions.
In the absence of a crisis in the economy, the loan fund is used to generate state budget revenues in insignificantly, treasury obligations are fulfilled in a timely manner, and loans from the credit system are repaid on time. However, in the conditions of the crisis such normal processes are violated.
Inflation and budget deficit give rise to an excessive mass of depreciated funds. The loan fund is "swelling up", as many enterprises and households cannot spend the accumulated money because of the lack of commodity supply, and to cover the budget deficit it is necessary to use credit more and more.