The credit market is a general designation of those markets where there is supply and demand for various means of payment. Credit transactions are usually mediated by credit institutions (banks, etc.), which borrow and lend money, or by the movement of various debt obligations, which are sold and bought on the securities market.
The modern credit two-tier system in the Russian Federation is practically formed:
Level 1 - Central Bank of the Russian Federation
Level 2 - commercial banks and other financial and credit institutions engaged in separate banking operations.
Thus, the credit system includes the Bank of Russia, banks, branches and representative offices of foreign banks, non-bank credit institutions, unions and associations of credit institutions, banking groups and holdings.
The CBR is the main bank of the state. It is independent of administrative and executive authorities. The CBR is an economically independent institution. It incurs its expenses from its own revenues. The main objectives of the CBR are to protect and ensure the stability of the rouble, including its purchasing power and exchange rate against foreign currencies; to develop and strengthen the banking system, and to ensure the efficient and uninterrupted functioning of the settlement system. The Central Bank of the Russian Federation develops and conducts a unified state monetary policy aimed at ensuring the stability of the ruble; monopolistically issues and organizes the circulation of cash, establishes the rules of settlements, banking operations, supervision of their activities; performs currency control and other functions.
The second level of the banking system is represented, first of all, by a wide network of commercial banks. They provide credit and settlement services to economic entities. Along with commercial banks, there are also special banks functioning. These include mortgage banks that lend against the pledge of real estate, land banks that lend against the pledge of land plots, and investment banks that carry out operations involving the issue and placement of corporate securities. The system of special banks, due to imperfection and lack of necessary legislative base, is only beginning to develop.
A special place in the credit system is occupied by Vnesheconombank, which was transformed into a bank for servicing the external debt of the Russian Federation, as well as the Bank for Reconstruction and Development, which was established by the state to finance government target programs of national and regional nature using budget resources for granting preferential loans.
In the credit system, institutional holdings, groups and other associations of banks can be identified.
Holdings are created by means of receipt by the main credit institution. By virtue of the prevailing participation in the authorized capital of one or more credit institutions or in accordance with the concluded agreement, the enterprise's ability to determine the decision taken by them.
A group of credit institutions is formed for joint banking operations on the basis of an agreement.
In addition to banking institutions, the second tier of the credit system also includes special financial institutions. As a rule, it is fashionable to single out one or two banking operations that require a license from the Central Bank of the Russian Federation. They usually have a specific clientele.
Commercial and intracompany lending is also actively developing. Close links are being established between the different links of the credit system and the securities market.
Thus, the Russian Federation is gradually forming a credit system based on the same principles as in the countries with developed market economies.
At present, the most noticeable phenomenon in the credit system is concentration and centralization of banking capital. Large banks are being singled out for their concentration of resources, operations and personnel of the banking system. They gradually dominate the loan capital market. Their size is increasing due to the expansion of services to large customers, attracting new depositors and obtaining high profits.
Fierce competition in banking leads to the displacement of small credit institutions. The 1998 crisis helped problem banks to get out of the game. More than 50% of the banking licenses issued during the formation of the banking sector were revoked. The main form of liquidation of independent small banks is the acquisition by one bank of shares of another bank and its transformation into a branch. With the help of the expansion of the branch network, banks attract new clientele and capital. This process is facilitated by the increase in the requirements of the Central Bank of the Russian Federation to the minimum size of the authorized capital.