Basic Concepts and Types of the Banking System of the Russian State

The banking system is an organized collection of banks that operate in the interaction and relationships with each other.

All the banking system can be divided into species. According to the degree of centralization of management and the nature of the interaction of banking institutions, they are centralized (administrative) and the market. The centralized banking system, there are in a command economy and are characterized by state monopoly on banking. In fact, in this situation in the country operates one or more state banks with many branches on the ground. The market banking system is based on various forms of ownership of banks. It involves the operation of multiple banks with different organizational form, the specific operations, etc. For banking supervision is carried out, its regulation occurs mainly by economic methods.

In addition, depending on the element of subordination, banking systems are divided into single-level and duplex. One-tier banking system works, if its member banks are on the same hierarchical level, and between them there is no separation of functions and relations of subordination. Such a system has been characterized, for example, the historical stage of development, when the country did not yet exist, and the central banks acted only commercial, which carried out all banking functions, including emission. A two-tier banking system now exists in most countries. It includes the central bank, which forms the first, the upper level of the system, and commercial (business) banks that make up the second, lower level.

The modern banking system in Russia is a market and consists of two units - the Central Bank and commercial banks.