Tip 1: What functions does the financial market perform?
Tip 1: What functions does the financial market perform?
Modern market economy is impossiblesubmit without a financial market. This is the sphere of sale of financial assets or a combination of all monetary resources that are in constant flux under the influence of changes in supply and demand.
Financial market: essence, models
The specificity of the financial market is,that the main commodity here is money. They apply in key sectors of the financial sector - credit, investment (securities market), foreign exchange (forex), stock, insurance, etc. The more effectively the financial market functions, the higher liquidity is provided. The world financial market is formed at the expense of aggregate demand and offers of creditors and borrowers. It is distinguished by a wide range of participants. These are state structures, individual countries, private and institutional investors. There are two key models of financial markets - a system focused on bank financing (continental) and on the securities market and institutional investors (Anglo-American model). The latter model is oriented to public offering and a developed secondary market. In the continental model, a fairly high level of concentration of share capital in a narrow circle of investors.The function of redistributing funds and facilitating access to assets
One of the key tasks of the financial market -redistribution of funds from those who have them in surplus, to those who need investments. As a result, funds are redistributed among different economic sectors. In most cases, the money goes to the group of persons who will be able to use them more effectively. As a result of redistribution, free money is transformed into borrowed capital. As a result, the financial market makes money available to all its participants, which have the goal of capital gains. The financial market facilitates the very process of bringing money to consumers. This is achieved through the creation of intermediary institutions - banks, investment funds, exchanges, etc.Pricing function
In financial markets, prices forresources under the influence of supply and demand. Under the price of financial resources in this case is understood the income that the buyer pays to the seller. This can be a bank interest rate, stock price, bond rate, dividend amount, etc. In the most general case, the equilibrium price formation scheme is the following. Investors (those who form demand) have their own ideas about an acceptable level of profitability for a certain level of risk. And issuers (those who form a proposal) have the goal to ensure the necessary size of profitability for investments. Proceeding from this ratio, an equilibrium price is formed.Cost saving function
Financial markets reduce the cost ofexecution of transactions. Due to the fact that a significant volume of transactions takes place daily, it becomes possible to reduce risks and transaction costs. They are reduced by economies of scale, improvements in securities valuation procedures, and also by their issuers.Tip 2: What are the functions of Sberbank
The Savings Bank of the Russian Federation is the only financial structure that performs not only the usual functions peculiar to commercial banks, but also those related to public activities.
Sberbank is one of the largest banks in Russia. The central bank is the holder of its controlling stake (54.6%). It is interesting that this particular banking institution has an organizational structure that has no analogues in the Russian financial market: regional banks, branches and branches. And all this is located not only in Russia, but also in the near abroad.
State monopoly
On the territory of the Russian Federation, Sberbank is a monopolist,since it provides state guarantees on deposits. The corresponding status also obliges to maintain the accounts of the federal budget. In addition, starting from 2009, this financial structure fulfills the functions of an agent for escorting state contracts for construction works. The Savings Bank monitors compliance with the targeted use of funds that are allocated to finance the relevant State contracts. The bank's activities are primarily aimed at attracting people's money savings, providing a range of settlement and cash services to legal entities and the public.Main functions
Basically, Sberbank places the incoming fromcitizens of financial resources in the economic segments. This applies not only to long-term deposits, but also temporarily free cash. In addition, some of the available assets are used to issue loans to the public. A large number of loan products have been developed with the help of which it is possible to pay for training, finance construction, purchase real estate for a mortgage or a vehicle, etc. The calculation of cash and credit services for individuals and legal entities is one of the priorities of the Savings Bank. In addition, this financial institution issues its own securities and conducts operations for their purchase and sale. Leasing and factoring operations, which are also provided by the bank, are not so popular, but have a niche in the financial market sector. The issue of bank cards is another function performed by Sberbank. It should be noted that over the past few years, the issue of both credit and debit plastic cards has increased dramatically. Another functional aspect of Sberbank is currency operations under the license of the Central Bank of Russia: international settlements, currency exchange, currency auctions, etc.Tip 3: Types of banks and their features
Despite the fact that all banks work onidentical schemes and programs, they differ among themselves. And in order to understand the working conditions, as well as the procedure for financing and supporting certain financial institutions, it is necessary to clearly understand which of them, to which categories belong.
The banking system is a rather complicated mechanism. It consists of a whole network of credit institutions. Banks in the category are divided into a number of features, including their functions, operations, services, scope of work, and the availability of branches.
On what types of banks are divided
Experts identify 2 types of banks, based onthe nature of their activities, form and specifics. These are central and commercial banks. Central banks, as a rule, are the main and very important link in the system, which are designed to strengthen national banking and monetary systems. In addition, central banks should ensure the stability of the national currency, as well as work on the organization of a settlement system. The central banks have the right to issue cash and non-cash money. Commercial banks are called upon to serve both legal entities and individuals. The purpose of such services, first of all, is to obtain profit through various banking operations. Commercial banks can carry out emission of non-cash money. Also banks can be divided by territorial sign. In this case, allocate local (regional) banks, interregional, etc. Such financial institutions serve the needs of certain regions that may be located abroad. State banks are unitary enterprises that are created entirely on the basis of state property. Private banks are based on private property. And there are those financial organizations that have various joint-stock companies as a form of management - open, closed, etc. Banks, which are classified as OAO, are organizations that distribute their shares through open sales, and also allow their securities to be freely floated on the market. A bank that is a CJSC is an organization that does not allow free circulation of its securities on the market. Also, foreign banks can be found in the territory of one country. These include credit institutions that have 100% capital. In addition, sometimes these are called joint banks on a shared basis with local credit organizations. Municipal banks are aimed at the development of local companies, they are also responsible for loans and finances in a certain municipality. As founders usually there are local authorities, as well as other companies and organizations that are interested in the development of the region. In addition, banks can be divided into agrarian, industrial, commercial, communal, construction, etc. As a rule, in this case, the bank is focused on financing an industry.What is worth considering
If you can not decide which bankwant to carry your money, carefully study the conditions that are offered by this or that financial institution. So, for example, you can formalize not just a contribution, but make an investment in an industry. Against the backdrop of the wave of banks closing in Russia, many clients of financial organizations raise questions about the appropriateness of cooperation with banks. Experts say: if you want to be sure, contact the state banks. Let them have a slightly lower interest rate on deposits, but the reliability and provision of these deposits is more reliable.Tip 4: Who is an exchange broker?
To participate in stock exchange trading in securitiesor foreign currency, intermediary structures are used, through which direct access to the market takes place. Such institutions are called brokerage companies, and those specialists who work in them are brokers.
