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Money and credit - Ivanov V.М.

22.2. Structure of modern credit system

The modern credit system, which is the main element of the loan capital market, consists of the following institutional links or levels.

1. The Central Bank, state and parastatal banks .

2. Banking sector :

• commercial banks;

• Savings banks;

• investment banks;

• Mortgage banks;

• specialized trading banks.

3. Insurance sector :

• Insurance companies;

• pension funds.

4. Specialized non-bank financial institutions:

• investment companies;

• financial companies;

• Charitable funds;

• trust departments of commercial banks;

• savings saving associations;

• credit unions.

Such a system is typical for most industrialized countries - mainly for the United States, Japan, Western European countries. It is usually called a four- or three-level (in some cases, the insurance sector is combined with the fourth level, which goes under the general name of specialized non-bank financial institutions).

However, in terms of the degree of development of these or those links, individual countries differ significantly from each other. The most developed credit system of the United States, therefore, it focused on all industrialized Western countries in the formation of the credit system in the postwar period.

The credit systems of developing countries as a whole, with rare exceptions, are poorly developed. In most of these countries, there is a two-tier system, represented by the central bank and the system of commercial banks.

The main link of the credit system are banks. The combination of different types of banks and banking institutions in their interrelationship makes up the banking system - an integral part of the credit system.

In Ukraine, there was a two-tier banking system. The first level is the National Bank of Ukraine, the second - banks and banking institutions.

At the beginning of 1995, 228 banks were registered in Ukraine. Many of them had little capital. So, out of all operating approximately 60 banks had capital, which was equal to the cost of an average three-room apartment in Kiev. At the same time, there were banks with substantial capital and an extensive network of branches. For example, "Ukraine" - 535 branches, Ukrsotsbank - 116 branches.

To protect the interests of commercial banks in Ukraine, the Association of Commercial Banks of Ukraine was established, in which, as of January 1, 1995, there were 120 members. The quantitative composition of commercial banks is given in Table. 2.

table 2

Quantitative composition of commercial banks of Ukraine

As can be seen from the data in Table. 2, the total number of commercial banks in Ukraine during 1994-1997. Was almost unchanged (220-230), and since 1998 their number has decreased to 185, and actually operating (licensed by the NBU for transactions) - no more than 153 at the end of 2002. At the same time, there are positive trends in the Development of the banking system:

• a radical change in the ownership structure (from the complete monopolization of the state to the system of private banks);

• an increase in the number of banks from 5 (state-owned by ownership) in 1990 to 185 in 2002

The structure of the banking system of Ukraine acquires classic signs, according to which the upper level - the central bank - is under the control of the state, and the lower one - commercial banks - belong to private individuals.

At the same time, it should be noted that today's own capital of commercial banks reflects their weak capitalization (Table 3).

Table 3

Own capital of commercial banks of Ukraine at the end of the year

(In million UAH)

The data indicate a low concentration of bank capital, which manifests itself in a significant number (80%) of small and medium-sized banks. With the adoption of the new version of the Law of Ukraine "On Banks and Banking Activities" on December 7, 2000, the most serious problem for banks is the level of regulatory capital - 25 million UAH. According to calculations by the experts of the Association of Ukrainian Banks, from 50 to 100 commercial banks will not be able to "immediately" comply with this standard.

In 2002, five new banks were registered for 10 months (27 banks are in the process of liquidation). According to the NBU, the net assets of banks increased by 25.8% to UAH 59893.1 million. Total assets increased by 25.3% - up to 63.652 million UAH. The structure of the loan portfolio is dominated by loans from business entities - 80.9% of total loans. The share of problem loans declined from 5.6% at the beginning of the year to 5.1% as of November 1, 2002.

The National Bank of Ukraine is the state bank of the country, which together with its branches is the first level of the banking system and performs the functions of the reserve system.

In Ukraine, the credit system is in the process of restructuring in accordance with the needs of a market economy and is likely to continue to change.