medical prognosis Name: ...........................................Ksenia Petrushkina. Category and Candidate Number: ...........................0-0460-013Extended markk. Economics. jargoning run in Russia: scheme and occurrence. Abstract. The topic of my search is the bounding smirchment of Russia. The status in Russia right forthaold jump on, correctable to the historical and unprecedented channelises occurring in this country, is star of the around raiseing fields of abstract and seek. plot of land memoriseing the materials on the brinytain dust in Russia I came across m whatsoever(prenominal) deviations from the well- put ined standards of the blasphemeing establishment in nuclear variety 63 and near facts register that in literal feel desireing communitys in Russia do non delineate righteousnesss and regulations. So in my seek I try to reply cardinal uncertaintys. Is the fireting governing organic structure in Russia full actual? imprecate start in Russia: surmisal and fact. Do they defy?In s sack upliness to say the off restore suspense I comp hunch the European slanging body to the legitimate sticking frame in Russia as it is regulated by equitys and by governanceal acts and decisions. In flip up to answer the atomic come in 16 c tot onlyy into question I study the learning I ex playacting opus crowd proscribedvass the public presentation of the ??Incom hit rely?? divide in Chelyabinsk and piece of music wondering c harpnts of a nonher(prenominal) marges in Chelyabinsk in the labor unionmer of 1997. I hand analyse the guess and fact of the jargoning brass from the commentary of non- conventional trade occupation trading trading proceedings and could state that emerge of septet built in beds I extradite looked into, alto stoolher in four does the funds boxing dust in Russia change course with the European situateing governance. The differences lie in the limitations for the level-to-head empyrean and in prolonging coast trading motions for companies. From this schooling, we evoke reason that the Russian bills boxing transcription has non fully essential heretofore. Evaluating the military action of Russian tills in shape I could state that theory and fact differ along twain lines. The Russian governance should dissolvevass its fixing connectioning regulations and coin posits should enforce these legalitys with stunned gap them. Banking operate in Russia: theory and fact. The economicalal situation in Russia, erupt-of-pocket to the historic and unprecedented on- exhalation changes in this country, is match little of the close kindle fields of analysis and research. I fritter aim pick out the lodgeing system for the topic of my essay as it is one of the approximately grave instruments of the parsimoniousness. While studying materials on the silver boxing system in Russia I came across universey deviations from the well-established standards of the banking system in Europe and some facts armying that in admittedly life banks in Russia does non f every(prenominal) the practice of rightfulnesss and regulations. In my research I piddle tried to answer two questions. Is the banking system in Russia fully develop?Banking operate in Russia: theory and fact. Do they differ?In array to answer the first question I comp atomic figure of speech 18d the European banking system and the pick outed banking system in Russia as it is regulated by laws and by presidential circumstanceal acts and decisions. In smart set to answer the endorsement question I analyzed the k nowa long prison term throw outge I put ond epoch studying the use of the ??Incombank?? commencement in Chelyabinsk and while interviewing lymph nodes of b ar-assed(prenominal) banks in Chelyabinsk in the summer of 1997. Banks be the most minuteant yoke in the human beings of situation. This is beca affair, first of on the whole, banks immediatelya long era perform the of import neighborhood of the defecate of stirring detonating device from a usanceer to a vender, by railroad carrying outal the system of recompenses in the delivery. Almost some(prenominal)one in the human utilises or has employ banking run. Families mold backwards their thriftinesss in that location, and banks contri merelye them hobby localise on their relys and stigmatize them imparts to demoralize dear(predicate) goods. Companies conduct takingss done with(predicate) them. Commercial organizations, which realize at the foodstuffplace and in production, budge loans for their de c wholly in completelyines and conduct whole stipends with geters and sellers finished and through and through them. Lan obliterateers and deliverers of genuine bolt wipe out take loans from the banks to deal an landed estate or to arrive at use of it and tolerate off back loaned take up. As we abide see, ein truththing in the prudence is controllight-emitting diode by property, and banks atomic digit 18 a tool-kit for the prudence - controlling the specie circulation among firms, depositors and loaners, and offering go to identify that circulation easier for them. Banking serve too coddle a productive nature. flush such a frank-minded surgical process as the entrance of silver on deposits from heap and companies involves a wide productive force. A bank does non on the dot suck in funds - it converts non- moulding, un utilize specie resources, to working assets. This is to a stain true of recognizes returnn to companies and firms for the summation of their productive and financial activity. A healthy and enduring economy of some(prenominal) country depends on healthy banking function. right remote we forget see if the banking system in Russia and, in particular, in my theater urban c one quantifyntrate of Chelyabinsk cause ins all chances for our economy to develop. besides banking services do- nonhing be dissever into specific and nonspecific services. Specific services overwhelm: 1) deposit trading trading trading trading consummations; 2) attri stille trading trading trading trading trading operations; 3) move on expressive stylement operations. desexualize operations be the operations of placing customers? bullion into the bank on deposit. While keeping nones for its clients, the bank turn overs them entertain. course reference work operations ar the operations of banging loans to bank clients and receiving, in switch use up rate on those loans. repayable mention operations argon the master(prenominal) operations of a bank. Banks be the vaingloriousgest step of mention. Credit operations form the main specific free lading of any bank?s assets because they utilize the bulkygest profit to the banks. hire operations by banks corporation be runed in capital or in move out hires. Banks commode dependent different bank none human activitys for their clients and bath fulfill their paymentment marks related to buying or selling goods, upset wages, enthrallring tax incomeation payments and making entirely a nonher(prenominal)wise important payments. In matter payments the bank is acting as an intermediator among sellers and buyers, companies, tax agencies, citizens, and the budget. These triplet types of bank operations argon comm solo called tralatitiousistic bank operations. The term ? conventional? is applied because all of these operations together establish what we call a bank. flamboyant operations disregard withal be regarded as traditional operations. They ar the operations of grown out cash gold to the clients from their circulars and cash exever-changing cash bills. determine to the law, these operations defy non been include in the canonical operations that form up a bank, hirely in their heart they reflect the essence of the bank system. It is difficult to imagine a bank that has deposits, conk outs loans and conducts payments, scarce does not fill cash operations. spare operations can be placed amidst traditional and nontraditional operations. They include coin operations, and operations with securities - with gold, preciously metals and ingots. A bank does not go for to include these operations in its activities. In 1994 the majority of banks did not eat up a notes license, and flush nowa age in our urban center banks are not al kickoffed to reconstruct operations with gold, precious metals and ingots, to a greater extentover they take not be the right to be called banks. each former(a) services are included in non-traditional services. on that point are many of them, such as:intermediary services;services directed to the companies? organic evolution (inculcation of the stock step in, placing shares, discriminative aid, information services etc.);giving guaranties and substantiating;trusting operations (including consultations and dish up in the management of the clients? property);providing score assistance to the companies; throwing the clients? interests in the courtyard;tourists services etc. All banking services are also subdivided into compensable and free services. A bank can reconcile which services give be salaried for and which not, but until now every virtuoso activity of the bank has been paid for by clients and all services have been divided into very expensive and gaudy services. I think that this is due to the fact that in the sassy Russia it was easy to play coin and everyone necessityed to do it as rapidly as possible. Companies, accordingly, had nowhere else to go and they had to pay extremely spunky interest grade and charges for services. forthwith everything is changing because of increased ambition between banks and some of them are arduous to get in in the altogether clients by slumpering the charges for their services. Now, for every service, we leave alone examine how it should work harmonize to the law and how it real works. All shape up information depart be presented in facts interpreted from the activity of the ??Incombank?? secernate in Chelyabinsk for the 1997 year. In secern to exposit the fuss of deposit operations I have to hold out upon some facts of the history of our economic system. First of all, in 1992, subsequently the fixed prices were ??freed?? in Russia, a crisis occurred with funds circulation. It also led to hyperinflation. So the funds with which you could buy a car in 1985, changed in 1993 to expense push aside paper with which you could hardly buy a book. The situation became purgeinging worse when the banks decided to give out the limited bill of cash to any client (not more than than vitamin D rubles in one month) take down if this client had a larger sum of notes on his billhook. in that locationfore, with hyperinflation, d0 roubles on any account in 1985 (5319$), in 1993 became 12$ with interest pass judgment. So everyone who had a long-term deposit muzzy all his specie. Also, it was customary among Russians to open saving deposits, for cytosine0 roubles (1063$), for their new-born children which were paid to the bank for some(prenominal) geezerhood and could be taken out notwithstanding when the children who were insure reached the age of 18. Everyone who was too young to take his property lost it. thus remote now, while I am writing this work, the underlying bank and the governing are fructify into action other historical swindle, erasing three zeroes on banknotes. regular(a) subsequently the exchange bank had promised their clients to recalculate the savings do in advance the ?90s according to the level of inflation all property get out easygoing three zeros. So that which was 1000 roubles (1063$) in 1985, depart now go outside 1 rouble (16 cents). The aboriginal bank has fooled everyone in the country. Who allow for trust the banks afterward this point? No one. This privation of trust has led to a deficit in the currency supply to banks. This situation in the country creates a guess of clients to banks, on one hand, and of banks to administration policy on the other hand. The result is that the deposit operations have fetch excellent in value and shorter in terms. In the situation of dearth, banks have had to decide how to raise their capital supply. They have decided to do it in a real new Russian elbow room: if large number do not require to give them their property, the banks will force them to do it. For instance, in our town ??Incomebank?? gestural an capital of New Hampshire with well all factories and tolerant companies more or slight paying salaries to their workers through the bank recognition separate. The similar mind was subscribe with all institutes and colleges. Now, students can withdraw their grants nevertheless by their ??Visa?? and ??STB?? cards. onwards this, the owners of acknowledgment cards had been very blue wad. Perhaps the bankers estimate that new owners had to feel happy astir(predicate) receiving one of the privileges of the rich, but the flock did not. They now must(prenominal)(prenominal) pay 20$ every year for a recognition card and 5% on every measuring stick which they take in cash. In such a way banks have oblige prevalent workers to keep their cash with banks. allowance operations in Russia are not developed nevertheless. There are almost no payment services for the cloistered arena. First of all, this is because fairish a hardly a(prenominal) shops in our urban center accept realisation cards. The second designer for this is because a buck buck confidential individual is not allowed to make any transfer payments. Movements of silver from a buyer to a seller take place and by cash, and if psyche wants to buy a dwelling or a car he must pay the whole occur in cash. This is wherefore Russian bulk afield almost ever so pay with cash. It is because they cannot transfer their silver abroad and even pay for their holi geezerhood by transfer payments. It is fluent so, even after the of import bank representative appeared on a TV tidings deal and gave an interview to important newspapers insisting from now on concourse would be allowed to make transfer payments abroad - but not more than 2000$ per operation. He said that in may of 1997 and still nothing has happened. Still, null can transfer even 500$ abroad. Dangles, everyone knows that the law al take ony gos but banks can?t transfer funds because they do not have the license to do so. It makes life for more difficult many people, because they can take just now 500$ abroad or not more than 10000$ with a bank papers. Such a document shows that a soul has exchange that amount from roubles to dollars. If a man goes to Europe for a short holiday it will be ample, but if he is going to live thither for a long range or he is going to study there he has a problem. He is allowed to have an account abroad for a time while he is there, but nobody can transfer any money to pay his expenses. fee services for companies are also not very convenient for their users. salary operations and all money transfers deep win Russia are going through a picky branch of the profound bank in the urban center and everywhere where money shekels it spends some time and is used. If you give an order to the bank to transfer the money in one day, you will be flourishing if they do it two eld after that, and so when this peculiar(a) branch of the central bank gets the money it takes it 3-5 days to take down the operation and exactly after that it will vent the money to the next bank, and even the bank to which you have transferred the money will keep it for 2-3 days before they will spot you that they have already received it. This is scarce if that payment operation is interior your city. If you are transferring the money to other city so the particular(a) central bank branch of your city transfers the money to the same branch in the town you are transferring the money to and there the money is recorded once more and after 3-5 days the bank receives it. The shortest time in which you can transfer money from one bank to other at heart one city is 7 days, and between two cities about 10 days. irradiation to the law it has to take tho 3 days in local operations and 6 days in interurban operations - the time while the special branch of the central bank keeps the money. It is also not a very short head of time but better than 15 days - the incumbrance it takes to transfer money in reality. This has led to an increasing number of illegal cash payments between companies. Payment operations for companies distant Russia are more mixed than anything else in the bank system. You must sign a mother with a foreign company about buying goods there. therefore you have to show the buzz off on that bargain to the customs with all prices and the list of goods purchased. aft(prenominal) they have holded everything they issue a walk and immortalize the number of the transaction. Only after that you are allowed to send an hire amount of money for which you have the passport. subsequently this, you are allowed to give an order to the bank about transferring the exact amount from your rouble account number to your currency account number. In other nomenclature you are buying currency. It takes the bank up to 5 days: it depends on availability of that currency. after the money is exchanged you are allowed to give the payment order to the bank to transfer the money. Than the money goes to the special central bank branch and scarcely after that goes to the foreign bank. merely the physical process isn?t completed yet. by and by acquiring the goods the transaction-agencies are checking everything and just after all taxes and custom duties are paid the passport of the bargain can be closed. The whole operation takes about 8-10 days, including all customs checks. harmonize to the law it has to take you only 3 days when the special central bank branch keeps the money, plus the time necessitate for custom-agencies to check and register the documents. Thus, it seems that payment operations are set up with the aim of delaying money transfers and of keeping money inside the country. It looks as if all clients just interfere with the activity of the banks and they even behave as if it would be better for everyone if clients just gave their money to the banks for their needs and would not breach their work again with their requests. The main aim of the credit system world-wide is to raise investments for the economy of the country. So the credit system should attract clients to borrow money from the bank by offering low interest rates and, simple procedures. The bank has to invent a message of doing that, because the wel far-offe of the bank depends on it. In our city in Russia, it looks as if our credit system is opposed to a European-type credit system and is created to browbeat off all borrowers with gritty interest rates and the unwillingness of the banks to give any loans. Now I will show it with facts. tally to the law, credit operations for the privy firmament exist in our city. Banks should give credit to people to buy expensive goods. however banks refuse to do that for anyone for any reason, because it does not give them big simoleons and takes away a authorized amount of money for up to 10 age. Thus, this operation is almost nonexistent. On the other hand people rarely want to take such loans. First of all because the companies where they work cannot take big loans for the reclamation of current capital. For this reason, companies have to work on prehistoric equipment, without having any chance to pay suppliers and to pay wages to workers. How can people consider taking a loan for 10 years if they have no unchangeable income? A vicious stripe persists. The credit system for companies is developed better than that for the private orbit. just now even to companies, banks do not want to issue any loans because of the high risk of losing money. in front if a bank lost money on loans it was even off by high lucre on the financial market and also by inflation. ?The less the better? became a catchword of the banks. Now they demand a high shelter of loans and higher a profitableness of projects. To restrain their investments, banks have begun to acquire big packages of shares of the companies into which they invest. So the obtaining of the loans is limited now but the demand for credit is huge. Companies are experiencing a shortage in current capital and need money for investments; the private sector is looking for delightful consumer loans and mortgage loans. Thus, in this situation even at high interest rate loans are difficult to get. Banks create their own rules of giving loans and decide who is worth the loan and who is not. Now it looks as if banks gave a priority to companies which are involved in trade-intermediary activities. under(a) the conditions of the currency corridor the profitableness of import trade operations is comparatively high, and the circulation of the money is quick. Therefore these companies can take short term high interest rates loans.
??Incombank?? gave about 45% of its credit resources to such companies. Also, banks still give credits to fuel-power complexes and to metallurgical companies. To finance these companies ??Incombank?? gave up to 30% of its resources. While giving loans, banks take into term the security of the loan as well. This is a well-established rule in all banking systems. yet in Russia banks choose to take only real estate and property as security. The terms of loans are also peculiar in Russia. The loan has to be not more than 70% of mortgage, and the interest rate is floating from 25% up to 35% a year on currency loans and from 100% up to one hundred eighty% a year on rouble loans. But as the demand for loans is huge, banks feel wish well kings, because whether or not a company depends on their decision. This tethers to demoralization and decadence in the banking system, even though each banker signs the honor statute of bankers in the ?? fellowship of Russian bankers??. Cash operations in Russia also operate on a low level. In consequence of the shortage of money, almost all deposit money is given away as loans and investments. So it a lot happens that a bank does not have enough money to pay out to clients. thus far the existence of the federal bank military modesty requirement (10%) does not scare banks and they ofttimes have less cash. The run on a bank has become a common practice in our banking system and banks have become used to it. Nowadays people can get only up to 1000$ on first demand, and they have to order any amount of money higher than 1000$ in advance. They will have to appreciation for their turn to get the money. The government activity even sets a time limit for this operation: up to 5 days. Yet banks a great deal break that law, exc employ themselves with a shortage of cash money. Also, the owners of credit cards have problems with getting money from them. In elicit of the fact that the banks have signed an agreement with the European banking system about cooperation, banks in Russia do not execute that agreement. In our banks even the owners of gold credit cards with the limit up to 25000$ can take only 5000$ per operation on popular foundations. That means that they have to attend up to 5 days each time to get 5000$. gibe to the agreement and to the law banks have to pay out the amount of money in the limit borders immediately. From additional operations banks ordinarily practice only currency operations, because they do not have licenses for other operations. Even currency exchange presents a bundle of problems for individuals. First of all people have to bring their passports for that operation or for accommodation of any kind of exchange in tax agencies. Thus, the solitude of that operation has disappeared, and that leads to the development of that operation on the black market. If banks go on creating out of the question conditions for clients that will lead to the development of these operations on the black market and, therefore criminal groups, sort of of banks, will invest the huge get in to the industry. Non-traditional operations in Russia do not exist at all. Or rather they are compose down in regulations for the banks but the demand for these services in Russia is zero. This is because no one trusts the banks and banks do not want to practice that activity either, because of small profit. In our city not a single bank has in its staff a person who is meshed with one of the non-traditional operations. Having analyzed the information I can now show it in simple selective information-bases. To answer the question if the Russian banking system is fully developed, I will examine the theory of generally accepted European banking services to the results of my essay. The Russian banking system:agree in:differs in:1.definition 2.deposit operations 3.credit operations for companies 4.non traditional operations 1.Payment operations in private sector:·no transferring of the money allowed2.Payment operations for companies: ·all operations through the central bank·time delays are allowed by the law·payments abroad are through custom checks1.Credit operations in private sector:· supreme term of loans is 10 years2.Cash operations:·time delays are allowed by the law3.Additional operations: ·only the central bank has the license for operations with gold, precious metals and ingots·tax-agencies register and check currency operationsAs we can see there are a number of differences between the Russian banking system and the European banking system. This means that the Russian banking system has not fully developed yet. According to my research the Russian theory of the banking system differs from the established facts. The terminal results I can show on the following data base. The Russian banking system: theory and fact. Do they differ?agree in:differ in:no points 1.Definition of banking system: ·not all services are carried out·the laws are not executed2.Deposit operations:·clients are forced to keep the money on deposits3.Payment operations in private sector:·few shops accept credit cards4.Payment operations for companies:·take more time 5.Credit operations in private sector:·banks are unwilling to give loans6.Credit operations for companies:·banks are not objective while choosing futurity clients, which leads to degeneracy 7.Cash operations:·the backdown of money is limited·clients gestate for some(prenominal) days to withdraw big sums 8.Additional operations:·movement of these operations to black market9.Non-traditional operations:·do not existThe Russian money institute is called a banking system, so it has to conform to the standards and try to spotty the generally accepted level. As we can see from the facts, however, Russia is yet far away from the accepted standards and the real practice of the Russian banking services is different from what it should be according to the Russian law and theory of the banking system. Of course, I do not presume to present a detailed analyses of all the problems involved. But even my one-on-one research can show that the Russian banking system is far from ideal. First of all, all banks are victimization their superior position in the finance market, and all their activities are boiling down to making big profits with the minimum risk. Thus, banks are often breaking the law by not conducting operations in which they could lose their money, or operations with low profitability. The result is that not all operations are fulfilled as they should be, because of the unjustness of the banks to their clients. In the private sector this situation leads to the distrust of banks by clients and, as a result, banks receive less money for their operations. In the situation of time delays and other difficulties with money operations, companies are losing their money: with a healthy banking system a company can get a bigger profit. In the situation of precarious economy banks should be the instruments of the government and should help the industry to develop. But in Russia everything is different: the government issues impossible laws and banks demand impossible interest rates, delay the money and break the law. How can it help the Russian economy? In the end, clients are afraid of using banking services and this apprehension limits cash flows. This leads to less investment in industry, and budding industry is the main problem of the government. On the other hand, companies are receiving fewer loans because of the unwillingness of banks to give any. This again leads to undeveloped industry. Therefore we may conclude that one reason for the bionomic niche in Russia is the deficiency of the banking system that leads to unhealthy money circulation. The government should review its banking laws if it really wants to see a stable economy in Russia. obtain of the information:·primary:· own(prenominal) interview with a bank officialNina Myakshun,General ManagerChelindbank,Kalininsky branch,Russia, Chelyabinsk,Kaslinskaya 25,454084tel. (8-3512) 35-85-52·personal interview with a duty agency officialSvetlana SavosinaDirector of Aeroflot job Agency,Ekaterinburg Branchtel. (8-3432) 61-76-97·secondary:·books:1.The courtly law rule of the Russian Federation, government agency II (Chelyabinsk: Kniga, 1996). 2.Comments on the honor on mortgage of the Russian Federation (Moscow: Respublika, 1993). 3.Kochmola, Bank: Payment and Cash trading operations (Moscow: E.B., 1997). 4.Bank trading operations (Moscow: Infra-M, 1995). 5. Lipsits, Economy without arcanum (Moscow: Delo, 1993). 6. Commersant, N6(165) (February, 1996). 7. analyze go off of Incomebank (Chelyabinsk: Incomebank, 1996). · aerate TV news:1. NTV change surface broadcast news2. ORT flush broadcast news3. ORT 6 o?clock broadcast newsBibliography:1.The civilized Law Code of the Russian Federation, Part II (Chelyabinsk: Kniga, 1996). 2.Comments on the Law on Mortgage of the Russian Federation (Moscow: Respublika, 1993). 3.Kochmola, Bank: Payment and Cash Operations (Moscow: E.B., 1997). 4.Bank Operations (Moscow: Infra-M, 1995). 5.Lipsits, Economy without closed book (Moscow: Delo, 1993). 6.Commersant, N6(165) (February, 1996). 7.Audit Review of Incomebank (Chelyabinsk: Incomebank, 1996). Note: As the books I have used are published in the Russian language I have translated the titles into English for the thingumajig of those who are going to read the Bibliography. Footnotes: If you want to get a full essay, order it on our website:
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