Introduction
Banking system is one of the most important and inalienable parts of market economy. The development of banks, commodity manufacture and circulation went in parallel and was closely bound. Banks, making money accounts, crediting economy and acting as the intermediaries in redistribution of the capitals, essentially raise a general efficiency of manufacture, promoting public labor capacity growth.
Modern banking system is the major part of the national economy of any developed country. Its practical role defined as management of state’s paying and accounting systems. Greater part of banking system’s commercial bargains is carried through deposits, investments and credit operations. Along with other financial intermediaries, banks direct people’s savings to firms and manufacturing structures. Commercial banks, operating in accordance with the monetary policy of the state, regulate movement of money floods, influencing on the rate of their turnover, emission and general mass including the amount of cash, being in circulation.
Modern banking system is the sphere of diversified services to the clients: from traditional deposit-loans and calculation-cash operations, determining the base of banking, to the up-to-date forms of monetary and financial instruments, used by banking structures.
Nowadays the performance of banks is changing. The functions of one financial-credit institutions are being broadened. New financial institutions are being created. Banks become more independent. The system of intra-banking and inter-banking service is being developed.
In my work I’ll try to consider the functions and operations of commercial bank, to define bank product and bank service, to analyze the problems and prospect of banking system’s development on ...