The financial system of Ukraine in comparison with other world countries

V.P. Litovchenko considering the structure of the financial system of the RUSSIAN Federation, which is based on the principle of separation of Finance on the national and decentralized. The basic parts of the financial system of the RUSSIAN Federation are presented in figure.

The basis of the national Finance are the budgets of corresponding levels. To the national Finance also includes the state social non-budget funds, credit of the state.

The national Finance play a leading role in the regulation of economic processes and distribution relations at the macro level. National Finance accumulate in the hands of the state and local self-government bodies, their formation and distribution have centralized nature.

Finance credit and banking system, insurance, enterprise finances to a greater extent regulate economic processes at the micro level. But at the same time we cannot say that these are the links of the financial system serving only the level of economic entities (in the broadest sense), because there is a close interrelationship and interdependence of all elements of the financial system.

Through the financial system of the state, by adopting appropriate laws, regulations, acts on formation of the centralized and decentralized financial resources, using for this purpose financial instruments: taxes, the credit system, the mechanism of pricing, etc.

National Finance organically linked with other elements of the financial system.

Thus, the interconnection and interdependence of the constituent parts of the financial system due to their single entity.

The role that the state plays in the socio-economic development of society, identified a need for centralization at its disposal a large part of the financial resources.

State loan reflects the credit relations in the mobilization of the state of the temporarily free funds of enterprises, organizations and population on the basis of repayment, interest payment and the urgency to Finance government spending. Lenders are individuals and legal entities, the borrower is the state in the person of its Executive bodies. State loan will be used for covering the budget deficit, stabilizing the money circulation in the country.

Mobilization of financial resources creates a large state debt. Distinguish the state internal debt and external debt.

2.3. The Russian financial market.

The role of the financial market lies in the fact that it mobilizes temporarily free capital from diverse sources; effectively distributes the accumulated free capital between many end its consumers; identifies the most effective ways of use of capital in the investment sphere; a market price for certain financial instruments and services, objectively reflecting the evolving relationship between supply and demand; has a qualified intermediary between the seller and the buyer of financial instruments; creates conditions for minimization of the financial and commercial risk; accelerate capital turnover, i.e., contributes to the activation of economic processes.

Financial markets perform a number of important functions:

1. Provide the interaction of buyers and sellers of financial assets, as a result, which sets prices for financial assets that balance the demand and supply on them.

In the financial market of each of the investors has certain views on the profitability and risk profile of their future investments in financial assets. At that, of course, they considered the current financial market situation: minimum interest rates and interest rate levels, which respond to different levels of risk. Issuers of financial assets, in order to be competitive in the financial market, seek to provide investors the required level of profitability of their investments.

2. Financial markets introduce the mechanism of the repayment from investors adequate financial assets and thus increase the liquidity of these assets. Buy from investors financial assets provide financial intermediaries -- dealers market, which at any moment, if it is necessary to investors, stand ready to buy financial assets that they own. The more effective functioning of the financial market, the higher the liquidity it provides financial assets, which are in circulation on it, because any investor can quickly and practically without losses at any moment to turn financial assets for cash. Financial intermediaries are always ready to not only purchase financial assets and sell them to investors in case of need.

3. Financial markets provide assistance to find for any of the creditors (borrowers) of the counterparty agreement, as well as to significantly lower the cost of transactions and information costs. Financial intermediaries, carrying out large volumes of transactions on investment and attraction of funds, reduce for the participants of the market costs and the corresponding risks of carrying out of operations with financial assets. As the market for shares and bonds, and the credit market that is intermediaries play a crucial role in the movement of capital. Particularly noticeable role in financing intermediaries corporations, which have not the highest credit rating and the amount of which is significant in all countries of the world.

Financial intermediaries reduce costs through economies of scale of operations and improvement of procedures of estimation of securities, issuers and borrowers in the credit market. In the countries with developed market economies operate highly efficient financial markets, which provide a mechanism for redistribution of financial resources among the participants of the market and promote the efficient allocation of savings among the areas of the economy. The development of financial markets in such countries provide assistance to mass privatisation, the overcoming of the crisis phenomena and positive shifts in the economy.

2.4. The financial institutions.

Financial institutions are financial institutions and all the structural subdivisions of the State tax service of the RUSSIAN Federation.

To financial institutions include: banks, non-banking credit organizations, insurance companies, private pension funds, leasing companies, etc.

Most of these institutions act as financial intermediaries.

A financial intermediary is an economic entity, which accumulates the funds of citizens and economic entities, multiplies these funds at the expense of profit (revenue) of the activity and the effectiveness of their mobilization in material production.

The content of the activity of financial institutions

A Bank is a credit organization, which has the exclusive right to carry out in all of the following operations:

• attraction of monetary funds of citizens and economic entities to deposits;
• placement of these funds on its own behalf and for its own account on terms of repayment, interest payment and urgency;
• opening and maintaining accounts of citizens and economic entities.

The Bank aims to increase temporarily the free money resources, to provide loans, to conduct transactions with securities, mutual payments and settlements between legal entities and citizens.

In the RUSSIAN Federation operates a 2-tier banking system: the Central Bank of the RUSSIAN Federation; commercial banks.

Non - Bank credit institution has the right to perform certain banking operations for the extraction of profit as the basic purpose of their activity (for example cash settlement centers of the Central Bank of the RUSSIAN Federation).

The exchange is an organized and regular functioning market for the purchase and sale of goods, securities and other assets.

Trades exchange-traded assets are performed in a specially equipped room and specially trained personnel.

Exchange performs functions of:

* mobilization temporarily of free money resources by sharing them to exchange goods;

* establish the market price of the financial assets.

The exchange is created in the form of non-commercial partnership (not to extract profits from its stock market activity). It organizes trade between members of the exchange. Other persons may make transactions on the stock exchange only through the exchange members.

 

 

 

 

 

 

 

3. Practical part

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conclusions

The formation of a financial system of Ukraine took place simultaneously with the formation of its statehood. Although it would be premature to say that this sector of the economy has gained a complete image of the main elements of one way or another have been formed and are functioning. This is the system of state finances, banking, stock and currency exchanges, insurance companies, trust and investment companies. History of economic development and Finance shows that in periods of relative prosperity and sustainable development of the state for the revival of business activity using the liberal approach, and in the periods of crises and growth of the social tension is intensifying the role of the state, public Finance in the social and economic transformations.

The RUSSIAN economy, like the financial system, accordingly, is not yet 10 years. And it is quite obvious that to form a stable and well-developed financial system in such a short period of time is impossible. But we should not forget that Russia has always developed on a particular original way, and, therefore, in the conditions of a rapid transition to a market economy was able to quickly adapt.

For the past period of time was formed the backbone of the financial system, on the basis of which is the development of its separate elements. In the framework of each of them requires detailed elaboration of the mechanisms of functioning, the regulatory framework, systems of communications. All of this is happening in recent years by reforming, development of new legislative acts, introduction of modern technologies.

In the modern world financial system is becoming a global mechanism. Therefore, it must develop not only inside the country as an isolated system, but also as an integral element of the global financial machine.

As stated above, one of the priority directions of development of the financial system is the formation of a financial center. This is a very important task, because in its absence, Russia will have to play according to the rules. "That is, become part of the financial system of the European Union or the Asian financial system, and not integrated into the world system as a separate component.

For the solution of internal tasks of development, it is necessary to have a stable internal mechanism. First of all it concerns the budgetary system. By the stability and effectiveness of the functioning of which determines the financing of all the other projects. For this according to the development strategy, which reads the President's annual budget address, it is necessary to develop and stabilize the mechanisms of filling of the Treasury and mechanisms for the allocation of funds.

At the end of work clearly shows that in the financial systems of both countries have much in common, especially in the financial structure. But do not forget that these countries contiguous and they have more or less friendly relations. That is why they have so much compatibility in the financial system.