The banking bank system is structured on two levels. The first one contains a single entity, the National Bank of the respective country, with attributions about the monetary politic, currencies and payments, and also attributions about regulating the activity of the commercial banks. The second level is formed by the commercial banks that have credit and debit attribution, but they are also allowed to conduct other commercial activities.
The credit institutions are defined as entities that are allowed to conduct activities designed to attract deposits, and other reimbursable funds from individual and companies, and also attributions of approving credits for the same types of entities. According to the international regulations, the banks are a part of the next categories:
a) Universal Banks
Those banks are defined as credit institutions with universal banking bank attributions connected with their activities. The universal attribution is defined by law, but it has to be conducted according to the laws and regulations of the respective country.
b) Specialized banks
Those banks can be constituted in one of the next forms: saving and credit banks, and mortgage institutions. Those banks must only conduct activities in the approved field, and the respective entities are allowed to conduct other activities only if they are sustained by the main object of activity.
The saving and credit banking bank system has as a purpose attracting savings and giving credits to other entities. The mortgage banks have the main purpose approving mortgages for real estate investments, and attracting funds from other entities by issuing mortgage bonds.
As a general rule, the specializations of banks have the purpose of distinguishing the different entities one from the other.
c) Other credit institutions
The credit cooperation companies are constituted as autonomic entities of individuals with a voluntary character, having the purpose of fulfilling the needs and aspirations of the respective persons, and the members of the association have to help one another.
The companies that issue currency - The National Bank have the role of issuing and retracting currency from the market, according to the needs of the economy and the financial state of the country. However, the commercial bank has the right to create electronic currency, as long as the activities respect the regulations of the respective country. However, as the activities of those institutions are based on speculations, those companies don’t have the right to give credits and to attract deposits.
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There are also the non-banking institutions that have the right to give credits to the individuals and companies, but they don’t have the right to attract deposits. In this case, the respective companies have to find methods of auto financing their activities, and usually those companies are sustained by strong financial groups.
The banking bank system has its freedom, but all the activities conducted by the respective members have to respect the laws and regulations of the respective country. From this point of view, the National Bank is the supreme institution that has to preserve the health of the economy, but also to protect the interests of the commercial banking and financial institutions of the respective country.
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