Home  Journals  Finance and Credit  40(616) - 2014 October

A conceptual model of strategic cooperation of the State and banking sphere

Available online: 26 October 2014

Subject Heading: Banking

JEL Classification: 

Pages: 9-16

The author proposes to improve the methods, tools and forms of debt financing of the Russian banking institutions. The basis of these proposals is conceptual provisions that define an individual approach to creating the necessary conditions for debt financing. These conceptual provisions include a set of measures that are necessary to provide the economy with financial resources and to develop the mechanisms of their concentration and mobilization on the assumption of enhancing the security of all participants of bank financing processes. The volumes of debt financing of domestic banks are subject to the volume of funds involved in the economy. These funds, in turn, depend on the resources, which are generated or held by enterprises, households, governmental regulating and managing authorities. As all subjects of market relations, except the population, have an obligation to keep their money in bank accounts (thus, the banks mobilize funds), the growth of the volume of internal debt financing is possible only at the expense of new sources, i.e. the resources of the economy that are outside banking. It is impossible to solve the problem of financial resource deficiency at the domestic level without considerable reduction of funds allocation to State funds and reserves and placement of financial resources abroad. The author identifies the need to considerably expand the scales and availability of refinancing for domestic commercial banks. In the conditions of the financial crisis, it is the refinancing system that in many respects enabled to achieve stabilization of the banking sphere thanks to significant growth of its share in the general structure of bank liabilities. The study focuses on the problem of bank financing volume growth by means of developing other financial intermediaries. This will promote increased mobilization of funds that are necessary for successful economy development. The author states other major issues in this area, i.e. developing a secondary market of debt instruments and expanding a deposit insurance mechanism.

Keywords: conceptual model, cooperation, banking sphere, State, investment, innovation, fund raising, financing

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