what the bank

Question about what the bank is not as simple as it seems at first glance. In common parlance the banks - is the repository of money. However, this or something similar, everyday interpretation of the bank not only reveals its essence, but also to hide his real purpose in the economy. Further confuses the issue itself terminological meaning of the word bank ("bank" - a bench, on which were made in cash and credit transactions), as well as such modern expressions as a data bank, the Bank of plants, a book bank that the bank, as such, are notirrelevant.Banking institutions so diverse that their true nature is really uncertain. In modern society, the banks are engaged in a wide variety of types of operations. Not only did they organize cash flow and credit relations, which is financed through the national economy, the insurance operations, buying and selling securities, and in some cases, brokerage and property management. Credit institutions shall serve in an advisory capacity, participate in discussion of economic programs, keep statistics, have their utility company.Bank as an institution or organization. The most widespread notion of a bank is its definition as an institution, as an organization. "Banking institutions and organizations" - a fairly common term, very often it can be seen as a serious scientific and educational literature, banking law, banking and printing documents.Here and henceforth we should not forget that the "organization" refers to a particular set of people. But the bank as an organization is standing close to the concepts of "charity", "social organization". However, it should be noted that the bank, though performs public mission, however, has little to do with these concepts. Bank as an organization as a union of people, historically, been the lot of most private individuals and only later, with the development of banking, especially in the contemporary economy, has turned into large, medium and small associations.Bank as a company. As with any business, the bank is an independent economic entity has legal personality, manufactures and markets the product, provides services, operates on the principles of cost accounting. Do not differ much and objectives of the bank as a business - it addresses issues related to the satisfaction of social needs in their product and services, based on the realization of profit social and economic interests as members of his team, and owner of the property interests of the bank. The Bank may carry out business activities (of course, if they do not contradict the laws of the country, derived from the Charter of the Bank). Like any other business, the bank must have a special permit (license).Bank as a commercial enterprise. Banks, in contrast to industry, agriculture, construction, transport and communications operating in the sphere of exchange rather than production. This circumstance, however, was the basis for a number of authors assume that the bank - it is commercial enterprise.Association of banking trade are not accidental. Banks really like to "buy" resources "sell" them to operate in the field of redistribution, facilitate the exchange of goods. Banks have their "vendors" store, a special "trade stock", their activity depends on the turnover. At the same time, however, the similarity between the bank and trade, mostly over.Moreover, the similarity is external, because the bank does not trade in goods and special products. There are, for example, operations such that the banks committed to the exchange (buying and selling) rates in the money market when the currency of one country (and gold) purchased or sold at a certain rate, a certain price.Bank as an intermediary company. The functioning of the bank in exchange gives rise to other ideas about its nature. Often the bank is described as an intermediary organization. The reason for this is a special overflow of resources temporarily deposited in one and requiring the use of others. The peculiarity of the situation in this case is that the lender has some of the resources, with appropriate safeguards wishes, for a certain period at interest to give it to another contractor, the borrower. The interests of the creditor, however, must coincide with the interests of the borrower, which may not necessarily be in the region. Of course, in the modern monetary economy is a coincidence of interests is accidental. Consolidating element here is the intermediary bank that allows the transaction, taking into account supply and demand. In contrast to the individual creditor's resources in the pocket of the bank losing its original face. By bringing multiple tools, the bank can meet the needs of a wide variety of borrowers, provide a choice of credit for every taste - a term, provision, interest on loans. The bank acts in this case as a lucky pimps that would suit acquaintance of two subjects - the lender and borrower.The bank as an agent of the exchange. The Bank's operations in the treatment and gave rise to the representation of him as an agent of exchange in the 20's.The reason for this, as we know, was the fact that banks are indispensable parties to the exchange. They can self-organize the exchange transactions, perform operations on securities trading. However, neither historically nor logically it does not make part of the bank in exchange organization. Private banks (banking houses) appeared before the exchange, before the purchase and sale of securities. It is important here and the fact that trading in securities is part of banking operations, and not principal. This is because trading in securities is quite specific and different from their own banking, it allowed the exchange to stand out as a separate element of the market with a special apparatus and tasks.Bank as a loan company. Gradually the bank, in turn, became more and more credit center, which enabled him to determine the lending business. However, this does not give grounds for mixing with the bank loan.Credit - is the relationship between lender and borrower on the return movement lent value. In the credit relationship, therefore, one of the parties to the lender and the borrower is someone. In each of the credit transaction, taken in isolation, as if photographed at a certain point, always two sides, and the loan is particularly specific relation between them. Unlike bank loans - this is one of the parties relationship, which, although it can simultaneously act as a loan and a borrower, but at any given moment in a single, again photographed, the transaction appears either as a creditor, whether in as a borrower.Consequently, the bank - it is not very relevant, and one of the subjects of relationships, taking in the credit transaction one of the opposing sides.Furthermore, the difference between the bank and the credit lies in the fact that the loan - this ratio, either in cash or in the form of commodities. The bank flows are concentrated and only in cash. A comparison of the bank and the loan is important to see, and their historical roots. The bank originated only if any money, while the loan, and functioned until the money in all their functions. Bank - a consequence of the credit, which, in turn, in relation to bank basis.As noted, the banks were not only credit but also a number of other activities. By their nature, banks are associated with monetary and credit relations. It is on this basis, and originated a unique education, as a bank, which can be generally defined as a system of special business, the product of which is credit and issuing business. Central to the essence of the bank, its foundation, it is possible for this to hold the organization of monetary and credit process and emitirovanie currency. Such is the theory of matter, which will help to understand what is a bank in practice.