Theory of economics

Stages of development of banks and banking system

It is much more difficult to answer the question of when and how banks appeared. Rumor has it that it is universal financial institution that performs various operations depending on the origin of the activities of modern banks. For example, first-class foreign banks provide more than 300 services to their customers. Since these operations do not appear in one place, finding the starting point of banks requires a clear scientific ban.

We can assume that the oldest operation of banks is the preservation of money. It is known that in the most ancient states there was an activity of accepting deposits. Initially, with such work, individuals with money and reputation, church institutions were engaged in European countries. For example, the famous Greek structures at one time served as a banking institution. Over the years, money and property interest have also been accrued since those periods. In the existing analyzes, which are donated to the origin of banks, their initial activity consists in the preservation of funds and the issuance of money substitutes.

The need for money parsing is formed separately. For example, in Europe there was no single system of coins in the Middle Ages. Trade was conducted with coins of different countries, cities and even individual entities. All coins have different shapes and denominations. For this reason, individuals who are engaged in coin mining and are able to conduct mining have settled in places where good trading is going. The reason is that the Question” Bank “came from the Italian language from the word “banco ” – which means the desk before the button holder.

The proprietors involved in the storage and exchange of money had realized that the money collected was inefficient, lying motionless, and that they would receive a significant level of profit if part of them were to move. After that, the operation of issuing money on condition that the mortgage is paid interest for a certain period of time appeared.

During these periods, mainly houses, ships, valuables, pet goods and other items of different value were adopted.

Since one bank, more precisely the services that save money, can be used by several individuals who are connected with mutual settlements with each other, the need for operations for the provision of settlement services to customers began to be felt. At first, the depositor had his own account sheet in the form of a table with his name in the money keeper. This table reflected the inputs and outputs. The whole activity was carried out by a written or oral order of the banker with the Depositor. In the case of the changes, the persons to whom the mutual account was made were included in the tables. This made up the forms of the most simple non-cash settlement. All of the above transactions are initially combined under an organization called a separate later bank. This is how the current banks are formed.

Until independence, Uzbekistan banking institutions were part of the former Union banking system. At the same time, banks could not operate outside the former Union banking system. The banking system includes 3 types of banks: the State Bank of the USSR, the Construction Bank of the USSR, the Foreign Trade Bank of the USSR and the savings banks of the state Labor deposit. The former Union Bank had a monopoly position, which at the same time was considered a center serving the emission institute, term lending, settlement operations on farms. As a result of the monopolies that carried out emission functions, as well as service functions for customers in terms of accounts and loans, the bank was transformed into a management and control body.

From the centralized way of managing the economy, a number of shortcomings of the banking system, which became more stable than the first steps to the market economy, began to be noticed. This means that the banking system would have required to make changes.

The organization of the banking system from another began in 1987-th year. In this work, it was envisaged to change the organizational structure of the bank, to further enhance the role of banks, to further enhance its impact on the economy, to use credit as an economic anchor in the movement.

The first stage of the reorganization process begins with the creation of a new structure of the State Bank. The reorganization model includes:

- Establishment of a two-stage banking system: Central emission bank and specialized banks serving direct farms:

- Transfer of specialized banks to an economic Account and self-financing;

- Improvement of credit relations, methods and forms with legal entities and individuals within the framework of the economic system, etc.

The declaration of the independence of our republic laid the ground for the entry into our Republic of the support of the market economy recognized by the countries of the world. Therefore, it was necessary to create a modern banking system in accordance with the requirements of the market economy in our country.

Since Uzbekistan has chosen a step-by-step way of transition to a market economy, the development of the banking system also has the following stages:

The first stage includes the period from 1991 to 1994, when the foundation for the introduction of national currency into the economy was laid and the foundation of a two-tier banking system was built. During this period, the activities carried out to create an independent banking system of our country were carried out on the basis of the law of the Republic of Uzbekistan "on banks and banking activities" adopted on February 15, 1991. On the basis of this law, the Central Bank of the Republic of Uzbekistan was established on the basis of the Republican institution of the State Bank of the former USSR (September 1992) and it was assigned the tasks of regulating the monetary policy in the Republic, establishing the system of commercial banks and the system of payment.

In the sentence of specialized banks established during this period, it is possible to include Industrial Construction Bank, municipal construction and social Development Bank, agro-industrial bank, foreign economic activity Bank, Savings Bank and other banks.

The second stage of the organization of the banking system in Uzbekistan includes 1994-1996 years, when the national currency was included in the regulation (1 July 1994) and the two-tier banking system was created on the basis of the legal framework.

The decision of the Cabinet of Ministers of March 18, 1994 "on measures to improve the banking system and the stabilization of monetary and credit relations", adopted on December 21, 1995 "on the Central Bank of the Republic of Uzbekistan" and the adoption of the new edition of the law "on banks and banking activities" on April 25, in 1996, created a solid legal.

One of the features of this stage was the establishment of special non-banking credit organizations (investment companies, insurance companies, etc.) in Uzbekistan since 1995.

The third stage of the formation of the banking system of Uzbekistan covers 1997-2000 years, the main feature of this stage is the privatization of banks and the improvement of the quality of Management in anti – commercial banks, the control in the activities of banks.

At this stage, the decrees of the president of the Republic of Uzbekistan "on measures to encourage the establishment of private commercial banks"(April 24, 1997), "on measures to improve the activities of commercial banks"(October 2, 1998), "on measures to further liberalize and reform the banking system"(March 21, 2000) are important. In the same year, in 1999, 15 January adopted the resolution "on measures to reform the banking system" of the Republic of Uzbekistan, and on additional measures to reform the banking system "of March 24, 2000.

Foreign investment in the banking system began to be widely involved, and by the beginning of 2006 five banks began to operate with the participation of foreign capital. Apart from these, 3 banks to the national economy on the basis of state property. 12 commercial and 9 private banks provide services. At this stage, the Republican commission for the reform of the banking system was established, the quality of customer service was improved, attention was paid to further development of small and medium-sized businesses, increase the effectiveness of internal control.

The fourth stage of the development of the banking system began with the decree of the president of the Republic of Uzbekistan dated March 21, 2000 “on measures to further liberalize and reform the banking system” and the decision of the Cabinet of Ministers dated March 24, 2000 “on additional measures to reform the banking system”.

These documents were mainly defined as the main tasks of this stage:

- Further liberalization and reform of the banking system, increasing the independence of commercial banks;

- To encourage the development of the banking system and its joints;

- To attract free funds to the bank and protect the interests of depositors;

- To expand the lending process of enterprises working in the specific sector of the economy of banks, in particular peasant, farmer farms and small and medium-sized businesses;

- Transformation of banks into active participants of investment processes;

- Formation of mutually beneficial partnership relations with customers of the Bank;

- To increase the population's confidence in the banking and financial system;

- Tasks such as expanding cooperation with foreign banks and other financial institutions, liberalization and expansion of foreign exchange relations were defined.

The fourth stage of the development of the banking system is its main features as follows:

1. On the basis of further development of banking activities, the population's confidence in the banking system was strengthened. If the capital of commercial banks per 2004-th year amounted to 791 billion rubles 2005-per 824.1 billion. if the sum, that is, increased by 104,2%, during this period, the money savings of the population in banks (new types of deposits, interest on the burden, etc.) amounted to 244,7 billion. 322.6 billion sums. The share of the population in banks increased by 131,8 percent, and by 2005-by 450 billion. He reached.

2. The assistance of commercial banks towards private entrepreneurship, small and medium scale business has increased. It is known that the number of small businesses is increasing year by year and their number is 235.4 thousand from 1.01.2004. The loan to small businesses in 2005 amounted to 419.9 billion. sums of which 287.4 billion far is a term loan. The share of small business enterprises in the ICO was 38 percent in 2005, according to the 2006 plan it was planned to reach 45 percent.

3. Work on the liberalization of foreign exchange relations has been accelerated. At this stage, the free exchange of national currency was carried out step by step, and since October 15, 2003, the free exchange of sums for the current international operations was introduced. In connection with the improvement of foreign exchange relations, by the decision of the Oliy Majlis of the Republic of Uzbekistan dated December 11, 2003 No. 557, amendments were introduced to the law "on currency regulation". On this basis, the development and improvement of the banking system in our republic continues. In this regard, the decision of the president of the Republic of Uzbekistan "on measures for further reform and liberalization of the banking system" on April 15, 2005 is important.