Structure of the financial system of the country

Financial UniversityAbdul Ruhulla, 1-2 IFF

In the example of the financial system of Russia

Definition

In the broad sense, the totality of spheres of financial relations through which the creation and use of monetary funds are ensured.

In the narrower sense, a financial system is the system of financial institutions in a country that mobilize monetary resources, distribute the resources in the process of financing and crediting, and exercise financial control.

The word "system", in the term "financial system", implies a set of complex and closely connected institutions, agents, practices, markets, transactions, claims, and liabilities in the economy.

The financial system is concerned about money, credit and finance - the three terms that are closely related from each other.

Structure of the financial system

The financial system of any country includes several interconnected institutes and state agencies.

The presence of the various institutions within the financial system explained by the fact that the finances serve different needs of the community, cover the entire economy of the country and the whole sphere of social activity generally.

Economic system

Socialist countriesBourgeois states

the state budget; the finances of socialist enterprises, organizations, and sectors of the economy; the budget for state social insurance and state property and personal insurance; and state credit

separation of individual components, the increasing financial dependence of local bodies on the central government, and the ever-expanding use of government funds by the monopolistic bourgeoisie

Capitalistic countries

The national budget, local budgets, insurance funds, and various types of independent accounts and extrabudgetary funds and accounts, as well as the finances of state-run enterprises

The financial system of the Russian Federation

Set of governmental bodies and institutions engaged in financial activities within their jurisdiction

Set of financial institutions, each of which contributes the formation and use of monetary funds

The financial system of the Russian Federation includes:

State budget system; Off-budget special funds; State and bank loan Insurance funds (property and personal); Finances of economic entities and

industries that are used to regulate and stimulate the economy and social relations at the micro level.

Stock Market

Main elements of the financial system of the RF and their relations

State and municipal finances Finances of economic entities

Budget system Government loan Commercial organizations

Financial intermediaries

Budgets of:-The Pension Fund -Social Insurance Fund of the RF -Federal and Regional Health Insurance Fund

Financial system of RF

-Federal budget -Territorial budgets of RF subjects-Municipal budget (local budgets)

Non-profit organizations

The financial system - it is also a set of financial markets and financial intermediaries

Financial markets

Foreign Exchange Market

Gold market

Capital market

Market funds

Loan capital market

Stock market

The budget consists of two parts: the incomes and costs

Budget incomes

Taxes

Nontax

Incomes from earmarked budgetary funds.

Voluntary receipts

Non-productive sphere

Industrial

Capital investments

Agricultural

Etc…

Production sphere

Budget costs

intervention in the economy

Social and cultural activities

The state apparatus

Military purposes

Other costs of the budget

BUDGET

The forecast of socio-economic development

Ensuring social policyRealization of management functions

Financial plan

Balance of revenues and expenditures

Financial plan for industry leading enterprises

Implementation of investment programs

Implementation issues to support the national economy

Public debt service

Monetary system

Production processes

Regulation of economic processes

To sum it up, we can conclude that the financial system plays in society so important role that a violation of its functioning may result in disastrous consequences for the whole economy. Therefore, in all countries, it is under the strict control of the state.

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