washington business bank

washington business bank - the main link in a two-tier banking system.

Today, a group of commercial banks in different countries is a number of institutions with different structure and a different attitude to the property. Their main difference from the central banks yazlyaetsya no right to issue banknotes. Among thewashington business banks are two types - universal and specialized banks.



washington business bank, acting on the financial market with the demand for credit, not only to mobilize savings available in the economy, but also form a sufficiently effective incentives to the accumulation of funds. Incentives to the accumulation and preservation of cash generated based on flexible deposit policy of washington business bank.

In all countries washington business bank  with market economies washington business bank occupy a leading position in the payment mechanism of the economy.

A special unit of the banking system is the banking legislation, which is designed to regulate the banking business. Currently in Russia there are two laws directly related to the work of the banks. This federal law "On the Central Bank of the Russian Federation" (1995) and "On Banks and Banking Activity" (1996). International practice shows that the laws of banking institutions should be supplemented by special laws on the banks of the bank holding companies, associations and consortiums, credit cooperatives and other small credit institutions. In addition, the system of banking laws usually also includes laws governing various aspects of banking activities, including credit business, electronic payment system, banking secrecy, the failure of banks and others. In the system of banking laws stand out at the same time universal laws of action (Civil Code, the Law "On Advertising"), as well as laws to ensure that regulation of parallel institutions and affecting the banking business.

The main functions of washington business bank are:

attracting temporarily available funds;
provision of loans;
implementation of cash payments Mr. payments in the economy;
issuance of credit-treatment;
counseling and provision of economic and financial information.
Feature mediation functions of washington business bank is that the main criterion reallocation of resources serves the profitability of their use by the borrower. Redistribution of resources is carried horizontally economic relations from the lender to the borrower, through the banks without intermediaries in the face of superior banking institutions under the terms of payment and repayment. Fee for given and received loan funds formed under the influence of demand and supply of loanable funds. The result is the free movement of financial resources in the economy. The value of mediation functions of washington business bank for the successful development and operation of a market economy is that banks reduce their activity level of risk and uncertainty in the economic system.