Contents.
What is the banking system
The banking system is a complex financial network that unites the central bank, commercial banking institutions, and other financial institutions of a country that interact in a single monetary space. This system ensures the circulation of cash flows and the provision of financial services within a defined economic territory.
The complex structure includes:
- The National Bank of Ukraine;
- commercial banks;
- specialized credit institutions;
- investment banks;
- savings banks
- cooperative banks;
- interbank associations;
- banking infrastructure (clearing centers, credit bureaus, etc.).
The extensive system ensures efficient distribution of financial resources, regulates money circulation and maintains the stability of the national currency. For example, Globus Bank, as part of the Ukrainian banking system, provides a wide range of services: from opening deposits to lending to businesses.
Types of the banking system
There are two main types of banking systems:
- Single-tier. It is typical for planned economies where all banks are subordinated to a single center.
- Two-tiered. Inherent in a market economy. The first level is the central bank, and the second is commercial banks and other financial institutions.
The banking system in Ukraine belongs to the two-tier model, where the National Bank acts as a regulator and commercial institutions, including Bank Globus, work directly with clients.
Functions of the banking system
Banking functions cover all areas of financial life in Ukraine:
- issue - issuing money into circulation;
- transformational - converting short-term deposits into long-term loans;
- stabilization - ensuring the stability of banks and the money market;
- intermediary - connecting lenders and borrowers.
These functions of the banking system are realized through specific services. For example, the Globus Plus mobile application allows customers to make payments, monitor accounts and make deposits, all of which are part of the intermediary function of the banking system.
The banking system in Ukraine
The banking system in Ukraine has come a long way in its development. Today, it includes the National Bank of Ukraine and numerous commercial banks, including Bank Globus.
The NBU sets the rules of the game in the financial market, regulates the activities of banks and monitors the stability of the national currency. Commercial institutions work directly with clients, providing a wide range of services.
The banking system is not just a set of financial institutions, but a complex mechanism that affects all aspects of the country's economy. The speed of money transfers, the availability of loans for businesses and individuals, and the reliability of savings depend on its efficiency.
The development of technology makes the banking system more flexible and closer to people. Globus Bank, for example, is actively implementing innovations through its Globus Plus mobile application. It allows customers to manage their finances literally from the palm of their hand, making services more accessible and convenient.
