Extended essay.
    
    
    Economics.
    
    Banking services in Russia: theory and fact.
    
    
    
    
    
    Candidate Name: ...........................................Polozov Alexander.
    Category and Candidate Number: ...........................0-0460-013 Abstract.
    
    The topic of my essay is the banking system of Russia. The situation in Russia nowadays, due to the historic and unprecedented changes occurring in this country, is one of the most interesting fields of analysis and research. While studying the materials on the banking system in Russia I came across many deviations from the well-established standards of the banking system in Europe and some facts showing that in real life banks in Russia do not follow laws and regulations. So in my research I try to answer two questions.
    Is the banking system in Russia fully developed?
    Bank services in Russia: theory and fact. Do they differ?
    In order to answer the first question I compared the European banking system to the current banking system in Russia as it is regulated by laws and by governmental acts and decisions.
    In order to answer the second question I analyzed the information I received while studying the activity of the ''Incombank'' branch in Chelyabinsk and while interviewing clients of other banks in Chelyabinsk in the summer of 1997.
    I have analyzed the theory and fact of the banking system from the definition of non-traditional operations and could state that out of seven positions I have looked into, only in four does the banking system in Russia agree with the European banking system. The differences lie in the limitations for the private sector and in prolonging bank operations for companies. From this information, we can conclude that the Russian banking system has not fully developed yet.
    Evaluating the activity of Russian banks in practice I could state that theory and fact differ along all lines.
    The Russian government should review its banking regulations and banks should enforce these laws without breaking them.
    
    Banking services in Russia: theory and fact.
    The economic situation in Russia, due to the historic and unprecedented on-going changes in this country, is one of the most interesting fields of analysis and research. I have chosen the banking system for the topic of my essay as it is one of the most important instruments of the economy. While studying materials on the banking system in Russia I came across many deviations from the well-established standards of the banking system in Europe and some facts showing that in real life banks in Russia does not follow the laws and regulations. In my research I have tried to answer two questions.
    Is the banking system in Russia fully developed?
    Banking services in Russia: theory and fact. Do they differ?
    In order to answer the first question I compared the European banking system and the current banking system in Russia as it is regulated by laws and by governmental acts and decisions.
    In order to answer the second question I analyzed the information I received while studying the activity of the ''Incombank'' branch in Chelyabinsk and while interviewing clients of other banks in Chelyabinsk in the summer of 1997.
    Banks are the most important link in the world of money. This is because, first of all, banks nowadays perform the main part of the work of transferring money from a customer to a seller, by operating the system of payments in the economy. Almost everyone in the world uses or has used banking services. Families keep their savings there, and banks pay them interest rates on their deposits and give them loans to buy expensive goods. Companies conduct payments through them. Commercial organizations, which work at the market and in production, take loans for their needs and conduct all payments with buyers and sellers through them. Landowners and owners of real estate take loans from the banks to buy an estate or to make use of it and pay back loaned money.
    As we can see, everything in the economy is controlled by money, and banks are a tool-kit for the economy - controlling the money circulation between firms, depositors and loaners, and offering services to make that circulation easier for them. Banking services also have a productive nature. Even such a simple operation as the admission of money on deposits from people and companies involves a huge productive force. A bank does not just collect money - it converts non-working, unused money resources, to working assets. This is also true of credits given to companies and firms for the development of their productive and financial activity. A healthy and stable economy of any country depends on healthy banking services. Now we will see if the banking system in Russia and, in particular, in my home city of Chelyabinsk gives any chances for our economy to develop.
    All banking services can be divided into specific and nonspecific services. ............