What is modern banks and what are they?

BANKS-monetary institutions governing payment transactions in cash and noncash forms. Under the Bank "... refers to a credit institution has the right to raise funds of individuals and entities, place them on their own behalf and at his own expense on condition of repayment, and the urgency to carry out payment transactions on behalf of clients."

The Bank is seen as a commercial enterprise (trading in the money), credit institution, an agent of the Exchange, an organization designed for money accounting and payments. But despite the variety of functions performed by BA, still need to identify their main purpose: to serve as financial intermediaries, accumulating temporarily free funds and public companies (such as "end lenders") and transmitting them in the form of loans to borrowers who are receiving, thus opportunity to realize their commercial and investment projects. In other words, they transform inactive in the functioning capital accumulation.

The Banks - the basis of credit and banking system, which is based in different countries in different ways. Most of them she led the central bank of issue, responsible for the regulation of money circulation in the country, maintaining the stability of the national currency as the domestic market, and in relation to other currencies.

These goals are achieved through three main instruments of monetary policy - interest rates, reserve requirements, open market operations. The lower level of credit and banking system are commercial banks, and various kinds of specialized credit and financial institutions.

Banks are subject to a number of macroeconomic modeling of the phenomena, although in general, in science there is a strict division of economic phenomena in the "real" and "financial" sectors of the economy (this is called the classical dichotomy). In most banking economic and mathematical methods (in particular, econometric models) are used in areas such as forecasting the volume of active operations, deposits, account balances, the value of bank interest, the money supply. In the investment when it comes to the rational distribution of capital investments, Banks are using the model input-output linear programming.