The essence of the financial system and the way of its effective development

In modern conditions the newly increased interest in long-known theoretical concepts - finance, financial resources, financial system, financial mechanism. The most controversial of these is the concept of "financial system". Discussion on the problems of the financial system covers all aspects: the content of the concept, the criteria for the division into spheres and links, content, number of areas, the composition of units, and so on.

Returning to the analysis of the structure of the financial system and to the concept of the financial system in the Russian science is due to dissatisfaction with the content of the concept of research, staff areas and units of financial relations, criteria for their selection. Equally important is the consideration of changes in the financial system in the very structural elements that occur objectively with the development of society. [1]

The scientific literature is considered a set of definitions of the term "system". The most capacious and precise definition belongs, in our opinion, Academician PK Anokhin: "The system can only be called a complex selectively involved components whose interactions and relationships takes on the character vzaimosodeystviya components focused on getting useful results." It seems that in modern conditions is especially important that the definition of the latter provision. The system should consist not only of a plurality of interacting elements, these elements must be interdependent and vzaimosodeystviya, with vzaimosodeystviya should be aimed at achieving a specific, particular result. [2]

In modern economic literature, the term "system" is used very often, but not always we mean by them above a certain concept. In practice also often do not apply a systematic approach to making certain administrative decisions related to the functioning of economic systems, in particular, of the financial system. When making decisions involving changes in one of the units (elements) of the system, are not analyzed and forecasted the processes that may occur as a result of implementation of these decisions in practice in other parts of the system. Meanwhile, any decision aimed at improving the effectiveness of the operation of a single-level system can lead to negative consequences in other parts. Moreover, these negative effects could offset positive result for the whole system or even lead to negative results. Changes in one element of the system have a particularly strong influence on other elements, if the two-way communication system. If a system is understood, according to PK Anokhin, "selectively involved complex components in which the interaction and the relationship takes on the character vzaimosodeystviya components for a focused useful result" that the management of any system requires an integrated approach that takes into account the nature of the impact of changes in one link or element of the system on its other parts or elements.

The financial system, as well as any other system, is the integrity, consisting of several units (units). The educational and scientific financial literature are different definitions of the financial system. Basically, the financial system is considered from two perspectives: as a set of specific areas and units of financial relations and as a set of financial institutions in the country. The financial system is a set of interrelated, interdependent and vzaimosodeystviya links and elements grouped by areas of financial relations, through which the formation, distribution and use of funds of funds, cash income and savings to achieve financial policy and financial support of the material interests of all participants in social reproduction .

The practical significance of the financial system is that through the financial allocation must be provided to achieve the material interests of all participants in social reproduction. State economic entities and the population in the distribution of GDP and national income should receive the share of income that would provide them an adequate level of social and economic development and life. Currently, imbalances are evident in the financial allocation and the task of science is to achieve financial optimal proportions of distribution is possible only with an efficient financial system.

Unfortunately, Russia's financial system is weak and can not provide the growth of financial resources. In a joint project of the Association of Regional Banks "Russia" and the rating agency "Expert RA" with the support of the Public Chamber of the Russian Federation "On the Concept of Russia's financial system: power, openness, sovereignty" was conducted the analysis of the Russian financial system. The main weaknesses of the financial system were attributed its dependence on foreign markets, the disparity of economies of scale, false financial goals, misallocation of financial resources, lack of long-term financial resources. Indeed, the total assets of the financial sector account for just over 60% of GDP, which is insufficient for effective service economy, even by the standards of developing countries. In most developed countries this figure exceeds 300% of GDP. More than 90% of the assets of financial institutions make up the assets of the banking sector, but this sector in terms of development lags behind the developed countries. Still underdeveloped long-term loans, mortgages, insurance and other financial services.

The development of the financial system can not be united without simultaneous development of all of its units. To evaluate the efficiency of the financial system is not developed criteria, there is no assessment methodology. The criterion must match the essence of the problem, the solution of which is estimated the system, and the problem of the financial system are not marked in any document, and it links the individual tasks are formulated in various ways by different authors, and very vague.

Generalising indicators for evaluating the performance of the financial system may be the level of financial resources per capita. On the volume of financial resources is influenced by many factors. The total volume of financial resources is made up of the resources of all parts of the financial system. Since the efficiency of the economy as a whole is determined by the effective demand of consumers, the volume of financial resources per capita will reflect the efficiency of not only the financial system but also the socio-economic development of society as a whole. For a more complete analysis of the need to form a set of indicators for monitoring the effectiveness of the financial system. These indicators can be:

• 1)    The ratio of financial efficiency - calculated as the ratio of financial resources per capita;

• 2)    The financial independence - shows the ratio of own and borrowed funds;

• 3)    The equity ratio - calculated as the ratio of borrowed funds to their total amount;

• 4)    the deficit ratio - the ratio of deficit to the amount of financial resources or spending to GDP;

• 5)    The ratio of growth rates of revenues and expenses on the balance sheet of financial resources in the event of deficit or surplus;

• 6)    the rate of growth (reduction) of the state (municipal) debt - the ratio of debt subject of the federation at the end of the period to the debt at the beginning of the period.

These factors should be analyzed over time, they are intended to assess the state of the financial system. For the coefficients of the second to sixth must be installed economically justified standards, and you can navigate to the statistics data on the average in Russia or group financially prosperous regions (to assess the financial system of the RF subjects).

To improve the efficiency of the financial system are necessary:

• -    Development of methods for determining the types and magnitude of financial flows and their classification;

• -    Development of the balance of financial flows;

• -    Development of methods of analysis of financial flows.

To determine the types and magnitude of financial flows, you can use the data of the Treasury and credit institutions, as it was in those bodies carried out financial operations and the fixation movement of financial flows.

In drawing up the balance of financial flows necessary to consider the inflow and outflow of financial resources in the region for different types of classification of financial flows. The most important and essential for management purposes is the classification by economic sectors and purpose.

To date, evaluate the effectiveness of management of financial flows territory is problematic because there is no specific goals management and evaluation system performance indicators. Diagnosing quality management of financial flows territory can as follows.

First, you must identify and classify cash flows territory, and then to assess their condition. To do this, carry out spot checks on the reliability of the accounting data on the state of financial flows to assess their balance (inflow -outflow) and liquidity (the coincidence in time of sources and liabilities), reveal the influence of the factors determining the status and trends in financial flows in general and their components , establish a system of indicators for monitoring financial flows.

Secondly, it should assess the solvency of the subject of federation. To do this, create a credit history subject, collect and organize data on the debt of the Federation, to identify indicators of pressures on the regional and municipal budgets to service and repay debt, to justify the maximum amount and terms of additional borrowing, to identify and evaluate the factors influencing the the creditworthiness of the Federation.

Thirdly, it is necessary to assess the dynamics of the investment potential of the region.

Fourthly, it is necessary to evaluate the quality of the management of financial flows and financial policies pursued. To do this, develop a system of evaluation indicators and criteria for the formal evaluation of the financial policy pursued by sub-federal authorities.

Scientific development issues for evaluating the performance of the financial system of the country and its regions will allow to take decisions aimed at improving the financial condition of the region and the growth of its economy.