CHAPTER 1.1. TRANSFORMATION OF THE CONCEPT OF «CREDIT MARKET» IN MODERN TERMINOLOGICAL SPACE

Abstract

The definition of «credit market» has become widespread, but in the economic literature and practice, the content of the credit market is usually not disclosed, it is often perceived by researchers as a given. At best, they are limited to the definition of the credit market, but there are significant differences in views on the content of the definition. Analysis of approaches to the definition of the credit market shows that in some cases the authors focus on only one characteristic feature of this phenomenon - the object or subjects of market relations, which gave rise to the following definitions of «credit market»: the sphere of market relations, credit resources are distributed and redistributed; a set of financial institutions that carry out operations related to lending. It is difficult to agree with the presented interpretations of the credit market. Thus, the definition of the credit market as a set of financial institutions, which not only narrows its content to the subjects of relations, but also limits its financial institutions, excluding non-financial organizations and households that play an important role in credit market relations. Based on the basics of credit market research, it was found that the basis of its operation is the relationship between creditors and borrowers. The categories «credit» and «credit market» were distinguished. In credit relations, the most important component is the reverse movement of borrowed value, but in the credit market occurs as the transfer of value on terms of return, as well as the transfer of ownership of credit goods, ie the sale of credit goods. Moreover, the value of the banking product does not correspond to the value transferred on the terms of return, as the banking credit product may include additional services, such as life insurance, as well as payment for various banking services. Thus, in the credit market, the lender and the borrower, in addition, become the seller and buyer. Moreover, a loan can exist in the absence of a market and the presence of only two entities – the lender and the borrower. The emergence of a market requires a flow of effective demand, which must correspond to the flow of supply of differentiated credit goods. This correspondence determines the existence of the credit market. The credit market is a systemic institutionalized formation that unites many creditors and borrowers, between whom there are institutionally and organizationally designed relations.