The paper describes the relevance of the topic, sets the goal and objectives, specifies the theoretical and methodological foundations, specifies that the banking system guides the country's payments and settlements system, defines the essence, principles and functions of a commercial bank. The banking system is a wide range of diverse services, starting from traditional savings-loan and settlement-cash operations, ending with modern monetary credit and financial instruments. The bank is an intermediary link that attracts the temporarily free resources of economic subjects and supplies them to those subjects of the economy who experience a temporary shortage of these resources. The bank assumes the risk of non-return of resources. The effective operation of the payment system in any country requires the improvement of settlement operations and their technologies. Banks are the centers through which the majority of settlement and payment transactions are carried out. Settlements and payments of an individual or a legal entity, as well as of the entire economy, are carried out through banks. The theoretical and methodological basis of the work is - the researches of Georgian and foreign scientists on the regulation of the banking sector, the analytical works of various authors, the information-statistical and analytical materials of the National Bank of Georgia. Key words: Banking system, active bank transactions, passive operations.
Read full abstract