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Gogoleva M.A.
Candidate ofpedagogic sciences, Assistant professor Malikova E., post graduate student The Institute of Service and Business (branch) of Don State Technical
University, Shachty DEVELOPMENT OF BANK SYSTEM LENDING IN RUSSIA
Lending in Russia is one of the major problems of small businesses. Small businesses do not have assets sufficient to provide loans received, as they often rent the premises used by them in production and trade. Assets consist mainly of stocks and they haven't liquidity, which can be implemented quickly.
Nowadays the branch structure of small business lending is very similar to the sectored distribution of enterprises. The leading sector is trade and public catering - 50%. Firms engaged in the construction make about 13%, 12% - in the industry. The share of agricultural enterprises is negligible and accounts are about 2% [2]. The share of loans provided to the industrial production remains low. If we take these figures throughout the banking system, the percentage would be even lower. New businesses usually cannot act as subjects of credit, since one of the conditions for the grant of loans - activities for at least 6 months (and in some cases higher). This is the main reason why it is difficult to get a loan to start a business. This procedure is not consistent with the concept of long-term socioeconomic development, involving the reduction of administrative barriers to starting and developing innovative businesses [3].
In general we can say that in the last decade, the situation with the development of small business is changing for the better. However, lack of funding remains a problem that small businesses face throughout the life cycle of the company - at the stages of creation, formation and development. Especially sharply it is felt with the development of small business: many companies have schemes to diversify production, increase production capacity, but do not have the funds to implement these plans.
Basically, banks provide loans to companies with term activities for at least 6 months. Only few banks on the Russian market offer food lending startups. Among the banks that lend startups using special products, the majority is ready to fund only the opening of a business franchise or business plan ready partner, but almost no one is willing to consider the "author" of the business projects. Financing franchise maximizes protect the bank from possible risks, including fraud on the part of borrowers and to facilitate work on the consideration of applications under the "loan pipeline" of the bank.
Thus, the main way to get the bank funding to establish their own small business, unfortunately, is a loan for an individual, and then, when the period of business activity exceeds six months - a loan to SMEs. But even here the company can have problems: the most common requirement of the bank is the presence of its own funds in the amount of 25-30% of the required amount of credit. Another option is referred to previously obtain unsecured loans. However, there are some drawbacks, such as short terms and high interest rates.
Banks need to develop a uniform methodology for determining small business, profitability analysis, and assessment of its solvency. To rate a small business only on the basis of documents provided by the borrower is impossible, as there is often little information in the financial statements. The technology, based on the analysis of the visiting client, and built on administrative data, is the most effective in small business lending. In assessing the credit worthiness of small businesses at least 80% of the information the lender receives from data management accounting or by the customer. Using the method of cross-checking credit a specialist can make a reliable picture of the business. The basis of the method is setting the system which takes various issues in relation to one object or area information.
Lending to small business is a complex mechanism of the relationship between banks and small businesses. To address the problems of credit businesses need a comprehensive and systematic approach. Support should come from both the small business and the state. The main task of the banks in terms of lending is improving business confidence to its banking products. To overcome the obstacles of small business loans, one must do the following steps:
1. The development of standards for lending to small businesses. Commercial banks should be guided by a single system of solvency assessment, cost-benefit analysis of small business.
2. The gradual improvement of credit conditions. To improve the efficiency and increase the volume of credit issued, it is necessary to simplify the procedure for obtaining the loan, improve service, and increase the length of the loan and then a reduction in interest rates. Currently, employers are more interested in speed, comfort and easy lending. In the perspective rates should be declined due to competition and increasing the amount of the credit market.
3. Development of the «startup» projects. Lending to small business in the future will be closely linked to the development of "Start" projects and the gradual filling this niche credit banks.
4. The development of credit bureaus. One of the main problems faced by lenders in Russia is the lack of information on the borrower's credit history. In the West, any bank can ask for half an hour and get to know borrower's credit history, in Russia the activities of credit bureaus is not functioning fully.
5. Increase confidence between banks and businesses. This can be achieved only through close cooperation. Banks should conduct active advertising their loan products to explain their advantages and, thus, increase the financial literacy of small businesses [4].
6. Support from the state. The development of legislation in terms of concrete measures and mechanisms to support small business are necessary, the development of federal programs to stimulate lending to small businesses are required.
Among the measures that governments could take to reduce the cost of lending SMEs must include the following tools:
- early adoption of the law on securitization of loans to small and
medium-sized businesses and further simplification of the refinancing of banks, loans to SMEs;
- further development of mechanism to guarantee loans to SMEs through the unification of the activities of the guarantee funds, increasing the aggregate limit of guarantees loans to SMEs;
- increase in the money supply in certain segments of the money market, in which the possibility of commercial banks the most limited, for example, funding of long-term debt [5].
Of course, there can be no consensus on the issue of formation of priority of financial support mechanisms for lending to small and medium-sized businesses, as there are still a lot of unresolved contradictions. However, in the banking system there is a positive trend of lending of small and medium-sized businesses. In our view, it will be impossible to change the situation with ensuring access to credit for small and medium-sized businesses without active involvement of the state in this process, using both direct and indirect instruments of financial regulation.
Literature:
1. Federal Law of 24.07.2007 № 209-FZ (ed. from 12.28.2013) "The development of small and medium-sized businesses in the Russian Federation".
2. Pargamanina E.A., Vasilenok V.L. Lending as a form of financial support to businesses. Scientific Journal ITMO. Series: Economy and Environmental Management. 2014. № 1. p. 59.
3. Korotaeva N.V., Cheglova E.A. Measures of state support of small and medium-sized businesses. Socio-economic phenomena and processes. 2014. № 1 (059). p. 28-32.
4. Kravtsov N.I. Management of financing for small businesses through bank loans in a crisis of liquidity in the Russia.- Finance and credit.- №7.- p. 41-46.
5. Kaltyrin A., Antonchikov S.N. Are they able Russian banks to build an effective business model of service to small and medium-sized businesses? [Electronic resource] // NISIPP / 2014. URL: http://www.nisse.ru/work/experts/expert_61.html?mode=opinions (date of treatment 18.04.2015).
Lapenkov V. Y.
Master's student, International Finance Faculty Financial University under the Government of the Russian Federation
Moscow, Russia ANALYSIS OF BANK SECURITIES PORTFOLIOS Abstract: It's natural to think of banks as intermediaries that take in deposits and use them to make loans to businesses and individuals. But in fact, loans make up only 45 percent of the assets banking organizations. What's the rest? A large part is accounted by securities, such as Treasury and foreign government bonds, mortgage-backed securities (MBS), municipal and corporate bonds, and equities. In this work, I take a tour of bank securities portfolios, and
