Financial stability is the basis of economic sovereignty

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In modern conditions, the stability of the financial system of the countries of the world is determined by the stability of the banking system and the national currency, the degree of protection of the interests of depositors, gold and foreign exchange reserves, the development of the national financial market and the securities market. Financial stability is the main condition for the effective allocation of economic resources and the ability of the entity to confidently carry out independently current and projected financial and economic activities in accordance with their interests The most urgent in market conditions is the need for security - a fundamental need for both the state and business entities, since this is an integral part of the concept of "economic security". In the past ten years, ensuring financial stability has become one of the most important tasks of the economic policy of the states of the world. Over a dozen central banks and a number of financial institutions (including the IMF, World Bank and Bank for International Settlements) publish periodic reports on financial stability issues. The publication of financial stability reports was seen as one of the policy instruments through which the central bank can influence the financial system and contribute to its stability. Displaying the current global financial crisisl that central banks play an important role in ensuring the financial stability of the national economy and the expectations of society. The modern development of the economy of a single country and the world economy does not seem to be without an efficiently functioning banking system. The level of development of the banking system affects the entire society as a whole, is the subject of government regulation. Commercial banks, acting as financial intermediaries in the financial market, satisfy the needs of the economy in the qualified redistribution of temporarily free funds from suppliers to consumers. A radical change in the nature of the relationship between banks and the real sector is an essential condition not only for the recovery of the real economy, but also for the strengthening of the banking system itself. the banking system is one of the most important parts of the economy, which is determined by the functions that they perform. It is not in a static state, on the contrary, it is constantly in dynamics and is constantly being improved. Therefore, the modern banking system of our country is in a transitional stage and as the national economy gradually transitions to market conditions, more and more integration into international markets and the formation of market infrastructure, it will also approach international standards in the provision of banking services, that is, improve. This, in turn, will lead to the need to improve the management system of commercial banks, which is a vital task not only for the banking system and the national economy in market conditions, but also for state security in general. The range of banking and financial services will expand and risk levels will increase. Previously unperformable services will appear on the money and credit markets, banks will have to perform a wide range of risky operations with various financial instruments on behalf of clients. Improving the management of banking activities, which are characterized by increased risk, is impossible without the development of special decision-making mechanisms that allow managing the influence of the risk factor. Such a mechanism is the banking risk management system, which makes it possible to identify these risks, evaluate, measure them against the expected profitability, and reduce them to the optimal level. In essence, the bank - it kreditnofinansovoe institution or a financial intermediary, intended for the accumulation of free funds and their further investment placement with a maximum degree of efficiency and safety guarantees. Through the bank, payments and mutual settlements are carried out between enterprises, firms, individuals. the bank issues money into circulation, performs operations with securities and fiduciary operations. In principle, a bank is an institution that provides customers with a certain list of services. The functioning of the bank has changed little over the centuries, only the range of services offered has expanded. Currently, up to several hundred different services. Without leaving home, you can pay bills, enter into contracts, make contributions to the pension fund, pay for renting a house or building new housing. In fact, the client trusts his bank to carry out all operations related to taxes, fees, purchases and savings. The client only makes a decision, and the bank makes payments. for this, a relationship of trust is established, rules of conduct and mutual obligations are formed. Throughout the history of the development of central banks, their activity was associated with maintaining the stable functioning of the banking system. to assess the financial stability of the bank, indicators have been established that characterize its stability. These include: capital adequacy, asset quality, quality of liabilities, liquidity, profitability and other indicators. The development of a full-fledged system of non-cash payments is an urgent need both for the payment system and for the security, financial stability and efficiency of the entire national economy. The improvement of the national payment system is provided within the framework of the "State Program for the Development of the Banking System of Turkmenistan for the Period of 2011–2030", which defines the tasks of equipping and introducing technical infrastructure, preparing regulatory legal acts, expanding non-cash forms of services and operations. Commercial banks providing customer service play a critical role in achieving these goals. By financing the introduction of plastic cards, they are conductors of innovation in the economy. The term "payment system" came into the use of bank employees in the second half of the 90s of the last century, and in fact replaced the used term " cashless payment system ". The emergence and widespread use of the term "payment system" is explained by the activation in the CIS countries of Western payment systems, primarily card - VISA and Europay , as well as SWIFT. This term is used in their technical documentation. The development of Internet technologies greatly influences this process. In recent years, all over the world, the topic of plastic cards has become increasingly relevant. Currently, more than 200 countries around the world use plastic cards in payment circulation, which allows us to conclude that they are an essential element of the so-called technological revolution in banking. The Central Bank of Turkmenistan is working to improve the efficiency of the payment system of the Central Bank of Turkmenistan, primarily through targeted activities to introduce an electronic settlement system. When carrying out electronic settlements through the payment system of the Central Bank of Turkmenistan, electronic payment documents of the appropriate format are used, requiring the mandatory sending of settlement documents in hard copy. Great importance is attached to the creation of a modern system for conducting non-cash payments using advanced methods and latest technologies, increasing the types and number of transactions using bank cards, improving the electronic payment system and ensuring their protection. The State Bank for Foreign Economic Affairs of Turkmenistan and the Joint Stock Commercial Bank " Rysgal " are currently launching several varieties of the international payment system " MasterCard ". The peculiarity of the system is that with its help, contactless payment technology is being introduced in Turkmenistan for the first time. The advantage of such cards is ease of use, speed and safety of payments. Their owners can make instant payments for goods and services without entering a PIN code, both in our country and abroad, with one touch. this requires special payment terminals capable of accepting contactless technology. With the introduction of MasterCard plastic cards into circulation in Turkmenistan, an increase in the volume of non-cash payments is expected, which, in turn, will serve to increase the inflow of funds from the national economy entities and increase the solvency of the banking system, as well as create conditions for issuing loans at low interest rates. the country's banks are carrying out purposeful work to further improve the quality of services provided, including online banking, implement promising ideas, and move to a new level of service. In particular, the State Bank for Foreign Economic Affairs of Turkmenistan recently introduced a new service for the bank's clients - "Internet banking". This service provides clients with great opportunities for prompt informing through the client-bank system about the status of accounts and conducted banking operations. For the successful development of its payment system, the Central Bank of the country is guided by international experience, as well as the recommendations of international financial institutions. Payment cards, including cards issued by banks, in Turkmenistan are a payment instrument for making non-cash retail payments and receiving cash. With the effective functioning of the payment system, operating costs are significantly reduced, and there is an opportunity for better liquidity management both in banks and at enterprises. In our society of enterprises, which is growing from year to year, entrepreneurs and citizens spend their saved money not only on consumption, but also show interest in increasing their value. The volume of savings and the degree of their convertibility to investments is an important economic indicator that directly affects micro and macroeconomic growth, the level of financial stability and the welfare of society as a whole. In all economically developed countries of the world, citizens' savings are used as a resource to ensure economic growth. In international practice, the demand for investment is almost completely satisfied at the expense of resources mobilized within the country in the financial market. to protect the rights and legitimate interests of bank depositors, to strengthen confidence in the banking system and to stimulate the attraction of savings of the population to the banking system of the country, in 2016, the Law "On Compulsory Guarantee of Individual Deposits" was adopted. A well-thought-out organization of the savings business in society contributes to the achievement of financial recovery of the country's payment system and the formation of an optimal structure of money circulation. In all these transformations in the banking sector, there is a constant course towards social support of the population, proclaimed by our esteemed President Gurbanguly Berdimuhamedov under the motto "The state is for the person!" 

 

Akdzhemal Burunova , associate professor of Academy of Public Administration under the President of Turkmenistan , the candidate of economic sciences.


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