Accumulation of funds: concept, functions and examples. State budgeting. The order of accumulation of funds See what "accumulation of funds" is in other dictionaries

Among the most powerful instruments of state influence on the economy, one should name financial management on budgetary basis called budgetary regulation. Budgets of different levels form the core of financial institutions government controlled economy. The role of the budgetary system of the state is so great that it is legitimate to consider it an independent institution of state management of the economy along with the banking system.

State budgeting as the main manifestation of financial planning is the process of formation and use of the budget - a centralized monetary fund in order to finance a wide range of public goods, government programs. State budgeting forms the upper part of the budgeting pyramid, covering budgetary processes at the federal, regional, and municipal levels.

The budget, understood in a simplified way as a "money bag", a wallet for placing, storing, extracting money, in reality is a more complex and multifaceted concept. On the one hand, it is the totality, the mass financial resources, means available to any economic entity, be it a state, a territory, an organization, a family. On the other hand, the budget is the ratio between income and expenses. economic entity, balance it Money, which characterizes the correspondence of their receipts and expenditures over a certain period, most often one year. On the third hand, the budget reflects financial behavior, financial policy the owner of funds, his ability to balance income and expenses, allocate financial resources.

Budgetary activity at the state level, which, in fact, is called state budgeting, is one of the leading links in the state management of the economy, reflects not only the financial, but also the socio-economic policy of the state as a whole. Although the state budget accumulates in itself only the funds of the state received and spent during one year or another budget period, it has an impact on the movement of financial resources, cash flows, and thus on socio-economic processes as a whole. They are connected with the state budget, inflation, public debt, state socio-economic programs, financing depend on it. budget organizations, social benefits and payments.

Budgeting as a form of public administration includes:

• - setting scope and structure cash income state, sources of income during the budget period;
• - formation of the structure and volumes, addressing the state's cash expenditures during the budget period;
• - Achievement of a certain level of balance between monetary revenues and expenditures of the state for the budget period;
• - allocation of priority areas for spending state funds, which must be guaranteed, secured (protected articles of the state budget);
• - linking budgets with the main directions of the economic and social policy pursued by the state;
• - creation of state reserves, cash reserves and regulation of internal and external public debt.

Thus, representing in formal perception a legislatively approving list of state revenues and expenditures for a certain period of time, the state budget is at the same time financial basis state management of the economy. In terms of content, the state budget is a way of forming, distributing and using centralized financial resources of the state in order to finance the state (budgetary) sector of the economy, the social sphere and service the public debt.

In a centralized economy, the budget is entirely subordinate to the state economic plan, follows from it and does not have any important independent significance. Such an approach stems from the tendency prevailing in the planned-administrative economy to give a dominant role to material factors and a secondary one to financial ones.

In countries with a market economy, the preparation, approval, analysis of the execution of state annual budgets given great attention. The budgets themselves at the state level and the level of territorial units serve as the leading, determining form of financial planning.

Of fundamental importance is the fact that most developed countries a democratic procedure for adopting budgets at the national and municipal levels has been established and is being observed. Budgets in parliaments and their commissions are worked out in the most detailed way, for all income and expenditure items, even for individual objects. As a result of the reforms, budgets in Russia have become the subject of consideration and approval by the legislative bodies. But having approved the budget, often belatedly, unfortunately, they do not always remember about it. It happens that the authorities make decisions that destroy the approved budget.

Of great importance for maintaining the stability of the economy, preventing crisis situations have control over financial flows, timely adjustment of income and expenditure items of the budget. Naturally, the actual financial ratios differ from those outlined in the projects and plans. Typically, cash outlays are higher than planned and revenues are lower than expected. Hence, there is a need to adjust budgets, use reserves in order to direct economic processes in the right direction, to harmonize them with financial capabilities.

The budgetary and regulatory function of the state in countries with market system management is quite high and tends to increase. So the budget system is one of the leading links in the state management of the economy. With the help of budgets, the state has a regulatory impact on producers, and through them on the market for goods and services, capital, and labor.

The set of budgets used in the country is called the budget system. In countries with federal state structure such a system usually consists of three levels of budgets:

• 1) the federal budget, in which the budgetary resources necessary for the implementation of expenditures of a nationwide nature are concentrated. Through this budget, the process of distribution and redistribution of the national income between the various subjects of the Federation also takes place;
• 2) budgets of subjects of the federation ( regional budgets), in which the budgetary financial resources of large regions that are part of the Federation are concentrated;
• 3) local (municipal) budgets, consisting of financial resources of administrative-territorial formations in the form of cities, districts, towns, settlements.

The budgets of business entities (legal entities) and family budgets adjoin the three-level budgetary system, covering the federal, subfederal and local budgets. The budget of an economic entity is known as balance sheet, it compares the income and expenses of an enterprise, company, firm for a certain period of time. The family budget is a table of income and expenses of the family for a month or a year. Accounting financial balances income and expenses of the organization are compiled in without fail, while the compilation family budget- voluntary business of each family.

General structure of the budget system Russian Federation presented below in Figure 5. The real structure of the budget system is somewhat more complicated than the simplest three-level representation. Each of the first two levels of this system is presented in two forms: consolidated and unitary. The consolidated budget, unlike the unitary budget, includes, covers both the budget of a given level (federal, subjects of the Federation), and budgets of a lower level.

Scheme 5 Structure of the budget system of the Russian Federation

The budget system of Russia includes the state budget in the form of the federal budget and the budgets of the subjects of the Federation (including the budgets of the republics that are part of the Russian Federation; regional and regional budgets; city budgets of Moscow and St. Petersburg) and local budgets of cities, districts, towns and other settlements points.

The budget system of the Russian Federation is built on a legislative basis in the form of budget legislation. General principles budget legislation, the legal basis for the functioning of the budget system, the flow of budget processes is established by the Budget Code of the Russian Federation, adopted in 1998. The Code determines the legal status of participants in the budget process, legal framework the procedure and conditions for bringing to responsibility for violation of budget legislation.

Let us characterize the basic principles of the construction and functioning of the budget system and the state budget, as its defining part, enshrined in the Budget Code of Russia.

The principle of the unity of the budget system means the unity of the legal framework, the uniformity of budget documentation and classification, a single procedure for constructing the revenue and expenditure parts of budgets of all levels, their consistency:

The principle of independence of budgets means the right to independently draw up and maintain budgets by legislative and executive authorities at each level;

The principle of balance means achieving compliance with budget revenues and expenditures;

The principle of publicity (openness) requires mandatory publication in the open press of approved budgets and reports on their execution, openness to society and funds mass media procedures for consideration and adoption of budgets;

The principle of targeting and target character budget funds means that such funds are allocated to specific recipients and directed to finance specific purposes.

In real practice of state budgeting, not all of these principles are fully observed. This is evidenced at least by the very fact that, along with the state budget, off-budget funds, closeness of individual items of expenditure of budgetary funds, incomplete independence of budgets of lower levels. The state budget for its economic essence reflects monetary relations, which are formed by the state with legal entities and the population and consist in the redistribution of national income in connection with education and the use of funds to finance the economy, implement social policy, develop science, culture, education, ensure the defense of the country and govern the state.

Through transfers sent from the federal budget to the budgets of the constituent entities of the Federation and further to municipal budgets, federal budgetary relations are formed in the economic aspect.

In the context of the transition to an economy based on market relations, measures are being taken to reduce budgetary subsidies to deliberately unprofitable and low-profit state and non-state enterprises, and to abandon the methods of general economic paternalism used in the Soviet economy. Budget appropriations are mainly directed to the implementation of state programs, financing the actual public spending.

In cases where the available revenues are not sufficient to meet the necessary expenditures, there is a budget deficit. The budget deficit is the excess of the expenditure part of the budget over the income. With a budget deficit, the state does not have enough funds for the normal performance of its functions and has to resort to internal and external loans (as sources of budget revenues), primarily from organizations credit system, which negatively affects the stability of all monetary circulation and is the main cause of inflation, financial crises.

If there is a temporary budget deficit, there are prospects for overcoming it and it does not amount to a large specific gravity in relation to the value of the gross domestic product, it should not be considered an exceptional event. But in cases where the budget deficit is deep, arises as a result of extraordinary circumstances and reflects crisis phenomena in the economy - its collapse, inefficiency financial system- then, of course, this phenomenon causes enormous damage to the entire economy and it is necessary to take drastic measures to overcome the significant gap between expenditures and available incomes. Usually, a budget deficit of up to 10% of the amount of revenues is considered acceptable, while a deficit of more than 20% is critical.

The main reasons for the significant budget deficit, manifested in the first phase of the transition to market economy in Russia is low production efficiency, significant social spending, non-payment of taxes to the budget, irrationality of the structure budget spending, inefficient budgetary mechanisms, as well as the rupture of economic ties due to the collapse of a single union state. As a result, in the mid-1990s Russia's state budget deficit reached the level of 20-25% of revenues and exceeded 5% of GDP.

At the beginning of the first decade of the XXI century. The Russian state managed to break the trend of deficit state budgeting and master the preparation of surplus, break-even budgets.

To reduce the budget deficit, it is necessary to stimulate in every possible way the inflow of revenues from all industries and all spheres economic activity and at the same time reduce government spending. In order to cover the budget deficit, various forms can be used. state loan, both internal and external. But if one resorts to excessive use of credit Central Bank when the latter has no other resources for lending, except for an increase in the issuance of depreciating money, then such a measure will only lead to an increase in inflation. The use as a loan of funds received from the population, enterprises, banks through the sale of government bonds to them, can create a vicious circle, increasing the already large deficit when redeeming bonds and paying interest. By resorting to such loans, the state accumulates its debt, called the public debt. State debt consists of two components: less dangerous domestic debt, the repayment or restructuring of which is easier to negotiate with its domestic creditors, and more aggravating external debt, the maintenance of which must be agreed with foreign creditors. Overcoming the budget deficit should primarily be based on the development of production, ensuring financial stability all sectors of the economy and enterprises of all forms of ownership, to enhance entrepreneurship.

Budgeting, its discussion, approval, use of budgetary funds, review of results budgetary activity is a single budget process. The entire budget process is regulated by law, which provides for the procedure for drawing up, reviewing, approving and executing the budget. In this process, an important place is occupied by budgetary regulation, which means the redistribution of monetary and financial resources between different budgets.

In accordance with the law, the president must make a decision in advance, long before the start of the financial year, to start work on drafting the budget, draw up a budget message to parliament. The draft federal budget is drawn up by the Government of the Russian Federation 10 months before the start of the next budget year. The government is preparing, on the basis of preliminary budget materials, a draft law “On federal budget next year” and submits it to the State Duma, where the draft is considered in four readings.

When developing the budget for the next year, a forecast of the socio-economic development of the country is used, a consolidated balance of financial resources is compiled and the main directions are determined budget policy. All this gives grounds to calculate the target figures for the next year. In Russian federation fiscal year starts January 1st and ends December 31st. When the draft budget is approved by the State Duma and the Federation Council, it is submitted to the President of the Russian Federation for signing and promulgation.

Control over the state and progress of the implementation of the state budget is carried out by the Chamber of Control and Accounts under the Parliament, which, theoretically, in its activities does not depend on either the Parliament or the Presidential Administration.

Today in Russia the mechanism of the state budget is aimed at financing the restructuring of the economy; building up modernization and scientific and technical potential; acceleration social development and social security of the population. Through spending and taxes, the state budget of the Russian Federation acts as an important tool for regulating and stimulating the economy and investment.

Many people are engaged in this or that accumulation. So, some people save their working days so that later they get a big health vacation, others collect things, and then they take everything that has accumulated safely to the country, and still others prefer to accumulate money. In the article, we will take a closer look at the last hobby, which is called the "accumulation of funds" in the literary language.

Concept definition

What is accumulation anyway? Translated from Latin, this word means "accumulation". In our case, we are talking about the financial side of the issue, and, therefore, the accumulation of funds implies the accumulation of one's own or externally attracted funds in order to benefit by providing these financial assets to a person in need at a certain percentage.

In simple words, the accumulation of funds is good way increase capital. From the outside, everything seems quite simple, but in our time there is a problem of uniting persons who own free funds in the required amount and people who need them.

The accumulation of funds is an important phenomenon in the economy of any state. Among the main functions that are performed by this process, the following should be indicated:

• Redistribution financial assets, support for businessmen and entrepreneurs. So, often representatives of medium and small businesses become borrowers of banks, as well as individual entrepreneurs. There are situations when initiative people great ideas arise and promising projects are developed, but there is no finance for their implementation in practice. Here, the accumulated funds come to the rescue, which are concentrated in one hand and can be directed to those people who know how to make money not just lie in the bank, but work.

• Saving valuable time looking for borrowed money. Instead of entering into loan agreements with several holders free funds, it is enough to refer to one.
• Making good profits. As you know, accumulation is beneficial both for those who accumulate money and for those who contribute their free funds and receive a previously agreed percentage for this. According to many financiers, assets should not be "dead" capital, but, on the contrary, always rotate in cash flows, since inflation manifests itself constantly and can cause the depreciation of "stale" cash in the chest of drawers.

Examples of accumulation of funds

Often, ordinary citizens and owners of small or medium-sized businesses have situations when a large amount is urgently needed, but there is none on their hands. In this case, a citizen can apply to several borrowers and collect the necessary amount of money (for example, to buy a home or a car). The citizen will have to continue to pay interest within the agreed time frame to each of the borrowers. This, of course, is inconvenient and takes a lot of time. And if one of the borrowers pooled their free funds and others' funds and borrowed them for a needy citizen, then this would already be an accumulation of citizens' funds. The Bank today in the financial world plays a leading role in terms of the concentration of their own and other people's money and their subsequent use. Therefore, most of the population now prefers to apply for a loan to a banking organization rather than to a private person.

Bank accumulation

AT modern society the brightest representative, which is characterized by the accumulation of funds, is credit and commercial structures, in particular, banks. It is they who are engaged in the fact that they concentrate the free money of the population with the aim of their further redistribution and profit.

Few people know, but earlier banks used exclusively their own free funds. However, over time, the popularity of these organizations has grown significantly, and they began to borrow money from citizens. Thus, various types of deposits appeared. Why do banks need such deposits? The accumulation of money is done in order to attract free financial resources of the population and their redistribution for a more significant percentage. The whole point is that a person takes his funds to the bank and borrows a certain amount for him at interest (the corresponding interest on the deposit). The bank, having received this money, lends it to needy people under another higher percentage, i.e. provides credit.

According to statistics, today banks have about 20 percent of their own funds in their arsenal, while borrowed funds account for 80%. This information confirms the fact that a banking organization is a kind of intermediary between persons who own free money and those who need it.

Methods of bank accumulation

One of the most common ways to attract free funds of the population and not commercial organizations are contributions. To attract as much as possible more money, banking structures use such forms of savings as: bonus, pension, youth, winning, etc. In some countries, in addition to the interest received from the deposit, the population is provided Additional services(free postal orders telegraph, trade services, etc.). For example, in the United States among term deposits first place is occupied savings deposits population.

Features of the activities of banks

Work banking organization on the accumulation of funds has a number of features:

• the bank directs the accumulated funds to solve other people's problems (needs);
• the accumulated funds by right of ownership still belong to the one who brought them to the bank;
• activities involving the accumulation and redistribution of funds must be confirmed on paper - a license;
• own free funds make up only a small part of the total capital of the bank;
• the accumulation of free cash is the most important function of a financial institution.

Pluses of accumulation

Consider what is good savings for citizens and the state as a whole. The accumulation of citizens' funds allows the holders of free money themselves to profit from them. In addition, accumulation helps to develop small and medium business replenish the state treasury, and at the same time raise the standard of living of the population. As for the replenishment of the state budget, not the last role is played by state banks, which act as guarantors of the preservation of deposits of citizens. Often people, choosing between private commercial organizations and state ones, opt for the latter, since the level of trust here is much higher. Commercial structures, in turn, attract the population with higher interest rates on deposits and lower - on loans.

The authorized body for the accumulation of funds from the contributions of the Forum participants and sponsorship is the state budgetary institution of the Republic of Sakha (Yakutia) "Center for Social and Psychological Support for the Family and Youth". The word accumulate is translated as accumulation, but we collect contributions from participants and deposit them into the settlement account of the institution, after which we spend according to contracts. In this case, what is the correct wording?

Answer

The concept of accumulation of funds is very multifaceted. Assumes the use of funds of free appointment to obtain additional profit. That is, if we take banking structures as an example and consider accumulation on the example of their work, then we can say that this is the process of using funds received on a deposit in order to provide loans at a certain percentage.

The accumulation procedure provokes a very significant number of benefits. Firstly, many people have cash on hand in a fairly large amount, which are cumulative. They are idle, and a bank deposit is a fairly profitable prospect. Since it provokes not only the safety of funds, but also the opportunity to receive an additional percentage. Among other things, it must be said that the bank can offer a lot of interesting programs, taking into account the increased interest.

The bank, in turn, in this case undertakes to pay interest. The funds received from deposits are free and can be used as the basis for subsequent lending. On the basis of loans, interest will be earned, which is subsequently paid on the deposit, the bank also forms Additional income for myself.

Potential borrowers, as a rule, representatives of small and medium-sized businesses through this process have the opportunity to receive funds from one hand, on fairly favorable terms, an acceptable amount. They have the opportunity to start a business today. They pay a certain, previously agreed percentage for the use of funds. Thus, a standard accumulation structure is formed.

Basic concepts of accumulation of funds

The process of accumulation of funds implies a kind of distribution of those funds that have been received and are free with the conditions for their use as credit funds at a certain percentage, which forms a stable profit.

Accumulation is a fairly important phenomenon that concerns the process of accumulating personal or borrowed funds in order to further provoke additional commercial benefits. Moreover, this option assumes that it is possible to provide funds to those in need under a clearly defined process.

1. A certain redistribution of financial format assets is being formed, which makes it possible to support entrepreneurs and businessmen. It should be noted right away that representatives of small and medium-sized businesses often become borrowers from banks. The point is that entrepreneurs often have unique ideas that can actually become the basis for making serious profits. But, there are no funds for the implementation of the set goals, it is for this reason that there is a need to obtain a loan. In this case, we are talking about the accumulated funds that were concentrated in the same hands, and were later provided to those persons who could use the funds to achieve their goals;
2. Making various loans for the required amount for the implementation of the project provokes an incredible number of problems and difficulties, it is for this reason that entrepreneurs who need free funds for the implementation of the project try to contact one holder of the accumulated funds in order to receive the required amount and subsequently implement the project to obtain the desired arrived;
3. In accordance with the established terms of the contract, the opportunity is provoked for the holder of the accumulated funds to provide the potential user with funds at a certain percentage.

It should be noted that the accumulation of funds is one of the main activities of commercial banks. Moreover, modern financiers point out exactly what this species activity is one of the most important. The essence of these operations is that the funds of depositors, which are concentrated in bank accounts and are considered “free”, begin to work and provoke income, if properly distributed. That is, the funds do not stay inside the bank, but turn into a kind of capital that can be invested in state economy, in the development of a certain business, as loans that are used to purchase real estate, start-ups, acquisitions valuable papers etc.

At the beginning of activity, modern commercial banks strove to use exclusively their own free funds. Gradually, lending, like deposits, becomes incredibly relevant, which in turn provokes the development of activities. The funds that appear in the bank as a result of deposits become the basis for the accumulation of someone else's capital.

Deposits or deposits are used by financial institutions as the basis for the competent distribution of funds, taking into account the possibility of saving and receiving a high interest. The bottom line is that the depositor provides the bank with funds only on clearly defined conditions, and at the same time an additional rate is formed. Accordingly, after a certain amount of time, the depositor will receive slightly more money than he transferred to the bank. The bank, in turn, provokes the issuance of funds in the form of loans at a certain rate, which has higher parameters than deposits. Accordingly, in this process everyone earns:

1. Contributor. He provides the bank with funds, for a clearly defined time they are used by the bank at its own discretion. A clear rate is set, which must be paid by the bank after a certain period. The investor receives a profit in the form of a percentage of this rate;
2. Bank. Receives funds from the contributor and makes them work. Loans of various formats are provided. Interest rate many times higher than the rate on deposits. Accordingly, the bank earns funds that will later be paid to the depositor, and also receives its own - quite a substantial income;
3. Borrower. Gets the opportunity to use the bank's funds to achieve their own goals. For example, an entrepreneur has the opportunity to open a business today and already start earning money. He easily pays the debt and interest and at the same time earns himself, forms a stable financial position of his company, etc.

At the moment, it is very important for commercial banks to correctly stimulate depositors in order to attract the maximum amount of attention and funds, to accumulate and receive significant profits. At the same time, a fairly flexible policy of the deposit format is provided. That is, in the case of deposits of a significant amount, a large rate is provided. It also provokes a guarantee on deposits, the maximum protection of the interests of depositors. Such a policy in the future allows banks to form a competent accumulation system, which provokes the possibility of issuing loans in a significant amount under sufficient high percent. At present financial institutions when issuing loans, more than 80% of the attracted funds are used.

Features of banking activities for the accumulation of funds

The specifics of banks' activities in the field of accumulation are quite simple. First of all, let's say that the banking structure carries out the procedure for redirecting funds accumulated by the bank in the form of deposits in favor of those who apply to the bank with certain needs financial plan. That is, we are talking about the fact that depositors form free funds, which are accumulated in the course of the bank's activities in issuing loans to borrowers. Among other things, the bank can also use such funds to purchase real estate, certain securities, invest in the development of its own commercial activities. It should also be noted that one of the main features of the use of free funds is that activities are carried out to finance state structures within the framework of signed agreements.

Banks can perform such actions related to the issue of accumulation of funds only if they have an official license to carry out their activities.

The main role of the accumulation process lies in the fact that the bank plays the role of a kind of intermediary in the financial distribution of funds. At the same time, through such activities, serious support is provoked for representatives of small and medium-sized businesses. The area of ​​lending is also actively developing. individuals. It also has a very importance in the development of the economy of the whole country. After all, serious purchases are provoked in various stores, stores deduct a percentage of the tax for the implementation of their activities. Accordingly, the accumulation of funds in the form of using free finance to issue loans is a very important element in the active development of the bank, the state, and society. Such a process makes it possible to concentrate a fairly significant amount of funds in one hand, since we are talking about the fact that multiple depositors trust the funds to the bank, and the bank already in the future manages the received capital.

The accumulation mechanism makes it possible to receive significant profits and develop the economy of the entire state as a whole. That is, modern financial organizations, in whose activities the accumulation of funds is very important, provoke the development of business, provide an opportunity to earn from the accumulated funds and actively contribute to the development of the country's economy.

As a result, we can say that the features of bank accumulation are as follows:

• Accumulation is the use of free funds that banks receive through deposits, as individual programs;
• Through the issuance of loans, free funds are multiplied, which provokes earnings for the bank and depositors, business development for small and medium-sized entrepreneurs;
• The procedure for obtaining loans is simplified, since the funds are collected in the same hands, that is, from banks.

An important point of bank accumulation

We have already understood the basic concept of accumulation, and understood that we are talking about the rational and competent management of the funds that the bank has at its disposal through the implementation of its core activities. Such accumulation programs are present in various commercial organizations, whose main activity provokes the use of funds of peculiar investors for investing in rational projects, for obtaining substantial profits. But still, a vivid manifestation of the accumulation of funds can be seen precisely in the work banking structures. It is for this reason that it is necessary to consider not only the features of accumulation, but also important points, and subsequently functions.

At the moment, banks accumulate funds by attracting depositors not only from among entrepreneurs, but also from among individuals, which provokes the formation of a fairly significant amount of “free funds”, which can subsequently be used to meet the needs of potential consumer borrowers.

Main nuances:

• The Bank carries out the process of directing accumulated funds on the basis of preliminary planning, taking into account the amount of "free funds" received. The activity is based on the acceptance of deposits, which provokes the formation of free funds, as well as on the issuance of loans, which provokes the activation of the mechanism for earning funds through money that is under “trusteeship” in the bank;
• The depositor remains the owner of the funds on the deposit. The Bank uses the funds at its own discretion within the framework of the signed agreement. At the end of the term of the agreement, the depositor does not independently collect funds from creditors, but simply receives his funds and interest. Reclaiming funds can be carried out before the expiration of the contract, but then the owner will have to pay a certain commission;
• The activity of banks, in principle, requires obtaining a specialized license. Not every company can carry out the process of accumulating and redistributing borrowed funds, since rather stringent requirements of the legislative format have been established, the violation of which entails a refusal to grant a license to carry out such activities. We can confidently say that in order to accumulate funds, banks need to obtain an appropriate license, after which they can accept deposits and distribute loans;
• Banks in the process of accumulating funds, as a rule, use the funds of depositors. According to statistics, the share of free funds of the bank itself in this process is very insignificant. Therefore, the accumulation process requires careful miscalculations, the development of specialized programs, the calculation of optimal rates that could attract clients on deposits and earn money from providing credit funds to clients;
• If we carefully consider the activities of modern banks, we can say with confidence that the process of accumulation is very important and leading.

Accumulation functions

1. Reallocation of funds and business support. It is this function that is actually very important, since many entrepreneurs and individuals have a certain, fairly large amount of money in their hands, which can later be used to generate new profits. However, there is no need or possibility to invest funds on your own to make a profit. In this situation, the most rational solution would be not to save money at home under the pillow, but to open a deposit. After opening a deposit, the bank accumulates such funds and redistributes them to loans, which provokes the opportunity for small entrepreneurs to receive funds for development on the basis of one or another credit program. Thus, it becomes obvious that this function is incredibly important for the development of small and medium-sized businesses. After all, it often happens that people have a well-defined business plan, a unique and promising idea, but do not have the means to implement it, which provokes a lack of development. When contacting a bank, you can get a loan, which in the future will become the basis for development;
2. Reducing costs in the search for borrowed funds. In principle, quite a lot of commercial organizations capable of providing consumer loans have appeared today, but not all of them are able to provide profitable terms for receiving loans. In other cases, if the loan is provided directly by the store itself, a significant paperwork is formed. By applying to the bank for a loan, the client has the opportunity to receive the required amount of funds within a minimum amount of time and without the need to invest funds. In this case, the interest rate will be quite favorable;
3. Making a profit from funds that are temporarily free. In fact, accumulation involves making a profit from the funds that are in the bank and are considered temporarily free. If deposits simply lie on the accounts, it will not be profitable for the bank to carry out such activities, since depositors will need to pay a percentage of the amount of funds on deposit. Through accumulation, the bank allows depositors to earn money and earns itself.

It becomes clear that accumulation is the main element of the competent distribution of funds, which provokes the further development of banks, commercial companies, small and medium-sized businesses, and allows investors to make a profit.

The importance of accumulation in the context of the development of small and medium-sized businesses

Highly important point accumulation is just that there is an opportunity to intensify the process of business development in general. After all, it is not always possible for novice entrepreneurs to find the means to activate their project on their own. Borrowing from friends, small commercial companies is extremely problematic, especially if the amount of funds needed is quite significant. It is no less problematic to find investors who would like to invest in a developing project. And the development of small and medium-sized businesses is very important in the development of the economy of the state as a whole. It is for this reason that there is a need to seek funds from large banks, which, in the process of accumulating free funds of depositors, can provide borrowers with fairly large amounts of loans under fairly favorable conditions.

In fact, it is safe to say that the process of accumulation is very important in the development of small and medium-sized businesses. The funds are concentrated in the hands of one bank (although we are talking about the funds of various companies and individuals), the registration process involves minimal time and effort. Conditions are considered reasonably affordable. Through such loans, the possibility of developing small and medium-sized businesses is provoked, which becomes the basis for filling the budget through the payment of taxes, and also forms the possibility of opening new jobs.

The process of accumulation of funds for banks is sufficient important element own development. Due to the ability to provide free funds on credit, earnings are provoked as a percentage of the amount issued. You can provide stable conditions for deposits, which attracts depositors. There are more free funds that are accumulated and can later be used as the basis for issuing a loan.