SCIENTIFIC polemic On the TRANSNATIONAL BANK CAPITAL FUNCTIONAL filling

  • Aleksandr Momot
Keywords: banking capital, transnational banking capital, the functions of bank capital, the levels of bank capital formation, the functions of bank capital at the micro, macro and transnational levels

Abstract

The article critically analyzes the set of various kinds of approach to functional definition and characteristics of bank capital functions taking into account the specificity of its transnationality. The advantages and disadvantages of the existing kinds of approach are proved. Summarizing the results of the critical analysis of the views of scientists on the list of functions of bank capital, it was found that most domestic and foreign scientists distinguished the traditional triad of functions of bank capital: the protective, the operational and the regulatory functions. It is suggested to reveal the functional purpose of the bank capital depending on the level of its formation. At the microlevel (the level of a separate bank), the functioning of capital is aimed at ensuring the operational activity of the bank, realizing the interests of the bank's owners, creating reserves for unpredictable losses. Accordingly, at this level, the capital performsthe following  functions: the operational, the cost growth, the reserve. At the macrolevel (the level of the banking system of a particular state), the functioning of the bank capital is an integral part of the processes of circulation of financial resources in the economy, which is due to the accumulation by banks of temporarily free funds of depositors and their focus on lending to the economy. In addition, at the macrolevel, the problem of securing the banking system from the negative consequences of implementing systemic risks through the financing of the Deposit Guarantee Fund, maintaining the financial stability of the banking system is actualized. All this determines the importance of the capital acting the turnover, the guarantee and the regulatory functions. At the transnational (international) level investment-innovative, speculative and migration functions of transnational bank capital are emerging. This level is characterized by the processes of transnational migration of capital - the movement of capital between states in the form of its export, import, as well as processes of its operation outside the country of the base of a transnational bank. Capital migration is an objectively existing economic process in which monetary resources are shifted between the states, enabling their owners to receive an additional income in the destination country.

Published
2018-03-06