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ВестникВГУИТ/Proceedings of VSUET, Т. 81, № 2, 2019 _
Экономика и управление Economics and Management
Краткое сообщение/Short message_
УДК 339
DOI: http://doi.org/1Q.2Q914/2310-12Q2-2Q19-2-28Q-284_
Научные исследования по совершенствованию коммерческих _банков и применению инноваций_
_Айвазлы Айхан Низами 1 ayvazli45@gmail.com_
1 Национальная Академия Наук Азербайджана Институт востоковедения имени академика Зии Буниятова, пр. Г. Джавида,
115, г. Баку, AZ1073, Азербайджанская Республика Аннотация. Глобальные изменения, происходящие в мире, привели к значительным инновационным изменениям в финансовых учреждениях, одном из основных механизмов информационной экономики, и оказали значительное влияние на быстрое развитие банковского сектора и специализацию современных требований. Надлежащее регулирование рыночных отношений всегда было частным и государственным сектором. Сегодня исследуются процессы глобализации и проблемы, возникающие в результате деятельности, осуществляемой в банковском секторе. Устранение проблем в банковском секторе и дальнейшее развитие и совершенствование сектора услуг всегда будут оставаться актуальными. Чтобы применить новые банковские продукты, необходимо подготовить стратегию и политику, основанные на информации и материалах маркетингового обслуживания банка. Стратегия и политика банка должны быть сформулированы конкретно в плане подготовки, поставки и продажи банковских продуктов. Каждый банк должен принять решение о модификации банковского продукта на основе маркетинговых исследований и разработать долгосрочный бизнес-план по внедрению новых банковских услуг. Высокий уровень динамики производственных отношений, особое внимание к формированию товарно-рыночных отношений обусловливают необходимость разработки четкой тактики и стратегии современной денежно-кредитной политики и управления банковским бизнесом. Современный анализ и мониторинг показывает, что институциональные экономические проблемы, возникающие в результате денежно-кредитной политики, могут быть решены посредством уровня кредитных инвестиций, концентрации банковского капитала, средней процентной ставки по кредитам и депозитам, возможности привлечения ресурсов и многих других факторов. В контексте новых экономических отношений в разработке сценария поведения банков следует использовать моделирование, математические, статистические методы и мнение экспертов. Ключевые слова: банковский сектор, коммерческие банки, экономические реформы, экономическое развитие, промышленное пред-
Scientific research on the improvement of commercial banks and _application of innovations_
_Ayvazli Ayxan Nizami 1 ayvazli45@gmail.com_
1 Institute of Oriental Studies named after Academican Ziya Bunyadov, H. Javid av., 115, Baku,, AZ1Q73, Azerbaijan Republic Abstract. It should be borne in mind that the global changes taking place in the world have led to significant innovation changes in financial institutions, one of the main mechanisms in the information economy, and have had a significant impact on the rapid development of the banking sector and the specialization of modern requirements. Proper regulation of market relations has always been a private and public sector. In particular, the study of the globalization processes and the problems that arise as a result of the activities carried out in the banking sector are on the agenda. The elimination of problems in the banking sector and further development and improvement of the service sector will always remain relevant. The new requirements for economic conditions to adapt to the requirements of the modern era come in parallel, respectively. To apply new banking products, strategy and policy based on the bank's marketing service information and materials should be prepared. Bank's strategy and policy should be formulated specifically in the plan for preparation, supply and sale of banking products. Each bank should make decisions on modification of the banking product based on marketing research and develop a long-term business plan for the introduction of new banking services. High level of production relations dynamics, special attention to the formation of commodity-market relations, necessitates the development of a clear tactic and strategy for modern monetary and credit policy and banking business management. Modern analysis and monitoring indicate that the institutional economic problems arising from monetary policy can be resolved either through the level of credit investments, concentration of bank capital, the average interest rate on loans and deposits, the ability to attract resources or many other factors. In the context of new economic relations, modeling based on mathematical statistical methods, and expert opinions should be used in the development of the scenario of banks behavior.
Keywords: bank sector, commercial banks, economic reforms, economical development, industrial enterprise, strategy, industry, bank, damages, information
Introduction
Considering the regulation of market relations on classical theory, it is the aggregate offer generated by the market economy's aggregate demand, which, according to personalities such as Adam Smith, Francois Chen, a prominent figure
Для цитирования
Айвазлы А.Н. Научные исследования по совершенствованию коммерческих банков и применению инноваций // Вестник ВГУИТ. 2Q19. Т. 81. № 2. С. 28Q-284. doi:1Q.2Q914/231Q-12Q2-2Q19-2-28Q-284
28Q
in the classical economic theory shaping ideas in this field. Formation of Banks in the Historical Period contains many factors in the background of the financial institution, the change in aggregate demand leads to the volume of production and the employment of the population towards the further
For citation
Ayvazli A.N. Scientific research on the improvement of commercial banks and application of innovations. Vestnik VGUIT [Proceedings of VSUET]. 2019. vol. 81. no. 2. pp. 280-284. (in Russian). doi: 10.20914/2310-1202-2019-2-280-284
BecmHUKjBry^T/Proceedings of VSUET, T.
development and upgrading of the sector. The institutionalists who believe that the complexity of all the conditions and factors (social, psychological, legal, political) that have been shaped and influenced in this field are considered to be important, that the state regulation of governance has a greater advantage over market mechanisms. To address these issues, they stated the solution of social problems. They preferred the processes in the field of employment provision over the level of wage distribution. They were often regarded as the result of structural imbalances in the problems of unemployment. D. Kelbreit's distribution of resources indicated that market relations were not universal and ideal. K. Murdal, one of the main creators of the institutional theory and Nobel Prize winner, was very attentive to this aspect of the planning idea. The planning area has also been rated as a decisive factor in developing countries as well as in developing countries. The earnings and achievements of these countries, especially the economies of Asian countries, are assessed as the result of successful state planning. K. Murdoch thought that even though most people would improve their standard of living, this unplanned growth should not be regarded as progress. K. Murdoch considers that the development should result in increase in overall living and living standards to meet the basic needs of all members of society. K. Murdoch was awarded with Nobel Prize in 1974 for his book "Analyzing the relationships between economic, social and institutional relationships". Research and international experience directly show that the economy that is based on its hopes and the "invisible hands" principle is inflated, although it is a regular one. This still fading economy cannot stand out individually from this situation, according to C. Kane's theory. C. Kane thinks that there is no internal mechanism regulated by the general market in order to fully comply with aggregate demand and aggregate supply. The economy can only be removed from the state by the state. Decrease in consumer spending causes a decrease in investment interests of private companies, firms and banks. C. Kane counted that, in the absence of this incentive, the aggregate demand should be compensated and the economic equilibrium in employment would only be possible by increasing government spending. The aggregate demand theory states that investments are more volatile in nature, and the state must allocate a significant amount of money for its own costs and should play a major role in this aspect. The first bank activity has been between money-changing merchants who offer people to keep their money in deposit. Subsequently, this area improved, causing usury. By paying a certain fee, they used the temple and the monks' money.
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These money was offered to merchants then. In the middle Ages there were such organizations in many Italian cities, and later in the Netherlands and German trade centers. The Bank has an Italian origin meaning "Banco", meaning a table or desk. Looking at classic banking, this area has originated from the XVII century, mainly for the first time in Europe in the UK. The goal was to finance the commercial-industrial bourgeoisie and to engage in basic activities such as lending to meet money needs. The improvement of the credit system has subsequently been integrated into Western Europe and the development of capitalism has made this area even more attractive. During this period, the banking system has become the center of money investing in the form of entrepreneurship, the banks have grown in number and their services have expanded. From that point on, banks began issuing banknotes (which were called bank notes) in form of credits. At the end of the XVII century, parallel to the emergence of banks, stock companies began to emerge as a bank. From the beginning of the 19th century, banks began to have a leading influence on the country's economy and have a special position in the monetary sphere. Commercial banks began to develop in the XIX century. The banks mainly dealt with the transactions that occurred during trading and commodity exchanges and their payments. The main clients of commercial banks were merchants.
Discussion
Now let's provide a detailed explanation of the functionality of the credit system: Formation and evolution of banks as economic entities parallel to the development of money functions. Historically, banks' cash management activities were primarily reflected in the provision of money-sharing services and the provision of a second-tier service. The development and deepening of the exchange functions of banks encourage the creation of new types of activities. So, valuation services are offered and this is the basis for future deposit transactions. In general, the formation of this type of activity was historically and economically natural. Because savings, jewelers, and other economic entities, along with maintaining their valuables, also earned the opportunity to provide such services to others. Undoubtedly, deposit services in the initial stages were rather primitive. This was primarily explained by the fact that the depositors were paid for services. Because the main purpose of the person who trusted his bank was to keep his money. The increased interest of the Bank's customers to deposit services was explained by the fact that the composition of the metal money in circulation was unmatched.
Money is an integral theoretical that keeps an active position on the economy and regulates
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the economy as a means of credit. If we examine monetarism in essence, we will find an alternative to Keynesianism. Monetarists believe that the current guarantee of employment and economic stability was seen in the method of money and credit. Here currency market regulating currency relations, as a single system with self-regulatory functions corresponding to the existing system, has been the most restrictive of the state's role and the general propaganda of this idea. Nobel laureate American economist Milton Friedman, who has been considered by monetarists as the leader believes that the risks of continued growth of the free currency should be properly evaluated.
The Bank's activities distinguish three types of assets transformation: quantity, quality and time. The essence of the quantitative transformation is that the volume characteristics of the services rendered by banks should be consistent with the requirements of the customers. The classic example of this is the relatively small deposits put by individual depositors into large sums for lending serious investment projects. Quality transformation is, above all, a reduction in asset risk characteristics. While emitting or placing their specific commitments, the bank will provide more substantial reliability compared to the funds invested directly in any investment project. This is primarily explained by the ability to diversify the asset portfolio through the concentration of monetary resources. Secondly, banks are able to control the actions of borrowers at the expense of having access to information resources. As an example of time transformation of assets, it is possible for banks to accept deposits from depositors on the one hand and, on the other hand, to extend loans to borrowers for longer periods.
The problem of time transformation is closely related to the low liquidity of long-term assets and the risk that there will be no deposit payments. This risk can be partially reduced by short-term inter-bank loans.
Risk management is one of the key aspects of each bank's operations. Different approaches exist to risk classification. From the point of economic approach, risks are divided into microeconomic and macroeconomic risks. Microeconomic risks are those risks that are eliminated or restricted by the application of diversification strategies. Otherwise risks are related to macroeconomic risks. According to another classification, there is a risk of bank liquidity, credit risk, and interest rate risk and off-balance sheet transactions. Undoubtedly, risks of different nature are still covered by the banks since their establishment. The special stage in the evolution of banking business coincides with the mid-nineteenth century. Just in this period a number
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of European countries (especially France and Belgium) were transitioning from the risk of non-acceptance of risks to active crediting of industrial and commercial enterprises.
One of the fundamental operational challenges of any firm is their liquidity risk. The ultimate risk of this risk is characterized by the fact that the economic entity's liabilities exceed its assets and are called a lack of ability to pay. One of the traditional measures in managing liquidity risk is the formation of reserves. (Current liquidity ratio is set at 30 % according to prudential norms of the Central Bank of Azerbaijan) Banks are exposed to credit risk regularly in their operations.
By selling or buying operative assets, the bank insures its risks either at its discretion or by attaching additional risks to it. In recent years, risk management technology and methods have become one of the major tasks in banking.
Worldwide economic development is not just economic and scientific-technical progress, but the lifestyle and living standards of people. The main important role for economic growth is in the domestic and foreign policy of the state. Economic growth can be activated if separately carried out in a timely manner in line with the requirements of each organization and society in general. Banking sectors have been exposed to economic crises on global processes globally, which have resulted in many severe strokes. As a result, these impacts trace globally on many areas of the economy.
It is necessary to create a long-term resource base for the real sector of the economy for more active cooperation of commercial banks, price of obligation of commercial Banks formed to protect deposits (of residents and non-residents).
Banks and financial intermediaries attract deposits from the population, raising interest rates helps for effectively change the growth of income of residents and non-residents.
Despite the rapid growth of banks in recent years, they still need innovative achievements in our country.
In the field of modern science, the essence of banking product concepts and banking services is also discussed. For example, we can discuss the opinion of the Kazakh scientist and researcher A. Shamiembekovna. According to her, there are deposits, currency exchange, as well as the operations of loans, deposits, currency exchange and other transactions among the services provided by the banks between a bank and a client or loans from other banks. Bank product is a specific banking transaction that is issued by banks for customers. These are checks, bills of exchange, deposits, bank certificates, bank cards, etc. that are linked.
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There are similarities between banking services and banking products. The goal is to make a profit to satisfy the needs of bank customers. For example, deposits are product of a bank, and permanent payment of its interest is already a banking service. Both situations serve the needs of customers and generate income. Opening an account in a bank is considered a product, but conducting operations on accounts is already a banking service. Both products and services are intended to be earned by banks in the form of commissions. The service and product was created with the aim to bring the bank revenue. It should be noted that in many cases the banking product was the first, and the banking service was of a secondary nature. Given the above, it can be said that banking services are considered a risky area of activity.
I think that if we compare "banking products" & "banking services" we will get a broader understanding.
An audit committee is established to assist banks in carrying out audit and supervision activities. The inspection committee should consist of at least two members. Members of the Audit Committee are selected from members of the Board of Directors who do not have an executive role.
In Banks everyone have jobs. Employees perform activities related to their duties. Since banking supervision is also a very important issue, it is important for some individuals to be interested in this subject. This position was assigned to the Audit Committee consisting of board members (administrators). The Audit Committee is responsible for the management and is responsible for all its activities on behalf of the Board of Directors. Risks can be caused by a number of factors, such as staff shortages, misunderstandings or mistakes made by employees, or inappropriate management of management decisions
One of the most important tasks of the company's governing body is to prevent the company from making mistakes and violations. A system is being set up and inspections are made to prevent errors and errors in companies and correct errors.
A system is created and checks are conducted to prevent mistakes in companies and correct errors. The built-in system is called the internal control system.
Worldwide economic development is not just economic and scientific-technical progress, but the lifestyle and living standards of people. The main impact of economic growth is the domestic and foreign policy of the state.
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Economic growth can be activated if it is carried out individually in a timely manner in accordance with the requirements of each organization and society as a whole. The banking sector underwent global economic crises on a global scale, which led to the emergence of many serious stages of these impacts and had an impact on the global scale in many areas of the economy.
Improvement of the banking sector in our country is one of the most rapidly changing areas of the reforms in the national economy.
Commercial banks have expanded their service areas in accordance with specific requirements and have been reworked to a competitive advantage in the market of modern banking products. Reforms carried out by the state are primarily intended for the development of the private sector, in the field of free entrepreneurial activity.
Increasing incomes and living standards of the population has increased the level of service and level of activity of commercial banks.
In practice, the use of improved practices in developed countries provides the basis for practical and prudential reforms in this area compared to transnational banks.
The international experience has made a great contribution to the formation of modern banking in our country. We must admit that improving the banking services in the economic sector is one of the most important factors affecting the level of development of the state's economic potential. Bank Services and products offerings to customers are governed by instructions in accordance with domestic law. The organization of the Bank's activity is formed according to corporate standards.
Conclusion
The analysis shows that the development of commercial banks is the fundamental foundation of financial markets that are crucial for the country's financial reform.
The main goal of the states are full coordination of the legislative framework of the banking systems with international standards and increasing the role of banking services in the economy. The state's economic security policy is aimed at strengthening the protection of depositors and creditors of commercial banks and ensuring the stable and safe functioning of the banking system as a whole. From this point of view, the Law on Banks fully defines the activities of banks. The basis for establishing the principles of business organization, internal management norms, prudential regulation and liquidation of activities has been established in banks.
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ЛИТЕРАТУРА
1 Андрианова Л. Понятие и содержание кредитной политики коммерческого банка // Предпринимательство. 2008. № 6. С. 146-150.
2 ABD Mortgage Krizi. Qali^ma Tebligi. 2008. 118 p.
3 Matthieu B., Koeniger W., Fratzscher M. Currency mismatch, uncertainty and debt structure. 2004. 43 p.
4 Kibritfioglu, A. Monitoring Banking Sector Fragility // The Arab Bank Review. 2003. V. 5. № 2. P. 51-66.
5 Kaminsky G.L., Reinhart C.M. The twin crises: The causes of banking and balance of payments problems // The American Economic Review. 1999. V. 89. № 3. P. 473-500.
6 Financial Stability Report 2007. Zurich: Swiss National Bank. URL: https://www.snb.ch/n/mmr/reference/ stabrep_2007/source/stabrep_2007.n.pdf
7 Financial Stability Report 2007. URL: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/M ain+Menu/Publications/Reports/Financial+Stability+Report
8 Mishkin F.S. The Economics of Money, Banking, and Financial Markets. A. Wesley, 2002.
9 Steiner S.S. Money and Banking. New York: Henry Holt and Co.
10 Timberlake R.H. Banking and Central Banking. NewYork: Harper Row Publishers, 1965.
СВЕДЕНИЯ ОБ АВТОРАХ Айвазлы Айхан Низами к.э.н., отдел востока и запада, стран Центральной Азии, Национальная Академия Наук Азербайджана Институт востоковедения имени академика Зии Буниятова, пр. Г. Джавида, 115, г. Баку, AZ1073, Азербайджанская Республика, ayvazli45@gmail.com
КРИТЕРИЙ АВТОРСТВА
Айвазлы Айхан Низами написал рукопись, корректировал её до подачи в редакцию и несёт ответственность за плагиат
КОНФЛИКТ ИНТЕРЕСОВ
Автор заявляет об отсутствии конфликта интересов.
ПОСТУПИЛА 11.04.2019 ПРИНЯТА В ПЕЧАТЬ 15.05.2019
REFERENCES
1 Andrianova L. The concept and content of the credit policy of a commercial bank. Entrepreneurship. 2008. no. 6. pp. 146-150. (in Russian).
2 ABD Mortgage Knzi. Qal^rna Tebligi. 2008. 118 p. (in Turkish)
3 Matthieu B., Koeniger W., Fratzscher M. Currency mismatch, uncertainty and debt structure. 2004. 43 p.
4 Kibritfioglu, A. Monitoring Banking Sector Fragility. The Arab Bank Review. 2003. vol. 5. no. 2. pp. 51-66.
5 Kaminsky G.L., Reinhart C.M. The twin crises: The causes of banking and balance of payments problems. The American Economic Review. 1999. vol. 89. no. 3. pp. 473-500.
6 Financial Stability Report 2007. Zurich: Swiss National Bank. Available at: https://www.snb.ch/n/mmr/ reference/stabrep_2007/source/stabrep_2007.n.pdf
7 Financial Stability Report 2007. Available at: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/M ain+Menu/Publications/Reports/Financial+Stability+Report
8 Mishkin F.S. The Economics of Money, Banking, and Financial Markets. A. Wesley, 2002.
9 Steiner S.S. Money and Banking. New York, Henry Holt and Co.
10 Timberlake R.H. Banking and Central Banking. NewYork, Harper Row Publishers, 1965.
INFORMATION ABOUT AUTHORS
Ayvazli Ayxan Nizami Cand. Sci. (Econ.), department of East and West, Central Asia, Institute of Oriental Studies named after Academican Ziya Bunyadov, H. Javid av., 115, Baku,, AZ1073, Azerbaijan Republic, ayvazli45@gmail.com
CONTRIBUTION
Ayvazli Ayxan Nizami wrote the manuscript, correct it before filing in editing and is responsible for plagiarism CONFLICT OF INTEREST
The author declares no conflict of interest.
RECEIVED 4.11.2019 ACCEPTED 5.15.2019
