RIGA TEACHER TRAINING AND EDUCATIONAL
MANAGEMENT
ACADEMY
PEDAGOGICAL AND EDUCATIONAL
MANAGEMENT FACULTY
3.E
DAINA PĒTERSONE
THE IMPORTANCE OF BANKING SYSTEM IN THE COUNTRY’S
ECONOMICAL LIFE
RIGA, APRIL 1999
BANKS
A
bank is a place , which is made for us
and our money.
Long time ago first banking system
started in the same time as buying and selling. Foreign travelers had to change
the money for buying things, and that is why in some countries started to enter
a foreign money and this money needed to be changed. People changed this money
in market places. History tells us that the first money changers were
Italians.To change money they used a table which stood in this market
place.There is a version that the word BANK was created from italian word BANCO whic means - a table.
If some person, in money changing process, was
caught in cheating, his table was broken
, this was a punishment for the cheating man and means a bancrupt.
In old times people traveled
arround with big amounts of gold, money and expencive jewelry.That was no safe,
because on roads there were many people who wanted to stole this gold and
money. Then people thought about ways how to protect their money from thiefs.
Jewellers realised that
there is a place where one can earn some money, and they started to take gold
in their safes to keep away from thiefs. To be sure about gold and its safety
the jewellers gave a bill of exchange. This document was able to work as a
money, too.
When this gold was much enough
in jewelers safes, they thought about lending money to people who were in
problems of money for the time and take a per cents for this service. By
passing the time and growing the amounts of money these money changing places
started to became someway like first banks.
Bank deals specially
developed in 14th century in some cities of Italy, Germany and Holland, but
later in the biggest market centers like Amsterdam Venice and Hamburg..
By developing market places 17. – 18.th century is time when in
many countries , specially in Britain , bank system started to develop. Banks
were lending not only metalic money, but they also gave credits to people and
make other operations.
There was necessarry to make
some institutions for controlling this developing system and there is the
begining of our bank system.
Nowdays in moden countries
are two levels of bank system. For both these levels are diferent functions and
working fields.
First level bank is Central
or emission bank.That is the center of all banks and is called the bank of
banks.
Second level banks are many
kind of credit institutions, see scheme:
BANK SYSTEM STRUCTURE
FIRST LEVEL BANK –
CENTRAL ( EMISSION ) BANK
Second level banks
Commercial Savings Savings – and Special
banks
banks -
loans banks banks
Other credit institutions Investment bank
Finance companies
Mortgage bang
Stockbroking
firms and Agriculture
bank
investment
trusts
Foreign
trade banks
Social insurance
and
pension funds
Pawnshops
Credit
corporations
BANK SYSTEM IN LATVIA
Latvia
also have a two level bank system – central bank and other banks.The Bank of
Latvia fulfills two most important things – realising the money politics in state
and looking after national currency stability as well as looks after other
banks and credit institutions.
Some
years after independence retrieving The Bank of Latvia worked as a commercial bank, too, but by the
time everything was staying in its right place. It was working very good until
bank crisis, when many comercial banks bankrupted. The most known bank which
bankrupted was “Banka Baltija” and this bankrupt was the reason why people
stopped to believe in bank system in Latvia at all.
The Bank of Latvia started to look after banks
much more stronger to end theese things.This way gave the rezults and for quite
a long time our bank system was stable.In the end of 1997.were 32 banks there
in Latvia . All theese banks were offering all most common operations and using in their work more and more modern information sistems and
technics, but right now there is a problem with “Rīgas komercbanka” , no clear
information yet, but I think that there will be once more “Banka Baltija”.
SOME HINTS OF
HISTORY ABOUT
THE BANK
OF LATVIA
The
Bank of Latvia was founded on September 7 ,1922
and was authorized to make a national currency emmission. In the same
autumn The Bank of Latvia emited a provisional 10 Ls bank – note with 500 rubles print.
The
first head of The Bank of Latvia was a minister of finance Ringolds Kalnings.
After three years Jūlijs Celms was nominated in his place, but in 1931 - Ādolfs Klīve who lead this bank till
ocupation in 1940.
On
March 25, 1941 the Latvian currency “lats” was anulled without any warning.
Only
on September 3, 1991 The Bank of Latvia was reorganised – founded again and now
the head of The Bank of Latvia is Einārs
Repše. He made things to happen and on March , 1993. Latvia’s currency was
“Lats” again.
All the
information is now in a very big and rich with ilustrations book “Nauda
Latvijā” (money in Latvia), which is issued by The Bank of Latvia.
BANKAS BILDE
This building was built in the begining
of 20 century and now is adapted for
modern bank work.
BANK WORKERS
The
quality of new bank workers are in hand
of teachers. Bank workers are quite important persons, for example, because in
their hands are so big amount of money. This is very big responsibility and the
bank workers must be smart and clever, their education and skills of high level. In schools, academies and
universities should be subjects like theese:
1.
book – keeping;
2.
micro economics;
3.
macro economics;
4.
taxes, rates;
5. juridical questions of entrepreneurial
activities;
6.
securities;
7.
documentation;
8.
currency operations;
9.
budget;
10.
marketing;
11.
statistics.
In
every educational institution which is preparing bank workers should be
included theese subjects and also many others, for example psychology, because
work in bank is always with people. Not always theese persons are nice and
polite, especially when things are going bad. Also I will tell you some special
qualities which are very useful to have and know when you want to get a job in
a bank:
- You must sell the bank products, make client to believe you whatever
you are saying;
- You must look very nice and smart;
- You must be communicative (you must make contacts with people);
- You must be polite , the client is always right;
- You must be logic and analytic thinking;
- You must be competent about everything is happenning inside and
outside bank;
- You must be sure about things what you can and what you cannot;
- You must be regular, accurate and smily;
- You must be honest and a bit ambitious;
- You must always say the true, but you also must keep the job secrets
at you and don’t tell them to anyone;
- You must be able to understand the clients needs and help him to find
the right thing to do.
So
after all this information I realise that a
work in a bank is very interesting thing and I would like once to work in some institution like that, but every
educational institution is taking on her very big responsibility. Good luck
them and I hope that they will develop good workers, who will raise our
economy.
Literature:
Bikse V. Nauda un bankas – R.: Valsts administrācijas skola, 1994.
Bikse V. Tirgus ekonomikas pamati /1.daļa. – R.: Valsts administrācijas
skola, 1996.
Bikse V. Tirgus ekonomikas pamati /2.daļa. – R.: Valsts administrācijas
skola, 1996.
Lecture notes and expirience of head of
branch of Bank “Land”
BANK SYSTEM STRUCTURE
FIRST LEVEL BANK –
CENTRAL ( EMISSION ) BANK
Second level banks
Commercial Savings Savings – and Special
banks
banks -
loans banks banks
Other credit institutions Investment bank
Finance companies
Mortgage bang
Stockbroking
firms and Agriculture
bank
investment
trusts
Social
insurance and
Foreign trade banks
pension funds
Pawnshops
Credit
corporations
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