Origin, essence and functions of the credit organization

The history of banking business formation and evolution has multi-century duration. Occurrence of bank operations has been caused by development of commodity-money relations and necessity for financial intermediary between all its participants. In the course of evolution banks from exchange offices performed elementary exchange operations, have turned to the modern universal credit companies offering wide range of bank products and services, using the most innovative technologies of bank servicing. But their essence and functions have not changed eventually and banks still belong to the small group of economic entities called financial intermediaries since they are intermediaries in payments and settlements, redistribution of capitals.

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