Economic analysis of the financial flows in banking sector and households of the region

Abstract

Purpose: the authors determine the key areas of financial interaction between the banking sector and households in the region. Likewise the writers highlight financial flows, define the prospects, problems and difficulties for the development of the interaction. Discussion: the authors consider the key areas of financial interaction between the banking sector and households as well as the financial flows. These financial flows are the accumulation of the temporary free funds of the population by commercial banks (savings flows) and household lending (credit flows). The coordination in interest of participants is the basis of this interaction. Results: The authors proved that the focus on savings of the population is one of the most promising segments for the banking sector in terms of scale, stability, funding and diversification of the funding base. The authors argued this thesis and showed the basic banking risks in the article. The authors think that the both households and the banking sector should be cautious about increasing debt at crediting of population. Likewise the writers indicated the main reasons that hinder development of consumer loan at present.