Regional banks in the system of government regulation of economy

Abstract

The article analyses activities of regional bank which is interpreted as the commercial organization which functions as a part of the banking system under the control of the central bank and takes part in the system of monetary regulation of regional economy. Special attention is paid to the mechanism of interaction and interconnection of regional bank with participants of two-level banking system which is presented by horizontal connections and relations with the other elements of the banking system and market entities in the whole, as well as by vertical connections with the central bank presented by management of banking regulation and supervisory control. Influence of macroeconomic factors on condition of the banking system is shown.