ABSTRACT
The organisational structure is relatively simple and normally comprises one huge bank which performs both commercial and central-banking functions such as the Gosbank in Russia, a network of savings banks serving the needs of individuals and a group of specialised credit institutions. Credit needs with respect to their relevance to economic growth and stability may be roughly classified as follows: Commercial bank financing of loans for security trading and speculation such as occurred under the Enterprises Promotion Decree 1972 falls under the first category. In view of the unreliable sources of effective control it is doubtful whether commercial banks in a sound financial system should be encouraged to grant such credits unless their long-term liabilities in the form of capital and reserve funds, and savings accounts, are clearly adequate to offset sudden losses.
