Uliya Rysanova

The article discusses the regulation of credit relations by the government, changes in the discount rate of the Central Bank, as well as the level of operations in the open market and the variation in the norms of mandatory reserves for commercial banks in the country. Open market operations include the purchase and sale of certain types of securities by the Central Bank. There is a formation of a market interest rate on borrowed funds in the credit market. The decisions of creditors are directly proportional to the change in interest rates in the credit market. The very demand for a credit is already in inverse proportion to interest rates. Banks and the government can carry out regulation of interest rates. Financial institutions face various types of banking risks in their operations, which differ by various factors. Thus, the effectiveness of risk management is largely dependent on their classification. Risks in banking may lead to a loss of liquidity and lower profits, and therefore banks tend to anticipate risks and try to reduce them.