Function of banks at capital market

Banks have an important role in the process of building up and functioning of capital markets. It is generally known that the capital market can not be developed without the increase of financial saving. Our country should make legal regulations which provide transparent, open, economical and efficient capital market. Passing stock market law and other financial instruments brought to important development in building up of capital market. Legal position of banks is regulated by a regulation of banks and other financial organizations from 1993. For better determination of place and function of banks at capital market, new law of banks is needed to be made. At capital market long-term stocks market is developing. Those are shares and long-term stocks. In comparable law there is division of banks on investment and commercial (deposits). In our law there is no division of that kind. In our country banks can carry out wide range of jobs which directly or indirectly affect offer and demand at capital market. Banks can be participants at primary and secondary capital market. At primary market, banks perform jobs that are connected with issuing and first sale and purchase of stocks. At secondary market, banks carry out broker and dealer jobs. Broker mediate in commerce with securities, buying and selling securities on behalf of himself, on the account of instructing party. Dealer buys and sells securities on behalf of his name and on his account in order to achieve price difference. If the bank could carry out broker - dealer jobs it has to get previous accord of Central Bank and permission of Securities and Exchange Commission for the stocks. Except those broker dealer jobs, banks at the capital market can act as market makers, portfolio managers, issuing sponsors, investment advisers. New legal regulative make good preconditions for successful development of capital market in our country.