Banking. Central Bank: status, functions, main operations (the most important)

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Topic 31. Central Bank: status, functions, basic operations

The Central Bank occupies a special position among all legal entities engaged in management or economic activity. On the one hand, it is a public administration body, and on the other hand, it acts as a commercial enterprise that trades in money, although profit is not the goal of its activity.

Criminal Code of the Central Bank - federal property. The Central Bank has the right to dispose of the Criminal Code at its discretion. No state body has the right to dispose of the Criminal Code of the Central Bank.

The goals of the Central Bank:

1) protecting and ensuring the stability of the ruble, including ensuring the purchasing power of the ruble, establishing its objective exchange rate in relation to the currency;

2) development and strengthening of the banking system;

3) ensuring the effective and uninterrupted functioning of the payment system both within the country and with the outside world.

Based on these goals, one can

Functions of the Central Bank:

1) The Central Bank, together with the government, develops and implements monetary policy to protect and ensure the stability of the ruble;

2) has a monopoly on the issue of cash and its turnover;

3) is an organization that has the right of last resort in matters of lending;

4) establishes the rules for all payments in the Russian Federation;

5) registers all credit organizations and issues licenses to them;

6) registers securities emissions. all credit institutions;

7) in the field of foreign economic activity (FEA), organizes currency control, carries out currency regulation, using the instrument of currency purchase and sale;

8) organizes settlements with foreign countries;

9) takes part in the analysis and forecasting of the state of the economy, its balance of payments as a whole, and by region. This work is carried out once a year for a report in the State Duma.

Central Bank Management. In accordance with the law, the Central Bank is accountable to the State Duma.

The Central Bank is managed by the Board of Directors (Chairman, approved by the State Duma, and 12 members of the Board of Directors, elected by the State Duma on the proposal of the Chairman of the Central Bank and work for 4 years). The Board of Directors meets at least once a month. Its functions: - approval of the annual report; - consideration of the cost estimate of the Central Bank; - consideration of amendments to the Criminal Code; - determination of the procedure for admission of foreign capital to the banking system of the Russian Federation.

Under the Central Bank, the National Banking Council was created, consisting of representatives: the Ministry of Finance (1), the Ministry of Economy (1), the Chairmen of the Chambers of the Armed Forces (2), from the President (1), from the Government (1), experts (several).

Functions of the National Banking Council: *formation of the concept of development of the banking system of the Russian Federation; *consider projects and main directions of monetary and foreign exchange policy; *consider the most important issues of regulating the activities of all credit institutions in the country.

The Central Bank cannot participate in the capitals of newly established credit institutions, but may participate in the capitals and activities of international organizations. UK Central Bank = 3 billion rubles. The Central Bank is not entitled to give loans to finance the budget deficit and other needs of the government, as well as to buy state securities. at their initial release and placement on the stock market. The Central Bank and its institutions are exempt from paying all taxes, fees and customs duties. When organizing cash circulation, no official ratio between the ruble and gold is established.

The following are assigned to the Central Bank instruments:

- establishing interest rates on transactions carried out by him. These are the minimum rates at which the Central Bank carries out operations in order to influence the interest rate policy in the country and specifically the market interest rate.

- standards for required reserves deposited with the Central Bank, are set as a percentage of the obligations of credit institutions. Reserve requirements in accordance with the law must not exceed 20% of the liabilities of credit institutions and are differentiated by type of credit institutions and banks;

- open market operations - purchase and sale of state securities, the limit of such operations is set by the Board of Directors;

- refinancing of banks. The forms, procedure and conditions of refinancing are determined by the Central Bank at the time of such transactions;

- currency regulation - purchase and sale of currency on the market in order to influence the ruble exchange rate and influence the total demand and supply of money;

- setting benchmarks for the growth of the money supply carried out on the basis of calculations for monetary aggregates, which show the state of cash and non-cash funds involved in the circulation of goods and money;

▪ direct quantitative restrictions in monetary policy. Carrying out monetary policy, the Central Bank carries out the following operations:

▪ providing loans for a period of no more than 1 year, secured either by securities or other assets;

▪ purchase and sale of checks, promissory notes and bills of exchange in the form of commodity origin with a maturity of no more than 6 months.

▪ purchase and sale of bonds, certificates of deposit and other securities with a maturity of up to 1 year.

▪ issuance of guarantees and guarantees to other credit organizations, purchase and sale, storage of documents, currency; opening accounts in Russian and foreign credit institutions.

Authors: Shevchuk D.A., Shevchuk V.A.

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