Central banks and basics of their activities. The concept and form of independence of the Central Bank
The main link of the banking system of any state is the Central Bank of the country. In various states, such banks are called differently: folk, state, emission, reserve, federal reserve system (USA), Bank of England, Bank of Japan, Bank Italy, etc.
Central banks have arisen as commercial banks endowed with the right of emissions and banknotes. Despite the fact that Stockholm Bank was the first bank in the first bank (in 1650, he issued deposit certificates for gold coins, which were discharged on the bearer and were applied to other types of money throughout the Kingdom of Sweden), the first emission bank was considered to be created In 1694, the Bank of England, since he began to produce banknotes and take into account commercial bills. Subsequently, besides the emission of banknotes, the role of the treasurer of the state, an intermediary between the state and commercial banks, the conductor of the state monetary policy, was entitled. Being commercial, central banks were nationalized, and at present the capital of central banks is completely or partially owned by the state.
The creation of a central emission bank was due to the processes of concentration and centralization of capital, the transition to unified national monetary systems.
In all developed countries, there are several laws in which the tasks and functions of the Central Bank are formulated and enshrined, and the tools and methods of their implementation are defined. In some states, the main task of the Central Bank is set out in the Constitution. As a rule, the Law on the Central Bank of the country is the main legal act regulating the activities of the National Bank; It establishes the organizational and legal status of the latter, the procedure for appointing or election of its leading composition, the status in relations with the state and the national banking system. This law establishes the powers of the Central Bank as the issuing center of the country.
Along with the law on the central bank of interaction between the Central Bank and the banking system, the Bank's Law is governed. Such a law defines the basic rights and obligations of credit institutions with respect to the Central Bank.
Central banks of developed countries are classified according to the degree of independence in solving monetary policy issues through various objective and subjective factors.
Subjective factors include the established relationship between the Central Bank of the country and the government, taking into account the informal contacts of the leaders.
Among the many objective factors for assessing the independence of central banks can be distinguished by five of the most important:
State participation in the capital of the Central Bank and in the distribution of profits;
Appointment procedure (selection) of the Bank's management;
The degree of reflection in the legislation of the goals and objectives of the Central Bank;
State rights to interference in monetary policy;
Rules governing the possibility of direct and indirect financing of government spending by the Central Bank of the country.
Central banks are a regulatory link in the banking system, therefore their activities are related to the strengthening of monetary circulation, protecting and ensuring the sustainability of the national monetary unit and its course in relation to foreign currencies, the development and strengthening of the country's banking system, ensuring the effective and uninterrupted settlement.
Traditionally, there are five main tasks before the central bank. Central Bank is designed to:
Em session center of the country, i.e. use the monopoly law on the issue of banknotes;
Bank of banks, i.e. Make operations not with trade and industrial clients, but mainly with banks of this country: to store their cash reserves, the size of which is established by law, provide them with loans (Last Instance Lender), exercise supervision, supporting the necessary level of standardization and professionalism in the national credit system;
Government banker, for this he must support government economic programs and place state securities; provide loans and perform settlement operations for the government, to store (official) gold-currency reserves;
The main settlement center of the country, speaking an intermediary between other banks of the country in the implementation of non-cash settlements based on the competition and obligations (clearing);
Authority regulating the economy monetary methods. In a number of countries, these tasks of central banks are enshrined by law. Thus, the monopoly on the issuance of the national monetary unit allows the central bank to keep the liquidity of credit institutions under control.
When solving five tasks, the Central Bank performs three main functions: regulating, controlling and informational research.
The regulatory function includes the control of the money supply in circulation. This is achieved by reducing or expanding cash and cashless emissions and discount policies, minimum reserves, open market policies, and currency policies.
Control function is closely related to the control function. The Central Bank receives extensive information on the status of a bank when conducting, for example, minimum reserve or rediscontinating policies. The controlling function includes determining compliance with the requirements for the qualitative composition of the banking system, i.e. The procedure for admitting credit institutions to the National Banking Market. In addition, this includes the development of a set of economic coefficients necessary for credit institutions and norms and controls.
All central banks have an informational research function, i.e. The function of the research, information and statistical center. At the same time in many countries this function is noted in law. Thus, the German Federal Bank is obliged to give recommendations if necessary to the Federal Government, as well as provide it with information on the development of the credit system.
The activities of the Central Bank of Russia are regulated by the Federal Law of 27.06.2002 No. 86-FZ "On the Central Bank of the Russian Federation (Bank of Russia)"
The central bank of the Russian Federation prescribed the following functions:
In cooperation with the Government of the Russian Federation, develop and conduct a unified state monetary policy aimed at protecting and ensuring the sustainability of the ruble;
Monopolo to emission cash and organize their appeal;
Be a lender of the last instance for credit institutions, organize a refinancing system;
Establish rules for making calculations in the Russian Federation;
Establish the rules for holding banking operations, accounting and reporting for the banking system;
Conduct state registration of credit institutions, issue and report licenses of credit organizations engaged in their audit;
Supervising credit institutions;
Register the issuance of securities of credit institutions in accordance with federal laws;
Perform independently or on behalf of the Government of the Russian Federation, all types of banking operations necessary to solve the main tasks of the Bank of Russia;
Regulate the passage of currency, including operations for buying and selling foreign currency; determine the procedure for calculations with foreign states;
Organize and produce currency control both directly and through authorized banks in accordance with the legislation of the Russian Federation;
Take part in the development of the forecast of the balance of payments of the Russian Federation and to organize the preparation of the balance of payments of the Russian Federation;
In order to implement the listed functions, analyze and predict the state of the economy of the Russian Federation as a whole and by regions, primarily monetary, foreign currency and price relations; publish relevant materials and statistical data;
Carry out other functions in accordance with federal laws.
The Central Bank is an emission bank performing regulatory functions in a market economy. Obtaining profit is not the purpose of its activity, that is, this is not a commercial bank. The basics of its activities: include: maintaining the resistance of the course and solvency of the national monetary unit within the country and in world markets, strengthening the banking system, ensuring the uninterrupted functioning of the country's payment turnover. The Central Bank of the Russian Federation has a monopoly end of cash issuance and organizes money circulation, it is a bodies of banking regulation and supervision, currency regulation and control authority, participates in development and implements state monetary policy.
Regulation of the activities of commercial banks by the Bank of Russia is carried out both direct, administrative and indirect, economic methods. The first is the licensing of banking, the establishment of regulatory standards, limits and quotas, the rules of banking operations, forms and reporting terms. The second can be attributed methods that regulate the demand and supply of funds in the financial market: the establishment of the official accounting rate of the Central Bank, the norms of compulsory reservation, refinancing commercial banks, the operation of the Bank of Russia in the open market. Students must be well focused on the diversity of applied regulatory methods and understand the mechanism of their impact on the activities of commercial banks.
More on the topic Theme 13. Central banks of their functions and the basis of activity:
- 10.1. Organizational and legal forms and structure of commercial banks
- 1.2. Principles of activity and functions of a commercial bank
- Topic 3.3. Central banks, their functions and the basis of activity.
- § 1. Problems of the legal status of the Bank of Russia as a branch of banking regulation and supervision
- § 2. The specifics of the management system in the state regulation of banking activities. Types of state regulation of banking activities.
- § 3. The activities of Russian courts in the field of juvenile justice
- Copyright - Advocacy - Administrative Right - Administrative Process - Antimonopoly-Competitive Law - Arbitration (Economic) Process - Audit - Banking System - Banking Law - Business - Accounting - Treatment Law - Public Law and Management - Civil Law and Process - Money Appeal, Finance and Credit - Money - Diplomatic and Consular Law - Agreement Law - Housing Law - Land Law - Election Law - Investment Law - Information Law -
The main link of the banking system of any state is the Central Bank of the country. In various states, these banks are called differently: state, folk, emission, reserve. Central banks arose as commercial banks endowed with the right emission of banknotes.
At the end of the XIX - early XX century. In most countries, the issue of all banknotes focused in one emission bank, which became known as the central emission, and then simply a central bank. In the title, the role of the bank in the credit system of any country is reflected: the Central Bank becomes the center of the banking system. The creation of a central emission bank was due to the processes of concentration and centralization of capital, the transition to unified national monetary systems. The primary duty of the central bank in a market economy is to protect the purchasing power of national currency and help the normal functioning of financial markets.
The property of the central bank is most often state. Exercising its activities at the macro level, it reflects the national interest, is not a policy of politics not in the interests of this or that region, a group of sectors of the economy or enterprises, but in the interests of the state as a whole. At the same time, the Central Bank does not make its task to make a profit.
The Central Bank is accountable directly to parliament or formed by the latest Special Banking Commission. The managing Central Bank is not included in the government, and its appointment does not coincide in terms of the formation of a new cabinet. The appointment can be made by the monarch, president, parliament, but the government based on the parliamentary majority can usually hold their candidacy (often it officially proposes). The top management of the Central Bank may not be limited in position (in Denmark, Finland, Norway) or scheduled for a long time, for example, for 7 years - in Ireland, Australia, Canada, the Netherlands, for 8 years - in Germany.
The degree of independence of the Central Bank is due to its tasks which in any country is usually defined as maintenance of monetary and currency stability in order to ensure anti-inflationary economic growth. The government is concerned about the short-term and medium-term goals, the approach of the next elections, and this may conflict with the long-term interests of the whole state. A relatively independent Central Bank in such a situation should act as a kind of counterweight.
On the other hand, the independence of the Central Bank has objective limits, as fundamental contradictions with the government could be reduced to the effectiveness of the recent economic policy. Therefore, there is a tendency to strengthen the influence of the government in the face, above all, the Minister of Finance. In many countries, the highest powers of the government and the Ministry of Finance towards the Central Bank are enshrined.
At the same time, central banks have the official right to stateing their own opinions, have a number of advantages, and the right of direct orders by the Ministry of Finance is extremely rare. Whatever functions are entitled to the Central Bank, it is always a regulatory body combining the features of the Bank and the State Office.
Of principled importance is the restriction of the possibility of government to use the funds of the Central Bank. In many countries, direct lending of the government is practically absent (in the USA, Canada, Japan, Great Britain, Sweden, Switzerland) or legislatively limited (in Germany, France, the Netherlands).
Traditionally, the central bank performs four main functions: it carries out the banknotes monopolool, is the bank bank, the government banker, conducts monetary regulation and bank supervision.
Methods monetary policies of the central bank are diverse. The most widely used:
- - a change in interest rates by which the central 5ank provides loans to commercial banks (official accounting rates, refinancing rates, pawnbold);
- - change the norms of mandatory reserves of banks;
- - operations on the open market, i.e., operations on the sale and sale of government bonds, bills and other securities;
- - Currency intervention policy, i.e. buying and selling foreign currency.
These methods of monetary regulation can be called common since they affect the operations of all commercial banks and on the market of loan capital as a whole.
In addition, it can also be used selective (selective) methods aimed at regulating individual forms of loan (for example, consumer) or lending to various industries (housing, export trade). Selective methods include:
- - Direct limit of bank loans for individual banks or loans (the so-called "credit ceilings");
- - Regulation of the conditions for issuing specific types of loans, in particular the establishment of margin, i.e. the difference between the amount of the provision and the size of the loan issued, the difference between bets on deposits and loans rates.
The Central Bank performs the functions of the main regulatory body of the country's payment system. It organizes interbank settlements, coordinates and regulates the organization of settlement (including clearing) systems, serves as the settlement center of the banking system.
The main directions of supervision and control of the Central Bank over commercial include: issuing licenses for banking activities, to conduct certain types of operations (currency, with securities, with precious metals); verification and analysis of financial statements provided by banks, field revisions; Establishing systems of economic standards, control over their observance.
The Central Bank is a monetary control body, a conductor of state currency policy. It determines the exchange rate of the national currency and regulates its regulation, conducts operations to manage official gold reserves, regulates international settlements, payment balance, controls the currency movement both within the country and abroad, takes part in the development of the forecast and organizes the preparation of the balance of payments. The Central Bank participates in the preparation of international agreements on relevant issues, cooperates with central banks of other countries, as well as with international and regional monetary and credit institutions, is a country in these organizations.
All functions of the central bank are interconnected. Lending commercial banks, it at the same time creates credit guns of circulation; By issuing and repaying government liabilities, affects the level of loan interest. This determines the special position that the central bank is occupied in the banking system, and creates objective prerequisites for the implementation of the most important function - the functions of monetary regulation.
Status, objectives, functions, powers and principles of the organization and activities of the Central Bank of the Russian Federation are legally determined by the Constitution of the Russian Federation, the Law on the Central Bank and other federal laws.
According to the Constitution of the Russian Federation, the main task of the Bank of Russia is to protect and ensure the sustainability of the ruble.
In accordance with Art. 3 of the Law on Central Bank the main objectives of the Bank of Russia are:
- - protection and ensuring the sustainability of the ruble;
- - development and strengthening of the banking system of the Russian Federation;
- - ensuring the effective and uninterrupted functioning of the payment system.
The implementation of these goals is carried out by the Bank of Russia, regardless of state authorities (Art. 75 of the Constitution of the Russian Federation, Art. 5 of the Law on the Central Bank). Profit profit is not included in the goal of the Bank of Russia.
The principle of independence is the key element of the status of the Central Bank of the Russian Federation - is primarily manifested in the fact that the Bank of Russia is not included in the structure of federal state bodies and acts as a special institution that has the exceptional law of monetary emission and the organization of money circulation. The independence of the status of the Bank of Russia is reflected in Art. 1, 2 and 5 of the Law on the Central Bank. The Bank of Russia is a legal entity and acts as a subject of public law. The authorized capital and other property of the Bank of Russia are federal property. Powers to hold, use and dispose of the property of the Bank of Russia are carried out by the Bank of Russia themselves; Withdrawal and encumbrances of the obligations of the Bank of Russia without its consent are not allowed. The financial independence of the Central Bank of the Russian Federation is also expressed in the fact that it exercises its expenses at the expense of its own income and is not registered in the tax authorities.
The state is not responsible for the obligations of the Bank of Russia, the GAK, as well as the Bank of Russia, on the obligations of the state, if they did not assume such obligations. In accordance with Art. 5 of the Law on the Central Bank federal state authorities, the state authorities of the constituent entities of the Russian Federation and local governments do not have the right to interfere with the activities of the Bank of Russia. In cases of such intervention, the Bank of Russia informs about this State Duma of the Russian Federation and the President of the Russian Federation. In addition, the Bank of Russia has the right to defend its status and authority in court.
The Bank of Russia is accountable to the State Duma of the Russian Federation, which appoints and relieves the chairman of the Bank of Russia (on the submission of the President of the Russian Federation) and members of the Board of Directors of the Bank of Russia, and also appoints the Bank of Russia's auditor and approves the annual report of the Central Bank of the Russian Federation and the audit conclusion.
The Central Bank of the Russian Federation is a single centralized system with a vertical control structure. The system includes: central apparatus, territorial institutions, settlement and cash centers, computing centers, field agencies and educational institutions, storage facilities, as well as other enterprises, institutions and organizations, including the security divisions necessary for the successful activities of the Bank.
National banks of the republics that are part of the Russian Federation are territorial agencies of the Bank of Russia. They do not have the status of a legal entity and do not have the right to make decisions that are regulated, as well as issuance of guarantees and guarantees, bills and other obligations without permission of the Board of Directors of the Bank of Russia. The tasks and functions of the territorial institutions of the Bank of Russia are determined by the Regulations on these institutions approved by the Board of Directors.
The highest body of the Bank of Russia is the Board of Directors. This is a collegial body that determines the main activities of the Bank of Russia and the manager of it. The Board of Directors includes the chairman of the Bank of Russia and 12 members of the Council, which are approved by the State Duma of the Russian Federation on the submission of the Bank's Chairman. He is at the same time chairman of the Board of Directors.
The Board of Directors organizes the work of the Bank of Russia and regulates the activities of the country's commercial banks. He approves the structure and states of the central office of the Bank of Russia, as well as the charters of its structural divisions.
The authority of the Board of Directors includes a change in rates on centralized loans, reserving norms, economic standards; determining the conditions for admission of foreign capital in the banking system of the Russian Federation; Other decisions on issues that are of great importance both for the Bank of Russia and for the banking system and the economy of the country as a whole.
Along with the Board of Directors, the National Banking Council is functioning. It includes representatives of the Presidential Administration of the Russian Federation, representatives of the highest bodies of legislative and executive bodies and experts. The total number of the board does not exceed 15 people. Council members are approved by the State Duma of the Russian Federation on the submission of the Chairman of the Bank of Russia.
The Council regularly, at least once a quarter, discusses the concept of the development of the banking system and issues of a single state credit and monetary policy, including regulation of monetary resources. The recommendations of the Council are taken into account when considering in the Federal Assembly of the Russian Federation legislative acts on banking issues, and the Gacz is taken into account when preparing decisions of the Board of Directors of the Bank of Russia.
The monetary circulation is governed by the Central Bank in the process of implementing monetary policy expressed in credit expansion or credit restriction.
The credit expansion of the Central Bank of the Russian Federation increases the resources of commercial banks, which, issuing loans, increase the total mass of money in circulation. Credit restriction entails limiting the possibilities of commercial banks for issuing loans and thus on the saturation of the economy with money.
The tools of credit expansion or restriction are the accounting rate of the Central Bank of the Russian Federation and some non-economic measures. The official accounting rate (refinancing rate) is interest on loans used by the central 5 bank of the Russian Federation when lending to commercial banks.
Determination of the size of the accounting rate is one of the most important aspects of monetary policy, and the change in the accounting rate acts as an indicator of changes in monetary regulation. The size of the accounting rate usually depends on the level of expected inflation and at the same time has a great influence on inflation. When the Central Bank of the Russian Federation intends to mitigate a monetary policy or tighten it, it reduces or increases an accounting (percentage) rate.
During 1991-1997 The accounting rate was repeatedly revised in the range from 10 to 200% per annum, depending on the economic situation in the country.
Commercial banks are obtained in the Central Bank of the Russian Federation loans in refinancing and overcame of bills. The Bank of Russia regulates the total amount of loans issued by them in accordance with the adopted landmarks of a single state monetary policy, using an accounting rate as a tool. From January 21, 2000, the accounting rate was 45%. For the period from 2000 to 2011, it decreased more than 20 times, and since May 2011 it is 8.25%.
Raising official rates reduces the possibilities of commercial banks to receive resources for lending. This affects the reduction of money supply. The decline in the official account is valid in the opposite direction.
The Bank of the Russian Federation may establish one or more interest rates on various types of operations or carry out interest policy without fixing the interest rate. Interest rates of the Central Bank of the Russian Federation are minimal rates by which it performs its operations. The Central Bank of the Russian Federation uses interest policy to influence market interest rates in order to strengthen the ruble.
The main functions of the Bank of Russia are enshrined by law on the Central Bank (Art. 4). Bank of Russia:
- - in cooperation with the Government of the Russian Federation develops and conducts a unified state monetary policy;
- - monopolisy carries out cash and organizes cash circulation;
- - is the lender of the last instance for credit institutions, organizes the system of their financing;
- - establishes the rules for the implementation of settlements in the Russian Federation;
- - establishes the rules for holding banking operations;
- - carries out the maintenance of budget accounts of all levels of the budget system of the Russian Federation and state social extrabudgetary funds;
- - performs effective management of gold and reserves of the Bank of Russia;
- - decides on state registration of credit institutions, issues licenses to credit organizations to carry out banking activities, suspends their action and recalls them;
- - supervises the activities of credit institutions;
- - registers issuing securities with credit institutions in accordance with federal laws;
- - all types of banking operations required to fulfill the functions of the Bank of Russia or on behalf of the Government of the Russian Federation;
- - organizes and implements currency regulation and currency control in accordance with the legislation of the Russian Federation;
- - determines the procedure for making calculations with international organizations, foreign states, and gakzhe with legal entities and individuals;
- - sets the accounting rules for the banking system of the Russian Federation;
- - establishes and publishes official courses of foreign currencies in relation to the ruble;
- - participates in the development of the forecast of the balance of payments of the Russian Federation and organizes the preparation of the balance of payments of the Russian Federation;
- - establishes the procedure and conditions for the implementation of currency exchanges for the organization of conducting operations for the purchase and sale of foreign currency, sells, suspension and feedback from permits to currency exchanges to the organization of operations for buying and selling foreign currency;
- - analyzes and predicting the state of the economy of the Russian Federation as a whole and by regions, primarily monetary, currency and financial and price relations; Publishes relevant materials and statistical data, and also performs other functions in accordance with federal laws.
In order to successfully implement monetary policy, the Central Bank of the Russian Federation uses the following tools and methods:
1. Standards of mandatory reserves deposited in the Bank of Russia. Mandatory reserves (reserve requirements) are the most liquid assets that are required to have credit institutions, as a rule, either in the form of cash at the bank office, or in the form of deposits in the Central Bank of the Russian Federation, or in other highly liquid forms defined by the Central Bank of the Russian Federation.
The standing standards of reserve requirements is a percentage of the amount of minimum reserves to the absolute (volume) or relative (increment) of passive operations (deposits) or active operations (credit investments). The use of standards may have both the total nature of the impact - the establishment of the entire amount of obligations or loans and the selective one to their particular part.
2. Operations on the open market.
In carrying out these operations, the Central Bank of the Russian Federation not only implements the directions of its credit and monetary policy, but also promotes commercial banks in maintaining their liquidity at the necessary level, that is, the ability to fulfill their obligations to customers in a timely manner - both legal and individuals.
Under the operations on the open market, it is refers to the purchase and sale of the Central Bank of Treasury bills, state securities, bonds of the Bank of Russia. The issuer of state securities is the Government of the Russian Federation represented by the Ministry of Finance of Russia.
The Central Bank of the Russian Federation serves as a chief dealer and agent for servicing public debt. Operations with securities are carried out more than 50 official dealers, which are commercial banks.
3. Refinancing of credit institutions.
Under the refinancing of banks it is understood by the provision of credit banks by the Central Bank to commercial banks. Forms, order and conditions of refinancing are established by the Bank of Russia. Refinancing can be carried out by providing a lombard loan, credit secured bills and other types of credit.
central bank- The main state bank of the first level, the chief emission, the monetary institute of any country, regardless of whether it is customary to call state, people's or national.
Central banks occupy a special place, fulfilling the role of the main coordinating and regulatory body of the Credit system of the country, act as government agencies of economic management.
Based on this, central banks perform the following main functions:
· Monopoldly carry out the emission of banknotes;
· Are bank banks; supervising bank activity;
· Government banker;
· Conduct monetary regulation;
· Exercise of calculations.
The emission function of the central bank is the oldest and one of the most important functions. For central banks as a state representative of the state, an emission monopoly is sent only to banknotes, that is, nationwide credit money, which are a generally accepted final means of repaying debt obligations. The monopoly on the issuance of the national monetary unit allows the central bank to keep the liquidity of credit institutions under control.
The main clientele of the Central Bank are commercial banks, acting as if intermediaries between the economy and the central bank. The Central Bank keeps free cash and commercial banks, that is, their cash reserves. Historically, these reserves were placed by commercial banks in the Central Bank as a warranty fund for the repayment of deposits.
The Central Bank supervises supporting the necessary level of standardization and professionalism in the national credit system.
As the Government Bank, the Central Bank must support government economic programs and place state securities, provide loans and perform settlement operations for the government.
On behalf of the government, the Central Bank regulates foreign currency and gold reserves and the traditional custoders of state gold and foreign exchange reserves. He regulates international payments, balance sheets, participates in the operations of the global market of loan capital and gold. The central bank, as a rule, presents its country in international and regional monetary and credit organizations.
All functions of the central bank are closely interrelated. Loaning State and Banks, the Central Bank at the same time creates credit guns of appeal, exercising the release and repayment of government obligations, affects the level of loan interest.
The named features of the central bank can be reduced to the following basic functions: regulating, controlling and informational research.
The regulatory function refers:regulation of the money supply in circulation. This is achieved by reducing or expanding cash and cashless emissions and discount policies, minimum reserves, open market policies, and currency policies.
Controlling function Closely related to regulating. The Central Bank receives extensive information on the status of a bank when conducting, for example, minimum reserve or rediscontinating policies. The control function includes certain requirements for the qualitative composition of the banking system, that is, the procedure for admitting credit institutions to the national banking market. This also includes the development of the set of necessary economic coefficients necessary for credit institutions, norms and control over them.
All central banks are inherent informational research functionthat is, the function of the research, information and statistical center. In many countries, this function is noted in law.
The Central Bank carries out its functions through banking operations - passive and active.
Passive are called operationswith which bank resources are formed, active - Operations for posting banking resources.
Passive operations:
· Emission;
· Storage of cash reserves of credit institutions;
· Storage of official gold reserves of the country;
· Mandatory reserves of commercial banks;
· Management of state bodies and budget accounts;
· Accounts in settlements;
· Accounts of foreign banks;
· Capital and reserves of the bank.
Active operations:
· Purchase of precious metals and foreign currency;
· Funds in accounts, deposits of foreign banks;
· Cash cash;
· Issuance of loans to commercial banks;
· Credits to the government;
· Buying government securities;
· State financing;
· Bank funds.
Central banks and basics of their activities. - Concept and species. Classification and features of the category "Central banks and basics of their activities." 2017, 2018.
Each state operates the Central Bank of the state monetary regulation of the economy, entitled to the right of monopoly emissions of banknotes, regulation of monetary circulation, control over the activities of credit institutions, storage of official gold and foreign exchange reserves.
In different countries, the Central Bank may be called differently: state, national, folk, etc. In some countries, such banks are accountable directly to the Parliament or the country formed by the legislature of the country with a special banking commission.
This body should be independent, speaking sometimes with a certain counterweight government actions, but the independence of the Central Bank should have its objective limits, since the deepening of fundamental contradictions with the management system of society may make it difficult to manage the country.
In Western literature, contradictions around the activities of the Central Bank received the name of the magic quadrangle. As angles, they are: economic growth, the problem of employment, the cost of money and the balance of the balance of payments of the country.
The Central Bank is usually legally independent and should not be completely subordinate to the state, although their activities partially affects the interests of the state itself and the industries. The independence of the Central Bank is of fundamental importance due to the need to distinguish between public finance and banking resources, i.e. Restricting the rights of governments on the use of funds of these banks. To implement its functions, the Central Bank use a wide range of economic instruments with which monetary policy is carried out.
The main provisions on the organization of the monetary system of modern Russia are formulated in the Constitution of the Russian Federation. The legislation of the Russian Federation provides that the Central Bank of the Russian Federation is a legal entity, a subject of federal ownership with a special status. This is an economically independent institution that exists on its own income. The Bank of Russia is not responsible for the obligations of the state, as well as the state is not responsible for the obligations of the bank. The Central Bank of the Russian Federation performs the following functions:
1. Develops and conducts a unified state and monetary policy.
2. Regulates money circulation.
3. It is a monopolist in cash emissions.
4. Organizes credit relations.
5. The Central Bank of the Russian Federation is the settlement center of the country.
6. The Central Bank of the Russian Federation is the monetary regulatory authority.
7. The Central Bank of the Russian Federation establishes the rules of accounting and order, the procedure for conducting operations for all banks and credit institutions. It licensing the activities of banks, credit institutions and auditing organizations engaged in the Bank's audit registers issues of securities of banks and credit institutions, leads the register of securities issued by them.
The Bank of Russia uses the following tools and methods:
1. Defining interest rates on operations performed.
2. Establishing reserve requirements for deposit funds of credit institutions.
3. Conduct operations on the open market.
4. Refinancing banks and the provision of loans.
5. Implementation of foreign exchange investments.
6. Establishment of price guidelines.
7. Introduction of credit constraints.
The Central Bank of the Russian Federation may establish one or more official interest rates, taking into account the characteristics of various types of operations or carry out interest policies without fixing the official interest rate.
The refinancing system is lending to banks of Russia and other credit institutions on time and within the limits isolated by the limit.
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HUMANITIES UNIVERSITY
Topic: Central Banks and Basics of their activities
Thing: Money, credit, banks.
Yekaterinburg
Introduction
Conclusion
Introduction
The Central Bank is the main state bank of the first level, the chief emission, the monetary institute of any country, regardless of whether it is called state, people or national. Central Bank Accounting
Central banks occupy a special place, fulfilling the role of the main coordinating and regulatory body of the entire credit system of the country, act as government agencies of economic management.
Central banks are a regulatory link in the banking system, so their activities are related to the strengthening of cash circulation, sewn and ensuring the sustainability of the national monetary unit and its course in relation to foreign currencies: the development and strengthening of the banking system of the country: ensuring the effective and uninterrupted settlement.
Traditionally, there are five main tasks before the central bank. Central Bank is designed to:
* Emisy center of the country, i.e. use the monopoly law on the issue of banknotes;
* Bank of banks, i.e. Make operations not with trade and industrial clients, but mainly with banks of this country: to store their cash reserves, the size of which is established by law, provide them with loans (Last Instance Lender), exercise supervision, supporting the necessary level of standardization and professionalism in the national credit system;
* Government banker, for this he must support government economic programs and place state securities; provide loans and perform settlement operations for the government, to store (official) gold-currency reserves;
* The main settlement center of the country, speaking a mediator between other banks of the country in carrying out non-cash settlements based on the standings of mutual requirements and obligations (clearing);
* body regulatory authority monetary methods.
An important role in the functioning of the country's banking system plays the nature of supervision by the Central Bank.
When solving five tasks, the Central Bank performs three main functions: regulating, controlling and informational research.
The effective functioning of the banking system is a necessary condition for the development of market relations, which objectively defines the key role of the Central Bank in regulating banking. The search for effective forms and methods of monetary regulation of the economy implies the study and generalization of the experience gained in this area of \u200b\u200bcountries with market economies. The monetary policy carried out in these countries is one of the components of the economic policy and allows you to combine macroeconomic impact with rapidly adjusting regulatory activities, providing them with operational and flexible support.
1. Essence and function of central banks
1.1 Essence of Central Banks
In the early stages of the development of capitalism, a clear distinction between the central (emission) and commercial banks was absent. Central banks in their modern form exist relatively recently. Commercial banks actively resorted to the release of banknotes for capital accumulation. As the credit system is developing, the process of centralizing banking emissions in a few large commercial banks. The result of this process was consolidated by one bank of the monopoly right to issue banknotes. Initially, such a bank was called emission or national, and in the future - the central, which corresponded to its dominant position in the loan system.
The first central bank - Swedish Rixbank - was created in 1668, at the turn of the transition from feudalism to capitalism; In 1694, the Bank of England was established, but they did not have an exceptional right to emission of monetary signs and their functions differed from the functions of modern central banks - for example, the Bank of England initially had to finance trade and industry, and the Bank of the Netherlands - internal and foreign trade. Central banks in their modern form arose in the XIX century. Currently, in almost all countries of the world there are central banks, however, there are significant differences between them, due to the peculiarities of the political and financial and economic development of the countries of the basing.
Central banks are legal entities who have a special status, the distinguishing sign of which is the separation of the Bank's property from the property of the state. Although formally, this property is, as a rule, in state ownership, the Central Bank is entitled to manage them as the owner. This Central Bank differs from the State Bank whose property is fully controlled by the state.
The legal status of the central banks of developed countries was enshrined in legal acts: laws on the central banks and their charters, laws on banking and credit activities, in currency legislation. As a rule, the main legal act regulating the activities of the Central Bank is the Law on the Central Bank, which determines its organizational and legal status, function, the procedure for the appointment of top management, relationship with the state and the National Banking System. This law establishes the powers of the Central Bank as the issuing institution of the country.
The Central Bank combines certain features of a commercial banking institution and the state department, which has some powerful powers in the field of regulating the credit system.
The Central Bank is usually created in the form of a joint stock company. As a rule, its capital belongs to the state (France, United Kingdom, Germany, the Netherlands and Spain). If the state owns only a part of the capital (Belgium, Japan) or the shareholders of the Central Bank are commercial banks (for example, in the US) and other financial institutions (Italy), the state, however, plays a leading role in the formation of the management bodies of the Central Bank.
the Central Bank acts as an agent of the Ministry of Finance and the conductor of its monetary policy;
the Central Bank is independent of the government, which provides him with independence in conducting monetary policy without pressure from government bodies.
However, in reality, these models do not act in pure form. In most countries, an intermediate model is functioning, within which the principles of interaction between executive authorities with the Central Bank are used at a certain extent of its independence.
In the legislation, only 5 countries - the United States, Germany, Switzerland, Sweden and Holland - the direct submission of central banks by parliaments is envisaged. In most states, central banks are accountable to the Treasury or Ministry of Finance.
In the UK, France, Italy, Japan and some other developed countries, the Ministry of Finance are authorized to give instructions to central banks, but in practice such cases are quite rare. As a rule, the consensus is achieved at the government meetings, unions of entrepreneurs and bankers and is reflected in the signing of representatives of the Ministry of Finance and the Central Bank of joint statements.
With the disagreements of the Ministry of Finance and Central Bank, only the administrative path of their permission is possible in the form of a government resolution or government decision. In countries in which central banks are directly subordinated to parliaments, with the help of legislative procedures, it is possible to make decisions that bind executive bodies to assist central banks in achieving one or another goal of monetary policy.
The legislation of a number of countries provides the reporting of central banks to parliaments. Thus, the Federal Reserve System of the United States (Fed) represents the US Congress Report on its activities 2 times a year, and central banks of Germany and Japan send reports to the parliaments of their countries annually.
1.2 Independence of central banks from executive
The implementation of the main goal of its activities legally entrusted to the central bank is to ensure the price stability - assumes the presence of a certain extent of its independence from the executive. Moreover, the independence of the central bank from the government implies its two forms: political and economic.
Political independence - This is the autonomy (independence) of the Central Bank when establishing target targets of the money supply;
Economic independence - Independence of the Central Bank in choosing monetary policy tools.
The conditions for the political independence of the Central Bank are to determine the procedure for appointing members of its governing body or manager (president), the approval of the decision taken by the Bank by the Government and (or) Parliament. Economic independence is expressed in the fact that the Central Bank is not obliged to automatically issue money to the government to finance government spending and provide him with preference in providing loans. In addition, the nature of the monitoring of the credit system carried out by the Central Bank is important for the economic independence of the Central Bank: the use of administrative (direct) non-market control methods, involving government intervention in decision-making by the Bank, infringes the autonomy of the latter. Of course, in practice it is very difficult to determine the degree of political independence of this Central Bank. However, with the help of some objective indicators of independence, such as, for example, the presence of formal organizational links between the Central Bank and the Government (rules obliging the Central Bank to support fiscal policy), you can try to do this. The results of one of the studies of the degree of independence of central banks using these indicators indicate the presence of a strong relationship between the political independence of the central bank and the low level of inflation.
The results of studies of this kind suggest that the independence of the Central Bank as a whole is determined by the following factors:
Independence from government agencies. This condition is mandatory. If the Central Bank is obliged to implement the instructions of government bodies, he will not be able to maintain price stability, because it will be pressure from the government;
Personal independence of members of the management bodies of the Central Bank. The independence of the management bodies of the Central Bank will be ensured if they are appointed for a sufficiently long term. In case of reappointment, it is dangerous to reduce their degree of personal independence;
Legal status of the bank, which is determined, in particular, the possibilities of making changes to the Charter (Law) of the Central Bank. The more difficult it is to make changes to the charter, the more reliable the independence of the Central Bank is ensured.
An important factor determining the capabilities of the Central Bank to maintain the price stability is the current relationship with government authorities. Regular contacts between representatives of the Central Bank and state authorities increase the degree of confidence in the last to the actions of the central bank and contribute to the achievement of the main goal - ensuring the price stability. Thus, the fulfillment of this task can be promoted by the periodically submitted to the Parliament reporting of the Central Bank on its activities.
The degree of independence of the Central Bank from the executive branch in different countries is notionic. The Central Bank of Germany Bundesbank, whose independence is provided for the greatest independence in the monetary policy, whose independence is provided for in the Bundesbank Law (1957). In implementing the tasks that standing in front of him, Bundesbank is obliged to maintain the government's economic policy, but does not depend on its instructions. Bundesbank is obliged to act as a government adviser on the most important issues of monetary policy and provide him with the necessary information. At the same time, government members have the right to participate in the work of the Central Council of Bundesbank - its collective governing body. They do not have the right to vote, however, may offer questions to discuss on the Council and make suggestions; At their request, the Council's decision may be postponed for 2 weeks. President Bundesbank, if necessary, can be summoned to meetings of the federal government.
When making decisions on monetary policy issues, Bundesbank has complete autonomy, which is possible until his actions come against the directions of the government's credit and financial policy.
A fairly high degree of independence from the executive power is the US FRC - its decisions are not subject to ratification by the president or government structures. At the same time, the Fed is responsible to the US Congress for the monetary policy. All appointments to the Board of Governors of the Fed, including the appointments of the Chairman and the Vice-Chairman from among the members of the Council, are carried out by the President with the consent of the Senate. Taking into account this, as well as taking into account the coordination of the Fed and the Government of the policy, this system can be characterized as "independent within the government".
One of the least independent central banks is the Bank of England. The relationship between it and the state is governed by the Law on the Bank of England (1946), on the basis of which the bank became state. In accordance with this law, the Treasury has the right to significantly influence the activities of the Bank of England. In the field of monetary policy, the Bank of England is endowed with a consultative function. The task of the governing body of the Bank of England is increasing coordination of issues of monetary policy with the Ministry of Finance (Treasury), the head of which is formally responsible for making decisions in this area and account for Parliament. Thus, the Bank of England is under the control of the Treasury, which is authorized to give the Central Bank to recommendations after preliminary consultation with it. This is the originality of the relationship between the Treasury and the Central Bank.
Like the Bank of England, the Bank of Italy feels a fairly greater dependence on the government when conducting monetary policy. Administratively, he is subordinate to the Treasury and must follow the recommendations of the loans and savings created by the last interministerial committee. The Bank of Italy acts as a government consultant.
Thus, in countries for which centralism and strong political power are traditionally characteristic, the central bank is usually legally more dependent on the government.
In the Federal States, the Central Bank enjoys much more independence. In addition, in federal states, the desire to properly presented the interests of the regions in the governing bodies of the Central Bank.
Of course, ideally, the central bank should be a fairly independent and influential institution, which, on the one hand, carries out monetary regulation on the basis of its powers enshrined by law, and on the other hand, ensures reliability and stable functioning of the credit banking system. However, in real conditions, the independence of many central banks is limited - in particular, as a result of conflicts arising from the contradictions between the tasks of economic policy declared, the tasks of economic policy and the need to maintain the stability of the national monetary unit, which is intended to provide the central bank.
1.3 Functions of Central Banks
Among the diverse functions of central banks should be allocated main, without which it is impossible to perform the main task of the Central Bank - the preservation of the stability of the national monetary unit - and additional corresponding to the solution of this task.
The main functions carried out by all central banks without exception are divided into regulatory, control and serving.
TO regulating functions relate:
management of cumulative money circulation;
regulation of the monetary sphere;
regulation of supply and suggestions on credit.
Control functions include:
monitoring the functioning of the credit and banking system;
conducting currency control.
Serving functions Enclosed in:
organization of payment and settlement relations of commercial banks;
lending to banking institutions and governments;
performance by the Central Bank the role of a financial agent of the government.
The most important regulatory function inherent in all central banks without exception is development and conduct of monetaryaboutlitics.
The nature of the Central Bank of the Monetary policy largely depends on the degree of its independence from the government, which may be greater or less, but is never absolute. For example, targets for changing money aggregates are usually determined directly by central banks. At the same time, no central bank can independently, without the participation of the state, establish one or another currency regime.
On the other hand, the trends noted in the past decades in the monetary sphere contributed to strengthening the independence of central banks. Thus, the processes of liberalization of capital and deregulation led to an increase in market tools and reduce the role of administrative control methods. This, in turn, caused the coagulation of regulatory procedures and has strengthened the independence of central banks to a certain extent.
The development and implementation of monetary policy includes:
determination of the directions of development of monetary policy;
selection of main monetary policy tools;
creating and maintaining a statistical database for money supply, loans and savings;
conducting research on the issues of economics and monetary services of a given country and other states forming the basis of monetary policy;
drawing up monetary programs and control over their implementation.
No less important regulating function of the Central Bank is regulation of supply and suggestions for credit and foreign currency, carried out through interventional operations in monetary and foreign exchange markets. In order to deter strengthening of credit expansion, central banks are taking measures to reduce the level of liquidity of credit and banking institutes, and to expand the credit expansion are opposite.
Control over the functioning of the credit banking system is one of the control functions of the Central Bank - due to the need to maintain the stability of this system, since confidence in the national monetary unit assumes the presence of sustainable and efficiently working credit and banking institutions.
As a rule, the supervision of the credit and banking system is carried out directly by central banks, but in Belgium, Germany, Switzerland and Japan, the supervisory authorities are institutionally separated from the Central Bank. Despite this, the central bank is most closely associated with them, taking part in their activities or providing consulting services. In other countries, the Central Bank controls the activities of credit and banking institutions together with other institutions.
Equally important control function of the Central Bank is implementation of currency control and currency regulation.
The degree of rigidity of currency control and currency regulation depends primarily from the country's total monetary and economic situation. Thus, in developing countries, the control is usually subject to a very wide range of operations on external payments and calculations, which is due to the need to regulate the expenditure of foreign currency. On the contrary, the country's most developed economically goes along the path of currency control liberalization.
Ensuring the uninterrupted functioning of the cash and cashless settlement system - One of the maintenance functions of the Central Bank.
Initially, the central bank activity in this area was limited to the issuance of paper-circuits. In the future, with the development of non-cash settlements, the Central Bank began to act as the organizer and participant in the payment and settlement relationship. Being in the center of cash flows, central banks are called upon to ensure the rapid and uninterrupted functioning of the mechanism of non-cash payments and payments.
Another maintenance center of the Central Bank - lending to credit and banking institutions and government. As a lender of the last instance, central banks provide loans to credit institutions experiencing temporary deficiencies in financial resources.
Through lending to the government, central banks are financing public debt and state budget deficit. This is particularly widely used in developing countries, in which the central bank loans to the Government make a significant part of their assets. On the contrary, developed states avoid such practices. In this regard, this function is currently not a major, but to additional.
Another serving function of the Central Bank - fulfillment by the role of the financial agent of the government, That is, the maintenance of government accounts and the management of assets of various government departments. In some countries, for example in the United States, central banks perform this feature together with commercial banks. In other states, for example, Italy, central banks are practically accountants for government agencies.
Additional functions The central bank is not related directly to its main task (maintaining the stability of the national monetary unit), but contribute to its implementation. These functions include public debt management, analytical research and the maintenance of a statistical database, the manufacture of banknotes, etc.
Functions of analytical and statistical studies According to its nature, there may be very unequal and unequivocal in the central banks of various countries. Research in the field of monetary and currency policy is mainly based on payment balances.
Most central banks conduct research of economic conjuncture in the real sector of the economy. Some central banks publish detailed results of research (US Federal Reserve Banks, Bank of Japan, National Bank of Belgium, German Federal Bank, Bank of France, Bank of England, etc.).
Many central banks explore the financial situation of enterprises and create centralized banking services. In addition, in the central banks of Germany, Belgium, Spain, Italy, there are centralized databases of enterprise balances.
The task of all central banks - issue in the appeal of banknotes and bothwithhis cookies circulate in the country. At the same time, only a few central banks (Italy, Great Britain, Belgium, Spain, etc.) have special structural divisions for the production of banknotes.
Separate central banks communicate C Nabankovskaya Clientele and provide public services. All central banks support correspondent relations with financial institutions of their country, other central banks and international financial organizations. However, commercial relations with non-bank clientele are always secondary.
2. Central Bank Monetary Policy
2.1 Basic objectives, goals, methods and forms of monetary regulation
The monetary regulation carried out by the Central Bank is one of the elements of the state economic policy and is a set of measures aimed at changing the money supply in circulation, loans, the level of interest rates and other indicators of money circulation and loan capital market. It is aimed at achieving stable economic growth, low inflation and unemployment, the laws on central banks emphasizes their responsibility for the stability of the monetary circulation and course of the national currency.
As an intermediary between the state and the banking system of the country, the Central Bank is intended to regulate cash and credit flows using certain tools. As loan systems and loan capital markets are developing, the possibilities of the central bank directly affect the demand and supply of money supply decreased, but at the same time the arsenal has expanded and the effectiveness of monetary regulatory market tools has increased.
The choice of monetary regulatory tools used by central banks of foreign countries is quite wide. The use of various types of tools varies depending on the direction of the economic policy of the country, the degree of openness of its economy, established traditions and concrete circumstances.
The monetary regulatory instruments available at the disposal of the central bank differ in direct objects of impact (the offer of money and the demand for money), in their form (direct and indirect), by the nature of the parameters established during the regulation (quantitative and qualitative), in terms of exposure time (short-term and long-term). All these methods are used in a single system.
Exposure objects. Depending on the specific purposes, the monetary policy of the Central Bank is directed or to stimulate credit emissions (credit expansion), or on its restriction (credit restriction). Through the credit expansion, the central banks pursue the goals of lifting production and revitalizing the conjuncture; With credit restriction, they are trying to prevent "overheating" of the conjuncture observed during periods of economic lifts.
In form Monetary regulation tools are divided into administrative (straight) and market (indirect). Administrative are tools that have the form of directives, prescriptions, instructions emanating from the Central Bank and aimed at limiting the scope of the Credit Institute. They occupy a certain place in the practice of central banks of developed countries, and also gained widespread use in developing states.
Under market tools, there are ways to influence the central bank to the monetary sphere through the formation of certain conditions in the money market and the capital market. Market (indirect) tools are of greater flexibility compared to administrative, but the results of their application are not always adequate to the target target. Nevertheless, currently there is a departure of central banks of developed countries from direct methods of impact on market.
By the nature of the parameters Installed in the process of exposure to the central bank to the monetary sphere, monetary regulatory tools are divided into quantitative and qualitative.
Through the use of quantitative methods, there is an impact on the state of credit capabilities of banks, and, consequently, on the monetary appeal as a whole.
Quality instruments are an option for direct regulation of the qualitative parameter of the market, namely the cost of bank loans.
By terms of exposure Monetary regulation tools are divided into long-term and short-term in accordance with the tasks of implementing the nearest and promising goals of monetary policy. Under long-term (end) targets of monetary policy are meant those tasks of the central bank, the implementation of which can be carried out from 1 year to several decades. The short-term influence tools are subject to interim monetary policy goals.
The main instruments of monetary regulation, most frequently used by the central banks of foreign countries, are the establishment of minimum reserve requirements, refinancing commercial banks, regulation of the official accounting rate and operation on the open market.
At the initial stages of the transition to market relations, direct methods of the central bank intervention in the monetary sphere are the most effective: administrative regulation of deposit and credit rates of commercial banks, the establishment of maximum lending volumes by the Bank of its customers, changing the level of minimum reserves.
2.2 Regulation of the official accounting rate
In almost all countries of the world, commercial banks resort to credit funds of central banks that are provided under certain interest. Discount, or accounting, bid applied by central banks in operations with commercial banks on the accounting of short-term government bonds and will overcome commercial bills and other species meets the requirements of the Central Bank, is called an official discount rate. In other words, the official accounting rate is a fee charged by the Central Bank when purchasing securities in commercial banks before the payment for payment on them.
The official accounting rate is a landmark for market rates. By establishing an official discount rate, the Central Bank determines the cost of attracting credit resources by commercial banks. The higher the level of the official accounting rate, the higher the cost of refinancing loans of the Central Bank. It follows that the policy of changes in the accounting rate is an option for regulating the qualitative parameter of the money market - the cost of bank loans.
Regulation of the accounting rate refers to market (indirect) monetary regulatory tools. The regulatory mechanism by means of an official accounting rate is quite simple, which was the cause of its widespread use of both developed and developing countries. For example, if the Central Bank is aimed at reducing the credit capabilities of commercial banks, it raises the discount rate, extinguishing the refinancing loans. If the goal of the Central Bank is to expand access to commercial bank loans, it reduces the level of the accounting rate. However, the central bank is not always possible to achieve the target target. For example, an increase in the accounting rate of the Central Bank will not be effective if in the money market at the moment there is a tendency to reduce loans as a result of their increased proposal, since in this case commercial banks will prefer to use cheaper loans of the interbank market, rather than expensive credit funds of the Central Bank . If the official accounting rate of the Central Bank has already been at the level of the market, then the cheapness of the already cheap loans will entail an appropriate money market reaction.
Through manipulations with an official discount rate, central banks affect the state of not only the monetary, but also the financial market. Thus, the growth of the official discount rate entails an increase in loans and deposit rates in the money market, which, in turn, determines the decrease in demand for securities and an increase in their proposal. The demand for securities falls like from non-bank institutions, since deposits and credit institutions are more attractive, since direct financing becomes more profitable at expensive loans. The proposal of securities, in turn, increases. Thus, an increase in the official rate entails a decrease in the market value of securities. A decrease in the official accounting rate, on the contrary, hesitates loans and deposits, which leads to opposite processes: the demand for securities increases, their proposal is reduced, the market value is raised. Thus, the Central Bank's accounting policy is a mechanism for direct impact on the liquidity of credit institutions through changes in the value of refinancing loans, which indirectly affects the country's economy as a whole.
As already noted, it is to the central banks that the function of establishing the level of the official accounting rate is entrusted.
Changing the official accounting rate as a tool of monetary regulation is widely used by central banks of developed countries, while in developing states is preferred to direct regulation of interest rates on loans and deposits of commercial banks.
Assessing the regulatory role of the official accounting rate, it should be noted that it is for the business circles of the country of a kind of barometer of the economic situation.
One of the most active monetary regulatory instruments used by the Central Bank are reserve requirements for the obligations of commercial banks. This tool is distinguished by ease of use, which, together with direct impact on the level of liquidity of commercial banks, makes it very attractive.
Minimum reserves are a mandatory rate of deposits of commercial banks in the Central Bank. By changing the rate of minimum reserve requirements, central banks maintain the amount of money supply in the specified parameters and regulate the level of liquidity of commercial banks. As a result of increasing the norm of mandatory reserve requirements, the Central Bank decreases the amount of free funds at the disposal of commercial banks and used to expand active operations. Reducing the norm of reserves, on the contrary, increases lending opportunities.
The rate of minimum reserve requirements is established in the legislative order.
According to the current practice, the most acceptable assets used to establish reserve requirements are highly liquid funds. The qualitative composition of these tools is varied - these can be cash at the cash desks of banks, the most liquid types of assets, government securities. In any case, they must all be as "money", thereby ensuring the possibility of using reserve requirements as a tool for impact on money circulation.
2.3 Operation Operations
Operation operations are the operations of the Central Bank for the sale of securities. The object of these operations is the so-called market securities, mainly the obligations of the Treasury and state corporations, industrial companies and banks, as well as bills taken into account by the Central Bank.
Operation Operations - the most effective and flexible market tool of the monetary policy of the Central Bank, which ensures an effective impact on the monetary market and bank loan, and consequently, to the economy. The time of their conduct and their volume cause a given market reaction. In this regard, they are predictable and short-term.
The mechanism of operations on the open market is easy, which makes it attractive for use. So, in the case of buying a central bank of securities on an open market, the volume of own reserves of banks and the banking system as a whole increases, and in the case of sale, on the contrary, it decreases, which is reflected in the cost of the loan and, therefore, on the volume of money supply.
The operations of the central bank in the open market involve the use of various technical procedures. They differ depending on: from terms of transactions (direct purchase and sale or purchase and sale on time with the obligatory redemption obligation at a predetermined course); volumetotov deals (operations with public or private securities); urgency of transactions (short-term - up to 3 months - and long-term - from 1 year and more - operations with securities); services of operations (only the banking sector or in conjunction with the non-bank securities market sector); interest rates (central bank or market); source initiative in operation (Central Bank or Member States).
Differences in the technical procedures of operations in the open market are caused by a number of factors. The most important of these are the specifics of the credit and banking system, which implies a different composition of market participants, and features of national legislation. The greatest distribution of the operation on the open market was obtained in countries with the highest possible money market segments - USA, Canada, United Kingdom, Germany Japan, France and Italy. In developing states in which there is no highly wide market for high-quality securities, the operations of the central bank with securities can not affect the monetary base and the magnitude of the reserves of commercial banks, not to disorganize at the same time the market itself.
Depending on the conditions of transactions with securities on the open market, as noted, direct and inverse operations differ. Historically, the first form of operations on the open market came direct operations That is, the operations of the central bank for buying or selling government bonds and other obligations, treasury bills, and in individual countries - private bills and bills of central bank. Direct operations are carried out on a cash-cash "cash" basis, assuming full calculation during the day of completion of the transaction. Operations on the basis of the so-called regular delivery provide for the fulfillment of the full calculation and delivering securities to their buyer to the next business day.
Inverse operations In the open market (REPO operations) - operations on the purchase and sale of a central bank of securities with the obligation of the return selling-ransom at a predetermined course. Inverse operations on the open market are characterized by a softer impact on the money market, and therefore are a more flexible method of regulation. This makes them even more attractive and expands the scale of their use. Reverse operations are widely used in the USA, Japan, Canada, Great Britain, France, as well as in Germany, where they currently make up more than 95% of cumulative securities operations. Operations are carried out with an interval from 1 to 15 days.
In the traditional, classical understanding of the operation on the open market are carried out on the secondary securities market. However, in countries where the secondary market has not received sufficient development, operations on the primary market are equal to operations in the open market, although in this case the desired result is not reached directly, and indirectly. It should be noted that at a relatively small scale of the operation on the open market, they have mainly high-quality, and not a quantitative impact on the liquidity of the banking system and the state of money circulation. As the scope of operations in the open market, it is possible to effectively influence both the quantitative parameters of the money market. As a result of the operation on the open market, turn into an effective means of regulating the state of the monetary circulation and the economy as a whole.
Conclusion
The main tasks facing all central banks is to maintain the purchasing power of the national monetary unit and the stability of the country's credit and banking system. All central banks have similar functions, apply comparable regulatory tools. This causes a gradual rapprochement of their organizational structures, coordinating their activities, and in Western Europe - the formation of a unified monetary and currency policy of the EU participating countries.
Monetary regulation carried out by central banks, being one of the components of the economic policy of the state, simultaneously allows you to combine macroeconomic impact with the possibilities of rapid adjustment of regulatory measures and serves as a tool for their operational and flexible support.
The main direction of the activities of central banks is the regulation of money circulation.
One of the most important areas of activity of the Central Bank is the refinancing of credit and banking institutes aimed at ensuring the stability of the banking system.
One of the most important functions of the Central Bank is to participate in public debt management, which is formed from the obligations of the central government, local authorities of the public sector enterprises.
The Central Bank is a conductor of state monetary policy, directed mainly on the regulation of the exchange rate.
For currency policies, central banks usually use 3 types of instruments: interventions in foreign exchange markets, discount policies and currency reserves management.
Bibliography
Anunova G.N. Monetary regulation: the experience of developing countries. - M.: Finance and Statistics, 2009.
Dollaz E.J., Campbell K.D., Campbell R.J. Money banking and monetary policy. - M.-L.: Profile, 2011.
Banks and banking operations. Ed. E.F. Zhukova M.: "Uniti" 2007.
Banking system of Russia. Desktop book banker. Ed. A.G. Gryazanov. M.: "DEC", 2009.
General theory of money and loan. Ed. E.F. Zhukov. M.: "Uniti", 2007.
Polyakov V.P., Moskovina L.A. Structure and functions of central banks. Foreign experience: Tutorial. - M.: Infra-M, 2008.
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