Central banks are the backbone of their business. Central banks, their functions and the basis of their activities
General characteristics of central banks.
In the early stages of the development of credit systems, there were only commercial banks that performed all banking operations, including the issue of money, servicing government needs and the real sector of the economy. As the credit relations and the centralization of monetary systems, it became necessary to centralize and issue money, as well as to regulate the activities of other banks. This is how the Central Bank began to emerge. There are two ways in which central banks emerge: evolutionary and administrative. The evolutionary path presupposed the process of gradual separation from the KB system of the largest, most reliable and stable bank and endowing it with the functions of a central bank (for example, the Buck of England in 1694). The majority of the Central Banks arose by administrative means. They arose by decree, order of government agencies, presidents, monarchs immediately as central banks (BR, US Federal Reserve). In the 20th century. many central banks were nationalized. The impetus for nationalization was the economic crisis of 1929-1933. and World War 2.
To achieve the goals of the Central Bank, more efficiently performing operations and measures to regulate the economy, the Central Bank of the country must have a sufficient level of independence from the executive branch. Independence central bank - a special form of state control over the state of the monetary sphere. The degree of independence is difficult to assess, but such studies are being conducted; the legislative base of the Central Bank's activity is mainly analyzed. So, factors have been developed by which one can assess the degree of independence of the Central Bank:
The share of state ownership in the capital of the Central Bank (not decisive, but rather has a historical and traditional aspect);
The procedure for the appointment or selection of the leadership of the Central Bank, removal from office, as well as the terms of election;
The level of detail in the definition in the legislation of the goals and objectives of the Central Bank;
The legally established right of state bodies to intervene in monetary policy (MCP);
The presence of legislative restrictions on lending to the government.
During the analysis of the degree of independence of the Central Bank in different countries the relationship between the inflation rate and the level of independence was revealed - the higher the independence, the lower the inflation rate in the country. All countries with market economies are trying to adjust the legal framework of the Central Bank in order to increase the degree of independence of the Central Bank. A united Europe also follows the principles of ECB independence. under the pressure of joining the EU, many European countries have made or are already making changes to their banking legislation (eg Great Britain in 1998).
The objectives of the Central Bank:
Protecting and ensuring the stability of the national currency, including its purchasing power and exchange rate against foreign currencies
Development and strengthening banking system
Ensuring the efficient and smooth functioning of the settlement system
Tasks of the Central Bank:
Emission center of the country
Bank of banks
Government bank
Settlement center
Currency center
Center for Monetary Regulation of the Economy
Central Bank functions: regulating, controlling, servicing, information and research.
Dkp- a set of measures aimed at changing the money supply in circulation, interest rates, lending volume and other indicators of money circulation and the loan capital market. Monetary policy is aimed either at stimulating credit and emission of money (expansion), or at containing and limiting them (restriction). Monetary policy differs from other methods of state regulation of the economy in the indirect nature of its impact on the process of industrial reproduction. The Central Bank directly changes only the volume of emission and credit, and this, in turn, entails a chain of changes.
The objectives of the monetary policy, as an integral part of the national economic policy:
Maintaining the stability of the national currency
Maintaining the pace of economic growth
Reducing unemployment
Balancing the balance of payments
Classification of PrEP methods:
market (indirect) and administrative (direct)
general and selective
Accounting and collateral policies. This is a classic tool in the practice of the Central Bank. It is based on the regulation of the loan capital market by manipulating the accounting (lombard) interest. Discount rate- the percentage that the Central Bank withholds when buying promissory notes from credit institutions. Lombard rate- the percentage that the Central Bank charges when granting loans to credit institutions secured by assets. The advantage of this method is simplicity and availability of use, and the disadvantages are a small amount of centralized loans in the structure of CB liabilities (2%), a wide variety of ways to attract additional resources (interbank loan market, securities market, etc.), inoperability (rare change in%).
Minimum reserves policy. This method was first tested in the United States in the 30s. and immediately after the war, it was introduced into the practice of the Central Bank of all leading Western countries. The main reason for this policy is that there is a certain relationship between the volume of reserves and banking operations, which can be used by the Central Bank to influence the behavior of the CB. The credit potential of CBs increases as much as their liabilities for minimum reserves are reduced.
Minimum reserves- these are perpetual and interest-free deposits of CBs in the Central Bank, the size of which is established by law in a certain relation to banking obligations (funds attracted - customer deposits). Historically, minimum reserves evolved out of the need for CBs to have liquid reserves in case of unforeseen cash payments.
The laws of different countries in their own way establish the procedure for keeping the minimum reserves, but they all pursue one common goal - to force the KB to keep a certain differentiated share of their obligations in perpetual accounts with the Central Bank. Recently, many Central Banks of leading Western countries have made these accounts interest-bearing, in contrast to the previous practice of interest-free accounts. Russia does not belong to such countries yet.
Differentiation of the required reserve ratios:
type of deposit (its term);
deposit currency;
type of credit institution;
the amount of the contribution;
investor status (legal entity or individual).
The advantage of this method is the speed of action (since this is a legislative norm), and the disadvantages are inoperability (rates rarely change); inflexibility, since there are limits for rate changes - the range of a one-time change (no more than 5% of points) and the upper limit (no more than 20% of CB liabilities); tax nature (if% is not charged); frequent changes in norms can lead to destabilization of the situation at the DGC. This method is effective in times of crisis, when it is necessary to quickly reduce the money supply (the so-called sterilization of excess liquidity).
Open market policy. This is the most flexible method for regulating banks' liquidity and credit investments by placing government debt. The method consists in the sale and purchase of government securities by the Central Bank, bank acceptances and other highly liquid securities at a predetermined rate. By managing operations on the open market, the Central Bank creates favorable conditions for credit institutions to increase their liquidity, or vice versa. The term itself first appeared in the United States in the 1920s. Operations on open market - purchase and sale of highly liquid securities by the Central Bank from credit institutions. The advantages of this method are efficiency (transactions are carried out on a daily basis) and flexibility (the volumes of transactions are determined by the needs of regulation), and the disadvantage is that a developed securities market and the desire of a CB are required.
Deposit policy. In addition to lending operations, the Central Bank offers CB and services for accepting deposits. The CB has the right to independently make decisions on the placement of its free resources, therefore the Central Bank gives the opportunity to invest funds in its accounts. The mechanism of action of this method is a mechanism for regulating bank liquidity using%. Deposit operations- operations of the Central Bank to attract free funds of the KB into deposits.
Lecture 15. Fundamentals of organizing the activities of a commercial bank.
The lower link of the banking system consists of a network of independent credit and financial institutions that directly perform the functions of credit and settlement services to the clientele on commercial principles.
Bank - commercial establishment, which is a legal entity, which in accordance with the law and on the basis of a license issued The central bank, the right to attract funds from legal and individuals and place them on its own behalf on terms of repayment, payment and urgency, as well as carry out other banking operations.
Based on this definition, it is possible to distinguish the functions of the bank, according to the modern theory, there are three of them:
1) the function of accumulating funds;
2) function of transformation of resources;
3) regulation function money turnover.
In accordance with the functions it performs, the bank collects free, temporarily unused monetary resources and capital of its clients. Businesses open bank accounts and, using funds from these accounts, spend cash and cashless payments... Individuals contribute their funds to deposits, which give the bank the opportunity to transform them into loans and use for others monetary transactions while reducing economic risks compared to risks in direct transactions between the lender and the borrower. The bank's payment operations, the creation of payment instruments (banknotes, checks, bills of exchange, certificates, etc.) allow it to regulate the money turnover, make it more economical by making non-cash transactions.
Banking is the activity of a monetary institution in the field of economic relations. Not only the development of the country's economy, but also the social atmosphere in society depends on the results of the banks' activity. General economic and banking crises lead to significant losses, bankruptcy of enterprises and credit organizations, devaluation or loss of savings and deposits of citizens, tensions in public relations, and a decrease in the bank's image as a socio-economic institution.
The activity of a bank as an expression of its economic relations with clients is determined by its essence, functions and purpose in the economy. Banking activity has certain characteristics.
1. The bank works in the field of exchange, and not in the field of production, but also affects production, since serves production needs (the accumulation of production materials, the acquisition of new technology and equipment), but the process itself reflects the activities of economic entities in the redistribution (exchange) of the created material wealth.
2. A bank is a trade institution, the motives of commerce prevail in its activities. All his activity consists in buying resources at one price and selling at another, more expensive price.
3. A bank is a commercial enterprise. Operations of both issuing and commercial banks are carried out on a paid basis. For the loans they receive, they receive a loan interest, for settlement, cash and other operations performed on behalf of their clients - a certain commission.
4. The bank's activities are entrepreneurial. Thanks to the bank, the idle capital of some economic entities begins to "work" for others. Thanks to the energy of redistribution of capital between economic entities, industries, territories and countries, banks enhance the productive movement of material, labor and monetary resources, promote the implementation of various economic projects.
5. A bank is not only a commercial enterprise, but also a public institution. The Bank helps to meet the public interest, works to meet public needs, while banking is not political, but economic in nature.
Working in the field of exchange, the bank acts as a productive institution that regulates the circulation of cash and cashless forms.
A bank is an organization that performs three banking operations at the same time: credit, deposit and settlement.
Commercial banks (universal) carry out all types of settlement, credit and financial transactions related to servicing the economic activities of their clients. Certain banking operations can be performed by other credit institutions that are not banks.
Unlike the Central Bank:
KBs exist on the basis of any form of ownership;
do not depend on public authorities and management when making decisions related to servicing the economic activities of their clients;
act on the basis of their Charters registered with the Central Bank;
The MC is made up of funds of legal entities and individuals and serves as a security for the bank's obligations.
Commercial bank operations (according to the issued license):
attraction of deposits and deposits;
granting loans by agreement with the borrower;
opening and maintaining customer accounts;
making settlements on behalf of customers and conducting their cash services;
financing capital investments on behalf of or at the expense of their own funds;
operations with securities;
carrying out currency transactions;
An activity is a specific type of activity for creating a product. Banking is a complex and diverse process that is implemented only within the banking system and is subject to uniform rules for conducting transactions. Operations are carried out by means of financial, accounting and technical techniques and methods, which together form a certain technology of banking services.
Banking activities, being unified in essence, may have certain features associated with the difference in the activities of a particular bank.
Banks' relations with clientele are built on a contractual basis, the state is not responsible for the obligations of the CB, just as the CB is not responsible for the obligations of the state, except in cases provided by law or when they themselves have assumed such obligations.
The control carried out by the CB over the activities of clients is of a civil nature and is aimed at ensuring the interests of the bank itself, but in cases specified by law, they are authorized to carry out control in the interests of the state:
currency control;
control over observance of currency legislation;
for the timely and full implementation of the established part of export earnings in the domestic foreign exchange market;
for compliance by organizations with the procedure for conducting cash transactions.
By their nature, commercial bank operations are divided into banking and non-banking. Banking refers to those that flow directly from the essence of the bank, historically entrenched in it as a monetary institution.
Banking operations include:
attraction of funds of individuals and legal entities into deposits (on demand and for a certain period);
placement of attracted funds on its own behalf and at its own expense;
opening and maintaining bank accounts of individuals and legal entities;
settlements on behalf of individuals and legal entities, incl. correspondent banks, by their bank accounts;
collection of cash, bills of exchange, payment and settlement documents and cash services for individuals and legal entities;
purchase - sale of foreign currency in cash and non-cash forms;
attraction of deposits and placement of precious metals;
issuance of bank guarantees;
money transfers on behalf of individuals without opening bank accounts (except for postal orders).
Federal Law "On Banks and banking»Allows banks to engage in placement, subscription and custody of securities. These operations do not have a banking status, since they are specific to another economic institution - the stock exchange. According to the legislation, the bank also has the right to conclude the following transactions:
issuance of guarantees for third parties, providing for the fulfillment of obligations in cash;
acquisition of the right of claim from third parties for the fulfillment of obligations in cash;
trust management of funds and other property under an agreement with individuals and legal entities;
carrying out operations with precious metals and precious stones;
lease to individuals and legal entities of special premises or safes located in them for storing documents and valuables;
leasing operations;
provision of consulting and information services.
These operations and transactions constitute additional activities that banks are allowed to engage in.
The law also prescribes the types of activities that banks are prohibited from engaging in. These include manufacturing, trading and insurance activities.
A bank is an economic enterprise, the main activity of which is the realization of its economic interests. He produces his own product, which is of value nature.
The product of the bank is the means of payment, which, together with the loan, are included in the circulation of money. The banking product has a number of distinctive features and is mostly intangible in nature. As a rule, this is a non-cash form, presented as account entries; material form - banknotes of the Central Bank, various monetary documents. The banking product is created in certain areas of activity. Each product corresponds to a service that represents a set of actions, the process of creating a banking product.
provision of guarantees;
consultations;
organization of cash and non-cash payments;
The product of the bank of issue is money as a special commodity exchanged for the product of other labor.
Unlike other enterprises, the KB product is not subject to storage, although it is of a material nature.
KB Product Features:
it is not always possible to feel it physically, but it is an activity based on social costs;
has the property of self-increasing value.
Resources received from depositors are not free for a credit institution: they must be used in such a way as not only to return them to depositors, but also to provide an increase sufficient to pay interest on deposits, compensation costs and receive profit (at least minimal).
Banking principles:
profitability: profit is the official main indicator of the bank's activity;
bank profit - the difference between the interest received and paid plus the commission for the provision of services;
speculative principle: the cheapest attraction of capital and its placement at maximum rates;
riskiness: CB only risks the amount of its capital. There should be a rule - everything for the safety of the client on the basis of partnership and the principle of mutual interest.
A commercial bank is a universal enterprise striving to develop as many types of operations and services as possible.
Groups banking operations:
Credit.
Estimated.
Cash register.
Interbank settlement.
Bill of exchange.
Operations with securities.
Foreign currency transactions.
Intermediary.
Financial.
Founding.
All these operations can be carried out by banks in rubles and foreign currency.
The state determines the procedure for creating banks, using a system of regulatory standards, controls their activities.
KB can start operations only after obtaining the appropriate license, i.e. permission from the Central Bank of the Russian Federation.
A newly created credit institution may be issued the following licenses:
a license to carry out banking operations with funds in rubles (without the right to attract deposits from individuals);
a license to carry out banking operations with funds in rubles and foreign currency (without the right to attract deposits from individuals);
a license to attract deposits and place precious metals. The possibility of issuing such a license is considered by the Central Bank of the Russian Federation simultaneously with the documents for the granting of a foreign exchange license.
A permit for the right to carry out transactions with precious metals is issued by the Central Bank of the Russian Federation in agreement with the Ministry of Finance of the Russian Federation.
A credit institution can expand the range of operations performed by obtaining the following types of banking licenses:
a license to attract deposits of individuals in rubles, which can be issued after two years from the date of state registration of a credit institution.
a license to attract deposits from individuals in rubles and foreign currency, which can be issued after two years from the date of state registration of a credit institution;
General license that can be issued to a bank that has a license to perform all banking operations with funds in rubles and foreign currency. A bank that has a General License can open branches abroad in accordance with the established procedure and / or acquire shares in the authorized capital of non-resident banks.
A banking license is issued for an unlimited period of time.
Bank resources... In order to fulfill in the market conditions their primary function of mediation in credit, commercial banks are faced with the need to accumulate financial resources in order to further redistribute and make investments to achieve maximum profitability.
With the functioning of a two-tier banking system, commercial banks independently seek opportunities for the accumulation and concentration of funds with a view to their subsequent distribution in the most profitable forms. Banking resources are formed by banks carrying out passive operations and are reflected in the liabilities of the bank's balance sheet. Passive operations are operations for the formation and replenishment of bank capital and its resource base.
The liabilities of a commercial bank represent its credit potential, consisting of its own and borrowed funds
Banks form their resources with the help of passive operations. Historically, passive operations play a primary and decisive role in relation to active ones, since to implement them, it is necessary to have sufficient resources.
The specificity of the bank's activity lies in the fact that its resources in the overwhelming part are formed not at the expense of their own, but at the expense of borrowed funds.
The resources of a commercial bank determine the totality of its own and borrowed funds at the disposal of the bank and used by it to carry out active operations.
The authorized capital of a credit institution - the amount of its participants' contributions - determines the minimum amount of property that guarantees the interests of its creditors. The authorized fund is the guarantor of the economic stability of the bank and is formed at the expense of its own funds and the own tangible assets of the bank's participants - legal entities and individuals.
The authorized capital of a credit institution created in the form of a limited or additional liability company is made up of the par value of the shares of its participants.
The authorized capital of a credit institution created in the form joint stock company, is made up of the par value of its shares acquired by the founders of the credit institution.
Contributions to the authorized capital of a credit institution can be in the form:
monetary funds in the currency of the Russian Federation and in foreign currency;
tangible assets (a bank building in which a credit institution is located, excluding construction in progress). Tangible assets must be reflected in the balance sheet of the credit institution in the currency of the Russian Federation.
Own funds include: funds - statutory, reserve, special, economic incentives; provisions for credit risks and for impairment of securities; Extra capital; funds for industrial and social development; profit of the current year and retained earnings of previous years.
The reserve fund of a commercial bank is intended to compensate for losses on active operations and, in the event of insufficient profit, serves as a source of interest payments on bank bonds and dividends on preferred shares. A reserve fund is formed at the expense of annual deductions from profits. The minimum amount from the level of the authorized capital is established by the Central Bank of the Russian Federation (at least 5%), but the commercial bank independently determines the level of the maximum size of the reserve fund, which is fixed in the bank's Charter (from 5% to 100% of the authorized capital). Upon reaching the established level, the formed reserve fund is transferred to the authorized (capitalized), and its accrual begins anew.
Along with the reserve fund, other funds are created in a commercial bank (for the production and social development of the bank itself): a special purpose fund, an accumulation fund, etc. These funds are formed at the expense of the bank's profits. The procedure for the formation of funds and their use is determined by the credit institution in the regulations on funds, as well as by the regulations of the Central Bank. The bank's additional capital includes the following three components:
increase in property value upon revaluation;
share premium. Represents the income received during the issue from the sale of shares at a price exceeding the par value of the shares, as the difference between the offering value (price) and their par value;
property received free of charge from organizations and individuals.
Insurance reserves are a special part of the bank's capital and are formed when specific active operations are performed, these include reserves created for possible losses on loans and for accounting for bills of exchange, reserves for possible depreciation of securities purchased by the bank, as well as a reserve for possible losses on other assets and settlements with debtors. The purpose of these reserves is to neutralize the negative consequences of the actual decline in the market value of various assets. Assets are formed at the expense of the bank's profits in a mandatory manner prescribed by the Central Bank of the Russian Federation.
Retained earnings also refer to the bank's own funds, since the principles of activity of commercial banks presuppose the independent management of profits remaining after taxes.
The aggregate bank capital is adjusted by the amount obtained as a result of the revaluation of funds in foreign currency, securities traded on the Organized Securities Market (OSM), precious metals, as well as by the amount of accumulated coupon income received (paid).
Capital functions: regulatory, protective and operational.
Regulatory function. The banking supervisory authorities represented by the Central Bank establish the minimum level of banking authorized capital for newly created banks and the minimum amount of capital for existing banks, as well as introduce relative standards, in accordance with which the relationship between the amount of own funds and the volume of various types of banking operations is established. (Instruction No. 139-I Central Bank).
Protective function. Commercial banks are provided with full economic independence, and economic responsibility is also provided. The bank's own funds serve as security for its obligations. Bank capital is the limit value of the guarantee of liability to its depositors and creditors. In the event of a bankruptcy procedure, the KB's own funds are used to pay off debts to the budget, bondholders and other debt obligations, depositors of funds for time and demand deposits, etc.
Operational function. In contrast to non-financial organizations, the operational functions of capital are considered secondary to the bank. Banks try to avoid placing their own funds in short-term assets. The bank's own funds serve as a source of development of its material base, they are used to purchase buildings, machinery, equipment, computers, etc. it needs.
Each commercial bank determines the amount of its own funds independently and depends on many factors.
First, in accordance with the Law on the Central Bank of the Russian Federation, the amount of own funds determines the maximum size of the bank's active operations. Therefore, banks focused on a certain circle of clients (for example, industry banks, banks of inter-industry associations and financial-industrial groups, etc.) must have their own funds in such an amount that they can meet all the reasonable needs of their regular customers for loans. means without violating the established standards.
Secondly, the size of the bank's own funds depends on the specifics of its clients. The prevalence of large credit-intensive enterprises among the bank's clients requires it to have a larger amount of its own funds with the same total volume of active operations compared to a bank focused on servicing a larger number of small borrowers, since in the first case the bank will have high risks per borrower, which are limited.
Thirdly, the size of a commercial bank's own funds depends on the nature of its active operations. The orientation of the bank to the predominant conduct of operations associated with high risk requires a larger amount of its own funds (innovative banks). The predominance in the bank's loan portfolio of loans with minimal risk allows a relative decrease in the bank's own funds.
The regulatory ratios of a bank's capital and its assets with varying degrees of risk provide banks with some guidelines for determining the size equity capital depending on the nature of active transactions.
When deciding on the volume of their own funds, banks take into account that by themselves these funds do not determine the amount of profit received. They only allow the bank to choose certain types of operations, focus on servicing a certain circle of customers, etc.
Fourth, the amount of the bank's own funds depends on the degree of development of the credit market and the credit policy pursued by the Central Bank of the Russian Federation. Liberalization of the credit policy of the Central Bank of the Russian Federation in a developed market facilitates the access of a commercial bank to credit resources and reduces the level of the bank's own funds required. The tightening of credit policy, combined with an underdeveloped financial market, necessitates a constant increase in its own funds.
You can use two methods of increasing the size of the bank's own funds: accumulating profits or increasing the number of issued shares (the number of bank shareholders). The accumulation of profit takes place in the form of the accelerated creation of the reserve and other funds of the bank and their subsequent capitalization. There may also be a direct addition of part of the profit at the end of the year. This method is the cheapest, it does not require additional costs associated with the placement of shares or attracting new shareholders. Accumulation of profits means a decrease in dividends paid to shareholders in the current year, which can shake the bank's position in the market.
In the total amount of banking resources, attracted resources occupy a predominant place. Their share in various banks ranges from 75% and more. The attracted resources can be divided into borrowed funds and borrowed funds.
Raised funds: settlement accounts of legal entities; demand and time deposits in Russian and foreign currencies.
Borrowed funds: debt instruments traded on the market in the form of certificates of deposit, bonds, own bills in Russian and foreign currencies; interbank loans; centralized resources purchased at auctions or received from the Central Bank of the Russian Federation, in addition to loans received from the Central Bank of the Russian Federation; funds of other banks held in correspondent and deposit interbank accounts.
Not the entire aggregate of funds mobilized in the bank is free to carry out active operations of the bank, but only its credit potential. The credit potential of a commercial bank is the amount of funds mobilized from the bank minus the liquidity reserve.
Taking into account the principle of liquidity, all funds of the credit potential of the CB can be divided according to the degree of their stability: absolutely stable, stable and unstable funds.
The structure of absolutely stable funds includes: the bank's own funds; funds deposited for a certain period; funds received from other banks. Stable funds are all deposited funds upon presentation of the committees of the bank, whose dynamics has been studied by the bank; at the same time, the average amount of funds that the bank can have at any time to channel them into certain assets has been established. Unstable funds create deposited funds that appear periodically and whose dynamics are difficult to predict.
Credit operations- this is the relationship between the lender and the borrower (debtor) to provide the first to the latter with a certain amount of funds on the terms of payment, urgency and repayment.
Bank lending operations are divided into two large groups: active, when the bank acts as a lender, issuing loans, and passive, when the bank acts as a borrower (debtor), attracting money from customers and other banks to its bank.
There are also two main forms of credit transactions: loans and deposits.
Active lending operations consist of:
from lending operations with clients and operations for the provision of interbank loans;
from deposits placed with other banks.
Passive lending operations similarly consist of:
from deposits of legal entities and individuals, including customers and other banks in this banking institution;
lending operations to obtain an interbank loan by the bank.
In the practice of Russian commercial banks, passive operations include:
acceptance of deposits (deposits);
opening and maintaining customer accounts, incl. correspondent banks;
issue of own securities (shares, bonds), financial instruments(promissory notes, certificates of deposit and savings certificates);
getting between bank loans, incl. centralized credit resources.
Passive credit operations, first of all, include deposit operations.
Bank operations are called deposit operations to attract funds from legal entities and individuals in demand deposits or for a certain period.
Demand deposits are funds on current, settlement, budgetary and other accounts related to settlement or targeted use, as well as demand deposits.
Demand deposits can be withdrawn at any time at the first request of the depositor. They are used for routine calculations. Relatively low interest is charged on them or no interest is charged at all. Demand deposits are the most inconvenient for banks, because susceptible to the sudden withdrawal factor. The outflow of deposits sharply worsens the solvency of banks and requires the creation of special funds that slow down the turnover of bank capital.
Time deposits are funds of individuals, companies, enterprises and organizations, deposited for a predetermined period, but, as a rule, not less than 1 month. In most cases, these are deposits for larger amounts and at higher interest rates. A significant increase in term deposits is somewhat less conducive to an increase in the profitability of the bank's operations, but increases the level of liquidity of its balance sheet.
A common variety term deposit are certificates of deposit and savings. They represent a written confirmation of a financial institution of the bearer's rights to receive the amount of funds indicated in them and deposited on the deposit.
Time deposits are accepted by banks for a fixed period. When withdrawing funds before the due date, the depositor is obliged to notify his bank about this. This is necessary in order to timely prepare for the operation and apply for the necessary reinforcements to the local central bank authority. Term deposits most fully meet the security requirements of lending resources and adequately guarantee banks against sudden withdrawal of funds that jeopardize their solvency.
Savings deposits are attracted by banks for a period of more than 359 days. The use of these deposits occurs after reaching the required level for making the corresponding purchase. Savings deposits are considered as a classic form of temporarily deferred demand of the population for durable goods and services (apartments, houses, cars, furniture sets, foreign tourist trips, etc.)
Savings deposits are usually referred to as a savings account with a passbook, which contains the rules for using the account, reflecting all transactions on it. The owner is obliged to present it in order to deposit or withdraw money. The savings book gives the client the right to oblige the bank to make all the necessary payments for his personal account, this creates comfort for the depositor, since greatly facilitates the use of his funds. One of the goals of savings deposits is to encourage frugality. Regular savings accounts are widely used by individuals.
The economic interests of the depositors are aimed at obtaining the maximum interest money, and the banks - by the profit. The point of intersection of these interests is especially long-term savings deposits for a period of more than 360 days. These deposits gave rise to a special social group of the population (rentier), living off income from long-term storage of deposits. Savings deposits are the most profitable form of deposits for banks. During storage, deposit funds can make dozens of turns as bank loans and bring them the highest amount of profit.
The main conditions for the storage and accrual of interest money are stipulated in the deposit agreements between the client and the bank.
Commercial banks in a competitive environment in the credit market must constantly take care of both the quantitative and qualitative improvement of their deposits. They use different methods for this (interest rate, different services and benefits for depositors). The procedure for conducting deposit operations is regulated by the internal documents of the bank.
For passive operations, in particular for deposits, banks are required to create mandatory reserves.
Reserve requirements are established in order to limit the credit possibilities of banks and maintain the money supply in circulation at the level.
Required reserve ratios may not exceed 20% of a credit institution's liabilities.
The obligation to fulfill reserve requirements arises from the moment of obtaining a license from the Central Bank of the Russian Federation for the right to carry out the relevant banking operations and is a necessary condition for their implementation. Mandatory reserves are deposited in the corresponding reserve accounts with the Central Bank of the Russian Federation, interest is not charged on them.
The Federal Law “On Insurance of Individual Deposits in Banks of the Russian Federation” stipulates the need for all banks working with the public to undergo licensing. Reimbursement of funds after the bankruptcy of the bank will be carried out by the Agency for Insurance of Household Deposits at the expense of mandatory bank payments in the amount of 0.1% of the amount of attracted deposits. In the event of an insured event, the depositor will be fully refunded deposits in the amount of up to 700 thousand rubles.
Lending operations of banks are carried out on the basis of the conclusion of a loan agreement, which fixes all the basic conditions for granting a loan. Conditions loan agreement depend at any given moment on the credit policy pursued by the bank, the availability and cost of credit resources, the ratio of the degree of riskiness and profitability of lending for each specific project, the stability and scale of the bank's deposit base, the settings of the economic and monetary policy of the state, the current economic situation in the region , qualifications and professionalism of bank employees, etc.
The loan accounts opened by the client keep records of loans for each loan object. Separate balance sheet accounts keep track of short-term and long-term loans to one customer. The debit of the loan account reflects the amount of the loan issued, the loan - its repayment. The mode of the loan account is determined in the agreement: the loan issued can be transferred to the settlement (correspondent) account of the borrower; the bank can pay the client's expenses on the loaned transaction as soon as the corresponding settlement documents are received, gradually increasing the amount of the client's loan debt, but not higher than the amount of the loan provided for in the agreement.
Commercial banks in countries with developed market economies practice the provision of a loan in the form of an overdraft, it consists in the fact that the bank allows the client to have a debit balance on his current account for a short period (up to 1 month).
Debt in the form of an overdraft may not be formalized by an agreement. Therefore, the bank can always refuse to pay from the current account in excess of the funds available on it.
Simple loan accounts are used in banking practice mainly for the issuance of one-time loans. An enterprise can immediately open several simple loan accounts if it simultaneously uses a loan for several objects and, therefore, loans are issued on different conditions, for different periods and at different interest rates. Such separate accounting loans is important for the implementation of bank control over their timely repayment by the borrower.
Blank loans are in the nature of a trust loan and are issued under the "image" of the borrower, with whom the bank has long-term relationships and trusts his creditworthiness.
The loan is issued to meet a short-term, up to three months, need for money, which arose in the process of production and sale of products and services.
To apply for a loan, the borrower submits an application to the bank - an application on his letterhead. The bank does not verify the validity of the requested loan and the existence of adequate collateral for repayment. The loan can be issued by sending it to the current account or to pay for the submitted payment documents.
Practice shows that banks receive a higher income on blank loans than on other loans. this loan is associated with an increased degree of risk.
Lending in the order of opening a credit line involves the provision of a loan within the limits of the debt and the term predetermined by the bank for the borrower. The loan is used by the borrower as needed to pay for the payment documents for inventory items, services and work performed.
When lending by opening a credit line, the borrower can get a loan at any time without additional negotiations with the bank. However, the bank retains the right to suspend the issuance and early collect the previously issued amounts if it detects the misuse of the loan, insufficient collateral, the unsatisfactory state of accounting and warehouse records, or the borrower's failure to comply with other conditions of the loan agreement.
The credit line is suspended if there is an overdue debt on a loan with a duration of more than 30 days or the company becomes unprofitable.
Distinguish between non-revolving and revolving credit lines.
A non-revolving line of credit will expire after a specified period of time and the agreed amount of the loan has been used. This is the so-called. target line of credit. In this case, the loan is used to fulfill usually one contract.
With a revolving credit line within the planned amount (limit), the loan is issued continuously and is automatically repaid, restoring the amount of the limit.
The term of the credit line is set in the agreement between the bank and the borrower.
It is recommended to issue loans in the order of an open credit line to a borrower who has a stable, stable financial position; profitable business; who has worked for at least 3 years after registering the charter; lacking working capital to maintain a certain volume of production.
The objects of bank long-term lending can be capital investments of enterprises, organizations and citizens for the costs of construction, reconstruction and technical re-equipment of industrial and social facilities, the acquisition of machinery, equipment and vehicles, buildings, structures and other property objects.
When issuing long-term loans, the loan agreement must be accompanied by the provision of a feasibility study, which specifies in detail the purposes for which the loan is required, calculations of the estimated costs that must be paid through the loan are provided, with a breakdown of the most capacious items (material costs, salaries, etc. .)
The planned receipts of raw materials, materials, equipment and other items necessary for the implementation of the credited event must be supported by appropriate contracts with suppliers, indicating the volume, cost, delivery time.
A separate section of the feasibility study is the calculation of the client's expected income from the implementation of the credited event or from all types of activities, if the source of loan repayment will be all proceeds from various areas of activity. The calculation of income must be drawn up for the entire planned period of using the loan (by years), indicating both gross income and net income (taking into account the necessary costs, deductions, taxes and other mandatory payments). The client must also provide his studies regarding the implementation of the results of the credited event (products, works, services) at the level of contracts.
These data are the initial basis for determining the effectiveness of the loan and the real terms of its payback. The bank, as a rule, does not accept unprofitable, non-commercial or projects that do not have a certain social orientation for lending. An exception may be programs, the unprofitability of which is offset by income from other activities, which ensures the payback and repayment of the loan.
Long-term loans can be issued at a time or in stages, as construction and installation work is completed, inventory is acquired, by transferring funds to pay invoices of suppliers and contractors or to the current account of the borrower, and when issuing loans to individual borrowers - in cash when settling with citizens.
Payment by installments does not mean that all contributions are the same or come evenly, as a rule, they are not the same and come at different intervals, by means of contributions that come to the bank monthly, quarterly, once every six months or annually.
The commercial bank oversees the progress of construction and the intended use of the loan. In the event of failures in construction, ineffective use of the allocated loan, the bank applies economic sanctions to the borrower, provided for by the loan agreement.
Mortgage investment systems provide a mechanism for savings and long-term lending secured by real estate.
Mortgage loans are used to finance the acquisition, construction and redevelopment of both residential and industrial premises. The borrower must be the owner of a building in order to receive the requested loan, which means that in most cases the collateral remains a reliable collateral for the loan.
Currently, several types of systems are being formed mortgage loan... One of them relies on a commercial developer, for whom real estate is not a commodity, but a commodity and a source of profit. This system includes elements of mortgages and registration of loans secured by a new construction object, as well as the portion of the loan.
Another system is based on the registration of a mortgage on existing real estate and obtaining a loan for it for new construction. The mortgage is opened with an appraisal of the existing property at new construction prices, taking into account depreciation and the market price predicted at the end of construction work. In the event that the market value of this property turns out to be less than the cost of new construction, the developer needs to make an appropriate additional payment to buy out the property and repay the loan.
There are mortgage loan systems that provide, along with a bank loan against a mortgage, the use of a number of additional sources of financing (subsidies from municipalities, financial resources of enterprises and citizens, additional bank loans for additional mortgages on land, dacha, garage and other real estate.
The conclusion of a contract through an intermediary firm or an auction for the purchase and sale of existing real estate with a deferred transfer of ownership for it for the period of new construction allows financing new construction from the proceeds from the futures sale of real estate. This system helps to reduce commercial risks.
Liquidity- one of the generalized qualitative characteristics of the bank, which determines its reliability. The liquidity of a bank is its ability to fulfill its obligations to depositors and creditors in a timely manner and without losses. The term "liquidity" from the Latin liquid, fluid, means, in relation to the bank's assets, the ease and speed of their transformation into monetary form to pay off their debt obligations at the appropriate time.
Liquidity is assessed in terms of the bank's ability to transform its assets into cash or other means of payment to pay the liabilities presented to it in the event of a lack of payment means, as well as to satisfy the requirements of customers in loans. Funds for this can be accumulated in advance, acquired through the sale of assets or the purchase of liabilities.
Determining the bank's liquidity only as the stock of its funds, compared with the needs for them, is a narrow approach. When liquidity is considered as a flow, the calculation also takes into account the possibility of turning less liquid assets into liquid ones, as well as the inflow of additional funds in the form of loans and income received from the bank's operating activities.
The concept of "bank liquidity" (both as a stock and as a flow) is much narrower than the concept of "solvency", which includes the relationship of the bank with its counterparties and represents the bank's ability to fulfill obligations to customers in full and in due time. In this case, liquidity is a prerequisite for solvency.
Often in the domestic literature, two concepts are confused - liquidity and solvency of a commercial bank, which in practice leads to the identification of methods and ways of maintaining them, and as a result to unpredictable consequences of the further functioning of a commercial bank.
The life of a design bureau is based, first of all, on its liquidity.
In the absence of liquidity, a bank is unlikely to be solvent. As practice shows, the loss of liquidity by the bank ultimately leads to its insolvency, after which, as a result, bankruptcy ensues.
Therefore, in ensuring the activities of the KB with a high level of stability, sustainability and reliability, liquidity is primary, and solvency is secondary.
The liquidity of the bank presupposes the timely fulfillment of all obligations assumed, incl. and those that may arise in the future. Sources of funds for fulfilling obligations are the bank's cash, expressed in cash balances in the cash desk and on correspondent accounts (with the Central Bank and other commercial banks); assets that can be quickly converted into cash; interbank loans, which, if necessary, can be obtained from the interbank market or from the Central Bank.
Liquidity can be viewed as a tiered system that looks like this:
liquidity of the state banking system;
the liquidity of an individual bank;
bank balance sheet liquidity;
liquidity of assets;
liquidity of clients.
The liquidity of the banking system as a whole depends on how liquid individual commercial banks of the state, as well as the state as a whole, are.
The liquidity of the bank is determined by the degree of correspondence between the volumes and terms of raising and placing funds. The need to maintain the liquidity of funds is due to the fact that the cash flow from the sale of bank assets rarely coincides in terms of the amount of cash required to cover its debt. The reasons for this are the specifically high specific weight of the bank's liabilities of immediate repayment, as well as the volatility of the value of assets and liabilities with changes in interest rates. Although liquidity is a short-term category, it is necessary to systematically plan for its size, taking into account the forthcoming needs in the future. At the same time, possible losses of it can occur as a result of unforeseen changes in the sources or use of bank funds.
The main source of bank liquidity is meeting the demand for loans and (or) the wishes of depositors to withdraw deposits. Specific (indirect) functions of liquidity are to ensure trust in the bank for existing and potential customers, avoid the forced unprofitable sale of assets, and limit the risk premium when raising funds. There is an inverse relationship between the level of the bank's liquidity and its other most important characteristic - the level of profitability (the higher the first, the lower the second, and vice versa), i.e. cash and cash equivalents required to maintain the required level of liquidity do not generate income or generate little income.
If the liquidity of the bank is a characteristic of its financial condition for k.-l. time interval or perspective (liquidity flow), then balance sheet liquidity is determined for a specific date (stock). The concept itself has a limited meaning. It is important for a bank to have not only a liquid balance, but also a generally liquid state at any given time.
The liquidity of assets is one of the most important characteristics of their quality. According to the ability of assets to turn into cash, they are divided into highly liquid, liquid, long-term liquidity assets and illiquid assets.
In the practice of domestic banks, highly liquid assets (instant liquidity) consist of cash and equivalent funds; funds on accounts with the Central Bank; funds on correspondent accounts with non-resident banks in developed countries. These assets, if necessary, can be immediately withdrawn from the bank's turnover.
Liquid assets include, in addition to highly liquid ones, all loans issued by the bank in rubles and foreign currency, with a maturity within the next 30 days (excluding extended at least once and newly issued loans to repay previously provided loans), as well as other payments in the benefit of the credit institution to be transferred within the next 30 days (accounts receivable, overpayments to be returned to the credit institution at the reporting date from the reserve fund).
Long-term liquidity assets represent all loans issued by a credit institution in rubles and foreign currency; funds invested in securities and for the purchase of debt obligations; placed deposits, incl. in precious metals with a remaining maturity of over a year; as well as 50% of guarantees and sureties issued by the bank, valid for more than a year.
The following are illiquid: overdue loans; doubtful debts to be returned; bank buildings, structures; unquoted securities; real estate investment.
Since, in the event of a shortage of liquid funds, the bank's client firms either turn to the bank for a loan or withdraw the balances from their deposits, the liquidity of the credit institution is determined, incl. the liquidity of its clients, which, in turn, represents the liquidity of the accounts payable.
The main indicator characterizing the liquidity of a bank and adopted by the international banking community in Basel is the liquidity ratio Kl, which is determined by the formula:
where Лс - the sum of cash, interbank loans and marketable securities;
A - the total assets of the bank.
In order to control the state of liquidity of commercial banks, the Central Bank of the Russian Federation has established the following liquidity ratios:
the standard of instant liquidity, which is defined as the ratio of the amount of the bank's highly liquid assets to the amount of the bank's liabilities on demand accounts, expressed as a percentage (min15%);
current liquidity ratio, equal to the ratio of the amount of the bank's liquid assets to the amount of the bank's liabilities on demand accounts and for a period of up to 30 days, in percent (min 50%);
long-term liquidity ratio - the ratio of all long-term debt to the bank with maturity over a year, including issued guarantees, to the bank's own funds, as well as the bank's liabilities on deposit accounts, received loans and other debt obligations for a period exceeding a year (max 120%).
Liquidity indicators represent the ratio of a particular part of assets of varying degrees of liquidity and bank liabilities different types and maturity dates. Depending on the tasks solved when analyzing the financial condition of the bank, the following liquidity indicators can be used:
short-term assets - large liabilities / total assets;
share of cash in total assets; it is necessary to take into account that not all the bank's cash assets can be used to cover its needs for liquid funds, but only a part deposited in the form of mandatory cash reserves;
liquid assets / total amount deposits;
liquid assets / total amount of all deposits and short-term loans to the bank;
liquid assets / demand deposits.
The given indicators are based on the concept of a liquidity reserve.
The presence of two signs of a bank's liquidity (timeliness of fulfillment of obligations and without losses) is due to a variety of internal and external factors that determine the quality of the bank's activities.
Internal factors include: a strong capital base of the bank, the quality of its assets, the quality of deposits, moderate dependence on external sources, maturity of assets and liabilities, competent management, and a first-class image of the bank.
A strong capital base of a bank means the presence of a significant absolute value of equity capital as the main protective source for absorbing the risk of assets and guaranteeing funds of depositors and depositors: the larger the bank's equity capital, the higher its liquidity.
Asset quality is determined based on four criteria: liquidity, riskiness, profitability and diversification. Asset liquidity is the ability of assets to be transformed into cash through the sale or repayment of obligations by the debtor (borrower).
According to the degree of liquidity, the bank's assets are divided into several groups.
The first group is made up of first-class liquid assets, which include:
directly the bank's funds, which are in its cash desk or on correspondent accounts;
government securities in the bank's portfolio, the sale of which it can resort to in case of insufficient cash to pay off obligations to creditors.
Maintaining the volume of the first group of assets at a certain level is an essential condition for ensuring the bank's liquidity.
The second group of assets in terms of liquidity is made up of short-term loans to legal entities and individuals, interbank loans, factoring operations, and commercial securities of joint-stock companies. They have a longer period of converting into cash.
The third group of assets covers long-term investments and investments of the bank, incl. long-term loans, leasing operations, investment securities.
The fourth group of bank assets consists of illiquid assets in the form of overdue loans, some types of securities, buildings and structures.
Riskiness as a criterion of asset quality means the potential for losses when they are converted into monetary form.
The degree of risk of assets depends on many factors specific to a certain type of asset.
The risk of a loan is determined by the financial condition of the borrower, the content of the loan object, the amount of the loan, the procedure for issuing and repaying, etc.
The risk of investing in a security depends on the financial stability of the issuer, the mechanism for issuing and selling the security, the ability to be quoted on the stock exchange, etc.
According to the degree of profitability, assets are divided into two groups: income-generating and non-income generating assets. The higher the share of income-generating assets, the more profit the bank has, all other things being equal. Consequently, there is more opportunity to strengthen its capital base, which means that the bank can better withstand the risks that it has taken on.
Reasonableness should be observed in regulating the structure of assets according to the degree of profitability, since unrestrained pursuit of profit can result in loss of assets and loss of liquidity.
The criterion for the quality of assets can also serve as their diversification, which shows the degree of distribution of the bank's resources in different areas of placement.
The indicators of diversification of assets are: the structure of the bank's assets by the main directions of resource investment; structure of credit investments by objects and subjects; structure of the securities portfolio; structure of currencies with which the bank carries out currency transactions; structural composition of banks with which this bank has established correspondent, deposit and credit relations.
The more diversified the assets, the higher the bank's liquidity.
An important factor determining the degree of a bank's liquidity is the quality of its deposit base. The criterion for the quality of deposits (demand, time and savings) is their stability. The larger the stable part of the deposits, the higher the bank's liquidity, since in this part the accumulated resources do not leave the bank.
The bank's liquidity is also determined by its dependence on external sources, which are interbank loans. Interbank credit within reasonable limits does not pose a threat to liquidity; on the contrary, it allows to eliminate short-term liquidity shortages. If the interbank loan takes the main place in the attracted resources, the unfavorable situation in the interbank market may lead to the bank's collapse. The bank, which is highly dependent on external sources, does not have its own base for business, it has no prospects for development, and is subject to a significant risk of instability of its resource base.
The internal factors, on which the degree of the bank's liquidity depends, also includes management, i.e. the system for managing the bank's activities in general and liquidity in particular. A high level of management presupposes the availability of qualified specialists, the creation of the necessary information base, and, most importantly, the understanding by the bank's management of the importance of creating a scientific system for managing the bank's activities.
Among the factors that determine the provision of the necessary liquidity of the bank is also its image. The bank's positive image allows it to have advantages over other banks in attracting resources and thus quickly eliminate the lack of liquidity. It is easier for a reputable bank to ensure the stability of its deposit base. He has more opportunities to establish contact with financially stable clients, which means that he has a higher quality of assets.
The state of banks' liquidity depends on a number of external factors outside the activities of banks. These include: the general political and economic situation in the country, the development of the securities market and the interbank market, the organization of the refinancing system, and the effectiveness of the Bank of Russia's supervisory functions.
Bank liquidity is a qualitative characteristic of the bank's activities, due to many factors that are in constant change, therefore, the bank's liquidity is a dynamic state that develops gradually and is characterized by the influence of stable factors and trends, and solvency as a state at a certain date, expressed in the timeliness of the bank's fulfillment of obligations on that date. With this definition of liquidity and solvency, the bank may not fulfill its payment obligations during certain periods, but remain liquid. At the same time, the loss of liquidity presupposes systematic insolvency.
In practice, the liquidity of a bank is determined by assessing the liquidity of its balance sheet: the bank's balance sheet is considered liquid if the funds on the asset allow, through their quick sale, to cover urgent liabilities on the liability, i.e. the liquidity indicator of the bank is primarily influenced by the very structure of the balance sheet assets, as well as the composition and types of active operations. But it must be remembered that the higher the liquidity of the c. - l. asset in the bank's balance sheet, the lower its profitability and vice versa.
The bank's balance sheet asset is the value of bank resources for the purposes of their use, a source of future income based on the results of banking activities.
When assessing the real level of liquidity of a particular bank, one should not only take into account the potential profitability of the bank. asset (respectively, operations for the placement of bank resources), but also take into account the degree of risk that is associated with the probability of non-return of bank funds for the corresponding active operation.
In the practice of banking in Russia, for assessing the state and subsequent calculation of liquidity indicators, CB assets are divided into five groups according to the degree of risk of bank investments and the possibility of losing part of their value in case of irrecoverability.
Based on the foregoing, we can conclude that the higher the profitability of the bank's assets, the greater the risk of operations on them, but the lower the level of balance sheet liquidity, and, consequently, the bank's solvency as a whole, and vice versa.
The need to manage the liquidity of the banks themselves is complemented by government regulation in the interests of macroeconomics. By establishing liquidity ratios and norms by central banks of states, monitoring compliance with these requirements and general supervision over the activities of banks, the state manages the operations of CBs, thereby maintaining the stability of the banking system, protecting the interests of depositors and creditors, and essentially implementing the state monetary policy.
During the evolution of capitalist relations, there was no clear distinction between central (issuing) and commercial banks. The latter widely practiced issuing banknotes as one of the sources of capital mobilization. As the credit system developed, there was a process of centralization of banknote issue in a few large commercial banks, as a result of which the monopoly right to issue banknotes was assigned to one bank. Such a bank received the name of the emission or national, and later - the central bank (CB), which corresponded to its position in the credit system.
The first central bank was the Riksbank - the Central Bank of Sweden, formed in 1668. In 1694, the Bank of England emerged when the British government needed a large loan to wage war with France, for the issuance of which several London merchants merged into one private joint stock bank. For the service rendered to the government, they received the exclusive right to issue banknotes, freely exchangeable for gold. The banknotes they issued became a widespread means of payment and entered the payment circulation in England. The Royal Charter of 1694 secured for the Bank of England the role of the central bank and the principles of its functioning. Legislative regulation was established by the Robert Peel Act of 1844.
Depending on the type of ownership of capital, central banks are divided into state, joint-stock and mixed. Individual central banks were originally created as state banks. For example, the German Federal Bank (Deutsche Bundesbank), created in 1957, its predecessor - the Reichsbank (1875), created in 1990 by the Central Bank of the Russian Federation (Bank of Russia), its predecessor - the State Bank (1860).
The process of nationalization of central banks, which previously had the status of joint-stock banks, developed greatly in the era of state-monopoly capitalism. The nationalization of joint-stock banks was accelerated by the economic crisis of 1929-1933. and the Second World War, which strengthened the tendencies of state-monopoly development of the economy. In 1938 the State Bank of Canada was formed, in 1942 - the Bank of Japan, in 1946 - the Bank of England and the Bank of France.
The most famous joint-stock central bank is the US Federal Reserve, established by the Federal Reserve Act in 1913. The capital of the Federal Reserve Banks is formed by the shares of private commercial banks that have become members of the Federal Reserve. Despite the fact that the FRS was formed on a shareholder basis, it is one of the most important government agencies, the leadership of which is appointed by the President of the country.
Banks in which the private sector participates together with the state are referred to as mixed central banks. Among them is the Bank of Japan, founded in 1882. According to the law of 1942, only 55% of its authorized capital belongs to the state. The state also owns 50% of the national bank of Belgium.
Currently, in almost all countries, the central bank is at the head of credit systems, although there are exceptions to published practice. So, in some countries there are no central banks, and specially created institutions perform issuing functions, for example, the Currency Board (Currency Board) in Singapore, the Monetary Agency in Saudi Arabia. There is a practice of functioning of the central bank, which acts as the emission center of several states. For example, the Bank of Central African States performs functions of the central bank simultaneously in five African countries: Gabon, Cameroon, Congo, Central African Republic, Equatorial Guinea, in each of which it has its own branch.
In a modern state, the central bank is a key element of its financial and credit system. He acts as the official conductor of monetary policy. Monetary policy, along with budgetary policy, is the basis of state regulation of the economy.
Historically, central banks were formed as joint stock companies with special powers. The term "central bank" meant the largest bank that formed the core of the banking system. Subsequently, central banks monopolized certain functions. And then the states nationalized the central banks (the shareholder status could be preserved, as, for example, at the Bank of Italy or the National Bank of Australia).
The capital of the central bank is usually owned by the state, but commercial banks and other financial institutions can also be shareholders. Compared to commercial banks, central banks do not differ in the scale of their capitals, operations and balance sheets, since their functions and methods of influencing the banking system have been modified. At the same time, their essence as banks has not changed and consists in mediation between the state and the rest of the economy, in the regulation of credit flows.
The central bank is accountable to parliament or a special parliamentary commission. Its manager is not part of the government. The appointment of the governor of the central bank can be made by the monarch, the president, the parliament, but the government, based on the parliamentary majority, has the right to present its candidacy. In some countries (Denmark, Finland, Norway), the term of office of the top management of the central bank is not limited. In other states, he is appointed for a long term, for example, for 7 years - in Ireland, Australia, Canada, the Netherlands, 8 years - in Germany.
The independence of the central bank determines its role in the economic and political processes in the country. Economic independence assumes the ability of the central bank to use the institutions at its disposal without significant restrictions. His political independence is determined by the level of independence in relations with government bodies in the selection and implementation of monetary policy.
The criterion of independence of central banks in addressing monetary policy issues, taking into account various objective and subjective factors, determines their classification.
TO subjective factors refers to the established relationship between the central bank of the country and the government, taking into account the informal contacts of leaders.
TO objective factors assessments of the independence of central banks can be attributed to:
- state participation in the capital of the central bank and distribution of profits;
- the procedure for the appointment (selection) of the bank's management;
- the degree to which the goals and objectives of the central bank are reflected in legislation;
- the state's right to intervene in monetary policy;
- rules governing the possibility of direct and indirect financing of public expenditures by the country's central bank.
The first objective assessment factor in the conduct of monetary policy does not significantly affect the independence of the central bank. The second factor that determines the procedure for selecting (appointing) and recalling the leadership of the central bank affects the degree of its political independence from government bodies. The third one defines the legal framework for the freedom of activity of the central bank.
In the legislation of a number of countries, only a general formulation of the tasks of the central bank is given, which is not essential for determining the degree of its independence. The establishment of the goals and objectives of the central bank by legislation plays a secondary role in determining the degree of its independence.
The fourth factor, which establishes the state's right to intervene in monetary policy, has a decisive influence on the political independence of the central bank.
The fifth factor of the independence of the central bank involves the legislative restriction of lending to the government and affects both its economic and political independence. Matters only if there is a system for direct financing of governments by the central bank. A similar system operates in most developed countries.
Traditionally, the Central Bank performs 4 main functions: it carries out a monopoly issue of banknotes, is a bank of banks, a banker of the government, conducts monetary regulation and banking supervision.
The central bank, as a representative of the state, is legally assigned an emission monopoly only in respect of banknotes, i.e., national credit money, which are generally recognized as the ultimate means of paying off debt obligations. In some countries, the central bank monopolizes the issue of coins, but they are usually minted by the ministry of finance (treasury). Banknotes make up an insignificant part of the money supply of industrialized countries, therefore, the functions of the emission monopoly of the Central Bank are somewhat reduced, although banknote emission is still necessary for payments in retail and ensuring the liquidity of the credit system. The higher the proportion cash circulation in the country, the more important is the value of the banknote issue.
It should be borne in mind that the monopoly on the issue of banknotes for the present stage does not mean that it is tightly controlled or linked to the objectives of monetary regulation. The main task of monetary policy is to regulate non-cash issue, the main source of which is commercial banks. At the same time, the emission monopoly turned the central bank into the emission and cash center of the banking system, since the liabilities of the central bank (in the form of both banknotes and deposits of commercial banks) serve as the cash reserve of any commercial bank.
The Central Bank does not deal directly with entrepreneurs and the public. Its main clientele is commercial banks, acting as intermediaries between the economy and the central bank. The latter keeps the free cash of commercial banks, that is, their cash reserves. Historically, these reserves were placed by commercial banks in the central bank as a guarantee fund to repay deposits.
In most countries, commercial banks are required to keep a portion of their cash reserves at the central bank by law. I call such reserves the required bank reserves. The Central Bank sets the minimum ratio of required reserves to banks' liabilities on deposits (required reserves ratio). Through accounts opened by commercial banks with the central bank, the latter regulates settlements between them. With the introduction of electronic settlement systems, the value of the traditional central bank function of the settlement center of the banking system has significantly decreased.
Taking into custody the cash reserves of commercial banks, the central bank provides them with credit support. He is the lender of last resort for commercial banks, that is, the lender of last resort. Usually, its loans are provided to banks at a rate higher than the market rate, and therefore banks turn to the central bank for support only if there is no other way to get a loan.
Regardless of the ownership of capital, the central bank is closely linked to the state. As the banker of the government, the bank acts as its cashier and creditor, and accounts for the government and government departments are opened in it. In most countries, the central bank carries out cash execution state budget... Government revenues from taxes and loans are credited to an interest-free treasury (ministry of finance) account with the central bank, from which all government expenses are covered. In some countries, such as the United States, most of the budget is placed in commercial banks.
In the context of a chronic deficit of state budgets, the function of lending to the state and managing the state debt is increasing (Denis Shevchuk). Public debt management is understood as the operations of the central bank for the placement and repayment of loans, the organization of payments of income on them, for the conversion and consolidation. The central bank uses various methods of public debt management: it buys or sells government bonds in order to influence their rates and profitability, changes the terms of sale, and in various ways increases the attractiveness of government bonds for private investors.
On behalf of the government, the central bank regulates foreign exchange and gold reserves and is the traditional custodian of state gold and foreign exchange reserves. It regulates international settlements, balances of payments, participates in the operations of the world market of loan capital and gold. The central bank usually represents its country in international and regional monetary organizations.
All functions of the central bank are closely interrelated. While lending to the state and banks, the central bank simultaneously creates credit instruments of circulation, issuing and repaying government obligations, and affects the level of loan interest. The aforementioned functions of the central bank create objective prerequisites for it to perform the function of regulating the entire monetary system of the country and, consequently, regulating the economy. The function of monetary regulation and banking supervision at the present stage is the most important function of the central bank.
The central bank carries out its functions through banking operations - passive and active. Passive operations are called operations with the help of which banking resources are formed, active - operations for the placement of banking resources.
Functions of the Central Bank of Russia
The function of conducting state monetary policy for the development of a market economy, ensuring the stability of monetary circulation and the purchasing power of the national currency. In carrying out this function, the Bank takes part in the development of the foundations of the government's economic policy and uses various methods of monetary management of the banking system that are within its competence.
The function of issuing money and organizing money circulation. The issue of money is the monopoly right of the Central Bank and is only in its competence. CBs do not have the right to independently issue money into circulation. The need to issue new money is due to the realization of the national income or the newly created value of the gross social product.
The function of lending to commercial banks based on the refinancing of their portfolio of resources. main feature This function consists in the fact that the Central Bank as a "bank of banks" lends only to banking institutions. The lending process consists in restoring the funds of grassroots banks invested in the circulation of capital of enterprises in various sectors of the national economy. Loans are presented at the refinancing rates set by the Central Bank.
The function of organizing cashless payments in the national economy. When performing this function, the "bank of banks" establishes the principles of organizing settlements, methods of making payments, forms of forms monetary documents, the stages of their accounting processing and the procedure for performing settlement transactions.
The function of organizing banking operations, accounting and statistical reporting on the work of banks. In connection with this function, the Bank creates rules for financing, lending, settlements and cash transactions, as well as accounting and reporting for the main areas of activity of credit institutions.
The function of state registration of credit institutions. In order to fulfill this function, the Bank examines a package of documents for opening a new credit institution and makes a decision on granting a license for the right to conduct banking operations. Such licenses are issued only to credit institutions that have qualified personnel to carry out their duties.
The function of organizing state control over the activities of credit institutions. After the opening of credit institutions and the start of their operations, the Central Bank constantly monitors their activities. This work is carried out by the cash settlement centers of the bank, which contain correspondent accounts of the grassroots credit authorities. By analyzing the turnovers and balances of funds on these accounts, the RCC receives the necessary information about liquidity, solvency and financial condition KB.
The function of selling government bonds. loans and crediting of federal budget expenditures. The Central Bank is the authorized body of the Ministry of Finance of the Russian Federation for the sale of government bonds. The sale of bonds of these loans is carried out by dealer banks, the composition of which is formed by the Ministry of Finance and the Central Bank.
The function of regulating the country's gold and foreign exchange reserves. The Central Bank of the Russian Federation is the main depository of the state's gold and foreign exchange reserves and organizes all operations for the sale and purchase of gold and foreign currencies. Transactions with these values are made at bid and ask prices in the gold and foreign exchange markets.
The function of compiling the country's balance of payments. In the conditions of the detonation of gold, the elimination of the gold coin standard and monetary parity, commodity masses, including goods of domestic and foreign production, serve as the basis for securing Central Bank banknotes. In order to control the state of foreign trade, payments and foreign exchange reserves, the Central Bank of the Russian Federation compiles the balance of payments of the Russian Federation.
central bank- the main state bank of the first level, the main issuing, monetary institution of any country, regardless of whether it is called state, people's or national.
Central banks occupy a special place, performing the role of the main coordinating and regulating body of the entire credit system of the country, and act as state bodies of economic management.
Based on this, central banks perform the following main functions:
· monopolistically issue banknotes;
· are a bank of banks; supervise the activities of banks;
· the banker of the government;
· conduct monetary regulation;
· settlements.
The issuing function of the central bank is the oldest and one of the most important functions. Central banks, as a representative of the state, are legally assigned an emission monopoly only in respect of banknotes, that is, national credit money, which is the generally recognized final means of paying off debt obligations. The monopoly on the emission of the national currency enables the central bank to control the liquidity of credit institutions.
The main clientele of the central bank is commercial banks, acting as intermediaries between the economy and the central bank. The central bank keeps the free cash of commercial banks, that is, their cash reserves. Historically, these reserves were placed by commercial banks in the central bank as a guarantee fund to repay deposits.
The central bank oversees, maintaining the required level of standardization and professionalism in the national credit system.
As the bank of the government, the central bank must support government economic programs and place government securities, lend and fulfill settlement transactions for the government.
On behalf of the government, the central bank regulates foreign exchange and gold reserves and is the traditional custodian of state gold and foreign exchange reserves. It regulates international settlements, balances of payments, participates in the operations of the world market of loan capital and gold. The central bank, as a rule, represents its country in international and regional monetary organizations.
All functions of the central bank are closely interrelated. While lending to the state and banks, the central bank simultaneously creates credit instruments of circulation, issuing and repaying government obligations, and affects the level of loan interest.
The named functions of the central bank can be reduced to the following main functions: regulatory, supervisory and information research.
The regulating function includes: regulation of the money supply in circulation. This is achieved by reducing or expanding cash and non-cash issues and implementing a discount policy, a policy of minimum reserves, an open market, and foreign exchange policy.
Control function closely related to the regulatory. The central bank receives extensive information about the state of a particular bank when carrying out, for example, a policy of minimum reserves or re-discounting. 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 a set of economic coefficients, standards, necessary for credit institutions, and control over them.
All central banks have inherent information and research function, that is, the function of a research, information and statistical center. In many countries, this function is noted in legislation.
The central bank carries out its functions through banking operations - passive and active.
Operations are called passive, with the help of which banking resources are formed, active- operations for the placement of bank resources.
Passive operations:
· emission;
· storage of cash reserves of credit institutions;
· keeping the official gold and foreign exchange reserves of the country;
· required reserves of commercial banks;
· keeping accounts government agencies and budget;
· accounts in settlements;
· foreign bank accounts;
· capital and reserves of the bank.
Active operations:
o purchase of precious metals and foreign currency;
o funds on accounts, in deposits of foreign banks;
o cash on hand;
o issuance of loans commercial banks;
o loans to the government;
o purchase of government securities;
o government funding;
o bank funds.
In the banking system of Russia, the Central Bank of the Russian Federation (CBR) is defined as the main bank of the country and the lender of last resort. He is in state property and it is entrusted with the functions of general regulation of the activities of each commercial bank within the unified monetary system of the country. The central bank is called upon to bring their activities in line with the general economic strategy and acts as a key agent of state monetary policy, while the CBR uses primarily economic management methods and only in some cases administrative ones.
The principles of organization and activity of the Central Bank of the Russian Federation (Bank of Russia), its status, tasks, functions, powers are determined by the Constitution of the Russian Federation, the Law on the Central Bank and other federal laws.
Organizational structure of the Bank of Russia
The Bank of Russia forms a single centralized system with a vertical management structure.
The system of the Bank of Russia includes the central office, regional offices, cash settlement centers, computer centers, field offices, educational institutions and other enterprises, institutions and organizations, including security units and the Russian Collection Association, necessary for the implementation of the bank's activities.
Bank of Russia governing bodies
The supreme body of the Bank of Russia is the Board of Directors - a collegial body that determines the main areas of activity of the Bank of Russia and exercises leadership and management of the Bank of Russia.
The Board of Directors performs the following functions:
1) in cooperation with the Government of the Russian Federation, develops and ensures the implementation of the main directions of the unified state monetary policy;
2) approve the annual report of the Bank of Russia and submit it to the State Duma;
3) consider and approve the estimate of the Bank of Russia expenses for the next year, as well as the expenses incurred that are not provided for in the estimate;
The concept of "bank of banks" means that all cash reserves are concentrated in the Central Bank and their receipt in economic turnover occurs by replenishing the cash desk of commercial banks through the institutions of the Central Bank. All banks carry out non-cash payments through the Central Bank, and, if necessary, receive loans from the Central Bank. As a result, both cash and non-cash turnover of funds are concentrated in the Central Bank and its institutions.
The main objectives of the Central Bank of the Russian Federation:
1. Protection and sustainability national currency;
2. Development and strengthening of the banking system;
3. Ensuring the efficiency and smooth functioning of the settlement system.
Functions of the Central Bank of the Russian Federation:
1. Conducting a unified state and credit policy;
2. Monopoly issues cash;
3. Is the lender of last resort, or the Bank of Banks;
4. Establishes the rules for settlements, banking operations, accounting in banks;
5. Registers the issue of securities of credit institutions;
6. Supervises the activities of the banking system, issues and revokes licenses for banking activities;
7. Carries out currency regulation and currency control, etc.
The following functions are typical for the Central Bank:
1. emission and control of money circulation;
2. settlement and reserve center of banks;
3. public debt management and state budget execution;
4. performing the role of “lender of last resort”;
5. the establishment of the economy of reasonable limits and standards for the activities of banks, including the Central Bank rate on loans;
6. determination of the priority objectives of monetary and foreign exchange policy;
7. conducting scientific research;
8.definition legal framework and the principles of functioning of credit and financial institutions, markets for short and long-term transactions, as well as types of payment documents;
9. formation of an effective mechanism for monetary regulation of the economy;
In accordance with the above functions, active-passive operations of the Central Bank are also built. The most important the source of its resources(passive operations) is:
1. the issue of banknotes, which is one of the main items of the liability of its balance;
2. balances of funds on reserve correspondent accounts of banks, accounts of government structures and organizations;
3. capital and reserves of the bank.
The main instruments and methods of monetary policy of the Bank of Russia are:
1. interest rates on operations of the Bank of Russia;
2. standards of required reserves of commercial banks;
3. open market operations;
4. refinancing of banks;
5. currency regulation;
6. the establishment of benchmarks for the growth of the money supply;
7. direct quantitative restrictions on the activities of commercial banks.
14. Commercial banks and their activities. Functions of a commercial bank. Classification of banking operations.
Modern commercial banks are banks that directly serve enterprises and organizations, as well as the population - their clients. Commercial banks are the main link in the banking system. Regardless of the form of ownership, commercial banks are independent subjects of the economy. Their relationship with customers is commercial in nature. The main goal of the functioning of commercial banks is to maximize profits.
According to banking legislation, a bank is a credit institution that has the right to attract funds from individuals and legal entities, place them on its own behalf and at its own expense on terms of repayment, payment, urgency and carry out settlement operations on behalf of customers1. Thus, commercial banks provide (must provide) comprehensive customer service, which distinguishes them from special non-bank credit institutions that perform a limited range of financial transactions and services. Unlike a bank, credit institutions carry out only individual banking operations. A commercial bank, like any other bank, performs the following functions:
Accumulation (attraction) of funds in deposits;
Their placement ("investment function:
Settlement and cash services clients. Commercial banks act primarily as specific
credit institutions, which, on the one hand, attract temporarily free funds of the economy; on the other hand, they satisfy various financial needs enterprises, organizations and population.
Economic basis operations of the bank for the accumulation and placement of credit resources is the movement of funds as an objective process that affects the formation and use of the loaned value. By organizing this process, a commercial bank acts as a commercial enterprise that provides profitable premises for accumulated credit resources.
In recent years, both in our country and in world banking practice, experts have noted the presence of two, at first glance, mutually exclusive tendencies: universalization and specialization of banking activities, emphasizing that with the specialization of banks, tendencies towards the universalization of their activities are increasing. Traditionally engaged to a greater extent in one or another range of operations, commercial banks invade related areas of activity. Consequently, the type of commercial bank (universal, industry, special purpose, regional, etc.) is determined, along with the content of its operations, also by the degree of development of the country's economy, credit relations, money and financial markets.
Commercial banks in most Western countries perform
now various operations to meet financial needs
of all types of clients from a small investor to a large lump
pania. Large institutions of banks carry out for their clients
according to some estimates, up to 300 types of operations and services. To them
include: maintaining deposit accounts, wire transfers
funds, acceptance of savings, issuance of various loans, purchase-pro
sale of securities, power of attorney transactions, storage of valuables
in safes, etc. Thanks to this, commercial banks constantly and
are inextricably linked by almost all links of reproductive
process.
Commercial bank operations represent a concrete manifestation of banking functions in practice. Under Russian law, the main banking operations include the following:
Attraction of funds from legal entities and individuals in demand deposits and for a certain period;
Granting loans on its own behalf at the expense of its own and borrowed funds;
Opening and maintaining accounts for individuals and legal entities;
Settlements on behalf of clients, including correspondent banks;
Collection of cash, bills of exchange, payment and settlement documents and cash services for clients;
Cash management under an agreement with the owner or manager of funds;
Purchase from legal entities and individuals and sale to them of foreign currency in cash and non-cash forms;
Conducting operations with precious metals in accordance with current legislation;
Issuance of bank guarantees.
The main link in the banking system of any state is the country's central bank. In different states, these banks are called differently: state, national, emission, reserve. Central banks emerged as commercial banks with the power to issue banknotes.
V late XIX- the beginning of the XX century. in most countries, the issue of all banknotes was concentrated in one issuing bank, which began to be called the central issuing bank, and then simply the central bank. The name itself reflects the role of the bank in the credit system of any country: the central bank becomes the center of the banking system. The creation of the central bank of issue was due to the processes of concentration and centralization of capital, the transition to unified national monetary systems. The primary responsibility of the central bank in a market economy is to protect the purchasing power of the national currency and to help the financial markets function well.
The property of the central bank is most often state-owned. Carrying out its activities at the macro level, it reflects the national interest, pursues a policy not in the interests of a particular region, a particular group of economic sectors or enterprises, but in the interests of the state as a whole. At the same time, the central bank does not set itself the task of making a profit.
The Central Bank reports directly to parliament or a special banking commission formed by the latter. The governor of the Central Bank is not part of the government, and his appointment does not coincide in time with the formation of a new cabinet. The appointment can be made by the monarch, the president, the parliament, but the government, which relies on the parliamentary majority, can usually run its candidacy (it often officially proposes it). The top management of the Central Bank may not be limited in terms of tenure (in Denmark, Finland, Norway) or appointed for a long term, 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 maintaining monetary and exchange rate stability in order to ensure anti-inflationary economic growth. The government is primarily concerned with short-term and medium-term goals, the approaching next elections, and this may conflict with the long-term interests of the entire state. In such a situation, a relatively independent Central Bank should act as a kind of counterbalance.
On the other hand, the independence of the Central Bank has objective limits, since fundamental contradictions with the government could negate the effectiveness of the latter's economic policy. Therefore, there is a tendency to increase the influence of the government in the person, first of all, of the Minister of Finance. In many countries, the highest powers of the government and the ministry of finance in relation to the Central Bank are enshrined in legislation.
At the same time, central banks have a formal right to express their opinion, have a number of advantages, and the right of direct orders by the finance ministry is rarely used. Whatever functions are assigned to the Central Bank, it is always a regulatory body that combines the features of a bank and a government department.
Of fundamental importance is the limitation of the government's ability to use the funds of the Central Bank. In many countries, direct lending to the government is practically absent (in the USA, Canada, Japan, Great Britain, Sweden, Switzerland) or is legally restricted (in Germany, France, the Netherlands).
Traditionally, the central bank performs four main functions: carries out a monopoly issue of banknotes, is a bank of banks, a banker of the government, conducts monetary regulation and banking supervision.
Methods the monetary policies of the central bank are varied. The most widely used:
- - change in interest rates at which the central bank provides loans to commercial banks (official discount rate, refinancing rates, pawn rates);
- - changes in the norms of banks' required reserves;
- - operations on the open market, i.e. operations on the purchase and sale of government bonds, bills of exchange and other securities;
- - the policy of foreign exchange intervention, that is, the purchase and sale of foreign currency.
These methods of monetary regulation can be called common, since they affect the operations of all commercial banks and the loan capital market as a whole.
In addition, can also be applied selective (selective) methods aimed at regulating certain forms of credit (for example, consumer credit) or lending to various industries (housing construction, export trade). Sampling methods include:
- - direct limitation of the size of bank loans for individual banks or loans (the so-called "credit ceilings");
- - regulation of the conditions for the issuance of specific types of loans, in particular the establishment of a margin, that is, the difference between the amount of collateral and the size of the loan issued, the difference between rates on deposits and rates on loans.
The central bank acts as the main regulator of the country's payment system. It organizes interbank settlements, coordinates and regulates the organization of settlement (including clearing) systems, and serves as the settlement center of the banking system.
The main areas of supervision and control of the central bank over commercial include: the issuance of licenses to carry out banking activities, to conduct certain types operations (currency, securities, precious metals); verification and analysis financial statements bank-provided field audits; establishment of systems of economic standards, control over their observance.
The Central Bank is the currency control body, the conductor of the state currency policy. It determines the regime of the exchange rate of the national currency and regulates it, conducts operations to manage official gold and foreign exchange reserves, regulates international settlements, the balance of payments, controls the movement of currency both within the country and abroad, takes part in the development of the forecast and organizes the compilation 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 credit institutions, represents the country in these organizations.
All functions of the central bank are interrelated. While lending to commercial banks, he simultaneously creates instruments of credit for circulation; carrying out the issue and repayment of government obligations, affects the level of loan interest. This determines the special position that the central bank occupies in the banking system, and creates objective preconditions for its performance of the most important function - the function of monetary regulation.
The status, goals, 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 stability of the ruble.
In accordance with Art. 3 of the Law on the Central Bank, the main objectives of the Bank of Russia are:
- - protection and stability of the ruble;
- - development and strengthening of the banking system of the Russian Federation;
- - ensuring the efficient and uninterrupted functioning of the payment system.
The implementation of these goals is carried out by the Bank of Russia independently of the state authorities (Article 75 of the Constitution of the Russian Federation, Article 5 of the Law on the Central Bank). Making a profit is not included in the objectives of the Bank of Russia.
The principle of independence - a key element of the status of the Central Bank of the Russian Federation - is manifested primarily in the fact that the Bank of Russia is not included in the structure of federal government bodies and acts as a special institution that has the exclusive right to issue money and organize money circulation. The independence of the Bank of Russia status is reflected in Art. 1, 2 and 5 of the Central Bank Law. 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. The powers to own, use and dispose of the property of the Bank of Russia are exercised by the Bank of Russia itself; seizure and encumbrance of the property of the Bank of Russia without its consent is not allowed. The financial independence of the Central Bank of the Russian Federation is also expressed in the fact that it carries out its expenses at the expense of its own income and is not registered with the tax authorities.
The state is not liable for the obligations of the Bank of Russia, as well as the Bank of Russia - for the obligations of the state, if they have not assumed such obligations. In accordance with Art. 5 of the Law on the Central Bank federal bodies government authorities, government bodies of the constituent entities of the Russian Federation and local government bodies have no right to interfere with the activities of the Bank of Russia. In cases of such interference, the Bank of Russia informs the State Duma of the Russian Federation and the President of the Russian Federation about it. In addition, the Bank of Russia has the right to defend its status and powers in court.
The Bank of Russia is accountable to the State Duma of the Russian Federation, which appoints and dismisses the Chairman of the Bank of Russia (on the proposal of the President of the Russian Federation) and members of the Board of Directors of the Bank of Russia, and also appoints the auditor of the Bank of Russia and approves the annual report of the Central Bank of the Russian Federation and the auditor's report.
The Central Bank of the Russian Federation is a single centralized system with a vertical management structure. The system includes: the central office, regional offices, cash settlement centers, computing centers, field institutions and educational institutions, storage facilities, as well as other enterprises, institutions and organizations, including security units, necessary for the successful operation of the Bank.
The national banks of the republics that are part of the Russian Federation are regional offices of the Bank of Russia. They have no status legal entity and do not have the right to make decisions of a regulatory nature, as well as issue guarantees and sureties, promissory notes and other obligations without the permission of the Board of Directors of the Bank of Russia. The tasks and functions of the regional offices of the Bank of Russia are determined by the Regulations on these institutions approved by the Board of Directors.
The supreme body of the Bank of Russia is the Board of Directors. It is a collegial body that determines the main directions of the Bank of Russia activities and manages it. The Board of Directors includes the Chairman of the Bank of Russia and 12 members of the Board, which are approved by the State Duma of the Russian Federation on the proposal of the Chairman of the Bank. He is also the 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 staffing of the central office of the Bank of Russia, as well as the charters of its structural divisions.
The powers of the Board of Directors include changing the rates for centralized loans, reserve standards, economic standards; determination of the conditions for admitting foreign capital into the banking system of the Russian Federation; other decisions on issues of great importance both for the Bank of Russia and for the banking system and the country's economy as a whole.
Along with the Board of Directors, the National Banking Council functions. It includes representatives of the Presidential Administration of the Russian Federation, representatives of the highest legislative and executive bodies and experts. The total number of the Council does not exceed 15 people. Members of the council are approved by the State Duma of the Russian Federation on the proposal of the Chairman of the Bank of Russia.
The Council regularly, at least once a quarter, discusses the concept of development of the banking system and issues of a unified state monetary policy, including regulation of monetary resources. The recommendations of the Council are taken into account when the Federal Assembly of the Russian Federation considers legislative acts on banking issues, and are also taken into account when preparing decisions of the Board of Directors of the Bank of Russia.
Monetary circulation is regulated 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, by issuing loans, increase the total mass of money in circulation. Credit restriction entails limiting the ability of commercial banks to issue loans and thereby saturate the economy with money.
The instruments of credit expansion or restriction are the discount rate of the Central Bank of the Russian Federation and some non-economic measures. The official discount rate (refinancing rate) is the interest on loans used by the Central Bank of the Russian Federation for lending to commercial banks.
Determining the size of the discount rate is one of the most important aspects of monetary policy, and a change in the discount rate is an indicator of changes in the field of monetary regulation. The size of the discount 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 ease the monetary policy or tighten it, it lowers or increases the discount (interest) rate.
During 1991-1997. the discount rate has been repeatedly revised in the range from 10 to 200% per annum, depending on economic situation in the country.
Commercial banks receive loans from the Central Bank of the Russian Federation in the order of refinancing and rediscounting of bills. The Bank of Russia regulates the total volume of loans issued by it in accordance with the adopted guidelines of the unified state monetary policy, using the discount rate as an instrument. Since January 21, 2000, the discount rate has been 45%. Over the period from 2000 to 2011, it decreased more than 20 times, and since May 2011 it has been 8.25%.
An increase in official rates reduces the ability of commercial banks to obtain resources for lending. This affects the contraction of the money supply. The decline in the official discount rate works in the opposite direction.
The Bank of the Russian Federation can set one or several interest rates for various types of transactions or conduct interest rate policy without fixing the interest rate. The interest rates of the Central Bank of the Russian Federation represent the minimum rates at which it conducts its operations. The CBR uses interest rate policy to influence market interest rates in order to strengthen the ruble.
The main functions of the Bank of Russia are enshrined in the Law on the Central Bank (Article 4). Bank of Russia:
- - in cooperation with the Government of the Russian Federation, develops and implements a unified state monetary policy;
- - Monopolistically issues cash and organizes cash circulation;
- - is the lender of last resort for credit institutions, organizes their financing system;
- - establishes the rules for making settlements in the Russian Federation;
- - establishes the rules for conducting banking operations;
- - carries out maintenance of accounts of budgets of all levels of the budgetary system of the Russian Federation and state social extra-budgetary funds;
- - carries out effective management of the gold and foreign exchange reserves of the Bank of Russia;
- - decides on state registration of credit institutions, issues licenses to credit institutions for banking activities, suspends and revokes them;
- - supervises the activities of credit institutions;
- - registers the issue of securities by credit institutions in accordance with federal laws;
- - carries out, independently or on behalf of the Government of the Russian Federation, all types of banking operations necessary to perform the functions of the Bank of Russia;
- - organizes and implements currency regulation and currency control in accordance with the legislation of the Russian Federation;
- - determines the procedure for making settlements with international organizations, foreign states, as well as with legal entities and individuals;
- - establishes accounting rules for the banking system of the Russian Federation;
- - establishes and publishes the official exchange rates of foreign currencies in relation to the ruble;
- - takes part in the development of the forecast of the balance of payments of the Russian Federation and organizes the compilation of the balance of payments of the Russian Federation;
- - establishes the procedure and conditions for the implementation by currency exchanges of activities to organize transactions for the purchase and sale of foreign currency, issues, suspension and revocation of permits for currency exchanges to organize transactions for the purchase and sale of foreign currency;
- - conducts analysis and forecasting of the state of the economy of the Russian Federation as a whole and by region, primarily monetary, monetary, financial and price relations; publishes relevant materials and statistics, 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. Ratios of required reserves deposited with 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 in the vault of banks, or in the form of deposits with the Central Bank of the Russian Federation, or in other highly liquid forms determined by the Central Bank of the Russian Federation.
The reserve requirement ratio is a statutory percentage of the amount of minimum reserves to the absolute (volume) or relative (increment) indicators of passive operations (deposits) or active operations (credit investments). The use of standards can have both a total nature of the impact - setting to the entire amount of obligations or loans, and selective - to a certain part of them.
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 monetary policy, but also assists commercial banks in maintaining their liquidity at the required level, i.e., the ability to timely fulfill their obligations to customers, both legal entities and individuals.
Open market operations mean the purchase and sale of securities of treasury bills, government securities, bonds of the Bank of Russia. The Government of the Russian Federation represented by the Ministry of Finance of Russia is the issuer of government securities.
The Central Bank of the Russian Federation acts as the main dealer and service agent public debt... Securities transactions are carried out by more than 50 official dealers, which are commercial banks.
3. Refinancing of credit institutions.
Bank refinancing refers to the provision of loans to commercial banks by the Central Bank of the Russian Federation. The forms, procedure and conditions for refinancing are established by the Bank of Russia. Refinancing can be carried out by providing a lombard loan, a loan secured by bills of exchange and other types of loans.
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