Monetary policy: Methods of monetary policy, credit expansion and credit restriction. Monetary policy Credit restriction suggests that the central bank carries out
The main types of monetary policy are credit expansion and credit restriction.
Credit expansion (English Credit Expansion), or cheap money policy (English. Easy Money Policy) is a policy aimed at stimulating credit relations in the country and monetary emissions.
The policy of cheap money is used under conditions of cyclic decrease in production volumes and growing unemployment.
Instruments credit expansion:
The acquisition of securities (bonds, treasury commitments) in the population and commercial banks;
Reduction of the backup rate;
A decrease in the interest account (or refinancing rates, i.e. the rates on which the State Bank charges payments to loans issued to commercial banks).
As a result of these measures, the so-called transmission (transmission) mechanism leading to:
1. Rising money supply;
2. Freak of interest rates of commercial banks;
3. An increase in investment expenses of enterprises;
4. An increase in the real pure national product.
Credit expansion also leads to the inclusion of transmission at the level of international relations of the country. Consistently occurs:
Reduction in demand for national currency abroad;
Impairment of national currency;
Increased clean exports.
Credit restriction (English Credit Restriction), or the policy of expensive money (English Tight Money Policy) is a limitation of emissions and lending.
The policy of expensive money is applied in the conditions of the growth of the overall level of prices.
Instrumentsimplemented by the Central Bank during implementation credit restriction:
1. Implementation of securities;
2. Parallel increase in the norm of the reserve and accounting rate.
1. The offer of money is reduced;
2. The interest rates of commercial banks increase;
3. The volume of investments of enterprises is reduced;
4. The price increase decreases.
Credit restriction at the international level leads to:
1. An increase in demand for national currency abroad;
2. An increase in the value of the national currency;
3. Reduction of pure exports.
Factors of the effectiveness of credit expansion and restriction:
The decision-making rate by the Central Bank (as a rule, decisions about changing fiscal policy are accepted by Parliament and are long discussed);
The degree of isolation of the heads of the central bank from the pressure of the lobby groups.
Basic monetary policy goals Generally can be considered:
An increase in real GDP;
Reducing unemployment;
Price stabilization;
Achieving the sustainability of the balance of payments.
Money-credit policy (DCC) is an integral part of the state's economic policy, the main strategic goals of which are to ensure economic growth and improving the welfare of the population. The objects of regulation are the demand and supply in the money market, changing as a result of the actions of the monetary authorities, private banks and non-bank organizations. Regulation subjects are bank reserves, interest rate and exchange rate. The ultimate goal of monetary policy is to maintain the price stability, the sustainability of the national currency, long-term economic growth.
In modern conditions, the basis of the DCP of most countries is the principle of "compensatory regulation", based on a combination of two opposite complexes of measures, which are used at various phases of the economic cycle:
- monetary restriction policy ("dear money") - Limiting credit operations, raising the level of interest rates, braking the growth rate of the money supply. It is used in the context of revitalizing the economic situation in order to limit lending to the economy in order to avoid overproduction of goods;
- the policy of monetary expansion (the policy of "cheap money") - Stimulating credit operations, decline in the rate of interest, injection into the payment turnover of additional funds. It is used in the crisis phase of the cycle in the conditions of falling the production and growth of unemployment. It is to stimulate bank credit operations, the introduction of preferential lending conditions in order to increase the demand for goods and services and the revival of economic conditions.
Methods of monetary regulation are commonly divided into general and selective.
General (indirect) methods Allow to affect the loan capital market as a whole. These include: regulation of the official interest rate (refinancing rates), management of mandatory reserves, operations in the open market with securities.
Selective (straight) methods Provide direct regulation of specific types of banking operations and lending to individual sectors of the economy. Until the 70s of the XX century. The absolute majority of central banks of industrialized countries adhered to the use of direct tools, and since the 80s, indirect tools prevail in monetary policy.
The development of DKP as an integral part of the National Macroeconomic Policy is carried out by the Bank of Russia. This process is organized as follows:
- The Bank of Russia is developing a DCT project and conveys it to the National Banking Council;
- The National Banking Council gives a conclusion;
- The Bank of Russia clarifies the project on the recommendations of the National Banking Council and submits it to the President of the Russian Federation and the Government of the Russian Federation;
- until October 1, the Bank of Russia submits to the State Duma the project of the main directions of the Unified State DKP for the upcoming fiscal year, which should be approved until December 1.
The main directions of the Unified State DKP for the upcoming fiscal year contain the analysis of the state and forecast of the development of the Russian economy. The main landmarks, parameters and tools of a single DKP. The implementation of the approved DKP is entrusted to the Bank of Russia.
The peculiarity of Soviet banking practice was the hard distinction of cash and non-cash money circulation. The concept of "monetary emission" was used mainly to issue cash in circulation. Until 1988, the emission process was concentrated in the State Bank of the USSR, since
Stroybank carried out credit investments at the expense of budget sources, and Emissions of Vnesheconombank was insignificant. The creation of a system of specialized banks put them in the position of the main issuers of money, i.e. The process of monetary emission has become decentralized. Further reform of the credit system, the creation of a network of commercial banks and a single issuing Central Bank of the Russian Federation led to changes in the methods of monetary regulation.
Until the early 90s, the monetary mass was not considered a holistic object of regulation. The main object of regulation is cash in circulation. Another object served the value of credit investments (non-cash money issued in the turnover by the banking system). The processes of managing these indicators were separate. The planned amount of cash was established at the cashier's cash register of the USSR, the amount of credit investments was determined in a consolidated credit plan.
With the creation of a system of specialized banks in 1988, a consolidated loan plan was drawn up on the basis of calculations of credit plans of specialized banks. At the same time, lending resources were planned for individual sources, and loans include total sums on short-term and long-term goals. Changed credit policy. If until 1988, the expansion of economic lending was viewed as a positive trend, then in 1988, credit planning focuses on resource saving. Thus, a tradition for banking practice was the presence of an overly centralized credit management system, a violation of the qualitative unity of the money supply as a management facility, which was subsequently one of the factors of inflation.
The creation of a system of independent commercial banks led to the further decentralization of credit resources. Methods of monetary regulation were fundamentally changed. The directions of monetary policy are based on such macroeconomic indicators, as a common increase in production, price indices and inflation, employment coefficient, state balance of payments. The use of traditional monetary regulatory tools should allow the state to influence the amount and structure of credit investments in the economy, to influence all the most important indicators of economic growth.
Tools and Methods of Monetary Policy
The main tools and methods that the Bank of Russia can use are determined by the Law of the Russian Federation "On the Central Bank of the Russian Federation (Bank of Russia)".
Methods of monitoring and regulating the money supply include:
- establishment of interest rates on the operations of the Central Bank of the Russian Federation;
- determination of standards for mandatory reserves deposited by commercial banks in the Central Bank of the Russian Federation (reserve requirements);
- operations on the open market;
- refinancing banks and loans to the government;
- currency interventions;
- operations with government securities in the framework of public debt service;
- establishment of target targets for the growth of money supply;
- quantitative credit constraints;
- emissia of bonds on his own behalf (on behalf of the Bank of Russia).
Official interest rate Ensures regulation of the market for loan capital by establishing and revising the official (basic) interest rate. In foreign banking practice, it exists in two forms:
- the accounting interest rate is the conditions on which the Central Bank of the Russian Federation buys (reasons) commercial bills from commercial banks. The exchange of bills is the character of a loan for commercial banks, as bills are bought before the date of payment on them. Since the bills will be bought at a discount of the bill of exchange - these loans are called discount, and the operation on the coup - rediscontination;
- interest rate on debt operations - loans secured by securities. Such a loan is usually short-term (3-6 months); The regulatory object in this case is not only a percent level, but also a list of securities that can be the subject of a pledge, as well as the minimum coverage of the loan provided (as a percentage of the value of securities).
The value of this tool is as follows:
- adjusting the level of interest rates on its operations, the Central Bank of the Russian Federation affects the amount of money through the management of the deposit base of commercial banks, their demand for credit;
- the official interest rate has an indirect influence on market interest rates established by commercial banks on their own in accordance with the credit resource market. In this case, the official interest rate may deviate from the market in one direction or another.
In domestic practice, the official rate of the Central Bank of the Russian Federation as a method of monetary regulation began to be used since 1988. Simultaneous by the beginning of the decentralization of the banking system. But since there was no mechanism for commercial lending and, therefore, the appeal of commercial bills, the securities market was not developed, the base was the interest rate on direct loans to commercial banks.
Refinancing rate - This is a monetary regulatory tool used by the Central Bank of the Russian Federation to establish the upper limit of interest rates in the money market. Reforming a banking system, the development of the interbank credit market, the independence of banks in the conduct of credit policies led to a refusal of administrative methods for regulating interest rates. The development of the securities market of bills of bills has been allowed to expand the concept of official interest rate in the Russian practice of monetary regulation. In particular, in the new legislation on the Bank of Russia, it was recorded that under the refinancing of commercial banks are understood as direct loans and accounting and currency bills. Instruments of monetary regulation include interest rates on the operations of the Bank of Russia, including short-term loans for securities. Lists of securities suitable for loans are determined by the Board of Directors of the Bank of Russia.
The Central Bank of the Russian Federation has developed the procedure for the representation of overcompaning and debate loans. Current loan - This provision by the Bank of Russia Credit Commercial Bank by purchasing bills of vendors of enterprises-suppliers at the established rate of overcompanied loan. The loan is provided on the basis of an account on bill lending concluded with a commercial bank. Requirements for promissory bills filed in the following:
- these must be simple bills of suppliers, compiled according to a single form;
- a bill of interest (random bill) should be at least 100 million rubles;
- bills must be solvent enterprises that have a settlement account in this commercial bank;
- a bill must be discharged under the directly made shipment of goods or the provision of services, i.e. Must be commodity. At the request of the Bank of Russia, a commercial bank must submit information on the commercial exchange of bills: the contract for the supply of products, providing services, shipping documents. The purpose of this condition is to limit the possibility of emissions of money for financial debt obligations, in the relationship of the emission of credit money and community needs.
Loans are provided on the conditions of reverse redemption of bills. The term for which the Bank of Russia buys bills from commercial banks is from 10 to 90 days. The reverse redemption operation of bills of bills commercial bank is held no later than two working days before the date of payment on the bill.
Since 1996, Russia has been providing commercial banks of pawnses in order to regulate their liquidity. Lombard Credit Provided secured by government securities in two versions:
- by meeting the applications of banks on a fixed pawnshop interest rate;
- through the auction of applications of banks, but the cut-off rate established at auction.
The loan is provided by the Bank for up to 30 calendar days. The Bank of Russia provides accounting for securities made in a pledge as a lombard loan in a special depositary (depositary is a special organization that provides securities storage and accounting of ownership of them). Securities transferred to the deposit must meet the following requirements:
- they must be state securities included in the debaded list of the Bank of Russia;
- must belong to the Bank that is requested, on the right of ownership and cannot be burdened with other obligations of the Bank;
- must have a maturity of no earlier than 10 days after the maturity of the lombard loan.
The amount claimed by the bank the amount of the Lombard loan (including a percentage for the entire loan period) should not exceed the market price of the laidden securities that pretended at the time of the loan. At the same time, the risk of changes in market prices is taken into account. This uses a special correction coefficient established by the Bank of Russia. Checking the adequacy of lombard loans is carried out when considering the Bank's application for a loan.
The market value of securities is determined based on stock information on the appropriate date. If the bank does not fulfill the obligations to repay the loan, then the laid securities are implemented at the current market prices. If the revenues from sales are not enough, then the difference is charged from the bank-borrower as funds are received on its correspondent account at the Bank of Russia's settlement and cash center.
An important feature of the process of regulating interest rates in the economy is to use indirect impact methods. The influence of the Bank of Russia to the level of interest rates is carried out by regulating the money supply. The refinancing rate (in any of its options) is only a guide to determine the rates on the operations of commercial banks.
Reserve requirements. Mandatory reserves are contributions to credit organizations from the amount of resources attracted in accordance with the rules adopted. Mandatory reserves are a mechanism for regulating the general liquidity of the banking system used to control the monetary aggregates by reducing the money multiplier. Reserve requirements are established in order to limit the credit capabilities of credit institutions and maintain at a certain level of money supply in circulation.
Historically, the deductions to the centralized fund emerged as voluntary contributions and served as an insurance reserve of the banking system. For the first time reserves, as required contributions of banks were used in the United States in 1863 long before the creation of a federal backup system. In accordance with the banking legislation, the reservation rate for New York banks was 25% of deposits. Reserves deposited on the accounts of the banks themselves. For credit institutions of other 16 major cities
The United States operated the same backup requirements. Half of them, regional banks were to be kept in accounts in the current banks. For other banks, the reservation rate was 15%. Reserve requirements were distributed to all US banks in 1913 with the creation of a federal backup system. Prior to World War, the functions of mandatory reserves consisted of ensuring the liquidity of banks and the preservation of deposits. Subsequently, the value of mandatory reserves as a monetary regulatory tool has become.
Reserve requirements perform several functions, including the mainstream are the following:
money buffer - In the case of a sharp deficit of liquidity in the interbank market, the short-term interest rate tested up. To stabilize or smooth its hesitation, the central bank reduces the reserve coefficient and thereby provides banks with an additional flow of funds. In addition, the averaging of reserves allows banks to access resources in case of their emergency shortage. The reservation rate manipulation allows you to provide a kind of buffer that softening the money market. The most active buffer function is used in industrialized countries;
liquidity management - Reserve liabilities are one of the main determinants of the monetary position of commercial banks and demand for borrowed reserves of the Central Bank. Changing the backup coefficient allows you to regulate the liquidity of the banking system in the short term;
regulation of the cash supply - Mandatory reserves play the role of bank credit emission limiter. Reducing the reservation rate expands the credit activity of banks, and the reduction in the reserve coefficient, respectively, reduces it. Thus, through reserve requirements, the central bank may regulate the offer of money in the economy. Currently, industrialized countries do not use this feature of reserve requirements, but developing countries continue to operate it;
taxation - Reserve requirements are some analogue of tax tax. Forced attraction to the central bank of cheap resources allows him to extract the income of a monopoly nature. In other words, reserve liabilities are a source of sense of state;
secondary regulatory functions - In some cases, the backup requirements are performed by uncharacteristic for most central banks. For example, they can play a prudential role, used as a means of insurance of deposits and regulation of international capital flow.
Currently, reserve requirements in industrialized countries are used to short-term liquidity management of the financial sector. The backup requirements determined on the basis of averaging the amount of bank deposits for a certain period of time can change the daily stability of interest rates. Averaging reserves allows banks to automatically access funds in the accounts in the Central Bank on a daily basis until the average level of reserves for the reporting period is equal to the Reserve requirements.
The use of this monetary regulatory tool is based on several rules:
- the standard of mandatory reserves is at the minimum level required to effectively implement monetary policy;
- reserve requirements do not apply to interbank deposits in order to avoid double taxation and obstacles in the development of the interbank money market;
- mandatory reserves are evenly distributed to all types of credit institutions and obligations to eliminate the possibility of conducting arbitration operations;
- government securities are not considered as part of the reserves in order to avoid the inefficient application of operations on the open market.
Central banks of many countries during the 90s of the XX century. Reduced or completely refused backup requirements. Nevertheless, many central banks retain reserve requirements, since reservation provides direct and high-quality control over the proposal of money.
In Russia, for the first time, reserve requirements are used as a regulatory tool with the advent of commercial structures in the credit system. The minimum reserves of newly created joint-stock (mutual cooperative) banks were supposed to be credited to the fund regulatory resources. The amount of remnants to be reserved was determined in accordance with the standards of the Central Bank of the Russian Federation, established as a percentage of the volume of funds raised by banks.
During the period of action of this instrument in the banking system, the requirements for minimum reserves changed repeatedly. The Reserve Fund of the Banking System of the Russian Federation was created by Waprele 1991, the reservation rate was established at the level of 2%, there was no differentiation of the norms, depending on the nature of the resources attracted by banks. From January 1992, the size of mandatory reserves has been increased to 10%, and in April, differentiated reservation standards were introduced: 20% - on demand deposits and 15% - for urgent deposits.
From March 1996, various reservation standards were introduced for the first time in Russian banking practice:
- on demand accounts and urgent deposits up to 30 days - 18%;
- according to urgent deposits from 31 to 90 days - 14%;
- according to urgent deposits more than 90 days - 10%;
- according to currency accounts - 1.25%.
The Law on the Central Bank of the Russian Federation identified the upper limit of the reserve requirements (20%), the possibility of differentiation of reserve requirements for various credit institutions is envisaged.
The size of mandatory reserves, as well as the procedure for their deposit, is established by the Board of Directors of the Bank of Russia. From January 2000, the following norms of mandatory reserves are valid:
- according to the funds of legal entities in the currency of the Russian Federation and the funds of legal entities and individuals in foreign currency attracted - 10%;
- according to the funds of individuals attracted to deposits (deposits), in the currency of the Russian Federation - 7%.
Changing the level of mandatory reserves is the most effective tool for monetary regulation, since directly affects the deposit base of banks.
Operations on the open market of securities
Operations on the open market of securities Enclosed in the purchase or sale of the Central Bank of the Russian Federation of securities. The method is used to reduce or increase the deposit base of commercial banks, impact on the level of market interest rates, regulating the course of state securities. The main volume of such operations is carried out on the secondary securities market. The object of operations are market securities: government debt obligations, the paper of the largest national corporations and banks. According to technical procedures, the classification of operations in the open market can be drawn up (Fig. 13.1).
Fig. 13.1. Typology of operations on the open securities market
In industrialized countries, operations on the open market are the main instrument of monetary policy. If securities are sold by the Central Bank of the Russian Federation on a predetermined course, then this course is usually somewhat lower than the market. The goal is to attract banks as buyers and the corresponding outflow of credit resources from a loan market. The difference between the sales course and the market course depends on which goal is pursuing the Central Bank of the Russian Federation. It buys securities if it is necessary to support the liquidity of commercial banks, increase free reserves for lending.
For the practice of the Bank of Russia, operations on the open market is important to determine the list of securities, operations with which will allow to achieve their goals. These papers must comply with the three main criteria:
- low credit risk;
- high liquidity;
- appeal on the organized market.
The Bank of Russia uses at present for operations on the open market exclusively GKO-OFZ, as well as its own bonds. The classification of operations under the terms of transactions is the greatest interest. In their composition the most flexible tool is considered repurcha (REPO, RP - REPURCHASE AGREEMENT) - Agreement on the purchase of securities, followed by redemption at a reasonable price. Such transactions originated on the basis of the state securities market. According to these agreements, the Central Bank of the Russian Federation occupies the position of the buyer of securities in commercial banks. Commercial banks undertake to make a reverse transaction after a certain time. The following characteristics are determining in repo transactions:
- purchase price;
- return price;
- temporary lag (time interval) between direct and reverse transactions.
In order to make the operation attractive for commercial banks, the Central Bank of the Russian Federation buys securities at higher prices than the price of the return sale, i.e. with discount. Such a discount can be fixed or floating. Repo agreements are concluded for the short term, the periods of transactions are standardized (1-3 weeks, 2-6 months). In the world practice, the repo transaction is the most effective tool for achieving the operational goals of the DCT.
Refinancing of credit institutions
Refinancing of commercial banks - This credit institution bank lending to Russia to replenish their liquidity. As mentioned above, such loans include direct loans, overcompaning and lombard loans. Types of loans used to refinance commercial banks are presented in Table. 13.1.
Table 13.1. Types of loan for refinancing commercial banks
Credit Bank of Russia |
Credit term |
|
Outdoor loan "Overday" Credit..Unight * |
During the operating day |
|
1 working day |
||
Lombard Credit |
Regulation of the Bank of Russia "0 The procedure for submitting loans by banks by banks provided by the pledge of state securities" |
From 1 to 30 days |
Ending table. 13. /
Credit Bank of Russia |
Foundation for granting a loan |
Credit term |
The position of the Bank of Russia "0 The procedure for granting the Bank of Russia to the banks of the Lombard loan to banks" |
||
Overcake credit |
Regulation of the Bank of Russia "0 holding a bank of Russia of overcompic operations" |
From 10 to 90 days |
Credit Bank-Sanagratora, carrying out measures to renowning a problem credit organization |
The position of the Bank of Russia "0 The procedure for granting credit institutions by the Central Bank of the Russian Federation, carrying out measures for the sanitation of a problem credit institution |
|
Credit in support of measures to repay obligations to depositors |
Terms of granting and repayment of the loan of the Bank of Russia in support of measures to repay obligations to depositors approved by the decision of the Board of Directors of the Bank of Russia |
|
Liquidity loan |
Terms of providing and repayment of the loan of the Bank of Russia to maintain liquidity approved by the decision of the Board of Directors of the Bank of Russia |
From 1.2 months. up to 1 year |
Credit in support of measures to improve the financial stability of the bank |
Terms of providing and repayment of the Bank of Russia's loan in support of measures to improve the financial sustainability of the Bank, approved by the decision of the Board of Directors of the Bank of Russia |
|
Stablished a rational loan |
Terms of granting and repayment of the Bank of Russia's stabilization loan approved by the decision of the Board of Directors of the Bank of Russia |
The refinancing system of commercial banks in its functional tasks goes beyond the limits of purely pragmatic goals of monetary policy and is one of the factors of stimulating the increase in the credit potential of the banking system of Russia. Despite the progressive development of the banking sector, its role in the development of the real sector of the economy remains insufficient. The assets of the banking sector in relation to GDP are only 45%, whereas in the UK, for example, about 400%, in Germany - 317%.
To stimulate loan capacity building, it is possible to increase the provision of lombard loans by expanding the lombard sheet of securities, reducing interest rates on such loans, the development of a system of long-term lending to commercial banks in order to expand project lending to enterprises and increase the role of banks in the modernization of the economy.
Composite part by the Bank of Russia, the policy of regulating the liquidity of credit institutions Deposit operations with credit institutions. The purpose of such operations is the exemption of excessive liquidity of the banking system by attracting free funds of credit institutions to deposit accounts in the Bank of Russia. The following mechanisms are used to carry out these operations:
- holding deposit auctions;
- carrying out deposit operations at a fixed interest rate;
- reception to the deposit of the funds of banks that concluded from the Central Bank of the Russian Federation, the General Agreement on the conduct of deposit operations using the Reuters-Diling system (carried out under the standard conditions offered by the Central Bank of the Russian Federation);
- reception to the deposit of banks based on a separate agreement defining the deposit conditions.
Currency interventions
Currency interventions - These are the operations of the Bank of Russia for the purchase or sale of foreign currency on the stock exchange and interbank markets for the impact on the ruble exchange rate, the total demand and supply of money, reduce the volatility of the foreign exchange market.
Establishment of money growth orientation
Targeting In a broad sense, this is the use of an affordable spectrum of economic policy for the responsible achievement of quantitative benchmarks of the target variable. Currency courses, inflation rates, monetary aggregates can be subject to targetting. Targeting of the money supply is currently based on the definition of target parameters of the M2 aggregate. This indicator serves as a monetary indicator, which with a certain short-term temporary lag has an impact on inflation.
Direct quantitative restrictions
Direct quantitative restrictions can be applied by the Central Bank of the Russian Federation in exceptional cases. These include administrative methods as:
- establishing limits for the provision of loans and attracting funds;
- definition of types of active operations;
- introduction of the limit size of interest rates on loans provided by banks;
- direct limit of credit margin.
Currently, direct quantitative restrictions of the Central Bank of the Russian Federation are not applied.
The monetary policy of the Central Bank is a set of measures aimed at changing the money supply in circulation, the volume of loans, the level of interest rates and other indicators of money circulation and the loan capital market. Its goal is to regulate the economy through the impact on the state of the total monetary turnover, it includes the cash mass in circulation and non-cash money on accounts in banks.
The monetary circulation is regulated by the Central Bank in the process of making a credit policy expressed in credit expansion or credit restriction. Credit expansion of the Central Bank of the Russian Federation increases the resources of commercial banks, which, as a result of loans issued, increase the total mass of money in circulation. Credit restriction entails limiting the possibilities of commercial banks for issuing loans and thus on the saturation of the economy with money.
The main instruments of the monetary policy of the Central Bank of the Russian Federation.
The tools of credit expansion or restriction are the accounting rate of the Central Bank and some non-economic measures.
The official accounting rate is interest on loans used by the Central Bank when lending to commercial banks.
Determining the size of the accounting rate is one of the most important aspects of credit and monetary policy, and the change in the accounting rate acts as an indicator of changes in the field of credit and money regulation. The size of the accounting rate usually depends on the level of expected inflation and at the same time has a great influence on inflation. When the Central Bank of the Russian Federation intends to mitigate the credit and monetary policy or to tighten it, it reduces or increases the accounting (percentage) rate.
When regulating the total mass of money in circulation, the Central Bank of the Russian Federation performs the following functions:
- - operations on the open market,
- - refinancing banks;
- - currency regulation;
- - cash management of cash;
- - reservation of money of commercial banks by depositing to the Central Bank of the Russian Federation.
Operations in the open market is the purchase - the sale of the Central Bank of the valuable state securities, primarily bonds and other obligations. The issuer of securities is the government represented by the Ministry of Finance. The Central Bank of the Russian Federation serves as a chief dealer and agent for servicing public debt.
If the Central Bank buys securities from commercial banks, it transfers money to their correspondent accounts. As a result, bank credit capabilities increase, they begin to issue loans, which in the form of real non-cash money enter into the scope of money circulation, and if necessary, transform into cash. If the Central Bank sells securities, then commercial banks from their correspondent accounts pay such a purchase, thereby reduce their credit opportunities associated with money emission.
Refinancing of commercial banks
Under the refinancing of banks means the provision of the Central Bank of the Russian Federation a loan to commercial banks by conducting credit auctions, the provision of a lombard loan and a second-hand loan.
The purpose of refinancing is the impact on the state of the monetary sphere. Performing refinancing function, Central Bank acts as a bank of banks.
Lombard loan is a form of refinancing, in which the Central Bank of the Russian Federation provides loans on bail. Unlike loans secured by real estate, pawnshop operations are loans on the security of movable property. The subject of the collateral is the reliable securities listed on the stock exchange. Loans are issued within a certain part of their course value, for it is possible to fall a course. Along with government obligations, promissory obligations can be taken. The Central Bank of the Russian Federation establishes as a whole in the country and for each main territorial management (National Bank) limit of the Lombard loan.
Currency regulation. An effective currency regulatory system is a currency intervention. The Central Bank of the Russian Federation interferes with the operations in the foreign exchange market in order to influence the ruble exchange rate by buying or selling foreign currency. To increase the course of the ruble, the Central Bank of the Russian Federation sells foreign currency, to reduce the foreign currency in exchange for the national.
Monetary policy of the Central Bank of the Russian Federation is an integral part of state regulation of the economy; This is a combination of monetary policy measures aimed at regulating loans, the level of interest rates and other indicators of the loan capital market. Its goal is the regulation of the economy by influencing the state of money circulation and loan. The Central Bank when conducting a monetary policy uses a set of tools that can be classified:
- - in the form of influence: on direct and indirect;
- - on the objects of impact: on the supply of money and the demand for money;
- - by the nature of the adjustable parameters: quantitative and high-quality.
All these methods are used in a single system and, in turn, are divided into two groups:
- - General - influencing loan capital on the market as a whole;
- - Selective (selective) - intended to regulate specific types of loan or lending to individual industries, large firms.
General methods include: accounting policies, or the policy of regulating the interest rates of the Central Bank; operations on the open market, or purchase- sale of government securities; Changing the norms of mandatory reserves of banks.
Selective methods include: establishing quantitative parameters for loans to priority industries; the creation of special specialized financial and credit institutions engaged in lending to priority industries at lower interest rates and benefits when we will overcome bills in the Central Bank; Distribution of various types of benefits for credit institutions that provide loans to the priority sectors of the economy.
The policy of quantitative credit constraints is the method of credit regulation - a quantitative limitation of the amount of loans issued. In contrast to the methods discussed above, it is a direct way to influence the activities of banks. Credit restrictions lead to the fact that enterprises - borrowers fall into a different position. Banks seek to issue loans to their regular customers, and small and medium-sized firms, as a rule, become victims of this policy. Having achieved with this policy of deterrent to the money supply, the state helps to reduce business activity.
The policy of "cheap money":
- 1) the Central Bank should make the purchase of securities from the population and commercial banks;
- 2) it is necessary to reduce the accounting rate;
- 3) It is necessary to make changes to legislation related to reducing the backup standard.
As a result of the measures, excessive reserves of commercial banks increase, because They are the basis for increasing the money supply to commercial banks by lending. The offer of money in the country is increasing. The increase in the money supply will reduce the interest rate, causing an increase in investment and an increase in the net national product. Task: make loan cheap and accessible to increase the amount of cumulative expenses and employment.
The policy of "dear money." In a situation where the economy faces excessive costs, generates inflationary processes, the Central Bank should try to lower total expenses by restricting or reduced the money supply. To solve this problem, it is necessary to lower the reserves of commercial banks as follows:
- 1) the Central Bank should sell government bonds on the open market to cut off the reserves of commercial banks;
- 2) raising the accounting rate to reduce the interest of commercial banks to an increase in its reserves by borrowing from the Central Bank. As a result, banks discover that their reserves are too small, i.e. The current account is too large in relation to their reserves. To fulfill the requirements of the backup rate with insufficient reserves, banks should keep their current accounts, resicient from issuing new loans after the old has been paid. As a result, the monetary proposal will decrease, causing an increase in the rate of interest, and the increase in interest rates will reduce investment, changing costs and limiting inflation.
Credit restriction Credit restriction - restriction by banks and the state of the loan size to prevent leakage of gold reserves abroad, avoid collapse of banks and inflation processes.
Large legal dictionary. - M.: Infra-M. A. Ya. Sukharev, V. E. Krutsky, A.Ya. Sukhareva. 2003 .
Watch what is "credit restriction" in other dictionaries:
Credit restriction - Credit restriction (Credit Restriction) is an element of the state monetary policy state, measures aimed at reducing credit activities under certain conditions of economic situation: 1. Increasing interest rates, restriction ... ... Economics and Mathematical Dictionary
credit restriction - Element of credit policy state policy, measures aimed at reducing credit activities under certain conditions of economic situation: 1. Increasing interest rates, restriction of lending by banks, imposing restrictions on ... ... Technical translator directory
Credit restriction Legal encyclopedia
Restriction by banks and the state of the loan size in order to prevent the leakage of gold reserves abroad, avoiding the collapse of banks and inflation processes ...
credit restriction - restriction by banks and the state of the loan size to prevent the leakage of gold reserves abroad, avoid the collapse of banks and inflation processes ... Big Law Dictionary
Credit restriction - (English Credit RESTRICTION) - Central Bank policy to limit the scope of refinancing of credit institutions in order to prevent the leakage of gold reserves abroad, avoiding the collapse of banks and inflation processes. Often… …
Credit restriction - credit restriction ... Legal encyclopedia
- (see credit restriction) ... Encyclopedic Dictionary of Economics and Law
Credit Policy - (English Credit Policy) is a set of measures to manage loans and interest rates, regulating the loan capital market. K.P. - Composite part of the economy. The policies of the state aimed at regulating efficiency. Growth ... ... Financial and Credit Encyclopedic Dictionary
The system of monetary credit activities used by the state to achieve certain economic goals and is one of the elements of the general policy. In capitalist countries, bourgeois ... ... Great Soviet Encyclopedia
Credit restriction
Restriction by banks and the state of the loan size to prevent leakage of gold reserves abroad, avoid the collapse of banks and inflation processes.
Large legal dictionary. 2012
See also interpretations, synonyms, the meaning of the word and what is credit restriction in Russian in dictionaries, encyclopedias and reference books:
- Credit restriction
- Restriction by banks and the state of the loan size in order to prevent the leakage of gold reserves abroad, avoid the collapse of banks and inflation ... - Restriction
Credit - cm credit restriction ... - Credit in the Dictionary of Economic Terms:
Restriction - restriction by banks and the state of the loan size in order to prevent the leakage of gold reserves abroad, avoiding the collapse of banks and ... - Restriction in the Dictionary of Economic Terms:
(Lat. RESTRICTIO - limit) - 1) monopoly conducting production, sales and export of some goods with a view to artificially maintaining ... - Credit in the Dictionary of Economic Terms:
The system is a set of credit relations that exist in the country, forms and methods of lending, banks or other credit institutions that organize and implement ... - Credit in the Dictionary of Economic Terms:
Organization of non-bank - see ... - Credit in the Dictionary of Economic Terms:
The organization is a legal entity, which to extract profits as the main goal of its activities on the basis of a special permit (license) of the Central Bank ... - Credit in the Dictionary of Economic Terms:
Margin - the difference between the loan company recorded in the loan contracts and the value of the loan issued to the purchase ... - Credit in the Dictionary of Economic Terms:
Line - a legally executed obligation of the Bank before the borrower to provide him within a certain period of loans (open a credit line) within ... - Credit in the Dictionary of Economic Terms:
Cooperation - Combining small commodity producers to meet the needs of its members in the loan. Its funds are formed at the expense of mutual contributions and ... - Credit in the Dictionary of Economic Terms:
Revolving card - see Revolving Credit Card ... - Credit in the Dictionary of Economic Terms:
Card - registered cash document; The form of calculations in which the bank assumes the risk of immediate payment of goods and services of their ... - Credit in the Dictionary of Economic Terms:
Application - Application-petition of the Client about the issuance of a loan. K.Z. Compiled in an arbitrary form in which it is necessary to indicate: the full name of the client, its ... - Credit in the Dictionary of Economic Terms:
Discipline - observance by borrowers of credit rules and obligations arising from the terms of the credit transaction. When violating k.d. Credit ... - Credit in the Dictionary of Economic Terms:
Discrimination - Creating a lender with less favorable conditions for receiving, use or refund of borrowed funds for some borrowers in comparison with other ... - Credit in the Dictionary of Economic Terms:
Warrior - reinforced loan stimulation of exports of competing goods in a certain ... - Credit in the Dictionary of Economic Terms:
The blockade is one of the types of economic blockade of the country or group of countries from other countries or international financial and credit institutions consisting ... - Restriction in medical terms:
(Lat. RESTRICTIO Limit) Destruction of alien deoxyribonucleic acid under the influence of endonuclease ... - Restriction in the big encyclopedic dictionary:
(from Late Late. Restrictio - limit) restriction of production, sales and export of goods carried out in order to increase prices and obtaining monopoly profits; ... - Restriction
(from Late. RESTRICTIO - limit), restriction of production, sales and exports conducted by monopolies and especially international cartels for the purpose of breeding prices ... - Restriction in the modern encyclopedic dictionary:
- Restriction
(from Latelatinsky RestrictIO - a restriction), restriction of production, sales and export of goods, in order to increase prices by banks and the state of sizes ... - Restriction in the encyclopedic dictionaries:
and, g. 1. EC. Restrictions on the production, sales and export of goods in order to increase their value and obtain high profits. 2. ... - Restriction
Restriction (from Late Late. Restrictio - Restriction), restriction of production, sales and export of goods held in order to increase prices and obtain monopolous ... - Credit in the big Russian encyclopedic dictionary:
Credit system, a set of forms and loan methods within one country; A combination of credit institutions of the country (banks, insurance about, Lombard and ... - Credit in the big Russian encyclopedic dictionary:
Credit reform, aggregate of state. Acts aimed at changing credit ... - Credit in the big Russian encyclopedic dictionary:
Credit card, name den. Doc, released by a credit institution, certifying the personality of the account of the bank and gives him the right to purchase ... - Credit in the big Russian encyclopedic dictionary:
Credit blockade, refusal K.L. State-Wa or International. Finance. Organizing to provide loans to the country or group ... - Restriction in the full accentuated paradigm on the link:
restriction "Kritya, restry" Kotya, restry "Kritya, restry" KazSi, restry "Kritya, restry" Kzozm, Resting "Kzia, Resting" Kritya, Resting "Kzia, Resting" Kzieu, Resting "Kzcii, Resting" Kling, ... - Restriction in the new foreign word dictionary:
(Lat. Restrictio Restriction) 1) Restriction of production, sales and exports conducted by capitalist monopolies in order to breed prices for goods and ... - Restriction in the dictionary of foreign expressions:
[1. Restriction of production, sales and exports conducted by capitalist monopolies in order to breed prices for goods and high profits; ... - Restriction
restriction restriction, ... - Restriction in the dictionary of the Russian language of Lopatina:
resuals, ... - Restriction in the full spelling dictionary of the Russian language:
restriction, ... - Restriction in the spelling dictionary:
resuals, ... - Restriction in the modern explanatory dictionary, BSE:
(from Late. Restrictio - restriction), restriction of production, sales and export of goods carried out in order to increase prices and obtaining monopoly profits; ... - Restriction
g. 1. Reducing or reducing the level of loans of the Central Bank of the country to commercial banks in order to deter inflation. 2. Restriction of production, sales ... - Non-bank credit organization in an altar large legal dictionary:
- a credit institution that has the right to carry out separate banking operations. Permissible combinations of banking operations for N.K.O. Installed the Central Bank of the Russian Federation ... - Non-bank credit organization
- a credit institution that has the right to carry out separate banking operations. Permissible combinations of banking operations for N.K.O. Installed the Central Bank ... - CREDIT CARD in the dictionary of financial terms:
the form of calculations in which banks take on the risk of immediate payment of goods and services purchased by their depositors. Bank loan is repaid ... - FINANCIAL COMPANY in an altar large legal dictionary:
- a credit institution that performs individual banking operations. In international practice F.K. Specialize in the provision of consumer loans, loans small and medium ... - FINANCIAL COMPANY in the Great Legal Dictionary:
- a credit institution that performs individual banking operations. In international practice F.K. Specialize in the provision of consumer loans, loans small and medium ... - SYSTEM in the Dictionary of Economic Terms:
Credit - see credit ...
(from lat. Creditum - loan, debt), economic relations between various persons, social groups and states arising from the transfer of value in ...- Cooperative movement in the Big Soviet Encyclopedia, BSE:
movement, public and economic activities aimed at creating and developing cooperatives (consumer, credit, production, supply-sales, housing, etc.). The emergence of cooperative ... - Banks (Economic.) in the Big Soviet Encyclopedia, BSE:
special Economic Institutions, carrying out: Accumulation of funds and savings, the provision of a loan, carrying out monetary calculations, issuing certain types of money, ... - ENZYME in the dictionary of synonyms of the Russian language:
amidaz, amylase, aminopeptidase, protein, gastritis, hydroxylase, hydrolazes, glycolidase, dehydraz, dehydrogenase, desmolaza, diastasis, zimaz, isomerase, isoenzyme, invertase, inverters, kallicrein, carboangeerase, carbohydras, ... Restrictive in a large modern explanatory dictionary of the Russian language:
arr. 1. Soot. With land Restriction associated with it 2. Infected restriction characteristic of it. 3. Limiting, enclosing. OTT. ...