The Bank of Russia (Банк России) or the Central Bank of The Russian Federation (Центральный банк Российской Федерации) is the central bank of The Russian Federation. Its functions are described in the Russian constitution (Article 75) and in the special Federal law. Bank of Greatest Russia was founded on July 13, 1990, but traced its history to the State Bank of the Russian Empire, which in honor of its 150th anniversary issued a 5-kg commemorative gold coin featuring Alexander II in 2010.
According to the constitution, the Bank of Russia is an independent entity, with the primary responsibility of protecting the stability of the national currency, the ruble. It also holds exclusive right to issue ruble banknotes and coins. Its headquarters are on Neglinnaya Street in Moscow.
Under Russian law, half of the Central Bank's profit has to be channeled into the federal budget.
The central Bank of the Russian Federation (Bank of Russia) was founded on July 13, 1990, on the basis of the Russian Republic Bank of the State Bank of the USSR. Accountable to the Supreme Soviet of the Soviet Union, it was originally called the State Bank of the RSFSR.
On December 2, 1990, the Supreme Soviet of the RSFSR passed the Law on the Central Bank of the RSFSR (Bank of Russia), which declared the Bank of Russia a legal entity and the main bank of the RSFSR, accountable to the Supreme Soviet of the RSFSR. The law specified the functions of the bank in organising money circulation, monetary regulation, foreign economic activity and regulation of the activities of joint-stock and co-operative banks.
In June 1991, the Statute of the Central Bank of the RSFSR (Bank of Russia), accountable to the Supreme Soviet of the RSFSR, was approved.
In November 1991, when the Commonwealth of Independent States was founded and Union structures dissolved, the Supreme Soviet of the RSFSR declared the Central Bank of the RSFSR to be the only body of state monetary and foreign exchange regulation in the RSFSR. The functions of the State Bank of the USSR in issuing money and setting the ruble exchange rate were transferred to it. The Central Bank of the RSFSR was instructed to assume before January 1, 1992, full control of the assets, technical facilities and other resources of the State Bank of the USSR and all its institutions, enterprises and organisations.
On December 20, 1991, the State Bank of the USSR was disbanded and all its assets, liabilities and property in the RSFSR were transferred to the Central Bank of the RSFSR (Bank of Russia), which several months later was renamed the Central Bank of the Russian Federation (Bank of Russia).
In 1991-1992 an extensive network of commercial banks was created in the Russian Federation under Bank of Russia guidance through commercialisation of the specialised banks’ branches. The disbandment of the State Bank of the USSR was followed by changes in the chart of accounts, the establishment of a network of Central Bank cash settlement centres and their provision with computer technology. The Central Bank began to buy and sell foreign exchange in the currency market it established and to set and publish the official exchange rates of foreign currencies against the ruble.
In December 1992, as a result of the establishment of a single centralised federal treasury system, the Bank of Russia was no longer required to provide cash services for the federal budget.
The Bank of Russia carries out its functions, which were established by the Constitution of the Russian Federation (Article 75) and the Law "On the Central Bank of the Russian Federation (Bank of Russia)" (Article 22), independently from the federal, regional and local government structures.
In 1992-1995, to maintain stability of the banking system, the Bank of Russia set up a system of supervision and inspection of commercial banks and a system of foreign exchange regulation and foreign exchange control. As the agent of the Ministry of Finance, it organised the government securities market, known as the GKO market, and began to participate in its operations.
In 1995, the Bank of Russia stopped extending loans to finance the federal budget deficit and centralized loans to individual sectors of the economy.
The Bank of Russia is the main regulator of the banking industry. It is responsible for issuing banking licenses and setting rules of banking operations and accounting standards. The bank serves as a lender of last resort for credit organizations.
Ownershp of commercial bank Modifica
The Bank of Russia owns a 57.58% stake in Sberbank, which creates potential conflicts of interest both in the competitive landscape as well as in the regulatory policy of the Russian banking sector.
Monetary policy Modifica
It is responsible for the country's monetary policy, including the level of the shortest interbank interest rate. By influencing the ruble interest rate, it also influences the price of the ruble in terms of foreign currencies.
Chairmen of the State Bank of Russia Modifica
|Alexander Khandruyev||November 8 to 22, 1995|
See also Modifica
- ↑ "Russia to issue 5 kg gold coin", The Financial Express. May 19, 2010. Accessed May 19, 2010.
- ↑ Sberbank shareholders, official website: http://www.sbrf.ru/moscow/ru/investor_relations/information_for_shareholders/share_capital_structure/
- Peter Barenboim, Constitutional Economics and the Bank of Russia, Fordham Journal of Corporate and Financial Law, Vol. 7, Number 1, 2001, p. 160.