Central Bank of Russia (Central Bank, CBRF)

Central Bank of Russia (Central Bank of Russia, Bank of Russia, CBR) - is the most powerful center of Russia's credit system. It plays one of the key roles in the national economy. At the moment, the actions of the Bank of Russia are becoming increasingly important. Stability and further growth of the economy, as well as strengthening of the national position at the international level depend on the efficiency of its functions and correctness of the chosen methods.

History of the emergence of the Central Bank of Russia

The banking and credit system in Russia dates back to 1733, when the Monetary Office, opened by decree of Peter the Great, was reorganized into the Monetary Chancellery, whose functions included issuing loans at 8% per annum and pledging gold and silver.

A striking characteristic of the initial banking period (1733-1860) was the monopoly of the state. At first, a system of state-owned banks was established, and only after that - commercial banks of private ownership. The banks' functions included mortgage lending and, later, deposit operations.

After the Crimean War, due to the crisis of the banking system, the state banks were abolished and their funds were transferred to the State Bank of the Russian Empire, which was reestablished on May 31, 1860. Its functions were to accept deposits. Buying and selling gold and silver, accounting and lending operations and lending to industry. Later, the functions of the State Bank of Russia were expanded and it was transferred to the Ministry of Finance.

By the end of 1898, as a result of the monetary reform, 100% gold backing of the bulk of banknotes was introduced. Also, ForTrader.org recalls, the State Bank of Russia was granted the exclusive right to issue money.

After the 1917 revolution, a state monopoly was imposed on the banking system.

The Gosbank of the USSR, which existed in the Soviet Union, was abolished on December 20, 1992, its functions and resources were transferred to the Central Bank of the RSFSR, which became the only body of state monetary and currency regulation in Russia. A few months later, the Central Bank of the RSFSR was named the Central Bank of the Russian Federation or the Bank of Russia.

In the Russian banking system, the Central Bank is the principal bank and lender of last resort. The Bank of Russia is owned by the state.

Functions of the Central Bank of Russia

The Bank of Russia is established and operates under the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", which clearly defines federal ownership of the authorized capital and other property of the CBR. The highest body of the Central Bank of Russia is the Board of Directors. It is a collegial body, whose functions include determining the main directions of the Central Bank's activities, exercising leadership and management of the regulator. The Board of Directors consists of 12 members and is chaired by the Governor of the Bank of Russia.

The Chairman of the Bank of Russia and members of the Board of Directors are nominated by the President of the Russian Federation and approved by the State Duma for a four-year term. Annually, no later than May 15, the CBR submits an annual report to the State Duma, which is approved by the Board of Directors.

As a state organization specially established to perform management functions, the Central Bank of Russia has three statutory objectives:

• protection and sustainability rubleincluding its purchasing power and exchange rate against foreign currencies;
• development and strengthening of the banking system of the Russian Federation;
• ensuring efficient and uninterrupted functioning of the settlement system.

Functions and powers granted to To the Central Bank of Russia to achieve these goals, make it a body monetary authorityThe Bank is the regulator of the banking system and the settlement center of the banking system.

Useful links about the Central Bank of the Russian Federation

• Official website of the Central Bank of Russia: cbr.ru
• Interest rate of the Central Bank of the Russian Federation
• On the monetary policy of the Bank of Russia
• National currency of Russia: Russian ruble