Directions and printsypy of the Russian banking system

The current credit system - a combination of a variety of financial institutions operating in the market and offering loan capital accumulation and mobilization of revenues, consisting of several institutional units or tiers:
Central Bank.
Banking Sector:
commercial banks;
savings banks;
mortgage banks.
Insurance sector:
insurance companies;
pension funds.
Specialized non-bank credit institutions.
 The main part of the credit system serves the banking system, which presupposes a set of banking institutions.

 Currently, typical for the Russian banking system are the following trends:
Dominated by small and medium-sized banks.
The form of ownership of banks can be divided into shares, stock, and mixed.
Most of the banks still are concentrated in the central region.
The number of branches, representative offices, both in Russia and abroad.
For the Russian Federation is characterized by universal banks, little-developed network of specialized banks, such as mortgages.
The main purpose of the banking system lending to the economy performs in the face of the three economic agents - people, businesses and government. In this regard, the domestic banking system is far behind the West. Crediting of the population is engaged almost exclusively Savings Bank. Lending to companies is a relatively small place in the operations of commercial banks.
In the structure of passive operations occupy the bulk of ruble deposits of the population and legal entities.
 Gradually improving, the banking system of Russia is increasingly starting to become a developed system, not only externally but also essentially of operations. The network of branches, representative offices both domestically and abroad, increasing the network of non-bank credit institutions.
The Central Bank of Russian Federation (Bank of Russia)
 Some functions of the central bank (the monopoly issue credit cards, "bank of banks") in Russia first began to perform set up in 1860 the Bank of Russia. He was directly under the Minister of Finance and, along with the functions of the central bank acted as a commercial bank. After the nationalization of commercial banks in 1917 and the merger with State Bank of Russia the latter was renamed the People's Bank of the RSFSR and transferred to the Commissariat. In 1920 the People's Bank of the RSFSR was abolished and the right to issue money transferred to the People's Commissariat.
 In 1921 was created by the State Bank of the RSFSR, which in 1923 was transformed into the USSR State Bank, located directly under the Government.
 State Bank of the USSR to the banking reform in 1987 was the single issue, credit, and cash settlement center of the country, carrying out, in contrast to the central banks of industrialized countries, the functions inherent in both the central and commercial, investment, savings and other banks. Since 1988, the functions of credit and cash management services of the national economy were transferred to state specialized banks. State Bank of the USSR carried out an exclusive issue of cash management centrally planned monetary system, control of all main activities of the specialized state banks, the organization of settlements between them and the cash execution of budget.
 At the same time remained a state monopoly of banking and the centralization of strict credit control. State Bank of the USSR developed a consolidated loan plans and resource allocation, and loan investments for banks, set size limits the interest rate of specialized banks, took part in the composition of objects credit conditions for the issuance and repayment of loans, the measures of credit exposure to borrowers.
 The Central Bank of the Russian Federation was created after finding it on the basis of the sovereignty of the State Bank was originally in the form of the State Bank of the RSFSR, which in December 1990 was renamed the Central Bank of the RSFSR (Bank of Russia), and in April 1995 - The Central Bank of Russian Federation (Bank of Russia).
 The legal status, functions, principles of organization and operation of the Central Bank of Russian Federation (Bank of Russia) are defined by the Constitution of the Russian Federation, Federal Law of April 26, 1995 "On Amendments and Additions to the RSFSR Law" On Central Bank of the RSFSR (Bank of Russia) ", as well as Federal Law of February 3, 1996 "On Amendments and Additions to the RSFSR Law" On Banks and Banking Activity in the RSFSR. "
 Share capital and other assets of the Bank of Russia (CBR CBR) is federal property. However, although the Bank of Russia is a state-owned bank, it is independent in its activities by the Government. CBR - a legal entity is not registered with tax authorities, carries out its costs from its own revenues, is not responsible for the obligations of the state and the state is not liable for the obligations of the bank. Normative acts issued by the Central Bank are required of public authorities of the Russian Federation and its subjects, local government, all businesses and individuals. Draft federal laws, normative acts of federal executive bodies concerning the implementation of the functions of the Bank of Russia, should be directed to its conclusion.
 CBR reports solely to the State Duma of Federal Assembly of Russian Federation. The State Duma of the President shall designate a term of four years the President and members of the supreme body of the Bank of Russia - the Board of Directors considers the annual report of the Central Bank and the auditor determines the audit firm to audit the bank, hears reports of the Chairman of the Central Bank of twice a year, when presenting the annual Report and guidelines for the single state monetary policy.
 At the same time the Central Bank is closely connected with the Government. He participates in the development of economic policy of the Government of the Russian Federation. Chairman of the bike or one of his deputies involved in the meetings of the Government. Minister of Finance and Economy Minister, or their alternates attend meetings of the Board of Directors of the Bank of Russia in an advisory capacity. CBR and the Russian Government inform each other about the alleged actions of national importance, co-ordinate their policies, hold regular consultations. In particular, the Central Bank advises the Ministry of Finance on the release schedule of government securities and public debt, taking into account their impact on the banking system and the priorities of the single state monetary policy.
 When the Bank of Russia established the National Banking Council, which includes representatives of the Federal Assembly, President of the Russian Government, the Bank of Russia, as well as Finance Minister and Minister of Economy, representatives of lending institutions and experts. Chairman of the Board is the Chairman of the CBR. The National Banking Board regularly reviews the concept of improving the banking system, the draft guidelines for the single state monetary policy, the policy of foreign exchange regulation, the most important issues of regulation of credit institutions, provides the expertise of draft laws and other regulations in the field of banking.

 The Bank of Russia forms a single centralized system with a vertical management structure. The system comprises the Bank's central office, regional branches, settlement and cash centers, computer centers, field agencies, educational institutions and other enterprises, institutions and organizations, including the security forces, necessary for the implementation of CBR. National Bank of Belarus are territorial agencies CBR. The regional branches of the bank does not have legal personality and have no right to take decisions which are of a normative character, as well as to issue guarantees and warranties, promissory notes and other obligations without the permission of the Board of Directors.
 Leadership and management of the Bank of Russia performs its supreme body - the Board of Directors. This is a collegiate body CBR Chairman and 12 members working at the Bank of Russia on a permanent basis. The Board of Directors shall develop, in cooperation with the Government guidelines for the single state monetary policy, establishes prudential standards and reserve requirements for credit institutions, decisions about changing interest rates, the Bank of Russia, sets limits on the open market operations, the conditions for admission of foreign capital into the banking system Russia, the volume of production and withdrawal of cash from circulation.
 The main objectives, functions and operations of the CBR. The Federal Law "On Central Bank of Russian Federation (Bank of Russia)" from April 26, 1995 identifies three main objectives of its activities. Their achievement is accomplished by performing the functions of the Bank of Russia.
 The first objective - to protect and ensure the stability of the ruble, including its purchasing power and exchange rate against foreign currencies. Bank of Russia is the sole issuer of cash (notes and coins) and arrange for their treatment. In contrast to industrialized countries, the share of cash in Russia is very high - about 37% of the money supply, and therefore the emission function of the CBR is particularly important. Monitoring the growth of the monetary base in the broad definition, more than 70% of which consists of cash in circulation, is an essential component of the Bank of Russia regulation of money supply. To protect and ensure the stability of the ruble aims pursued by the Bank of Russia unified state monetary policy. Annually, not later than December 1 CBR is in the State Duma of the main directions for the coming year. In the directions given by the analysis of the status and forecast of development of Russian economy, the basic guidelines, parameters, and instruments of monetary policy.
 On the basis of the main directions of monetary policy, the Bank of Russia establishes benchmarks of growth of one or more indicators of money supply at a level to provide the economy with money in an amount corresponding to the formal implementation of defined objectives for inflation and the production of real GDP.
 To achieve the set targets of monetary policy, the Bank of Russia may use different tools: changing reserve requirements deposited with the Central Bank (reserve requirements), changes in interest rates on its operations, open market operations, foreign exchange regulation. In exceptional cases and only after consultation with the Government of the Central Bank may apply the credits direct quantitative restrictions (such as limits on the refinancing of banks, credit institutions to carry out certain banking operations).
 Just as central banks in most countries, the Bank of Russia with 1991 uses an instrument of monetary policy, as changes in reserve requirements. In April 1991 they were set at 2% for all types of deposits, in the first half of 1992, reserve requirements were increased dramatically, and establish different rates for demand deposits (20%) and term deposits (15%) . Further differentiation of regulations occurred in 1995 in subsequent years, rates of reserve requirements repeatedly changed both upward and downward, etc.
 An important tool of monetary policy is a change in interest rates on Bank of Russia. Since 1993, the CBR refinancing rate unchanged at least several times a year, and during certain periods at an interval of one - two weeks. The maximum level of the refinancing rate in 1991 reached 20% in 1992 - 80% in 1993 - 210%. From May 1995 until November 1997 the rate was reduced 13-fold, reaching 21%. In November 1997 she was again raised to 28%. After August 1998 the refinancing rate was gradually reduced, and in 2008 reached 10%.
 In addition to the CBR refinancing rate sets the rate on Lombard loans, transactions such as repo and deposit operations. Interest Rates Bank of Russia are minimum rates at which it operates.
 The rapid development of the government securities market in Russia in 1993 - 1995 years. paved the way for the active use of open market operations to influence the liquidity of the banking and the monetary base. So, buying a CBR of government securities from commercial banks has made a significant contribution to overcoming the crisis, interbank credit market in August 1995 Since 1995, the Bank of Russia on the secondary market of GKO-OFZ market was the main determining growth of the monetary base. Suffice it to say that at the end of 1995 these operations were connected about 80% of the growth of the monetary base (broad definition), at the end of 1996 - about 82%, and in the middle of 1997 - 135% compared with 1% in early 1995 with August 1998 the volume of transactions on the open market fell sharply as a result of the restructuring of debt on government securities with maturities up to December 31, 1999
 An important direction of monetary policy the Bank of Russia - the monetary policy. Central Bank of Russia is actively using the exchange rate as an instrument of monetary control and inflation. Buying and selling U.S. dollars for rubles, the Central Bank has an impact both on the volume of ruble mass and the exchange rate of the ruble.
 Of great importance for the stability of the ruble exchange rate has a definition of his regime. In the 1990's. Bank of Russia has several times changed its exchange rate regime. Until mid-1992 CBR fixed the various courses of individual transactions (the regime of multiple exchange rates) in July 1992 was introduced by the regime of "floating" exchange rate, official rate was set at the rate MMBV (Tuesday and Thursday). Since mid-1995 sets limits on the CBR exchange rate in the form of "currency corridor". The introduction of the regime "currency corridor" allowed, firstly, to reduce currency risks, largely determine the level and dynamics of inflation expectations, and, secondly, to combine the advantages of flexibility, "floating" exchange rate regime with the certainty of a fixed rate.
 It is no accident mode "currency corridor" referred to as a mode of "managed float" regime and a "soft commit". "Currency corridor" was set wide enough to ensure that the ratio of the real exchange rate movements of the market supply and demand for foreign currency (the lower boundary of the "corridor" was set at 4550 rubles., And the top - 5150 rubles. U.S. $ 1). Through this managed to avoid the heating of speculative expectations and simultaneously make the predictability of the dynamics of the ruble exchange rate to smooth the impact of sharp fluctuations in supply and demand for foreign currency.