Central banks and the basics of their activities. Central banks, the basics of their activities and functions Central banks and their activities

22.03.2022

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, playing the role of the main coordinating and regulating body of the entire credit system of the country, they act as state bodies of economic management.
Based on this, central banks perform the following main functions:

· monopoly issue banknotes;

· are a bank of banks; supervise the activities of banks;

· government banker;

· carry out monetary regulation;

· making calculations.

The issuing function of the central bank is the oldest and one of the most important functions. The central banks, as the representative of the state, are legally assigned an issuing monopoly only with respect to banknotes, that is, nationwide credit money, which are the universally recognized final means of repaying debt obligations. The monopoly on the issue of the national currency enables the central bank to control the liquidity of credit institutions.
The main clientele of the central bank are 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 have been placed by commercial banks with the central bank as a guarantee fund to pay off deposits.
The central bank exercises oversight by maintaining the required level of standardization and professionalism in the national credit system.
As the government's bank, the central bank must support the government's economic programs and place government securities, provide loans, and carry out 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 for 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. By lending to the state and banks, the central bank at the same time creates credit instruments of circulation, by issuing and repaying government obligations, and affects the level of loan interest.
These functions of the central bank can be reduced to the following main functions: regulatory, supervisory, and information and research.
Regulatory functions include: regulation of the money supply in circulation. This is achieved by reducing or expanding cash and non-cash issuance and pursuing a discount policy, a policy of minimum reserves, an open market, and a foreign exchange policy.
Controlling function closely related to regulation. The central bank obtains extensive information about the state of a particular bank when implementing, for example, a policy of minimum reserves or rediscounting. The controlling 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 and norms necessary for credit institutions and control over them.
All central banks have information and research function, that is, the function of a research, information and statistical center. In many countries, this feature is marked by law.
The central bank performs 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 banking resources.
Passive operations:

· emission;

· storage of cash reserves of credit institutions;

· storage of official gold and foreign exchange reserves of the country;

· required reserves of commercial banks;

· maintaining accounts of state bodies and the budget;

· accounts in settlements;

· accounts of foreign banks;

· bank capital and reserves.

Active operations:

o purchase of precious metals and foreign currency;

o funds on accounts, in deposits of foreign banks;

o cash on hand;

o lending to commercial banks;

o government loans;

o purchase of government securities;

o state 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. It is state-owned and is entrusted with the functions of general regulation of the activities of each commercial bank within the framework of a single monetary and credit system of the country. The Central Bank is called upon to bring their activities in line with the overall economic strategy and acts as a key agent of the state monetary policy, while the CBR uses primarily economic management methods and only in some cases administrative ones.
The principles of organization and activities 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, territorial offices, cash settlement centers, computer centers, field institutions, 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.
Governing bodies of the Bank of Russia
The supreme body of the Bank of Russia is the Board of Directors, a collegiate 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) considers and approves the estimate of expenses of the Bank of Russia for the next year, as well as 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 entry into economic circulation occurs through the replenishment of 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 turnovers of funds are concentrated in the Central Bank and its institutions.

The main objectives of the Central Bank of the Russian Federation:

1. Protecting and ensuring the stability of the 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 a lender of last resort, or 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 characteristic of the Central Bank:

1. emission and control of money circulation;

2. settlement and reserve center of banks;

3. public debt management and execution of the state budget;

4. acting as a “lender of last resort”;

5. establishment of reasonable limits and standards for the activities of banks, including the Central Bank's rate on loans;

6. determination of the priority goals of monetary and foreign exchange policy;

7. conducting scientific research;

8. determination of the legal framework and principles of functioning of credit and financial institutions, markets for short-term 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 source of his resources(passive operations) is:

1. the issue of banknotes, which is one of the main articles of the liability of its balance sheet;

2. balances of funds on reserve correspondent accounts of banks, accounts of government agencies and organizations;

3. capital and reserves of the bank.

Main tools and methods of the monetary policy of the Bank of Russia are:

1. interest rates on operations of the Bank of Russia;

2. norms of obligatory reserves of commercial banks;

3. open market operations;

4. refinancing of banks;

5. currency regulation;

6. setting benchmarks for money supply growth;

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 customers. 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 clients is commercial in nature. The main purpose of the functioning of commercial banks is to maximize profits.

According to banking legislation, a bank is a credit organization that has the right to raise 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 clients1. Thus, commercial banks carry out (should carry out) comprehensive customer service, which distinguishes them from special non-banking 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 for 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 of enterprises, organizations and the population at the expense of these attracted funds.

The economic basis of the bank's operations for the accumulation and placement of credit resources is the movement of funds as an objective process that influences the formation and use of loan values. By organizing this process, a commercial bank acts as a commercial enterprise that provides a profitable placement of 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 trends: the universalization and specialization of banking activities, emphasizing that with the specialization of banks, tendencies towards the universalization of their activities are increasing. Traditionally engaged in a greater degree of one or another range of operations, commercial banks invade related areas of activity. Consequently, the type of commercial bank (universal, sectoral, special purpose, regional, etc.) is determined, along with the content of its operations, 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 company

pania. Large institutions of banks carry out for their customers

goods, according to some estimates, up to 300 types of operations and services. To them

include: maintenance of deposit accounts, cashless transfers

funds, accepting savings, issuing various loans, buying and selling

sales of securities, proxy transactions, safekeeping of valuables

in safes, etc. Due to this, commercial banks constantly and

are inextricably linked by almost all links of reproduction

process.

The operations of a commercial bank are a concrete manifestation of banking functions in practice. According to Russian legislation, the main banking operations include the following:

Attraction of funds of legal entities and individuals in deposits on demand and for a certain period;

Providing loans on its own behalf at the expense of its own and borrowed funds;

Opening and maintaining accounts of individuals and legal entities;

Making settlements on behalf of clients, including correspondent banks;

Collection of funds, bills of exchange, payment and settlement documents and cash services for customers;

Management of funds under an agreement with the owner or manager of funds;

Purchase from legal entities and individuals and sale of foreign currency to them in cash and non-cash forms;

Carrying out transactions with precious metals in accordance with applicable law;

Issuance of bank guarantees.

From the point of view of ownership of capital, central banks can be divided into state, joint-stock, mixed.

State banks are banks whose capital belongs to the state.

Some central banks were originally created as state banks. For example, the German Federal Bank (Deutsche Bundesbank), established in 1957, like its predecessor, the Reichsbank (1875). One such central bank is the one established in 1860. State bank, which later became the central issuing bank of Russia. Other central banks were first private (such as the Bank of England (1694), Bank of France (1800) and then were Nationalized.

Joint-stock banks - banks whose capital was the contributions of the founders.

A prominent representative of joint-stock central banks is the US Federal Reserve System (FRS), established by the Federal Reserve Act in 1913. The capital of the Federal Reserve Banks is formed from shares of private commercial banks that become members of the FRS. Despite the joint-stock form of organization, the Fed is one of the most important government institutions, the leadership of which is appointed by the president of the country.

Mixed central banks are banks in whose capital, together with the state, the private sector participates.

Among the central banks of this group, for example, the Bank of Japan, founded in 1882. According to the Law of 1942, only 55% of the authorized capital of the bank belongs to the state

120. The concept of tasks and functions of the Central Bank and their development in modern conditions

Traditionally, the central bank has five main tasks. The Central Bank is intended to be:

The emission center of the country, i.е. enjoy the monopoly right to issue banknotes;

Bank of banks, i.e. transact not with commercial and industrial clients, but primarily with the banks of a given country: keep their cash reserves, the amount of which is established by law, provide them with loans (lender of last resort), exercise supervision, maintaining the necessary level of standardization and professionalism in the national credit system;

Government banker, for this he must support government economic programs and place government securities; provide loans and settlement operations for the government, hold (official) gold and foreign exchange reserves;

The main settlement center of the country, acting as an intermediary between other banks of the country when performing non-cash payments based on the offset of mutual claims and obligations (clearings);

The body regulating the economy by monetary methods.

The Central Bank performs the following main functions:

· exercises a legally fixed emission monopoly in relation to banknotes (nationwide credit money), which are generally recognized as the final means of repaying debt obligations;

· is a "bank of banks" (commercial banks are required to keep part of their cash reserves in the central bank, these reserves are mandatory). The Central Bank sets the minimum ratio of required reserves to banks' liabilities on liabilities;

is a banker of the government (accounts of the government and government departments are opened in it, sometimes the central bank carries out cash execution of the state budget);

· carry out monetary regulation and ensure the stability of the national currency. The management of the value of money occurs through the management of the money supply (volume of money). As instruments of monetary policy for managing the money supply, central banks are: the minimum reserve policy; discount and pawn policy; open market policy.

Bank of Russia:

· in cooperation with the Government of the Russian Federation develops and implements a unified state monetary policy aimed at ensuring the stability of the ruble;

· monopoly issues cash and organizes its circulation;

· is a lender of last resort for credit institutions, organizes a refinancing system;

establishes the rules for making settlements on the territory of the Russian Federation; conducting banking operations, accounting and reporting for the banking system;

· carry out state registration of credit institutions; issues and revokes licenses of credit organizations and organizations involved in their audit;

Carries out all types of banking operations;

· carries out currency control and currency regulation, including transactions for the purchase and sale of foreign currency;

determines the procedure for settlements with foreign states;

· takes part in the development of the forecast of the country's balance of payments and organizes its compilation;

· analyzes and forecasts the state of the country's economy, monetary and monetary and financial relations.

The main functions of the Bank of Russia are the licensing of banking activities, control over the activities of credit institutions, the implementation of currency regulation and currency control. Currently, the Bank of Russia is pursuing a strict policy of revoking banking licenses from credit institutions in the following cases:

Establishing the unreliability of the information on the basis of which the license was issued;

· delays in the commencement of banking operations provided for by the license for more than a year from the date of its issuance;

Establishing facts of unreliability of reporting data;

carrying out banking operations not provided for by the license;

· non-compliance with the requirements of federal laws, as well as regulations of the Bank of Russia;

unsatisfactory financial position of the credit institution, its failure to fulfill its obligations to depositors and creditors.
121. Methods and instruments of monetary policy and features of their application in Russia.

Monetary policy methods are a set of ways, instruments of influence of the subjects of monetary policy on the object of monetary policy in order to achieve the set goals.

The methods of carrying out day-to-day monetary policy are called tactical objectives of monetary policy. This impact is carried out with the help of appropriate tools.

The instrument of monetary policy is understood as a means, a way of influencing the Central Bank as a body of monetary regulation on the objects of monetary policy.

In the framework of monetary policy, direct and indirect methods are used.

Direct methods are in the nature of administrative measures in the form of various directives of the Central Bank regarding the volume of money supply and prices in the financial market. The implementation of these measures gives the most rapid effect in terms of the Central Bank's control over the price or the maximum volume of deposits and loans, especially in the context of an economic crisis.

Indirect Methods of Monetary Regulation Influence the Behavior of Economic Entities Using Market Mechanisms Naturally, the efficiency of using indirect methods is closely related to the level of development of the money market.

In world economic practice, the Central Bank uses the following main instruments of monetary policy:

Changes in the required reserve ratio or the so-called reserve requirements;

The interest rate policy of the Central Bank, i.e., changing the mechanism for borrowing funds by commercial banks from the Central Bank or depositing funds of commercial banks with the Central Bank;

Operations with government securities on the open market.

122. Modern ideas about the essence and functions of the bank.

It is advisable to consider the essence of the bank at the macro level in relation to the economy as a whole, including the whole variety of real activities of specific banks. A bank is first and foremost an enterprise producing a special, specific product. The bank, as a specific enterprise, produces a product that differs significantly from the product of the sphere of material production; it produces not just a commodity, but a commodity of a special kind in the form of money, means of payment. Money is a reproductive category; cash issued by the bank as the only monopolist in the total mass of reproduction subjects serves both the sphere of production and distribution, exchange and consumption.

The essence of the bank requires disclosure of its structure. The structure of the bank should not be confused with the structure of the bank management apparatus. The structure of a bank is understood as such a structure that enables it to function as a specific enterprise (institution). In this sense, the structure of a bank includes four mandatory blocks, without which it cannot exist and develop.

The first block includes bank capital as specific capital, freed from industrial and commercial capital, as capital that exists mainly in loan form and is only in motion.

The second block covers banking activity, which differs from the activities of other enterprises and institutions by the nature of its product, which has become its main occupation (unlike other entities that could only perform individual banking operations that did not become their main, fundamental business).

The third block consists of a special group of people with specific knowledge in the field of banking and bank management.

The fourth block can be called production, because it includes banking equipment, buildings, structures, means of communication and communication, internal and external information, certain types of production materials.

Taking into account the analysis of the specifics of the bank, its foundation and structure, the bank can be defined as an enterprise or a monetary institution that regulates the payment turnover in cash and non-cash forms.

123. The banking system of Russia and features of its modern development. Macroeconomic factors in the development of the banking system.

The development of the banking system is influenced by a number of macroeconomic and political factors. Among them are:

the degree of development of commodity-money relations;

social and economic order, its intended purpose and social orientation;

Legislative bases and acts;

· a general idea of the nature and role of the bank in the economy.

The degree of development of commodity-money relations, trade, money circulation predetermine both the scale and the content of banking activities. The formation of a brisk money and commodity turnover, the development of national markets, international trade are a prerequisite for the development of the banking system. The demand for banking services increases and expands as the scale of production and exchange between producers increases. Wars, natural disasters, protracted economic crises have a negative impact on the development of the banking system.

The social and economic order inevitably affects the nature of the banking system. If savings are not encouraged in society, distribution is preferred over commodity exchange, then banks will not receive impulses for development, moreover, in such conditions, the activities of banks may be curtailed. The development of banks is also influenced by the prohibitions of local authorities. Local lobbies can influence decisions on opening branches of other banks, for example, from neighboring regions.

The legislative framework also has a significant impact on the development of the banking system. Some countries prohibit certain banking transactions. For example, in the United States it is legally prohibited to issue bank guarantees. In a number of countries, banks are not allowed to engage in insurance. In accordance with the legislation in some countries, central banks can be widely involved in servicing the economy.

However, legislation can be not only prohibitive, but, on the contrary, promote the development of the banking system. Thus, in Russia, starting from 1987, a radical restructuring of the banking system began, a large number of commercial banks and non-banking institutions appeared, since the course taken by the government for market management of the economy required the restructuring of the entire banking system in the country.

The development of the banking system is also greatly influenced by general ideas about the nature and role of the bank in the economy. In the distribution system, the bank is perceived as a part of the state apparatus of management, a body of control and supervision over the activities of enterprises. A different position is occupied by banks in a market economy. The banking system acquires a two-level character, ownership of banks acquires features that are adequate to the diversity of forms of ownership in the economy, the system becomes more versatile, acquires more complete features, and offers society a wider range of operations and services.

The development of the banking system can be constrained by such factors as excessive tax pressure on bank profits, lack of sufficient resources for active banking operations, lack of qualified personnel, etc. In countries with economies in transition, it is often these factors that prevent banks from taking wider steps in its development.

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HUMANITIES UNIVERSITY

Topic: Central banks and the basics of their activities

Thing: Money, credit, banks.

Yekaterinburg

Introduction

Conclusion

Introduction

The Central Bank is 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 bank discount rate

Central banks occupy a special place, playing the role of the main coordinating and regulating body of the entire credit system of the country, they act as state bodies of economic management.

Central banks are the regulatory link in the banking system, therefore their activities are related to strengthening monetary circulation, protecting and ensuring the stability of the national currency and its exchange rate against foreign currencies: developing and strengthening the country's banking system: ensuring efficient and uninterrupted settlements.

Traditionally, the central bank has five main tasks. The Central Bank is intended to be:

* the emission center of the country, i.е. enjoy the monopoly right to issue banknotes;

* bank of banks, i.e. transact not with commercial and industrial clients, but primarily with the banks of a given country: keep their cash reserves, the amount of which is established by law, provide them with loans (lender of last resort), exercise supervision, maintaining the necessary level of standardization and professionalism in the national credit system;

* a government banker, for this he must support state economic programs and place government securities; provide loans and settlement operations for the government, hold (official) gold and foreign exchange reserves;

* the main settlement center of the country, acting as an intermediary between other banks in the country when performing non-cash payments based on the offset of mutual claims and obligations (clearings);

* the body regulating the economy by monetary methods.

An important role in the functioning of the banking system of the country is played by the nature of the implementation of supervision by the central bank.

When solving five tasks, the central bank performs three main functions: regulatory, supervisory, and information and research.

The effective functioning of the banking system is a necessary condition for the development of market relations, which objectively determines the key role of the central bank in regulating banking activities. The search for effective forms and methods of monetary regulation of the economy involves the study and generalization of the experience of countries with market economies accumulated in this area. The monetary policy pursued in these countries is one of the components of economic policy and makes it possible to combine macroeconomic impact with the rapid adjustment of regulatory measures, providing them with prompt and flexible support.

1. Essence and functions of central banks

1.1 The essence of central banks

In the early stages of the development of capitalism, there was no clear distinction between central (issuing) and commercial banks. Central banks in their modern form are relatively recent. Commercial banks actively resorted to issuing banknotes to accumulate capital. As the credit system developed, there was a process of centralization of bank emission in a few large commercial banks. The result of this process was the consolidation of a monopoly right to issue banknotes for one bank. At first, such a bank was called an issuing or national bank, and later - a central one, which corresponded to its dominant position in the credit system.

The first central bank - the Swedish "Riksbank" - was created in 1668, at the turn of the transition from feudalism to capitalism; in 1694, the Bank of England was established. However, they did not have the exclusive right to issue banknotes and their functions differed from the functions of modern central banks - for example, the Bank of England was initially supposed to finance trade and industry, and the Bank of the Netherlands - domestic and foreign trade. Central banks in their modern form arose in the 19th century. Currently, almost all countries of the world have central banks, but there are significant differences between them due to the peculiarities of the political and financial and economic development of the home countries.

Central banks are legal entities with a special status, the distinguishing feature of which is the isolation of the bank's property from the property of the state. Although formally this property is, as a rule, in state ownership, the central bank is vested with the right to dispose of it as an owner. In this, the central bank differs from the state bank, whose property is fully controlled by the state.

The legal status of the central banks of developed countries is enshrined in legal acts: laws on central banks and their charters, laws on banking and credit activities, in currency legislation. As a rule, the main legal act regulating the activities of the central bank is the Law on the Central Bank, which determines its organizational and legal status, functions, procedure for appointing senior management, relations with the state and the national banking system. This law establishes the powers of the central bank as the issuing institution of the country.

The central bank combines the individual features of a commercial banking institution and a government agency, with some power in the regulation of the credit system.

The Central Bank is usually created in the form of a joint stock company. As a rule, its capital belongs to the state (France, Great Britain, Germany, the Netherlands and Spain). If the state owns only part of the capital (Belgium, Japan) or the shareholders of the central bank are commercial banks (for example, in the USA) and other financial institutions (Italy), the state nevertheless plays a leading role in the formation of the central bank's governing bodies.

the central bank acts as an agent of the Ministry of Finance and the conductor of its monetary policy;

the central bank is independent of the government, which ensures its independence in conducting monetary policy without pressure from government bodies.

However, in reality, these models do not work in their pure form. In most countries, there is an intermediate model that uses the principles of interaction between the executive branch and the central bank, with a certain degree of its independence.

The legislation of only 5 countries - the USA, Germany, Switzerland, Sweden and Holland - provides for direct subordination of central banks to parliaments. In most states, central banks report to the treasury or the ministry of finance.

In the UK, France, Italy, Japan and some other developed countries, ministries of finance are authorized to issue instructions to central banks, but in practice such cases are quite rare. As a rule, consensus is reached at meetings of the government, unions of entrepreneurs and bankers and is reflected in the signing of joint statements by representatives of the Ministry of Finance and the Central Bank.

In case of disagreements between the Ministry of Finance and the Central Bank, only the administrative way of resolving them in the form of a parliamentary resolution or a government decision is possible. In countries where central banks are directly subordinate to parliaments, through legislative procedures, it is possible to make decisions obliging the executive bodies to assist central banks in achieving a particular monetary policy goal.

The legislation of a number of countries provides for the reporting of central banks to parliaments. Thus, the US Federal Reserve System (FRS) submits to the US Congress a report on its activities 2 times a year, and the central banks of Germany and Japan send reports to the parliaments of their countries annually.

1.2 Independence of central banks from the executive branch

Fulfillment of the main goal of its activity legally assigned to the central bank - ensuring price stability - presupposes the presence of a certain degree of its independence from the executive branch. Moreover, the independence of the central bank from the government implies its two forms: political and economic.

Political independence - this is the autonomy (independence) of the central bank in setting targets for the money supply;

Economic independence - independence of the central bank in the choice of monetary policy instruments.

The conditions for the political independence of the central bank are the determination of the procedure for appointing members of its governing body or the manager (president), the approval of the decision taken by the bank by the government and (or) parliament. Economic independence is expressed in the fact that the central bank is not obliged to automatically issue funds to the government to finance public spending and give preference to it in providing loans. In addition, for the economic independence of the central bank, the nature of its control over the credit system is important: the use of administrative (direct) non-market methods of control, involving government intervention in decision-making by the bank, infringes on the autonomy of the latter. Of course, in practice it is very difficult to determine the degree of political independence of a given central bank. However, with the help of some objective indicators of independence, such as the existence of formal organizational links between the central bank and the government (rules obliging the central bank to support fiscal policy), one can try to do this. One recent study of central bank independence using these indicators suggests a strong relationship between central bank political independence and low inflation.

The results of studies of this kind suggest that the independence of the central bank as a whole is determined by the following factors:

Independence from government bodies. This condition is mandatory. If the central bank is obliged to follow the instructions of government bodies, then it will not be able to maintain price stability, since it will be under pressure from the government;

Personal independence of members of the governing bodies of the central bank. The independence of the governing bodies of the central bank will be ensured if they are appointed for a sufficiently long term. If they are reappointed, there is a danger of diminishing their degree of personal independence;

The legal status of the bank, which is determined, in particular, by the possibility of amending the charter (law) of the central bank. The more difficult it is to amend the charter, the more securely the independence of the central bank is ensured.

An important factor determining the ability of the central bank to maintain price stability is the established relationship with government authorities. Regular contacts between representatives of the central bank and government authorities increase the degree of confidence of the latter in the actions of the central bank and contribute to the achievement of its main goal - ensuring price stability. Thus, this task can be facilitated by periodic reports of the central bank on its activities to parliament.

The degree of independence of the central bank from the executive branch varies from country to country. It is believed that the German central bank Bundesbank, whose independence is provided for in the Bundesbank Act (1957), has the greatest independence in conducting monetary policy. In carrying out its tasks, the Bundesbank is obliged to support the economic policy of the government, but does not depend on its instructions. The Bundesbank is obliged to act as an adviser to the government on the most important issues of monetary policy and provide it with the necessary information. At the same time, members of the government have the right to participate in the work of the Central Board of the Bundesbank, its collective governing body. They do not have the right to vote, but may propose issues for discussion in the Council and make proposals; at their request, the decision of the Council may be postponed for 2 weeks. The President of the Bundesbank may, if necessary, be summoned to meetings of the federal government.

When making decisions on monetary policy, the Bundesbank has full autonomy, which is possible as long as its actions do not run counter to the direction of the government's monetary policy.

The US Federal Reserve has a fairly high degree of independence from the executive branch - its decisions are not subject to ratification by the president or government agencies. At the same time, the Fed is responsible to the US Congress for its monetary policy. All appointments to the Board of Governors of the Fed, including appointments of the chairman and vice chairman from among the members of the Board, are made by the president with the consent of the Senate. With this in mind, and also taking into account the coordination of the policies pursued by the Fed and the government, this system can be characterized as "independent within the government."

One of the least independent central banks is the Bank of England. Relations between it and the state are regulated by the Law on the Bank of England (1946), on the basis of which the Bank became state. In accordance with this Act, the Treasury has the right to significantly influence the activities of the Bank of England. In the field of monetary policy, the Bank of England has only an advisory function. The task of the governing body - the Board of the Bank of England - is to coordinate monetary policy issues with the Ministry of Finance (Treasury), the head of which is formally responsible for making decisions in this area and is accountable to Parliament. Thus, the Bank of England is under the control of the Treasury, which is authorized to make recommendations to the central bank after prior consultations with it. This is the peculiarity of the relationship between the Treasury and the central bank.

Like the Bank of England, the Bank of Italy is quite dependent on the government for monetary policy. Administratively, it is subordinate to the Treasury and must follow the recommendations of the Inter-Ministerial Committee on Credits and Savings created under the latter. The Bank of Italy acts as a government consultant.

Thus, in countries traditionally characterized by centralism and strong political power, the central bank is usually more legally dependent on the government.

In federal states, the central bank enjoys much greater independence. In addition, in the federal states, there is a clear desire to properly represent the interests of the regions in the governing bodies of the central bank.

Of course, ideally, the central bank should be a sufficiently independent and influential institution that, on the one hand, carries out monetary regulation on the basis of its powers enshrined in law, and on the other hand, ensures the reliability and stable functioning of the credit and banking system. However, in real conditions, the independence of many central banks turns out to be limited - in particular, as a result of conflicts arising from contradictions between the goals of economic policy declared by the government and the need to maintain the stability of the national currency, which the central bank is called upon to provide.

1.3 Functions of central banks

Among the diverse functions of central banks, it is necessary to single out the main ones, without which it is impossible to fulfill the main task of the central bank - maintaining the stability of the national monetary unit - and additional ones that correspond to the solution of this task.

The main functions performed by all central banks without exception are divided into regulatory, control and servicing.

To regulatory functions relate:

management of total cash flow;

regulation of the monetary sphere;

regulation of supply and demand for credit.

Control functions include:

control over the functioning of the credit and banking system;

carrying out currency control.

Service functions consist in:

organization of payment and settlement relations of commercial banks;

lending to banking institutions and the government;

the role of the central bank as the financial agent of the government.

The most important regulatory function inherent in all central banks without exception is development and implementation of monetary policyaboutlitiki.

The nature of the monetary policy pursued by the central bank largely depends on the degree of its independence from the government, which may be more or less, but is never absolute. For example, targets for changes in money supply aggregates are usually set directly by central banks. At the same time, no central bank can independently, without the participation of the state, establish this or that currency regime.

On the other hand, the trends in the monetary sphere in recent decades have contributed to the strengthening of the independence of central banks. Thus, the processes of capital movement liberalization and deregulation that took place led to an increase in the importance of market instruments and a decrease in the role of administrative methods of regulation. This, in turn, led to the curtailment of regulatory procedures and, to a certain extent, strengthened the independence of central banks.

Development and implementation of monetary policy include:

determination of directions for the development of monetary policy;

choice of the main instruments of monetary policy;

creation and maintenance of a statistical database on money supply, loans and savings;

conducting research on the problems of the economy and the monetary sphere of a given country and other states that form the basis of monetary policy;

drawing up monetary programs and monitoring their implementation.

An equally important regulatory function of the central bank is regulation of supply and demand for credit and foreign currency, carried out through intervention operations in the money and foreign exchange markets. In order to curb credit expansion, central banks take measures to reduce the liquidity level of credit and banking institutions, and to expand credit expansion they carry out opposite actions.

Control over the functioning of the credit and banking system - one of the control functions of the central bank - is due to the need to maintain the stability of this system, since confidence in the national currency presupposes the existence of stable and efficient credit and banking institutions.

As a rule, supervision of the credit and banking system is carried out directly by central banks, but in Belgium, Germany, Switzerland and Japan, supervisors are institutionally separated from the central bank. Despite this, the central bank is most closely associated with them, taking part in their activities or providing advisory services. In other countries, the central bank controls the activities of credit and banking institutions in conjunction with other institutions.

An equally important control function of the central bank is implementation of currency control and currency regulation.

The degree of rigidity of currency control and currency regulation depends primarily on the general monetary and economic situation of the country. Thus, in developing countries, a very wide range of operations on external payments and settlements is usually subject to control, which is due to the need to regulate the use of foreign currency. On the contrary, the most economically developed countries are currently moving towards the liberalization of foreign exchange controls.

Ensuring the smooth functioning of the system of cash and non-cash payments - one of the servicing functions of the central bank.

Initially, the activity of the central bank in this area was limited to the issuance of paper money. In the future, as non-cash payments developed, the central bank began to act as an organizer and participant in payment and settlement relations. Being at the center of cash flows, central banks are called upon to ensure the fast and uninterrupted functioning of the mechanism of cashless settlements and payments.

Another service function of the central bank is lending to credit and banking institutions and the government. As lenders of last resort, central banks lend to lending institutions that are temporarily short of financial resources.

By lending to the government, central banks finance the public debt and government deficits. This is especially common in developing countries, where central bank loans to the government represent a significant portion of their assets. On the contrary, developed countries avoid such practices. In this regard, this function currently does not apply to the main ones, but to the additional ones.

Another service function of the central bank is acting as a financial agent of the government, that is, maintaining government accounts and managing the assets of various government departments. In some countries, such as the United States, central banks perform this function in conjunction with commercial banks. In other countries, such as Italy, central banks are practically the accountants of public institutions.

Additional functions of the central bank are not directly related to its main task (maintaining the stability of the national currency), but contribute to its implementation. These functions include managing public debt, conducting analytical research and maintaining a statistical database, making banknotes, etc.

Functions for conducting analytical and statistical research by their nature can be very different and unequal in the central banks of different countries. Research in the field of monetary and exchange rate policy is mainly based on balance of payments data.

Most central banks carry out studies of the economic situation in the real sector of the economy. Some central banks publish detailed research results (US Federal Reserve Banks, Bank of Japan, National Bank of Belgium, German Federal Bank, Bank of France, Bank of England, etc.).

Many central banks study the financial situation of enterprises and create centralized banking risk services. In addition, the central banks of Germany, Belgium, Spain, and Italy have centralized databases of enterprise balance sheets.

The task of all central banks is issuance of banknotes and bothwithbaking them to circulate throughout the country. At the same time, only a few central banks (Italy, Great Britain, Belgium, Spain, etc.) have special structural units for the production of banknotes.

Individual central banks communicatefrom non-bankingclientele and provide public services. All central banks maintain correspondent relationships with financial institutions in their country, other central banks and international financial institutions. However, commercial relations with non-banking clients are always secondary.

2. Monetary policy of the central bank

2.1 Main objectives, goals, methods and forms of monetary regulation

Monetary regulation carried out by the central bank is one of the elements of the economic policy of the state and 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. It is aimed at achieving stable economic growth, low inflation and unemployment. The laws on central banks emphasize their responsibility for the stability of money circulation and the exchange rate of the national currency.

As an intermediary between the state and the country's banking system, the central bank is designed to regulate cash and credit flows with the help of certain tools. With the development of credit systems and loan capital markets, the ability of the central bank to directly influence the supply and demand of the money supply has decreased, but at the same time the arsenal has expanded and the effectiveness of market instruments of monetary regulation has increased.

The choice of monetary regulation instruments used by the central banks of foreign countries is quite wide. The use of different types of instruments varies depending on the direction of the economic policy of the country, the degree of openness of its economy, established traditions and specific circumstances.

The instruments of monetary regulation available to the central bank differ in terms of direct objects of influence (supply of money and demand for money), in their form (direct and indirect), in the nature of the parameters established during regulation (quantitative and qualitative), in terms of impact (short-term and long-term). All these methods are used in a single system.

Objects of influence. Depending on the specific goals, the monetary policy of the central bank is aimed either at stimulating credit emission (credit expansion) or at limiting it (credit restriction). Through credit expansion, central banks pursue the goal of raising production and revitalizing the conjuncture; with the help of credit restrictions, they try to prevent the “overheating” of the conjuncture, observed during periods of economic upswing.

By shape instruments of monetary regulation are divided into administrative (direct) and market (indirect). Administrative instruments are those in the form of directives, prescriptions, instructions issued by the central bank and aimed at limiting the scope of the credit institution. They occupy a certain place in the practice of central banks of developed countries, and are also widely used in developing countries.

Under the instruments of a market nature, we mean the ways in which the central bank influences the monetary sphere through the formation of certain conditions in the money market and the capital market. Market (indirect) instruments are more flexible than administrative ones, but the results of their application are not always adequate to the intended purpose. Nevertheless, at present, there is a departure of the central banks of developed countries from direct methods of influence to market ones.

By the nature of the parameters, established in the process of the influence of the central bank on the monetary sphere, the instruments of monetary regulation are divided into quantitative and qualitative.

Through the use of quantitative methods, there is an impact on the state of the credit capabilities of banks, and, consequently, on money circulation as a whole.

Qualitative instruments are a variant of direct regulation of the qualitative parameter of the market, namely, the cost of bank loans.

By exposure time instruments of monetary regulation are divided into long-term and short-term in accordance with the objectives of the implementation of the immediate and long-term goals of monetary policy. The long-term (final) goals of monetary policy are those tasks of the central bank, the implementation of which can be carried out from 1 year to several decades. Short-term instruments include instruments of influence, with the help of which intermediate goals of monetary policy are achieved.

The main instruments of monetary regulation, most frequently used by the central banks of foreign countries, are the establishment of minimum reserve requirements, refinancing of commercial banks, regulation of the official discount rate and open market operations.

At the initial stages of the transition to market relations, the most effective are direct methods of central bank intervention in the monetary sphere: administrative regulation of deposit and lending rates of commercial banks, setting limits on lending by the bank to its customers, changing the level of minimum reserves.

2.2 Regulation of the official discount rate

In almost all countries of the world, commercial banks resort to loans from central banks, which are provided at a certain percentage. The discount or discount rate applied by central banks in transactions with commercial banks to discount short-term government bonds and rediscount commercial bills and other types of securities that meet the requirements of the central bank is called the official discount rate. In other words, the official discount rate is the fee charged by the central bank when purchasing securities from commercial banks before they fall due.

The official discount rate is a benchmark for market lending rates. By setting the official discount rate, the central bank determines the cost of attracting credit resources by commercial banks. The higher the level of the official discount rate, the higher the cost of central bank refinancing loans. It follows that the policy of changing the discount rate is a variant of regulating the qualitative parameter of the money market - the cost of bank loans.

Regulation of the discount rate refers to the market (indirect) instruments of monetary regulation. The mechanism of regulation through changes in the official discount rate is quite simple, which was the reason for its widespread use in both developed and developing countries. For example, if the central bank aims to reduce the lending capacity of commercial banks, then it raises the discount rate, thereby increasing the cost of refinancing loans. If the goal of the central bank is to expand access to credit from commercial banks, then it lowers the discount rate. However, the central bank is not always able to achieve the intended goal. For example, an increase in the central bank's discount rate will not be effective if the money market currently tends to reduce the cost of loans as a result of their increased supply, since in this case commercial banks will prefer to use cheaper loans from the interbank market than expensive central bank loans. . If, however, the official discount rate of the central bank was already below the market level before it was lowered, then the reduction in the cost of already cheap loans would entail a corresponding reaction of the money market.

By manipulating the official discount rate, central banks influence the state of not only the money market, but also the financial market. Thus, an increase in the official discount rate entails an increase in rates on loans and deposits in the money market, which, in turn, causes a decrease in demand for securities and an increase in their supply. Demand for securities is falling both from non-banking institutions, as deposits become more attractive, and from credit institutions, since direct financing becomes more profitable with expensive loans. The supply of securities, in turn, increases. Thus, an increase in the official rate entails a decrease in the market value of securities. A decrease in the official discount rate, on the contrary, reduces the cost of loans and deposits, which leads to the opposite processes: the demand for securities increases, their supply decreases, and the market value rises. Thus, the central bank's accounting policy is a mechanism for directly influencing the liquidity of credit institutions through changes in the cost of refinancing loans, which indirectly affects the country's economy as a whole.

As already noted, it is the central banks that are entrusted with the function of setting the level of the official discount rate.

Changing the official discount rate as an instrument of monetary regulation is widely used by the central banks of developed countries, while in developing countries preference is given to direct regulation of interest rates on loans and deposits of commercial banks.

Assessing the regulatory role of the official discount rate, it should be noted that it is a kind of barometer of the economic situation for the country's business circles.

One of the instruments of monetary regulation most actively used by the central bank are reserve requirements for the liabilities of commercial banks. This tool is distinguished by its ease of use, which, together with the direct impact on the level of liquidity of commercial banks, makes it very attractive.

The minimum reserves are the obligatory norm of deposits of commercial banks in the central bank. By changing the norm of minimum reserve requirements, central banks maintain the volume of money supply within the given parameters and regulate the level of liquidity of commercial banks. As a result of the increase in the required reserve requirements by the central bank, the amount of free cash at the disposal of commercial banks and used to expand active operations decreases. Reducing the reserve ratio, on the contrary, increases the possibility of lending.

The norm of minimum reserve requirements is established by law.

According to established practice, the most appropriate assets used to set reserve requirements are highly liquid funds. The qualitative composition of these funds is different - it can be cash at the cash desks of banks, the most liquid types of assets, government securities. In any case, all of them should be as “monetary” as possible, thus ensuring the possibility of using reserve requirements as a tool to influence money circulation.

2.3 Open market operations

Open market operations are operations of the central bank to buy and sell securities. The object of these transactions is the so-called marketable securities, mainly the obligations of the treasury and state corporations, industrial companies and banks, as well as bills discounted by the central bank.

Open market operations are the most efficient and flexible market instrument of the central bank's monetary policy, providing an effective impact on the money market and bank credit, and, consequently, on the economy. The time of their holding and their volume cause a given market reaction. In this regard, they are predictable and short-term.

The mechanism of open market operations is simple, which makes it attractive to use. So, in the case of the purchase of securities by the central bank on the open market, the volume of own reserves of banks and the banking system as a whole increases, and in the case of sale, on the contrary, it decreases, which affects the cost of the loan and, consequently, the volume of money supply.

Central bank operations in the open market involve the use of various technical procedures. They differ depending on: from the terms of transactions(direct purchase and sale or purchase and sale for a period with an obligation to repurchase at a predetermined rate); volumetocom transactions(transactions with state or private securities); urgency of transactions(short-term - up to 3 months - and long-term - from 1 year or more - operations with securities); areas of operations(only the banking sector or together with the non-banking sector of the securities market); method of setting interest rates(central bank or market); source of initiative in carrying out the operation(central bank or money market participants).

Differences in the technical procedures for conducting operations on the open market are due to a number of factors. The most important of them are the specifics of the credit and banking system, which implies a different composition of market participants, and the peculiarities of national legislation. The most widespread operations on the open market were in countries with the most developed segments of the money market - the USA, Canada, Great Britain, Germany, Japan, France and Italy. In developing countries that do not have a sufficiently broad market for high-quality securities, central bank operations with securities cannot affect the monetary base and the amount of reserves of commercial banks without at the same time disorganizing the market itself.

Depending on the conditions of transactions with securities on the open market, as noted, direct and reverse operations are distinguished. Historically, the first form of open market operations was direct operations, that is, central bank operations to buy or sell government bonds and other obligations, treasury bills, and in some countries, private bills and central bank bills. Direct transactions are carried out on a cash "cash" basis, which implies full settlement within the day the transaction is completed. Operations based on the so-called regular delivery provide for the full settlement and delivery of securities to their buyer on the next business day.

Reverse Operations on the open market ("repo" operations) - transactions for the purchase and sale of securities by the central bank with the obligation to resell and buy back at a predetermined rate. Reverse operations on the open market are characterized by a softer impact on the money market, and therefore are a more flexible method of regulation. This makes them even more attractive and expands the scope of their use. Reverse transactions are widely used in the USA, Japan, Canada, Great Britain, France, and also in Germany, where they currently account for over 95% of total securities transactions. Operations are carried out with an interval of 1 to 15 days.

In the traditional, classical sense, operations on the open market are carried out on the secondary securities market. However, in countries where the secondary market has not received sufficient development, operations in the primary market are equated to operations in the open market, although in this case the desired result is achieved not directly, but indirectly. It should be noted that with a relatively small scale, operations on the open market have mainly a qualitative rather than a quantitative impact on the liquidity of the banking system and the state of money circulation. As the volume of operations on the open market expands, it becomes possible to effectively influence the quantitative parameters of the money market. As a result, operations on the open market are turning into an effective means of regulating the state of money circulation and the economy as a whole.

Conclusion

The main tasks facing all central banks is to maintain the purchasing power of the national currency and the stability of the country's credit and banking system. All central banks have similar functions and apply comparable regulatory instruments. This causes the gradual convergence of their organizational structures, the coordination of their activities, and in Western Europe - the formation of a single monetary and foreign exchange policy of the EU member states.

Monetary regulation carried out by central banks, being one of the components of the economic policy of the state, at the same time allows you to combine macroeconomic impact with the ability to quickly adjust regulatory measures and serves as a tool for their prompt and flexible support.

The main activity of central banks is the regulation of money circulation.

One of the most important activities of the central bank is the refinancing of credit and banking institutions, aimed at ensuring the stability of the banking system.

One of the most important functions of the central bank is to participate in the management of public debt, which is formed from the obligations of the central government, local authorities of public sector enterprises.

The Central Bank is the conductor of the state monetary policy, aimed mainly at regulating the exchange rate.

To conduct monetary policy, central banks usually use 3 types of instruments: intervention in foreign exchange markets, discount policy and management of foreign exchange reserves.

Bibliography

Anulova G.N. Monetary regulation: the experience of developing countries. - M.: Finance and statistics, 2009.

Dolan E.J., Campbell K.D., Campbell R.J. Money banking and monetary policy. - M.-L.: Profilo, 2011.

Banks and banking operations. ed. E.F. Zhukova M.: "Unity" 2007.

Banking system of Russia. Handbook of a banker. ed. A.G. Gryaznov. M.: "DEKA", 2009.

General theory of money and credit. ed. E.F. Zhukov. M.: "UNITI", 2007.

Polyakov V.P., Moskovina L.A. Structure and functions of central banks. Foreign experience: Textbook. - M.: INFRA-M, 2008.

Shenaev V.N., Naumchenko O.V. The Central Bank in the process of economic regulation. - M.: Consultbankir, 2010.

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