Money-credit policy. Methods of monetary regulation

The market economy is a fairly self-regulating mechanism. But in most modern states there are government institutions that are periodically involved in the management of economic processes due to the fact that this needs to be done in order to maintain the stability of the national market. These institutions implement monetary policy. What are the specifics of this type of activity of government agencies? What methods do they use to do this?

What is monetary policy?

The subject of monetary policy, which is sometimes also called monetary policy, is generally understood to be the state. Thus, this type of activity represents the work of government authorities, through which the mechanism of cash circulation in the national economy is managed. The goal of the state's monetary policy is to contain prices, ensure employment of citizens and stimulate economic growth as a whole.

The main institution that carries out these activities in the Russian Federation is the Central Bank of Russia. In a narrow sense, monetary policy can be understood as the activities of any economic entity. For example, an enterprise or municipality whose goal is to improve the efficiency of capital management. But most often, of course, government agencies use monetary policy instruments. Let us consider the main tasks that the Central Bank of the Russian Federation solves in this area of ​​activity.

The bank's objectives in terms of monetary policy

So, the main entity using various monetary policy instruments is the Central Bank of Russia. This institution will have to solve the following range of tasks:

• regulation of inflation;
• reduction in unemployment;
• maintaining the exchange rate of the national currency;
• ensuring stability of the state's balance of payments;
• ensuring the functioning of the banking system;
• maintaining the operation of payment mechanisms in the economy;
• establishing adequate interest rates in lending.

Classification of monetary policy principles

The central bank can use several monetary policy strategies. Experts identify two main ones - rigid and flexible. What are their specifics?

With a strict method of managing financial flows, those monetary policy instruments are selected that are aimed at ensuring the circulation of a specific volume of money supply in the economy. The flexible model involves the use of approaches that involve regulation, mainly, of credit mechanisms - most often by increasing or decreasing the interest rate. In the case of the Central Bank of the Russian Federation, the value of the key rate is regulated, which is the determining factor in the conditions for issuing loans from private banks to their clients.

There are other criteria for classifying monetary policy. Thus, the Central Bank can take a stimulating approach. He assumes that monetary policy instruments will be selected that stimulate the business activity of economic entities and, as a consequence, economic growth and the creation of new jobs.

There is, in turn, a restraining approach. He assumes that the Central Bank’s monetary policy instruments will choose those aimed at reducing entrepreneurial activity. This approach is used primarily to combat inflation. The main instruments of monetary policy of the stimulating type:

1. easing reserve requirements for private banks;
2. reduction of the key rate;
3. active purchase of government bonds by the Central Bank.

These measures involve stimulating activities in 3 segments of the economy at once - banking, business in the real sector, as well as in the stock markets.

The main instruments of contractionary monetary policy are:

1. tightening reserve requirements for private banks;
2. increase in the key rate;
3. sale by the Central Bank of securities issued by the state.

Similarly, the effect of using the listed tools is observed in several business segments at once.

Monetary policy methods

So, we have examined the essence of the concept of “monetary policy” and the instruments of monetary policy. But there are also a number of nuances that characterize the activities in question. In particular, it will be useful to consider what methods of monetary policy can be used by the government. There are several ways to classify them. Thus, a common approach is to distinguish between direct and indirect methods. Let's study their essence in more detail.

What are direct methods of monetary policy?

Direct methods of monetary policy by the authorities assume that the Central Bank will use mainly administrative instruments for regulating monetary policy. This could be the application of limits on loans or the placement of deposits by private banks. This approach allows the Central Bank to influence, first of all, the amount of money supply in the economy and, as a result, be able to regulate inflation. The main advantage of the corresponding methods is the possibility of obtaining a prompt result.

As a rule, those instruments of state monetary policy that are used in such scenarios lead to rapid changes in the national economy. However, their impact, as a rule, is not fundamental. Therefore, achieving a short-term effect from the use of direct methods of monetary management of the economy most often requires the use of subsequent measures by the Central Bank that consolidate the result obtained.

The essence of indirect methods in monetary policy

The specificity of indirect methods is that their application is characterized by the involvement, mainly, of market mechanisms. For example, the introduction of updated regulations for the activities of private banks, which may affect the policy of determining their priorities in building a business model.

The main advantage of the methods of this type is their fundamental nature, despite the relatively low efficiency of obtaining the results of their application. It may be noted that experts also classify monetary policy methods into general and selective. The former are, in principle, similar to indirect methods; the mechanisms for implementing the latter are similar to those that characterize the use of direct methods.

So, we have looked at what monetary policy is, the instruments of monetary policy, and its main methods have also been described. It will now be useful to study a number of practical aspects of their application.

Monetary policy practice: participation of the Central Bank in market operations

A fairly effective and widespread instrument of monetary policy is the participation of the Central Bank in market operations. Let's look at how it can be done.

The activities of the Central Bank in the field of market operations may consist primarily in the purchase or sale of reserve assets, using its own reserves. Another common type of activity of the Central Bank in this direction is the management of gold and foreign exchange reserves of the state. This type of activity allows, first of all, to effectively manage the state’s debt policy, as well as influence the investment attractiveness of the country’s economy. Another way for the Central Bank to participate in market operations is to participate in foreign exchange trading. Most often, it is carried out in the form of interventions, which are sessions of sales or purchases of national or foreign currency in order to adjust the level of its demand or supply.

Monetary Policy Practice: Policy Rate Management

The next practical tool of monetary policy is the management of the discount rate. Its essence is in determining the amount of interest that private banks pay to the Central Bank in exchange for funds that they borrow from it for use in the structure of their own capital. If the Central Bank reduces the discount rate, then private credit institutions, as a rule, begin to borrow from the Central Bank more actively - as well as offer their clients various financial services.

Of course, the interest rate on loans for clients is also reduced - and this is an additional stimulating factor for the growth of capital turnover in a financial institution. In turn, an increase in the discount rate is usually accompanied by the opposite effect, but at the same time, as we noted above, it makes it possible to counteract inflation.

Special methods of monetary policy

The Central Bank and other financial institutions may also apply special methods of monetary policy. These include stimulating the export of national products, technologies, capital, and various services. These methods are implemented by intensifying lending to enterprises that are ready to make appropriate supplies, and signing contracts under which the Central Bank guarantees the provision of various investment programs. Another way to stimulate exports is to adjust duties and change the value of various quotas.

The state's priorities in choosing monetary policy priorities depend on many factors - internal, external. Often they belong to the category of political ones, that is, they are not directly related to the functioning of the mechanisms of supply and demand in the market. The competence of the Central Bank and other financial institutions may not be enough to adequately influence economic processes in conditions of excessive influence of economic factors - therefore, other government institutions may be involved in the regulation of economic processes. Issues of an economic nature may become a priority for the government of the country and higher authorities in general, although in general they are within the competence of a fairly limited range of financial institutions.

Monetary policy instruments of the Bank of Russia

Let us now study what are the main instruments of monetary policy of the Bank of Russia. In accordance with the provisions of the law, these should include:

• determination of interest rates on own operations,
• establishing reserve standards,
• which are deposited with the Central Bank of the Russian Federation,
• conducting transactions on the open market,
• refinancing financial institutions,
• conducting currency interventions,
• management of money supply growth criteria,
• establishing quantitative restrictions,
• carrying out the issue of securities.

According to experts, the Russian Central Bank focuses its actions on the use of mainly indirect methods of managing cash flows in the economy. But the legislation of the Russian Federation allows that the instruments of the monetary policy of the Russian Federation will be those that are classified as direct. In particular, in the form of quantitative restrictions, which can be expressed in the approval of limits on refinancing operations or the conduct of individual transactions by credit and financial structures.

In general, the Central Bank of the Russian Federation acts as an independent subject of monetary policy. First of all, this is due to the fact that this structure has legal independence from government authorities. However, in a number of cases, his activities must be coordinated with the Russian government.

The Bank of Russia quite rarely practices measures of direct influence on the work of private credit and financial institutions - but it may well determine certain recommendations for them. For example, they may be associated with a reduction in the volume of foreign assets in order to curb capital outflows. Also, the Central Bank of the Russian Federation can determine recommendations for private credit structures on interest rates in rubles in order to ensure optimal liquidity in banks.

Summary

A market economy is being built in the Russian Federation. Therefore, the instruments of Russia's monetary policy are adapted to the mechanisms of free formation of supply and demand in the national economy. Perhaps this explains the use of predominantly indirect methods by the Central Bank of the Russian Federation to regulate money circulation in the economy. But theoretically, the main credit and financial organization of the Russian Federation can apply the entire range of those monetary policy instruments that we discussed above - the legislation does not prohibit this.

The Central Bank, as the main subject of monetary regulation of the national economy, can choose those instruments and methods of monetary policy that are best adapted to the current economic situation. If they are direct, then the Central Bank of the Russian Federation has the right to expect an operational, but rather superficial result, requiring further intervention in economic processes. Indirect methods of intervention by the Central Bank in the economy do not always give quick results, but are characterized by a fundamental impact on the processes that take place in the national economy.

In some cases, other government agencies may provide assistance to the Central Bank in implementing monetary policy. This may be due to the fact that the competence of the Central Bank may not be enough to solve problems that arise as a result of the influence of factors that are not directly related to economic processes. In addition, the Central Bank may have an obligation to confer with other government agencies due to the fact that the methods it uses may affect other areas for the development of which the relevant government structures are responsible.

1 . Methods of monetary policy of the Central Bank of the Russian Federation.

2. Monetary policy instruments of the Central Bank of the Russian Federation.

1. Methods of monetary policy of the Central Bank of the Russian Federation

Main methods monetary policy of the Central Bank of the Russian Federation are:

Administrative methods. TO These include direct restrictions and limits, such as:

quotas for certain types of active and passive operations;

introduction of limits on the issuance of loans of different categories;

restrictions on the opening of various branches and offices;

limiting interest rates and tariffs for the provision of various types of services.

Economic methods. TO These include activities the use of which does not imply the establishment of direct prohibitions, for example, the following:

tax;

regulatory (deductions to the fund for regulating credit resources, liquidity ratios and bank capital adequacy, as well as other types of deductions).

Regulatory methods.These include:

liquidity ratios and bank capital adequacy ratios;

standards for deductions to the funds of credit organizations.

2. Monetary policy instruments of the Central Bank of the Russian Federation

The main instruments of monetary policy Bank of Russia in accordance with Art. 35 Federal Law “On the Central Bank (Bank of Russia)” are:

interest rates on Bank of Russia operations;

standards for required reserves deposited with the Bank of Russia (reserve requirements);

open market operations;

refinancing of credit institutions;

foreign exchange interventions;

establishing benchmarks for money supply growth;

direct quantitative restrictions;

issuing bonds in one's own name.

1. Interest rates on transactions. The Bank of Russia may set one or more interest rates for various types of transactions or pursue an interest rate policy without fixing the interest rate.

Interest rates of the Bank of Russia represent the minimum rates at which the Bank of Russia carries out its operations. Depending on the value of the discount rate, a system of interest rates of commercial banks is built, which affects the cheaper or more expensive loans.

The Central Bank regulates interest rates in two ways:

through fixing rates for providing loans to commercial banks;

through control over the rates of credit institutions.

The Bank of Russia uses interest rate policy to influence market interest rates in order to regulate the money supply in circulation.

2. Required reserve standards. The essence of this policy lies in the establishment by the Central Bank of mandatory minimum reserves for credit institutions in the form of a certain percentage of the amount of their deposits, which are stored in an interest-free account with the Central Bank.

As an instrument of monetary policy, minimum reserves perform a dual role: they serve the current regulation of liquidity in the money market and at the same time act as a brake on the issue of credit money to commercial banks.

Required reserve ratios cannot exceed 20% of a credit institution's liabilities and can be differentiated for different credit institutions. Required reserve standards cannot be changed by more than five points at a time.

The required reserve mechanism is used as a credit policy tool in almost all developed countries.

In case of violation of required reserve standards, the Bank of Russia has the right to indisputably write off from the correspondent account of a credit organization opened with the Bank of Russia the amount of funds not deposited, and also to collect from the credit organization in court a fine in the amount established by the Bank of Russia.

3. Open market operations- purchase and sale by the Bank of Russia of treasury bills, government bonds, other government securities, bonds of the Bank of Russia, as well as short-term transactions with these securities with the completion of a reverse transaction later.

If the Central Bank sells securities on the open market to commercial banks, that is, the balances of funds in correspondent accounts opened by these banks with the Central Bank, are reduced by the amount of purchased funds. As a result, the ability of commercial banks to provide loans to their clients is reduced, which leads to a reduction in the money supply in circulation.

If the Central Bank buys securities from commercial banks, then he credits the corresponding amounts to their correspondent accounts. Commercial banks have an opportunity to expand their lending operations.

The influence of the Central Bank is that, by changing interest rates on the open market, the bank creates favorable conditions for credit institutions to buy or sell government securities to increase their liquidity.

Open market operations are the most flexible method of regulating the liquidity and lending capabilities of banks, as well as the money market.

4. Refinancing of credit institutions- lending by the Bank of Russia to credit organizations. In modern conditions, refinancing is used as a tool for providing financial assistance to commercial banks, which allows them to reduce the stock of liquid funds to a minimum.

Refinance loans differ as follows:

by forms of security (accounting and pawnshop);

by terms of use (short-term - for one or several days; medium-term up to 1 year).

Accounting credits - loans provided by the Central Bank to commercial banks against the discounting of bills before their expiration. The Central Bank imposes certain requirements on bills of exchange provided for accounting. This applies to the types, duration, availability, nature of the guarantee, etc.

Pawn loans - loans secured by securities deposited in the bank. Commercial and treasury bills, government bonds, i.e. those types of securities that are allowed to be registered with the Central Bank, are accepted as collateral. The value of the collateral must exceed the amount of pawn loans.

If the borrower does not repay the loan, ownership of the securities passes to the Central Bank.

Pawnshop loans are provided on a paid basis, for a period from 1 day to 4 months.

5. Currency interventions- purchase and sale by the Bank of Russia of foreign currency on the foreign exchange market to influence the ruble exchange rate and the total demand and supply of money. The purchase of foreign currency leads to its increase in national currency, and the sale leads to a decrease. At the same time, foreign exchange interventions have a certain impact on the exchange rate of the national currency against the foreign currency, since there is a change in market demand and supply of the latter in the foreign exchange market.

The influence of the Central Bank's monetary policy in the form of operations on the foreign exchange market is manifested in stimulating either exports or imports of capital.

6. Direct quantitative restrictions- establishing limits on the refinancing of credit institutions and the conduct of certain banking operations by credit institutions.

The Bank of Russia has the right to apply quantitative restrictions that apply equally to all credit institutions in exceptional cases in order to implement a unified state monetary policy only after consultations with the Government of the Russian Federation

7. Establishing benchmarks for money supply growth - The Bank of Russia can set growth targets for one or more indicators of the money supply, based on the main directions of the unified state monetary policy.

Determining the optimal targets for money supply growth is based on the premise that it grows from year to year as the gross domestic product increases, in which case the growth targets for the money supply are set in accordance with the projected growth in output, taking into account the expected increase in prices.

8.Issue of bonds on one's own behalf - The Bank of Russia has the right to issue. The maximum amount of the total nominal value of Bank of Russia bonds of all issues not redeemed on the date of the board of directors’ decision on the next bond issue is established as the difference between the maximum possible amount of required reserves of credit institutions and the amount of required reserves of credit institutions, determined on the basis of the current required reserve ratio.

The modern system of monetary policy methods is as diverse as monetary policy itself. Monetary policy methods can be classified according to various criteria.

Depending on the connection between the monetary policy method and the stated goal, a distinction is made between direct and indirect methods.

Direct methods- These are administrative measures in the form of various directives of the central bank regarding the volume of money supply and prices in the financial market. Limits on lending growth or deposit attraction are examples of quantitative controls. Maximum interest rates on loans or deposits are examples of interest rate controls.

The implementation of these methods gives the fastest effect from the point of view of the central bank's control over the maximum volume or price of deposits and loans, over quantitative (money supply) and qualitative (demand for money) variables of monetary policy. When using direct methods, time lags of monetary policy are reduced.

Time lags- this is a certain period of time between the moment the need arises to apply a particular measure in the field of monetary policy and the awareness of this need, as well as between the awareness of the need, the development of an opinion and the beginning of implementation.

Time lags make it much more difficult to conduct effective monetary policy. For example, the goal of monetary policy is to stabilize prices. In conditions when prices grow spasmodically, and the level of inflation changes “avalanche-like”, becoming galloping, the central bank may not have sufficient information about the factors influencing prices. In addition, inflation factors may be non-monetary in nature (for example, structural and administrative factors, administrative increases in prices for paid services set by the government). There is an awareness of the need to take measures to stabilize price levels, the formulation of these measures and the beginning of their implementation. All this takes time, and the economic situation may change.

The use of direct methods of monetary policy allows you to directly influence monetary aggregates, the distribution of loans and borrowing costs. They are most attractive to government agencies as methods of regulation and redistribution of monetary resources, especially in conditions of an economic crisis. Direct methods are easier to use, they require less costs, and the consequences of their use are more predictable.

At the same time, direct methods of monetary policy are crude methods of external influence on the functioning of money market entities and affect the fundamentals of their economic activity. They may contradict the microeconomic interests of credit institutions, lead to ineffective distribution of credit resources, restrictions on interbank competition, and difficulties in the emergence of new financially stable institutions in the banking market. Ultimately, they can contribute to the disintermediation of banks, reducing their competitive advantages compared to other financial institutions that are not under the direct strict control of the central bank.

In addition, it should be taken into account that monetary policy is part of the general economic policy of the state and generally affects the reproduction process in the national economy. The use of direct methods of monetary policy, aimed, in particular, at curbing inflation, can cause a number of negative consequences of a general economic nature. For example, if inflation targeting is achieved through direct regulation (reduction) of the money supply by the central bank within the framework of a strict restrictive monetary policy, then this leads to a sharp decrease in the level of monetization of the gross domestic product (GDP), to deformations in the function of money as a means circulation and payment, “naturalization” of economic relations, the emergence of money surrogates, and the expansion of the “shadow economy”.

In turn, the expansion of the “shadow economy” means an increase in arrears of payments to the budget and, as a consequence, an increase in public debt for wages to budgetary organizations and social payments. Within the macroeconomics, there is a decline in aggregate demand, which restrains the overall development of the national economy. The use of direct tight monetary policies by the central bank can cause a slowdown in economic growth and a more or less prolonged recession. In this case, the economy may fall into the so-called inflation or liquidity trap, namely: a sharp reduction in money in circulation leads to an equally sharp drop in demand and the share of working capital in the overall structure of enterprise funds. The consequence of the latter is the curtailment of production and non-payments, and then the emergence of a new inflationary wave at a lower level of production. Thus, temporary financial stabilization can be achieved through further “dying” of production.

In addition, knowledge of inflation factors is necessary. If the “unwinding” of inflation is dominated by non-monetary factors (for example, administrative price increases, results of fiscal policy, inflation expectations, dynamics of household incomes, the state of the balance of payments and capital markets), then reducing inflation through a direct reduction in the money supply is clearly an ineffective measure to combat inflation.

It should also be taken into account that over time, direct methods of influencing money market participants in the event of an “unfavorable” impact on economic activity from a microeconomic point of view can cause an overflow, an outflow of financial resources into the “shadow economy” or abroad.

Direct monetary policy methods may also increase bureaucratic factors and monetary corruption.

Thus, the negative consequences of direct methods of monetary policy often prevail over the advantage of their application in market conditions, since they distort the market mechanism.

Therefore, central banks of countries with developed market economies have practically abandoned direct methods of monetary policy since the 1980s and resort to them in exceptional cases when it is necessary to take “quick response measures,” for example, in conditions of a sharp development of the economic crisis.

The same trend is observed in developing countries and countries with reforming economies. In particular, in the largest Ibero-American countries (Argentina, Brazil, Mexico, Chile) in the 1990s, the practice of subsidized loans from private banks was abolished, although subsidizing rates on loans from state-owned banks continues, limits on loan amounts were eliminated, and previously mandatory investments were canceled commercial banks into priority sectors of the economy for the state and the acquisition of government securities at rates below market rates.

In CEE (Central and Eastern Europe) countries, in the context of reforming economies, direct and relatively cheap bank refinancing was used at the beginning of economic reforms. However, it was not linked to the volume of own funds and assets of credit institutions, did not stimulate them to reorganize their activities, and led to the formation of financially unstable money market institutions. As reforms progressed, central banks in CEE countries abandoned direct monetary policy methods from the mid-1990s.

A characteristic feature of the first stage of development of the banking systems of the CIS countries was the predominance of direct methods of conducting monetary policy due to institutional restrictions. In the first years of reforms, there was an extensive growth of banking systems, which was not, however, accompanied by an improvement in the quality indicators of their activities. Further reform of the banking systems of the CIS countries, the introduction of market principles into their activities led to the fact that now the commercial banks of these countries, as subjects (conductors) of monetary policy, are sufficiently free from administrative interference (with the exception of Belarus and Turkmenistan, where banking activities are located under fairly strict administrative control).

In Russia, there was also a gradual abandonment of direct methods of conducting monetary policy (since 1995, the Bank of Russia stopped using direct loans to finance the federal budget deficit and stopped providing targeted centralized loans to sectors of the economy, restrictions on the volume of household deposits were abolished, and “politicization” decreased "Russian banks, the central bank refused to suppress inflation in only one way - by compressing the money supply in circulation). But in the conditions of the 1998 crisis, the Bank of Russia again switched to administrative methods. Thus, operations to refinance the banking system began to be carried out in two ways.

The first method was to provide pawnshop loans only on an auction basis using the American method (market method). At the same time, the period for providing pawnshop loans was limited to 7 days. In the period from August 17 to September 21, 1998, the Bank of Russia provided commercial banks with Lombard and overnight loans totaling 56 billion rubles. (for comparison: in the first 7 months of 1998, 47 billion rubles of pawnshop loans were provided).

The second method was the administrative provision of loans to maintain liquidity to commercial banks in accordance with the adopted program for restructuring the banking system.

According to this program, all commercial banks were divided into 4 groups:

1. Stably operating banks that do not experience great difficulties in managing current liquidity, are able to operate without additional government support and independently solve their current problems;
2. regional banks, which were supposed to become “backbone” in the future regional banking system of the country;
3. individual large banks that did not have the ability to independently continue banking operations, which, however, were inappropriate to close due to too high social and economic costs;
4. banks that experienced a significant shortage of liquidity or equity (capital).

In accordance with the program mentioned above, the largest volume of loans from the Bank of Russia was provided to banks of the third group. Thus, by decision of the Board of Directors of the Central Bank of the Russian Federation, in support of measures to repay obligations to depositors and increase financial stability, the Bank of Russia in the period from August 17 to September 21, 1998 provided six banks - Inkombank, SBS-Agro, Bank of Moscow, Sberbank of the Russian Federation, Uralvneshtorgbank and Ak-Bars Bank - loans totaling 10.6 billion rubles. repayment period from 7 to 180 days. As for the effectiveness of the Bank of Russia’s actions, this issue can be viewed from different points of view. On the eve of the crisis, the situation on Russian financial markets was characterized as unstable. There was an increased demand for money, which greatly outstripped its supply. A characteristic feature of the government securities market was a consistent decline in quotations. The yield on the GKO portfolio increased from 33% in January to 71% in July, on some days reaching 110-120%. At the same time, trading sessions for government securities took place with virtually no demand at any price, and the market was losing its liquidity. Thus, the demand for government securities lagged significantly behind the supply. With such an inflated rate, the state was unable to service the state bonds and was forced to declare a default. As a result, the demand for money increased even more. There was a need to establish equilibrium in the money market by increasing the supply of money.

The Bank of Russia implemented these measures by providing some systemically important commercial banks with loans to maintain liquidity and reducing required reserve ratios to 10% for deposits in rubles (August 28, 1998), and then to 5% (December 1). Obviously, these measures increased the supply of money, but at the same time gave impetus to the development of inflation. As inflation rates increased, aggregate demand fell, and consequently, GDP decreased and the unemployment rate increased. Thus, in September 1998, the number of unemployed increased by 5% and amounted to 8.4 million people.

Thus, the method of monetary policy under consideration did not fulfill its stimulating purpose. The main factors that reduced the effectiveness of this method were high inflation rates and high inflation expectations in society. This was probably the best way out of the current situation, but the demand was almost impossible to satisfy using monetary policy instruments, and in this regard, the measures taken by the Bank of Russia did not bring the desired economic results.

The practice of forming a market economy and its development has proven the low effectiveness of direct methods of monetary policy. As a consequence, there is a widespread displacement of direct methods of monetary policy by indirect ones.

Indirect methods of regulating the monetary sphere affect the motivation of behavior of business entities using market mechanisms, have a longer time lag, and the consequences of their use are less predictable than when using direct methods. However, their use does not lead to market distortions. Naturally, the effectiveness of using indirect methods of regulation is closely related to the degree of development of the money market.

The transition to predominantly indirect methods of monetary policy is objectively associated with the global process of financial liberalization, increasing the degree of independence of the central bank, and its functions in the economy. In the 1980s, this transition took place in most countries with developed market economies without any problems or reverse trends. This was also facilitated by a favorable macroeconomic situation. In developing countries and countries with economies in transition, the displacement of direct methods of monetary policy by indirect ones was determined by reforms in banking systems aimed at liberalizing their functioning.

In addition to dividing monetary policy methods into direct and indirect, there are also general and selective methods.

General methods are predominantly indirect, affecting the money market as a whole.

Selective methods regulate specific types of credit and are mainly prescriptive in nature. Through these methods, private problems are solved, such as limiting the issuance of loans by certain banks or certain types of loans, refinancing on preferential terms of certain commercial banks, etc. Using selective methods, the central bank retains the functions of centralized redistribution of credit resources, which are not characteristic of central banks of countries with market economies, since they distort market prices and the distribution of resources.

Individual controls applied to an individual bank hinder competition in financial markets. For example, competition would allow more efficient banks to attract more deposits and increase lending by offering higher interest rates on deposits and lower interest rates on loans.

Credit controls on certain banks (for example, banks lending to certain industries or regions) have a distorting effect on markets.

The use of selective methods in the practice of central banks to influence the activities of commercial banks is typical of economic policies pursued at the stage of a cyclical recession, in conditions of a sharp violation of the proportions of reproduction.

The classification of monetary policy methods can also be carried out depending on the object of influence. These are methods of monetary policy that directly affect money supply, and methods that regulate demand in the money market.

Under offer of money refers to the money supply in circulation and consisting of the corresponding monetary aggregates. Methods for regulating money supply depend on the goals set within the framework of the monetary policy of a particular country.

If the goal of monetary policy is to maintain a constant level of the amount of money in circulation, then a strict restrictive policy is carried out mainly by methods of quantitative restrictions.

The goal of the state's monetary policy may be to maintain a fixed interest rate to stimulate or, conversely, to curb investment. This monetary policy is called flexible. If a flexible monetary policy is chosen, regulation of the money supply will allow fluctuations in the money supply depending on changes in the interest rate.

Demand for money as an object of monetary policy is formed from the demand for money as a medium of exchange (otherwise - business, operational, transactional or demand for money for making transactions) and the demand for money as a store of value (otherwise, demand for money as an asset, demand for reserve value or speculative demand) .

Demand for money as a medium of exchange determined by the level of nominal GDP (directly proportional). The greater the income in a society, the more transactions are made, the higher the price level, the more money will be required to implement economic transactions within the national economy. With a certain simplification, we can say that the operational demand for money does not depend on the interest rate.

Demand for money as a store of value depends on the value of the nominal interest rate (inversely proportional), since when owning money in the form of cash and checkable deposits that do not bring interest to the owner, certain opportunity (opportunity) costs arise compared to using savings in the form of securities. The distribution of financial assets, for example, into cash and bonds depends on the interest rate: the higher it is, the lower the price of securities and the greater the demand for them, the lower the demand for cash (lower speculative demand) and vice versa.

Thus, the total demand for money depends on nominal interest rate and the volume of nominal gross national product (GNP).

Depending on the reasons that caused a change in the demand for money and money supply, the methods of monetary policy may change (tight or flexible, or the choice of a monetary policy option that allows free fluctuations in the mass of money in circulation and the interest rate).

If a shift in the demand for money is caused by cyclical changes and is undesirable, then monetary policy can “smooth out” these changes. In the event of a cyclical “overheating” of the economy, interest rates may be raised. The consequence of an increase in the interest rate will be a decrease in business activity. Conversely, in the event of a cyclical downturn, the interest rate should be reduced and thereby increase business activity by increasing investment demand.

If the shift in the demand for money is caused solely by rising prices, then any increase in the money supply will “unwind” the inflationary spiral. The goal of monetary policy in this case will be to maintain the money supply in circulation at a certain fixed level.

The choice of monetary policy methods depends on what is its priority object: demand or supply of money, interest rate or quantity of money. In turn, the choice of priorities for monetary policy objects depends on what has a “stronger” impact on the economy - the demand for money or its supply, and in fact - the interest rate or the amount of money.

In most advanced market economies and developed financial markets, central banks, at least in the short term, set interest rate targets rather than money supply targets.

Since 2004, the Bank of Russia has noted that in order to increase the effectiveness of monetary policy, it is moving to influence the level of liquidity of the banking system, determined by the volume of free bank reserves. To influence the liquidity of the banking system, the Central Bank of the Russian Federation takes into account changes in the banking system’s demand for reserves and uses interest rates, the role of which in monetary policy is increasing. These provisions reflect the transition to the active use of market methods for conducting monetary policy in Russia. But in practice, these methods do not work well due to the inaccessibility of loan rates and refinancing rates.

Direct and indirect regulation of the monetary sphere.

Within the framework of monetary policy, direct and indirect regulation of the monetary sphere is applied. Direct regulation is carried out through 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 fastest effect in terms of central bank control over the price or maximum volume of deposits and loans, especially in conditions of an economic crisis. However, over time, direct methods of influence in the event of an “unfavorable” impact on their activities from the point of view of economic entities can cause an overflow, an outflow of financial resources into the “shadow economy” or abroad.

Indirect regulation of the monetary sphere - influencing the motivation of behavior of business entities using market mechanisms. Its effectiveness is closely related to the degree of development of the money market. In transition economies, especially in the first stages of transformation, both direct and indirect instruments are used with the gradual displacement of the former by the latter.

General and selective methods of monetary regulation. In addition to dividing the methods of monetary regulation into direct and indirect, there are also general and selective methods of implementing the monetary policy of central banks.

General methods are predominantly indirect, affecting the money market as a whole.

Selective methods regulate specific types of credit and are mainly prescriptive in nature. Their purpose is related to the solution of private problems, such as, for example, limiting the issuance of loans by certain banks or limiting the issuance of certain types of loans, refinancing on preferential terms of certain commercial banks, etc. Using selective methods, the central bank retains the functions of centralized redistribution of credit resources. Such functions are unusual for central banks of countries with market economies. The use of selective methods in the practice of central banks to influence the activities of commercial banks is typical of economic policies pursued at the stage of a cyclical recession, in conditions of a sharp violation of the proportions of reproduction.

Instruments of monetary regulation.

In global economic practice, central banks use the following instruments of monetary regulation within the framework of monetary policy: changing the required reserve ratio, or the so-called reserve requirements; 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; open market transactions with government securities.

Required reserves.

Required reserves are a percentage of a commercial bank's liabilities. Commercial banks are required to keep these reserves at the central bank. Historically, reserve requirements have been viewed by central banks as an economic instrument designed to provide commercial banks with sufficient liquidity and, in the event of a run on deposits, to prevent commercial bank insolvency and thereby protect the interests of its clients, depositors and correspondents. However, at present, changing the norm of required reserves of commercial banks or reserve requirements is used as a fairly simple tool used for the most rapid correction of the monetary sphere. The mechanism of action of this monetary policy instrument is as follows:

• - if the central bank increases the required reserve ratio, this leads to a reduction in the free reserves of banks, which they can use for lending operations. Accordingly, this causes a multiplier decrease in the money supply;
• - when the required reserve rate decreases, there is a multiplier expansion of the money supply.

This instrument of monetary policy is, according to experts dealing with this problem, the most powerful, but rather crude, since it affects the foundations of the entire banking system. Even a slight change in the required reserve ratio can cause significant changes in the volume of bank reserves and lead to changes in the credit policy of commercial banks.

Interest rate policy of the Central Bank.

The interest rate policy of the central bank can be represented in two directions: as the regulation of loans to commercial banks and as its deposit policy. In other words, this is the policy of the discount rate or refinancing rate. The refinancing rate refers to the percentage at which the central bank provides loans to financially sound commercial banks, acting as lender of last resort. The discount rate is the percentage (discount) at which the central bank takes into account bills of exchange of commercial banks, which is a type of their lending secured by securities.

The discount rate (refinancing rate) is set by the central bank. Reducing it makes loans cheaper for commercial banks. When commercial banks receive credit, commercial bank reserves increase, causing a multiplier increase in the amount of money in circulation. Conversely, an increase in the discount rate (refinancing rate) makes loans unprofitable. Moreover, some commercial banks that have borrowed funds are trying to return them, as they become very expensive. A reduction in bank reserves leads to a multiplier reduction in the money supply.

Determining the size of the discount rate is one of the most important aspects of monetary policy, and changes in the discount rate are an indicator of changes in the field of monetary regulation. The size of the discount rate usually depends on the level of expected inflation and at the same time has a great influence on inflation. When the central bank intends to ease or tighten monetary policy, it lowers or increases the discount (interest) rate. The bank may set one or more interest rates for various types of transactions or pursue an interest rate policy without fixing the interest rate. Central bank interest rates are not binding on commercial banks in their lending relationships with their clients and with other banks. However, the level of the official discount rate is a guideline for commercial banks when conducting credit operations.

Open market operations.

Central bank open market operations are currently the main instrument of monetary policy in world economic practice. The Central Bank sells or buys securities at a predetermined rate, including government securities, which form the country’s internal debt. This instrument is considered the most flexible in regulating credit investments and liquidity of commercial banks.

Central bank open market operations have a direct impact on the amount of free resources available to commercial banks, which stimulates either a reduction or expansion of credit investments in the economy, while simultaneously affecting the liquidity of banks, reducing or increasing it accordingly. This influence is carried out through changes by the central bank in the purchase price from commercial banks or the sale of securities to them. With a strict restrictive policy aimed at the outflow of credit resources from the loan market, the central bank reduces the selling price or increases the purchase price, thereby correspondingly increasing or decreasing its deviation from the market rate.

If the central bank buys securities from commercial banks, it transfers the money to their correspondent accounts, thereby increasing the banks' lending resources. They begin to issue loans, which in the form of non-cash real money enter the sphere of monetary circulation. If the central bank sells securities, then commercial banks pay for such a purchase from their correspondent accounts, thereby reducing their lending resources.

Open market operations are usually carried out by the central bank in conjunction with a group of large banks and other financial institutions.

The scheme for carrying out these operations is as follows:

Let us assume that there is a surplus of money supply in circulation in the money market and the central bank sets the task of limiting or eliminating such surplus. In this case, the central bank begins to actively offer government securities on the open market to banks or the public, who purchase government securities through special dealers. As the supply of government securities increases, their market price falls, and interest rates on them rise, and, accordingly, their “attractiveness” to buyers increases. The population (through dealers) and banks begin to actively buy government securities, which ultimately leads to a reduction in bank reserves. A reduction in bank reserves, in turn, reduces the money supply by a proportion equal to the bank multiplier. At the same time, the interest rate rises;

Let us now assume that there is a shortage of funds in circulation in the money market. In this case, the central bank pursues a policy aimed at expanding the money supply, namely: the central bank begins to buy government securities from banks and the population at a rate favorable to them. Thus, the central bank increases the demand for government securities. As a result, their market price rises and their interest rate falls, making Treasury securities “unattractive” to their holders. The population and banks begin to actively sell government securities, which ultimately leads to an increase in bank reserves and (taking into account the multiplier effect) to an increase in the money supply. At the same time, the interest rate falls.

Management of the cash supply is the regulation of the circulation of cash: issue, organization of its circulation and withdrawal from circulation carried out by the central bank.

Currency regulation.

Currency regulation as an instrument of monetary policy began to be used by central banks since the 30s of the 20th century. As a reaction to the “flight of capital” from the country during the economic crisis and the Great Depression. Currency regulation refers to the management of foreign exchange flows and external payments, the formation of the exchange rate of the national currency.

The exchange rate is influenced by many factors: the state of the balance of payments; export and import; share of foreign trade in gross domestic product; budget deficit and sources of covering it; economic and political situations, etc. Real in given specific conditions exchange rate can be determined as a result of free offers for the purchase and sale of currency on currency exchanges. An effective system of currency regulation is currency intervention. It consists in the fact that the central bank intervenes in operations on the foreign exchange market in order to influence the exchange rate of the national currency by buying or selling foreign currency. To increase the exchange rate of the national currency, the central bank sells foreign currency; to decrease it, it buys foreign currency in exchange for national currency. The Central Bank carries out foreign exchange interventions in order to bring the national currency exchange rate as close as possible to its purchasing power and at the same time find a compromise between the interests of exporters and importers. Exporting firms are interested in some undervaluation of the national currency; they provide the bulk of incoming foreign exchange earnings. Enterprises that receive raw materials, supplies, and components from abroad, as well as industries that produce products that are uncompetitive in comparison with foreign products, are interested in a certain overvaluation of the national currency.

Money-credit policy- This is a set of measures in the field of money circulation and credit aimed at solving the following problems:

Regulation of economic growth;

Containing inflation;

Providing employment for the country's population;

Balance of payments equalization.

Monetary policy aimed at increasing the money supply in the economy is called expansionary; monetary policy aimed at reducing the money supply is called restrictive.

In accordance with the chosen strategy, the Bank of Russia carries out the following types of policies:

Monetary;

Accounting;

Deposit;

Foreign exchange.

Each direction of the Central Bank's policy from time to time (depending on the situation in the economy) is a priority.

Monetary policy- release (issue) of money and regulation of monetary circulation in the country.

Accounting policy Central banking is based on rediscounting or purchasing bills of exchange previously discounted by commercial banks. The central bank withholds a discount, or discount interest, from the currency of the bill, the change of which affects the volume of lending in the country. When it increases, a strict policy of “expensive money” is pursued; when it decreases, a policy of “cheap money” is pursued.

The accounting policy is supplemented by a pawn or collateral policy based on the provision by the Central Bank of credit institutions of loans secured by bills, securities and government debt obligations.

The meaning of the discount and collateral policy is to influence the situation in the money market and capital market by changing the conditions for refinancing credit institutions.

The accounting and pawnshop policy of the Central Bank is a mechanism for its direct impact on the liquidity of credit institutions and indirect impact on the economy as a whole.

Deposit policy regulates movement of cash flows between commercial banks and the Central Bank, thereby influencing the state of reserves of credit institutions.

When implementing an expansive deposit policy, funds from the public sector of the economy deposited with the Central Bank decrease. Accordingly, the reserves of commercial banks increase by this amount. However, as reserves increase, the lending potential of commercial banks increases, which leads to lower interest rates and inflation. When carrying out a contractive deposit policy, the opposite result is achieved - a decrease in bank reserves, a reduction in credit potential, an increase in interest rates, and a decrease in inflation rates.

Monetary policy - set of activities carried out in the field of international economic relations. The direction and forms of monetary policy pursued by the Central Bank depend on the internal economic situation of a given country.
In different periods, different forms and methods of foreign exchange policy are used: foreign exchange restrictions, changes in parities (devaluation and revaluation), regulation of the degree of currency convertibility, exchange rate regime, discount and exchange rate policies. One of the means of implementing foreign exchange policy is foreign exchange regulation, aimed at regulating international payments and the procedure for carrying out transactions with foreign currency values.

The Central Bank also conducts motto policy. This method impact on the exchange rate of the national currency through the sale of foreign currency:

In order to increase the exchange rate of the national currency, the Central Bank sells foreign currency;

And to reduce it, he buys foreign currency in exchange for national currency.

The motto policy is carried out mainly way in the form of currency intervention, i.e. e. intervention of the Central Bank in operations on the foreign exchange market in order to influence the exchange rate of the national currency. A feature of currency interventions is the relatively large scale and short period of time.

The main methods of monetary policy of the Central Bank of the Russian Federation are:

1. administrative methods - These include direct restrictions and limits, such as:

Quotas for certain types of active and passive operations;

Introduction of limits on the issuance of loans of different categories;

Restrictions on the opening of various branches and offices;

Limitation of interest rates, tariffs, etc.;

2. economic methods - To These include the use of measures that do not involve the establishment of direct prohibitions, for example such as:

tax measures;

Regulatory measures (contributions to the fund for regulating credit resources, liquidity ratios and bank capital adequacy, as well as other types of deductions).

The main instruments of the monetary policy of the Bank of Russia are:

Interest rates on Bank of Russia operations;

Standards for required reserves deposited with the Bank of Russia (reserve requirements);

Open market operations;

Refinancing of credit institutions;

Currency interventions;

Establishing benchmarks for money supply growth;

Direct quantitative restrictions;

Issue of bonds in one's own name.

Interest rates on transactions. The Bank of Russia may set one or more interest rates for various types of transactions or pursue an interest rate policy without fixing the interest rate.

Interest rates of the Bank of Russia represent the minimum rates at which the Bank of Russia carries out its operations.

The Bank of Russia uses interest rate policy to influence market interest rates in order to strengthen the ruble.

Required reserve standards. The essence of this policy lies in the establishment by the Central Bank of mandatory minimum reserves for credit institutions in the form of a certain percentage of the amount of their deposits, which are stored in an interest-free account with the Central Bank. As an instrument of monetary policy, minimum reserves perform a dual role: they serve the current regulation of liquidity in the money market and at the same time act as a brake on the issue of credit money to commercial banks.

Required reserve ratios cannot exceed 20% of a credit institution's liabilities and can be differentiated for different credit institutions. Required reserve ratios cannot be made at one time
changed by more than 5 points.

The required reserve mechanism is used as a credit policy tool in almost all developed countries. In case of violation of required reserve standards, the Bank of Russia has the right to indisputably write off from the correspondent account of a credit organization opened with the Bank of Russia the amount of funds not deposited, and also to collect from the credit organization in court a fine in the amount established by the Bank of Russia.

Open market operations- purchase and sale by the Bank of Russia of treasury bills, government bonds, other government securities, bonds of the Bank of Russia, as well as short-term transactions with these securities with the completion of a reverse transaction later. The influence of the Central Bank on the money market and the capital market is that, by changing interest rates on the open market, the Bank creates favorable conditions for credit institutions to buy or sell government securities to increase their liquidity. Open market operations are the most flexible method of regulating the liquidity and lending capabilities of banks through the placement of public debt.

Refinancing of credit institutions- lending by the Bank of Russia to credit organizations. In modern conditions, refinancing is used as a tool for providing financial assistance to commercial banks, which allows them
reduce the stock of liquid funds to a minimum.
Currency interventions - purchase and sale by the Bank of Russia of foreign currency on the foreign exchange market to influence the ruble exchange rate and the total demand and supply of money.
Direct quantitative restrictions - setting limits on the refinancing of credit institutions and the conduct of certain banking operations by credit institutions.
The Bank of Russia has the right to apply quantitative restrictions that apply equally to all credit institutions in exceptional cases in order to implement a unified state monetary policy only after consultations with the Government of the Russian Federation.

Setting benchmarks for money supply growth- The Bank of Russia can set growth targets for one or several indicators of the money supply, based on the main directions of the unified state monetary policy.

Issue of bonds on your own behalf- The Bank of Russia has the right to issue. The maximum amount of the total nominal value of Bank of Russia bonds of all issues not redeemed on the date of the Board of Directors’ decision on the next bond issue is established as the difference between the maximum possible amount of required reserves of credit institutions and the amount of required reserves of credit institutions, determined on the basis of the current required reserve ratio.

Central Bank of the Russian Federation

The Central Bank (Bank of Russia) is the main conductor of monetary policy aimed at stabilizing money circulation.

The role of the Central Bank of the Russian Federation in the economy is: in protecting and ensuring the stability of the ruble; regulation of the total money supply in the economy; development and strengthening of the banking system; impact on the activity of commercial banks; establishing uniform rules for banking activities and clarifying certain issues of banking practice; facilitating the smooth functioning of the settlement system.

As the economy develops, the role of the Central Bank strengthens and increases, since it is through the monetary mechanism that the basis for the development of the country’s monetary system is provided,

The Bank of Russia is the main link in the modern banking system of Russia. Its distinctive features:

• the authorized capital and other property of the Bank of Russia is federal property;
• The Bank of Russia carries out its expenses at the expense of its own income;
• The bank is not registered with the tax authorities;
• The Bank of Russia is a legal entity;
• the state is not liable for the obligations of the Bank of Russia, and the Bank of Russia for the obligations of the state, if they have not assumed such obligations;
• powers to own, use and dispose of the property of the Bank of Russia without its consent are not permitted.

The Central Bank of the Russian Federation is characterized by principle of independence- a key element of the status of the Bank of Russia - is manifested primarily in the fact that it is not part of the structure of federal government bodies and acts as a special institution with the exclusive right:

Money issue;

Organizations of money circulation.

The Bank of Russia is accountable to the State Duma of the Federal Assembly of the Russian Federation, which appoints and dismisses:

Chairman of the Bank of Russia;

Members of the Board of Directors of the Bank of Russia;

Auditor of the Bank of Russia.

The State Duma also approves the annual report of the Central Bank of the Russian Federation and the audit report.

The Central Bank performs the following main functions:

1. function of the emission center - is that the Central Bank has monopoly on the issue of banknotes. The volume of cash emission is regulated by the Bank with the calculation of the total costs of its monetary policy. The issuance of cash itself is carried out by selling banknotes and coins to commercial banks in exchange for their reserve at the Central Bank.

The importance of the function of the emission center is somewhat reduced since banknotes make up a small part of the money supply of industrialized countries. However, banknote issuance is still necessary for retail payments. The higher the share of circulation in the country, the higher the value of bank emissions;

2. "bank of banks" function. The special role of the Central Bank in the credit system is also that his main clients are not commercial and industrial enterprises and the population, but credit institutions, mainly commercial banks. Commercial banks act as intermediaries between the economy and the Central Bank.

The service of commercial banks on passive operations is that to ensure their liquidity, banks store part of their money in the form of cash reserves with the Central Bank. In most countries, commercial banks are required to keep a portion of their cash reserves with the Central Bank. Such reserves are called required bank reserves. The Central Bank is the lender of last resort for commercial banks. It provides lending to commercial banks in the form of rediscounting bills, as well as re-pledge of their securities;

3. function of the government's bank. Regardless of the ownership of capital, the Central Bank is closely connected with the state. The Central Bank acts as the main banker of the state and advisor to the government on financial and monetary issues.

The Treasury keeps its available funds in current accounts with the Central Bank, which it uses for its expenses. At the same time, the Treasury pays its suppliers by checks to the Central Bank. At the same time, the Central Bank, using the interest-free free funds of the treasury, carries out budget execution operations free of charge for it. Thus, on behalf of the Treasury, the Central Bank accepts tax payments, which are credited to its current account. In conditions of state budget deficit, the function of state lending and public debt management is strengthened. Public debt management is carried out through the operations of the Central Bank to place and repay loans, and organize the payment of income on them.

The Central Bank uses the following methods for managing public debt:

• buys or sells government bonds in order to influence their rates and profitability;
• changes the terms of sale of government obligations;
• in various ways increases the attractiveness of government obligations for private investors.

4. function of a currency center. Historically; that to ensure banknote emission, central banks concentrated gold reserves. They are saved as guarantee and insurance funds for international payments and to support the exchange rates of national currencies. On behalf of the government, the Central Bank regulates foreign currency and gold reserves and is the traditional custodian of gold and foreign exchange reserves. It carries out currency regulation through accounting policies and balance sheets, and participates in the operations of the global loan capital market. As a rule, the Central Bank represents its country in international and regional monetary and financial institutions.

5. function of monetary regulation, which at the present stage is the most important function of the Central Bank. The Central Bank is the main conductor of monetary regulation of the economy, which is an integral part of the government's economic policy. The main goals of monetary policy are: achieving stable economic growth, reducing unemployment and inflation, equalizing the balance of payments.

6. function of issuing government securities. The Central Bank determines the conditions for their issue and place of placement.

Transactions with government securities allow you to:

Ensure market financing of the budget deficit;

Promote more effective monetary policy;

Provide the foundation on which all other elements of the capital market will develop.

To implement its functions in the course of its activities, the Central Bank of Russia performs the following tasks:

Pursues a unified state monetary policy.

Monopoly issues cash and organizes cash circulation;

Is the lender of last resort for credit institutions, organizes a system for their refinancing;

Establishes the right-handedness of settlements in the Russian Federation;

establishes uniform rules for conducting banking transactions throughout the country ;

Provides servicing of budget accounts at all levels
budget system of the Russian Federation, unless otherwise established by federal laws, through settlements on behalf of authorized executive authorities and state extra-budgetary funds, which are entrusted with organizing the execution and execution of budgets; .

Carries out effective management of gold and foreign exchange reserves of the Bank of Russia;

Makes a decision on state registration of credit
organizations, issues licenses to credit institutions to carry out banking operations, suspends their validity and revokes them;

Supervises the activities of credit organizations and banking groups;

Registers the issue of securities by credit institutions in accordance with federal laws;

Carries out independently or on behalf of the Government of the Russian Federation all types of banking operations and other transactions necessary to perform the functions of the Bank of Russia;

Organizes and carries out currency regulation and currency control in accordance with the legislation of the Russian Federation;

- determines the procedure for making settlements with international organizations, foreign states, as well as with legal entities and individuals;

Establishes accounting and reporting rules for banking
RF systems;

- establishes and publishes official exchange rates of foreign currencies in relation to the ruble;

Participates in the development of the balance of payments forecast
RF and organizes the compilation of the balance of payments of the RF;

Performs other tasks.

Central Bank operations

1. Passive operations of the Bank Russia is distinguished by the fact that source of their resources serve primarily not own capital and attracted deposits, a. issue of banknotes.

The main passive operations of the Central Bank include:

Issue of banknotes;

Acceptance of deposits from commercial banks and the treasury.

The main source of resources for central banks in most countries is issue of banknotes (from 54 to 85% of all liabilities). At the present stage, the issue of banknotes is not backed by gold. The official gold content of monetary units has been abolished everywhere.

The modern mechanism for issuing banknotes is based on:

On lending to commercial banks and the state;

Increasing gold and foreign exchange reserves.

The issue of banknotes when lending by a bank is secured by bills of exchange and other bank obligations; when lending to the state - with state long-term obligations, and when purchasing gold and foreign currencies - in gold and foreign currency. It follows that the banknote issue is supported by the assets of the Central Bank. The size of the banknote issue depends on the active operations of the Central Bank.

However, not all loans to the Central Bank of Credit, or to the state, are associated with the new issue of banknotes. Loans can be credited to commercial bank and treasury accounts opened with the Central Bank. In this case, it is not a banknote issue, but a deposit issue by the Central Bank. The source of resources for central banks is also deposits of the treasury and commercial banks. Commercial banks are required to keep part of the funds in the form of cash reserves. A correspondent account of a commercial bank in Central is equivalent in its liquidity to cash. As a rule, commercial banks have a certain balance in their correspondent account with the Central Bank, which becomes the concentration of the cash reserves of commercial banks. The Central Bank does not pay interest on deposits, but carries out settlement transactions free of charge.

Along with bank deposits, state deposits occupy a large place in the liabilities of issuing banks. The share of equity capital usually accounts for no more than 4% of the Central Bank's liabilities.

2. Active operations are called operations for the placement of banking resources. The main active operations of the bank include:

1. accounting and loan operations

Accounting and lending operations are represented by two types of operations:

Accounting operations;

Short-term loans to the state and banks.

The main borrowers of the central bank are the commercial banks and the state. Commercial banks resort to loans from central banks for targeted lending to their clients, as well as during periods of tension in the money market. Such loans take the following forms:

Rediscounting and re-pledge of bills;

Re-pledge of securities;

Targeted loans from the Central Bank for investment purposes.

Rediscounting and re-pledge of bills is that the Central Bank rediscounts bills provided by commercial banks. Purchasing bills from commercial banks is called re-registration, since this involves secondary accounting of bills that commercial banks bought from their clients. The discounting of treasury bills serves in most industrial countries as the main instrument for short-term government lending. Re-pledge of bills - This short-term loans against bills of exchange, presented to commercial banks.

Re-pledge of securities- issuing bank loans against government securities, but some countries also allow issuing loans against other types of securities. The method of covering cash reserves can be direct bank loans to government for a period of no more than one year. Short-term loans to commercial banks are provided against provision of simple and transferable bills, securities and other assets.

2. investments in government securities are made by the bank for various purposes. Central banks' purchases of government bonds serve as the main and even the only form of government lending to cover budget deficits. Direct lending to the state is practically absent or limited by law,

the above measures.

3.operations with gold and foreign currency are practiced, as a rule, in conditions of extreme necessity for the state and are used less frequently than the above measures.