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Introduction………………………………………………………………………………….…1

Chapter 1 Goals, objects and methods of monetary regulation..4

1.1 Objectives of monetary regulation………………......4

1.2 Tools and methods of monetary policy…..12

1.3 Main types of monetary policy (policy

cheap and expensive money)……………………………………………………….....19

Chapter 2 The role of the Central Bank of the Russian Federation in carrying out

monetary policy………………………………………………………22

2.1 Essence and functions of the Central Bank of the Russian Federation………………………22

2.3 Main instruments of monetary policy of the Central Bank…….27

Chapter 3 Features of monetary policy

Central Bank of the Russian Federation at the present stage………………………………………………………..34

3.1.Modern legal framework for regulating monetary

credit policy by the Central Bank of the Russian Federation………………………34

3.2 State and prospects for the development of the monetary system in Russia.33

Conclusion………………………………………………………………………………….….51

List of used literature…………………………..…….….54

Appendix………………………………………………………………………………...…..56

Introduction

Monetary policy is a set of interrelated measures taken by the Central Bank for the purpose of regulation aggregate demand through the planned impact on the condition of the loan and money circulation.

One of the necessary conditions for effective economic development is the formation of a clear mechanism for monetary regulation that allows the Central Bank to influence business activity, control the activities of commercial banks, and achieve stabilization of money circulation.

Monetary policy is a very effective tool for influencing the country’s economy, without violating the sovereignty of most subjects of the business system. Although this limits the scope of their economic freedom (without this, any regulation of economic activity is generally impossible), the state influences the key decisions made by these subjects only indirectly.

Ideally, monetary policy aims to ensure price stability, full employment and economic growth - these are its highest and ultimate goals. However, in practice, with its help it is necessary to solve narrower problems that meet the urgent needs of the country’s economy.

We must not forget that monetary policy is an extremely powerful, and therefore unusually dangerous, tool. With its help, we can get out of the crisis, but a sad alternative cannot be ruled out - a worsening of the negative trends that have developed in the economy. Only very balanced decisions made at the highest level after a serious analysis of the situation and consideration of alternative ways of influencing monetary policy on the state’s economy will yield positive results. The Central Bank of Issue of the state acts as the conductor of monetary policy. Without the right monetary policy pursued by the Central Bank, the economy cannot function effectively. Specific methods and instruments of the Central Bank's monetary policy are determined by the law on the Bank of Russia and are very diverse. The Central Bank has been granted the broadest powers and complete independence in the matter of choosing methods and measures for monetary regulation of the country's economy within the framework of current legislation.

Milton Friedman, a Nobel Prize laureate and a prominent economist of our time, is recognized as the father of monetary policy. His theories are used by many governments, including the government of England, and Raganomics was built on his theory. Many put him on a par with Adam Smith, Marshall, Keynes, Leontiev.

Today in Russia, rational monetary policy is designed to minimize inflation, promote sustainable economic growth, maintain exchange rate relations at an economically sound level, stimulating the development of export-oriented and import-substituting industries, and significantly replenish the country's foreign exchange reserves. The task is quite difficult. State regulation of the monetary sphere can be carried out successfully only if the state, through the central bank, is able to influence the scale and nature of the activities of private institutions, since in a developed market economy they are the basis of the entire monetary system. This regulation is carried out in several interrelated directions.

The purpose of the work is to analyze monetary policy in modern conditions. To achieve the goal, it is necessary to consider how the Central Bank coped with the tasks facing it at the present stage of economic reforms, what basic methods and tools of monetary regulation need to be applied in Russian conditions.

Chapter 1. Goals, objects and methods of monetaryregulation

1.1. Objectives of monetary regulation.

The fundamental goal of monetary policy is to help the economy achieve an overall level of output characterized by full employment and price stability. Monetary policy consists of changing the money supply in order to stabilize aggregate output (stable growth), employment and the price level.

Initially, the main function of central banks was to issue cash. Currently, this function has gradually faded into the background, but we should not forget that cash is still the foundation on which the entire remaining money supply is based, therefore the activities of the central bank in issuing cash must be no less balanced and thoughtful than any other.

Carrying out monetary policy, the central bank, influencing the lending activities of commercial banks and directing regulation to expand or reduce lending to the economy, achieves stable development of the domestic economy, strengthening money circulation, and balancing internal economic processes. Thus, the impact on credit makes it possible to achieve deeper strategic goals for the development of the entire economy as a whole. For example, a lack of free cash among enterprises makes it difficult to carry out commercial transactions, internal investments, etc. On the other hand, excess money supply has its drawbacks: depreciation of money, and, as a consequence, a decrease in the living standards of the population, a deterioration in the currency situation in the country. Accordingly, in the first case, monetary policy should be aimed at expanding the lending activity of banks, and in the second case, at reducing it, transitioning to a policy of “dear money” (restrictive).

With the help of monetary regulation, the state seeks to mitigate economic crises and curb the growth of inflation; in order to maintain the market situation, the state uses credit to stimulate investment in various sectors of the country's economy.

It should be noted that monetary policy is carried out both by indirect (economic) and direct (administrative) methods of influence. The difference between them is that the central bank either has an indirect impact through the liquidity of credit institutions, or sets limits on the quantitative and qualitative parameters of banks’ activities. The supply of money in the money market plays a large role in the economy. This, in particular, follows from the well-known exchange equation. Accordingly, there is a relationship between the volume of money supply, the velocity of money circulation, output and the price level. Here's what Western statistics show:

“Money supply growth rate and average level prices are almost linearly dependent with a coefficient of more than 0.9 for all aggregates in all countries with all economies (in terms of development).

The level of growth of the money supply and real production are completely unrelated where the growth of the money supply is more than about 18% per year. In countries with lower growth rates of the money supply, there is an almost linear relationship with a coefficient of about 0.1

The inflation rate and the growth rate of the real product are absolutely not interrelated.

Suppose the economy faces unemployment and falling prices. Therefore, it is necessary to increase the money supply. To achieve this goal, a cheap money policy is used, which consists of the following measures.

Monetary policy is based on the theory of money, which studies the impact of money on the state of the economy as a whole.

There is debate among economists based on two different approaches: Keynesian theory and monetarism. What is the essence of these disagreements?

Keynesian theory of money.

John Maynard Keynes and his followers believed that the market structure of the economy had internal “vices” and that it was incapable of self-regulation. This, in particular, is expressed in unemployment, inflation, and frequent economic crises. Keynesians concluded that the state must actively intervene in economic affairs to prevent crises and ensure stability, and must pursue strict fiscal and monetary policies. They recognized that changes in money supply affect nominal GNP, and monetary policy should be based on the level interest rate(since by changing the interest rate, we change investment activity, and through the multiplier effect, nominal GNP).

The fundamental Keynesian equation is:

GNP = C + I + G + NX (C - consumer spending, I - investment, G - government spending on the purchase of goods and services, NX - net exports).

Keynesians believed that fiscal, or budgetary, policy is more effective during an economic crisis than monetary policy.

According to Keynesians, the velocity of money is volatile and unpredictable. The Keynesian position is that money is needed not only for making transactions, but also for holding it as an asset. Only money “moves” for transactions; money - assets do not participate in circulation. Therefore, the greater the relative importance of money used for transactions, the higher the velocity of money circulation.

An expansion in the money supply will lower the interest rate. Since it is now less expensive to hold money as an asset, the public will hold more money assets with zero velocity. Therefore, the overall velocity of money circulation falls.

So, the velocity of money changes in direct proportion to the interest rate and in inverse proportion to the supply of money. If this is so, then there is no stable relationship between the money supply and the net national product, since the velocity of money circulation changes with the change in money.

It was noted above that to combat inflation it is necessary to limit the money supply.

Keynesians take a different view here. They believe that a decrease in money supply can lead to a decrease in demand, which will lead to a decline in production, which in turn will increase inflation.

In fact, everything depends on the market situation. If, with an inelastic supply of goods, the money supply is increased, this will only lead to an increase in prices - inflation.

If the supply on the market is elastic (there are a lot of goods - there is not enough money), then with an increase in the volume of money supply, production will increase, therefore inflation will begin to subside.

Keynesians believe that the main problem in government regulation is to stimulate effective demand, and not to fight inflation, which should be regulated.

Monetarist approach.

The 1970s saw the crisis of Keynesianism. The ideas of monetarism, the main theorist of which is Milton Friedman, a famous American economist, take precedence over the ideas of this school.

Monetarists believe that a market economy is an internally stable system. All unfavorable aspects are a consequence of unreasonable government intervention, which must be minimized.

Monetarism emphasizes money. Representatives of this school believe that the connection between GNP and the money supply is stronger than between investment and GNP. This conclusion is drawn from I. Fisher’s equation:

МхY=PхG (M - money supply, Y - velocity of money circulation, P - price index, G - quantity of goods). After all, if we assume that GNP = PxG, and Y is stable (or its changes are predictable), then GNP directly depends on the mass of money in circulation.

In conclusion, I would like to note that modern models monetary policies are based on both Keynesian and monetarist ideas.

The formation of market relations in our country objectively predetermines the mastery of the entire range of economic regulation mechanisms. Almost all the main relations that determine the efficiency and viability of the economy as a whole are regulated, and quite strictly. Among them, monetary instruments stand out for their importance.

1.2 Tools and methods of monetary policy.

Above I outlined the goals of monetary regulation. Let us now consider the main instruments with the help of which the central bank pursues its policy in relation to commercial banks. These include, first of all, changes in the refinancing rate, changes in required reserve norms, open market transactions with securities and foreign currency, as well as some measures of a strict administrative nature.

Currently, minimum reserves are the most liquid assets that all credit institutions are required to hold, usually either in the form of cash on hand at banks, or in the form of deposits with the central bank or in other highly liquid forms determined by the central bank. The reserve requirement ratio is a percentage of the amount of minimum reserves established by law to the absolute (volume) or relative (increment) indicators of passive (deposits) or active (credit investments) operations. The use of standards can have both total (established for the entire amount of obligations or loans) and selective (for a certain part of them) impact.

Minimum reserves perform two main functions:

Firstly, they, as liquid reserves, serve as security for the obligations of commercial banks on the deposits of their clients. By periodically changing the required reserve ratio, the central bank maintains the degree of liquidity of commercial banks at the minimum acceptable level, depending on the economic situation.

Secondly, minimum reserves are a tool used by the central bank to regulate the volume of money supply in a country. By changing the reserve ratio, the central bank regulates the scale of active operations of commercial banks (mainly the volume of loans they issue), and, consequently, the possibility of their deposit issuance. Credit institutions can expand lending operations if their required reserves with the central bank exceed the established standard. When the amount of money in circulation (cash and non-cash) exceeds the necessary need, the central bank pursues a policy of credit restriction by increasing the deduction standards, that is, the percentage of funds reserved in the central bank. Thus, it forces banks to reduce the volume of active operations.

Changes in the required reserve ratio affect the profitability of credit institutions. Thus, in the case of an increase in required reserves, there appears to be a loss of profit. Therefore, according to many Western economists, this method serves as the most effective anti-inflationary tool.

The disadvantage of this method is that some institutions, mainly specialized banks with small deposits, find themselves in an advantageous position compared to commercial banks with large resources.

This method was first used in the USA in 1933. This mechanism of monetary regulation affects the foundations of the banking system and can have a strong impact on the financial and economic system as a whole. In Russia, since March 19, 1999, the standards for contributions of credit institutions to the required reserves of the Bank of Russia were: for funds raised from legal entities in rubles - 7%; attracted funds from legal entities in foreign currency – 7%; funds raised from individuals in rubles – 5%; funds raised from individuals in foreign currency – 7%; deposits of individuals in Sberbank of the Russian Federation in rubles – 5%.

In the last one and a half to two decades, the role of this method of monetary regulation has decreased. This is evidenced by the fact that everywhere (in Western countries) there is a reduction in the required reserve ratio and even its abolition for some types of deposits.

Refinancing of commercial banks.

The term "refinancing" means the receipt of funds by lending institutions from the central bank. The central bank can issue loans to commercial banks, as well as rediscount securities held in their portfolios (usually bills).

Rediscounting of bills has long been one of the main methods of monetary policy of the central banks of Western Europe. Central banks had certain requirements for a discounted bill, the main one of which was the reliability of the debt obligation.

Bills of exchange are rediscounted at the rediscount rate. This rate is also called the official discount rate; it usually differs from the loan (refinancing) rate by a small amount downwards. The central bank buys the debt at a lower price than a commercial bank.

If the central bank increases the refinancing rate, commercial banks will seek to compensate for the losses caused by its growth (increase in the cost of credit) by increasing rates on loans provided to borrowers. Those. changes in the discount (refinancing) rate directly affect changes in rates on loans from commercial banks. The latter is the main goal of this method of central bank monetary policy. For example, an increase in the official discount rate during a period of increased inflation causes an increase in the interest rate on credit operations of commercial banks, which leads to their reduction, since the cost of credit increases, and vice versa.

We see that changes in the official interest rate have an impact on the credit sector. First, making it difficult or easier for commercial banks to obtain credit from the central bank affects the liquidity of credit institutions. Secondly, a change in the official rate means that commercial bank loans become more expensive or cheaper for clients, as interest rates on active credit operations change.

Also, a change in the official central bank rate means a transition to a new monetary policy, which forces commercial banks to make the necessary adjustments to their activities.

The disadvantage of using refinancing in monetary policy is that this method only affects commercial banks. If refinancing is used little or is not carried out at the central bank, then this method almost completely loses its effectiveness.

In addition to setting official refinancing and rediscounting rates, the central bank sets the interest rate on pawn loans, i.e. loans issued against any collateral, which is usually securities. It should be noted that only those securities whose quality is beyond doubt can be accepted as collateral. In the practice of foreign banks, such securities are used as negotiable government securities, first-class trade bills and bankers' acceptances (their value must be expressed in national currency, and the maturity period must not exceed three months), as well as some other types of debt obligations, determined central banks.

Open market operations.

Gradually, the two methods of monetary regulation described above (refinancing and mandatory reserve requirements) lost their primary importance, and the main instrument of monetary policy became central bank interventions, called open market operations.

This method consists in the fact that the central bank carries out transactions of purchase and sale of securities in the banking system. The purchase of securities from commercial banks increases the latter's resources, accordingly increasing their lending capabilities, and vice versa. Central banks periodically make changes to this method of credit regulation, change the intensity of their operations and their frequency.

Open market operations first began to be actively used in the USA, Canada and the UK due to the presence of a developed securities market in these countries. Later, this method of credit regulation was widely used in Western Europe.

Depending on the form of market transactions of the central bank with securities, they can be direct or reverse. A direct transaction is a regular purchase or sale. The reverse involves the purchase and sale of securities with the obligatory completion of a reverse transaction at a predetermined rate. The flexibility of reverse operations and the softer effect of their impact make this regulatory instrument popular. Thus, the share of reverse operations of central banks of leading industrialized countries on the open market reaches from 82 to 99.6%. If you look at it, you can see that in essence these operations are similar to refinancing against securities. The Central Bank invites commercial banks to sell it securities on terms determined on the basis of auction (competitive) trading, with the obligation to sell them back in 4-8 weeks. Moreover, interest payments accruing on these securities while they are in the ownership of the central bank will belong to commercial banks.

Open market operations vary depending on:

• terms of the transaction - purchase and sale for cash or purchase for a period with mandatory re-sale - repo transactions;
• objects of transactions - transactions with government or private securities;
• maturity of the transaction – short-term (up to 3 months) and long-term (1 year or more) transactions with securities;
• areas of operations - cover only the banking sector or include the non-banking sector of the securities market;
• method of setting rates - determined by the central bank or the market.

Thus, open market operations, as a method of monetary regulation, differ significantly from the previous two. The main difference is the use of more flexible regulation, since the volume of securities purchased, as well as the interest rate used, can change daily in accordance with the direction of the central bank's policy. Commercial banks, taking into account the specified feature of this method, must closely monitor their financial position, while avoiding a deterioration in liquidity.

Some administrative methods of regulating the monetary sphere.

Along with the economic methods by which the central bank regulates the activities of commercial banks, it can also use administrative methods of influence in this area.

These include, for example, the use of quantitative credit restrictions.

This method of credit regulation is a quantitative limitation on the amount of loans issued. In contrast to the regulatory methods discussed above, credit provisioning is a direct method of influencing the activities of banks. Also, credit restrictions lead to the fact that borrowing enterprises find themselves in different situations. Banks tend to provide loans primarily to their traditional clients, usually large enterprises. Small and medium-sized firms are the main victims of this policy.

It should be noted that, using this policy to achieve containment of banking activities and moderate growth of the money supply, the state helps to reduce business activity. Therefore, the method of quantitative restrictions began to be used not as actively as before, and in some countries it was completely abolished.

Also, the central bank can set various standards (ratios), which commercial banks are obliged to maintain at the required level. These include capital adequacy standards for a commercial bank, balance sheet liquidity standards, maximum risk per borrower standards, and some additional standards. The listed standards are mandatory for commercial banks. Also, the central bank can establish optional, so-called assessment standards, which commercial banks are recommended to maintain at the proper level.

If commercial banks violate banking legislation, rules for conducting banking operations, or other serious shortcomings in their work, which leads to infringement of the rights of their shareholders, depositors, and clients, the central bank can apply the most stringent administrative measures to them, up to and including the liquidation of banks.

It is obvious that the use of administrative pressure by the central bank in relation to commercial banks should not be systematic, but should be used exclusively as forced measures.

1.3 Main types of monetary policy (policy of cheap and expensive money).

The policy of expensive money (restrictive) and the policy of cheap money (expansionist) have already been mentioned above. This section discusses the mechanisms for implementing the main types monetary policy. Let the economy face unemployment and falling prices. Therefore, it is necessary to increase the money supply. To achieve this goal, a cheap money policy is used, which consists of the following measures.

First, the central bank must purchase securities on the open market from the public and from commercial banks. Secondly, it is necessary to lower the discount rate and, thirdly, standards for reserve contributions are needed. As a result of the measures taken, the excess reserves of the commercial banking system will increase. Since excess reserves are the basis for increasing the money supply by commercial banks through lending, we can expect that the money supply in the country will increase. An increase in the money supply will lower the interest rate, causing investment to increase and the equilibrium net national product to increase. From the above it can be concluded that the objective of this policy is to make credit cheap and easily available in order to increase aggregate spending and employment.

In a situation where the economy faces excessive spending, which gives rise to inflationary processes, the central bank should try to reduce overall spending by restricting or reducing the money supply. To solve this problem, it is necessary to reduce the reserves of commercial banks. This is done as follows. The central bank must sell government bonds on the open market in order to reduce the reserves of commercial banks. Then it is necessary to increase the reserve ratio, which automatically frees commercial banks from excess reserves. The third measure is to raise the discount rate to reduce the interest of commercial banks in increasing their reserves by borrowing from the central bank. The above system of measures is called the dear money policy. As a result, banks find that their reserves are too small to meet the statutory reserve ratio, that is, their current account is too large in relation to their reserves. Therefore, to meet the reserve requirement when reserves are insufficient, banks should maintain their current accounts by refraining from issuing new loans after old ones are paid off. As a consequence, the money supply will decrease, causing the rate of interest to rise, and a rise in the interest rate will reduce investment, reducing aggregate spending and limiting inflation. The goal of the policy is to restrict the supply of money, that is, reduce the availability of credit and increase its costs in order to lower costs and contain inflationary pressures.

It is necessary to note the strong and weak sides using methods of monetary regulation to influence the country's economy as a whole. The following arguments can be made in favor of monetary policy. Firstly, speed and flexibility compared to fiscal policy. It is known that the implementation of fiscal policy can be delayed for a long time due to debate in the legislative authorities. The situation is different with monetary policy. The central bank and other monetary authorities can make decisions on a daily basis to buy and sell securities and thereby influence the money supply and interest rates. The second important aspect is related to the fact that in developed countries this policy is isolated from political pressure, in addition, it is softer in nature than fiscal policy and acts more subtly and therefore seems more politically acceptable.

But there are also a number of negative aspects. A tight money policy, if pursued vigorously enough, can indeed reduce commercial bank reserves to the point where banks are forced to restrict lending. And this means limiting the money supply. A cheap money policy can provide commercial banks with the necessary reserves, that is, the ability to provide loans, but it cannot guarantee that banks will actually issue loans and the money supply will increase. In such a situation, the actions of this policy will be ineffective. This phenomenon is called cyclical asymmetry, and it can be a serious obstacle to monetary regulation during a depression. In more normal periods, an increase in excess reserves leads to the provision of additional credit and thus to an increase in the money supply.

Another negative factor noted by some neo-Keynesians is the following. The velocity of money tends to change in the opposite direction of the supply of money, thereby inhibiting or eliminating changes in the supply of money caused by policy, that is, when the supply of money is limited, the velocity of money tends to increase. Conversely, when policy measures are taken to increase the money supply during a recession, the velocity of money is very likely to fall.

In other words, when money is cheap, the velocity of money circulation decreases, when reverse stroke events, the policy of expensive money causes an increase in the velocity of circulation. And we know that total spending can be thought of as the money supply multiplied by the velocity of money. And, therefore, with a policy of cheap money, as mentioned above, the velocity of circulation of the money supply falls, and, therefore, total spending is reduced, which is contrary to the goals of the policy. A similar phenomenon occurs with dear money policies.

2.1. Essence and functions of the Central Bank of the Russian Federation

The Central Bank of the Russian Federation (Bank of Russia) is a state credit institution vested with the right to issue banknotes, regulate money circulation, credit and exchange rates, and store the official gold and foreign exchange reserves. It is a bank of banks, an agent of the government in servicing the state budget.

The Central Bank of the Russian Federation is also vested with the right to issue money and government securities, establishes the standard value of credit demand, stores the cash reserves of commercial banks and provides them with loans, and is a cash center. Its main task is to carry out public policy in the field of emission, credit, money circulation.

The status, tasks, functions, powers and principles of the organization and activities of the Bank of Russia as a public legal organization are legislatively determined by the Constitution Russian Federation, Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" and other federal laws. According to the Constitution of the Russian Federation main task The Bank of Russia is protecting and ensuring the stability of the ruble. The main goals of the Bank of Russia are: strengthening the purchasing power and exchange rate of the ruble against foreign currencies; development and strengthening of the Russian banking system; ensuring efficient and uninterrupted functioning of the settlement system. The implementation of these goals is carried out by the Bank of Russia regardless of government bodies. Making a profit is not the purpose of the Bank of Russia.

The principle of independence - a key element of the status of the Central Bank of the Russian Federation - is manifested, first of all, in the fact that the Bank of Russia is not part of the structure of federal government bodies and acts as a special institution with the exclusive right to issue money and organize money circulation. The Bank of Russia is a legal entity and acts as a subject of public law. The authorized capital and other property of the Bank of Russia are federal property. The powers to own, use and dispose of the property of the Bank of Russia are exercised by the Bank of Russia itself; seizure and encumbrance of Bank of Russia property without its consent are not permitted. The financial independence of the Central Bank of the Russian Federation is also expressed in the fact that it carries out its expenses from its own income and is not registered with the tax authorities.

The Bank of Russia is accountable to the State Duma of the Federal Assembly of the Russian Federation, which appoints and dismisses the Chairman of the Bank of Russia (upon the proposal of the President of the Russian Federation) and members of the Board of Directors of the Bank of Russia, as well as appoints the auditor of the Bank of Russia and approves the annual report of the Central Bank of the Russian Federation and audit report.

Functions of the Bank of Russia:

• · in cooperation with the Government of the Russian Federation, develops and implements a unified state monetary policy aimed at protecting and ensuring the stability of the ruble;
• · monopolistically issues cash and organizes its circulation;
• · is the lender of last resort for credit institutions, organizes a refinancing system;
• · establishes the rules for making payments in the Russian Federation;
• · establishes the rules for conducting banking operations, accounting and reporting for the banking system;
• · carries out state registration of credit organizations, issues and revokes licenses of credit organizations and organizations involved in their audit;
• · exercises supervision over the activities of credit institutions;
• · 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 necessary to fulfill its main tasks;
• · carries out currency regulation, including operations for the purchase and sale of foreign currency;
• · determines the procedure for making settlements with foreign countries;
• · organizes and carries out currency control both directly and through authorized banks in accordance with the legislation of the Russian Federation;
• · takes part in the development of the forecast of the balance of payments of the Russian Federation and organizes the compilation of the balance of payments of the Russian Federation;
• · conducts analysis and forecasting of the state of the economy of the Russian Federation as a whole and by region, primarily monetary, monetary, financial and price relations;
• · publishes relevant materials and statistical data, and also performs other functions in accordance with federal laws.

To implement the functions assigned to it, the Central Bank of the Russian Federation participates in the development of the economic policy of the Government of the Russian Federation.

The Bank of Russia and the Government of the Russian Federation inform each other about proposed actions of national importance, coordinate their policies, and hold regular consultations.

The monetary policy of the state is carried out through the Central Bank of the Russian Federation, as a rule, in two directions:

n carrying out expansionary or expansive policies aimed at stimulating the scale of lending and increasing the quantity of money. Depending on the economic situation, the Central Bank makes loans more expensive or cheaper for commercial banks, and, accordingly, for borrowers. If the economy experiences a decline in production and unemployment rises, then he pursues a policy of cheap money, which makes loans cheap and accessible. In parallel, there is an increase in the supply of money, which leads to a decrease in the interest rate and, accordingly, should stimulate the growth of investment and business activity, as well as real Gross National Product(GNP). If competition intensifies in the financial market and the supply of money outstrips the demand for it, banks are forced to reduce the interest rate (the price of money) in order to attract borrowers. This is especially evident in a depressed economy. Cheap credit encourages businesses to invest in capital goods and households to buy consumer goods. There is an increase in demand in the commodity market, and the preconditions for economic growth are created. This policy is carried out during a period of stagnation;

n implementing a restrictive or restrictive (tough) policy aimed at increasing the interest rate. With rising inflation, the Central Bank pursues a policy of expensive money, which leads to an increase in the cost of credit and makes it difficult to access. In this case, there is an increase in the sale of government securities on the open market, an increase in the reserve norm and an increase in the discount rate. High interest rates, on the one hand, encourage money owners to save more, and on the other hand, limit the number of people willing to borrow money. In this case, market participants seek to purchase securities. This direction of regulation is used in the presence of inflation and high rates of economic growth. Banks seek to earn money on interest on loans by pocketing the difference between income from active operations and expenses incurred to raise funds. As you know, the interest rate depends on the inflation rate and even on inflation expectations. If prices rise, but the interest rate remains unchanged, then both banks and depositors will receive back the depreciated money. When the economy is booming, when everyone needs money, interest rates will rise.

The Central Bank of the Russian Federation considers the main task of monetary policy for the medium term to be reducing inflation while maintaining and possibly accelerating GDP growth while simultaneously creating the prerequisites for reducing unemployment and increasing real incomes of the population.

2.3 Main instruments of monetary policy of the Central Bank.

In accordance with Article 35 of the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” (as amended by Federal Law dated April 26, 1995 N 65-FZ), the main instruments and methods of monetary policy of the Bank of Russia are:

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

interest rates on Bank of Russia operations;

open market operations;

bank refinancing;

currency regulation;

establishing benchmarks for money supply growth;

direct quantitative restrictions.

Required reserves. The policy of minimum reserves was first tested in the United States in the 1930s, and immediately after the Second World War it was introduced into practice by the central banks of all leading capitalist countries. Minimum reserves are deposits of commercial banks with the central bank, the amount of which is established by law in a certain relation to bank liabilities. Initially, the practice of reserving funds was intended to insure commercial banks. The Central Bank assumes the function of accumulating the minimum reserve, which is not subject to lending.

Another function of such a reserve is that, by changing the reserve percentage, the Central Bank influences the amount of free cash flows of commercial banks. During a boom, to “cool” it, the Central Bank increases the reserve ratio, and during a crisis, vice versa. Increasing the reserve rate by 1 - 2 percentage points is an effective means of limiting credit expansion. As a rule, the norm of minimum reserves is differentiated.

The required reserve ratio is widely used by the government to increase or decrease the free money supply. Naturally, an increase in the mandatory reserve ratio entails a decrease in the free money supply. Required reserves- This is the portion of the amount of deposits that commercial banks must keep in the form of non-interest bearing deposits with the Central Bank.

Required reserve norms are set as a percentage of deposit volumes. They vary in size depending on the types of deposits (for example, for time deposits they are lower than for demand deposits). In modern conditions, required reserves perform not so much the function of deposit insurance (this function is performed by specialized financial institutions, to which banks allocate a certain percentage of deposits), but rather serve to carry out the control and regulatory functions of the Central Bank, as well as for interbank settlements.

Banks can store and excess reserves– some amounts in excess of required reserves, for example, for unforeseen cases of increased need for liquid funds. However, this deprives banks of the amount of income they could receive by putting this money into circulation. Therefore, as interest rates rise, the level of excess reserves usually declines.

The higher the Central Bank sets the required reserve ratio, the smaller the share of funds that commercial banks can use for active operations. An increase in the reserve ratio reduces the money multiplier and leads to a contraction in the money supply. Thus, by changing the required reserve ratio, the Central Bank influences the dynamics of money supply.

Ms = [(cr +1)/(cr +rr)] x MB ,

where Ms is the money supply,

cr - deposit ratio (cash - deposits),

rr – reserve rate (reserves – deposits),

MB – monetary base.

In practice, the norms of required reserves are revised quite rarely, since the procedure itself is cumbersome in nature, and the power of influence of this instrument through the multiplier is significant.

Bank refinancing .

The refinancing rate is a very powerful tool for influencing the lower level of the banking system. That is why it changes relatively rarely, and its changes entail significant consequences for the banking system as a whole. The state should not allow sudden changes in the refinancing rate. - Compulsory investment norms in government securities for banks and investment institutions.

Fluctuations in the discount rate (refinancing rate) reflect the instability of the Russian economy.

As is known, an increase in the discount rate entails an increase in the cost of loans and, consequently, a decrease in investment. This instrument of monetary policy was not always used correctly and often came into conflict with other components of government policy.

Currently, refinancing is carried out through intraday loans, overnight loans and pawn loans.

Foreign exchange operations (currency interventions) are the purchase and sale of foreign currency to maintain the exchange rate of the national currency within certain limits. monetary unit.

Over the past decades, economists' views on foreign exchange interventions have undergone significant changes. The administration of US President R. Reagan considered them expensive and ineffective instruments of monetary policy. In Europe, after the formation of the so-called exchange rate mechanism in 1979, central banks actively used foreign exchange interventions.

There are three alternative criteria for determining the effectiveness of foreign exchange interventions.

“Direction” - if the direction of the exchange rate movement coincides with the direction of the intervention, then it is effective. In other words, if the central bank sells or buys a currency, then its rate should decrease or increase accordingly.

“Smoothing” - intervention is effective when the efforts of the Central Bank slow down the development of a trend. If the exchange rate falls, then the intervention should lead to a smooth decline, and if it increases, then to a slowdown in growth.

“Reversal” - intervention is effective when not only the first criterion is met, but also when the intervention completely neutralizes the exchange rate fluctuation for the previous period. There is a trend reversal or the central bank is “rowing against the tide.”

As a result of the analysis mentioned earlier, the following data were obtained (See Appendix 3)

The proportions of successful and failed interventions for the period from January 1997 to July 2000 are shown in the chart.

Based on the results of the analysis, several conclusions can be drawn.

Before the currency crisis of August 1998, the Central Bank of the Russian Federation was most successful in smoothing exchange rate fluctuations (in 78% of cases) and less successful in maintaining market trends (47% of cases).

After the crisis and the introduction of a floating exchange rate, the overall effectiveness of the Bank of Russia's foreign exchange interventions decreased.

Based on the values ​​of the third criterion, we can conclude that in Russia they were unable to “overcome” the market and implement a trend reversal. With such low efficiency during periods of financial turmoil, the Central Bank will not be able to resist a currency crisis solely through interventions.

But these conclusions do not at all indicate the low professionalism of the Central Bank. International studies have found that only interventions by the central banks of the United States, Japan and Germany are effective. Most central banks have had little success in this. For example, the weak impact of foreign exchange interventions on the exchange rate of the national currency was noted in such developed countries as Sweden and Canada.

Open market operations are the buying and selling of government securities to increase or decrease the funds of commercial banks. By changing the volume of purchases and sales of securities and the price level at which they are sold or purchased, the central bank can exercise flexible and rapid influence on the lending activity of commercial banks. Open market operations are the third way to control the money supply. It is widely used in countries with developed securities markets and is difficult in countries where the stock market is in its infancy. This instrument of monetary regulation involves the purchase and sale by the Central Bank of government securities (usually in the secondary market, since the activities of the Central Bank in the primary markets are prohibited or limited by law in many countries). Most often these are short-term government bonds.

When the Central Bank buys securities from a commercial bank, it increases the amount in the reserve account of this bank (sometimes in a special account of a commercial bank in the Central Bank for such transactions), accordingly, additional “money of increased power” enters the banking system and the process of multiplicative expansion of the money supply begins . The scale of expansion will depend on the proportion in which the increase in the money supply is distributed between cash and deposits: the more money goes into cash, the smaller the scale of monetary expansion. If the Central Bank sells securities, the process proceeds in the opposite direction.

Thus, by influencing the monetary base through open market operations, the Central Bank regulates the size of the money supply in the economy. Often such operations are carried out by the Central Bank in the form repurchase agreements (REPO). In this case, the bank, for example, sells securities with an obligation to buy them back at a certain (higher) price after a certain period. The payment for funds provided in exchange for securities is the difference between the sale price and the repurchase price. Repurchase agreements are widespread in the activities of commercial banks and firms.

Another classic tool in the practice of central banks is the discount rate policy, i.e. setting the interest rate for loans that the central bank provides to commercial banks (refinancing rates). Commercial banks provide the Central Bank with payment obligations - bills of exchange. These can be either banks’ own bills of exchange or obligations of third parties held by banks. The Central Bank buys and discounts these bills, while retaining a certain percentage in its favor. Funds received from the Central Bank are provided to borrowers of commercial banks. The price of this loan - the interest rate - must be higher than the discount rate, otherwise commercial banks will be unprofitable. Therefore, if the Central Bank increases the discount rate, this leads to an increase in the cost of loans for clients of commercial banks. This, in turn, contributes to a decrease in borrowing and, therefore, a decrease in investment. Thus, by manipulating the discount rate, the Central Bank has the opportunity to influence capital investment in production.

Chapter 3. Features of the monetary policy of the Central Bank of the Russian Federation at the present stage

3.1.Modern legal framework for regulating monetary policy by the Central Bank of the Russian Federation.

The Central Bank is the bank that heads the country's banking system, has a monopoly right to issue banknotes and implements monetary policy in the interests of the national economy.

The banking system of the Russian Federation is two-tier and includes the Central Bank of the Russian Federation (Bank of Russia) and credit organizations.

At the same time, a credit organization is a legal entity that, in order to make a profit as the main goal of its activities, on the basis of a special permit (license) of the Central Bank of the Russian Federation, has the right to carry out banking operations. A credit organization is formed on the basis of any property as a business company.

Credit organizations are divided into banks that carry out the entire range of banking operations, and non-bank credit organizations that have the right to conduct certain banking operations.

The Bank of Russia is a legal entity and has a seal with the image of the State Emblem of the Russian Federation and its name.

Activities of the Central Bank of the Russian Federation is determined by the Constitution of the Russian Federation, the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” and other federal laws.

The legal status of the Bank of Russia and its relationship with credit institutions are determined on the basis of the fact that, on the one hand, the Central Bank of the Russian Federation is endowed with broad powers to manage the monetary system of the Russian Federation, and on the other hand, it is a legal entity entering into the corresponding civil legal relations with banks and other credit organizations.

The Bank of Russia supervises the activities of credit institutions and takes the necessary measures to protect the interests of depositors.

The constitutional foundations of banking law perform the following defining functions:

1) program banking activities, extending the legal regime of entrepreneurship to it and establishing freedom of movement of capital and financial services;

2) establish that minimum guarantee of the rights and interests of participants in banking legal relations, which cannot be limited by special banking regulations;

3) create a basis for uniform banking legal regulation, establishing that the legal foundations of the single market, financial, currency, credit regulation and money issue fall within the competence of the Russian Federation.

The accountability of the Bank of Russia to the State Duma means that the appointment and dismissal of its Chairman are carried out State Duma on the proposal of the President of the Russian Federation. In addition, the State Duma appoints and dismisses members of the Board of Directors of the Bank of Russia. The Bank of Russia submits the annual report and auditor's report to the State Duma for consideration. In addition, the State Duma holds parliamentary hearings on the activities of the Bank of Russia and hears reports from its Chairman.

The Bank of Russia is independent within the limits of its powers, therefore federal government bodies, government bodies of constituent entities of the Russian Federation and local government bodies do not have the right to interfere in its activities. Otherwise, the Bank of Russia informs the State Duma and the President of the Russian Federation about this.

He has the right to apply to the courts to invalidate legal acts of federal government bodies, government bodies of constituent entities of the Russian Federation and local governments.

In court and arbitration court, the interests of the Bank of Russia can be represented by the heads of its territorial institutions and other officials of the Bank of Russia, who receive the appropriate power of attorney in the prescribed manner.

The Bank of Russia has a dual legal nature: on the one hand, it is a government body with special competence, managing the monetary system, and on the other hand, it is a legal entity and can make civil transactions with Russian and foreign credit organizations, with the state represented by Government of the Russian Federation.

Thus, within the framework of its legal capacity, the Central Bank of the Russian Federation is vested with the right to carry out all types of banking operations with Russian and foreign credit organizations, the Government of the Russian Federation, representative and executive authorities of the constituent entities of the Russian Federation, local governments, state extra-budgetary funds, military units and military personnel. The Bank of Russia does not have the right to carry out banking operations with legal entities that do not have a license to conduct banking operations, and individuals, except for cases specified in the law.

The Bank of Russia has the right to provide loans for a period of no more than one year, the security for which may be:

Gold and other precious metals in various forms;

Foreign currency;

Bills of exchange in Russian and foreign currency with a maturity of up to six months;

Government securities.

Lists of bills and government securities suitable for securing loans from the Central Bank of the Russian Federation are determined by the Board of Directors of the Bank of Russia.

Loans from the Central Bank of the Russian Federation can be secured by other valuables, as well as guarantees and sureties established by the Board of Directors.

In accordance with the Budget Code of the Russian Federation, the Bank of Russia maintains bank accounts for accounting for budgetary funds and performs the functions of a general agent for government securities of the Russian Federation (Article 155, clause 2.3).

Objectives of the activity The Bank of Russia as a management body of the monetary system is:

Protecting and ensuring the stability of the ruble, including its purchasing power and exchange rate in relation to foreign currencies;

Development and strengthening of the banking system of the Russian Federation;

Ensuring the efficient and uninterrupted functioning of the payment system. Making a profit is not the purpose of the Bank of Russia.

In accordance with the goals set for the Central Bank of the Russian Federation, its main tasks can be identified, although they are not specified in the Law of the Russian Federation “On the Central Bank of the Russian Federation (Bank of Russia). The main tasks of the Central Bank of the Russian Federation include the following;

Active participation in the development of monetary and fiscal policies of the Government of the Russian Federation;

Comprehensive containment of inflationary processes in the country;

Reducing the budget deficit;

Maintaining stable money circulation;

Ensuring the stability of the ruble exchange rate as a state currency;

Ensuring the state fund of foreign exchange reserves;

Expanding lending to commercial banks, mainly through the resources of the emission fund;

Expanding the possibilities of non-equity lending and covering the budget deficit at different levels of the government system;

Maximum use of methods of monetary management of the banking system.

Based on the goals set, the Bank of Russia fulfills the following Features:

In cooperation with the Government of the Russian Federation, develops and implements a unified state credit policy aimed at protecting and ensuring the stability of the ruble;

Monopoly issues cash and organizes its circulation;

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

Establishes the rules for making payments in the Russian Federation;

Establishes rules for conducting banking operations, accounting and reporting for the banking system;

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

Supervises the activities of credit institutions;

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 necessary to fulfill the main tasks of the Bank of Russia;

Carries out currency regulation, including operations for the purchase and sale of foreign currency;

Determines the procedure for settlements with foreign countries;

Organizes and carries out currency control both directly and through authorized banks;

Participates in the development of the forecast of the balance of payments of the Russian Federation and organizes the compilation of the balance of payments of Russia, etc.

To implement its functions, the Bank of Russia participates in the development of economic policy of the Government of the Russian Federation. The Chairman of the Bank of Russia or, on his instructions, one of his deputies participates in meetings of the Government of the Russian Federation. The Minister of Finance of the Russian Federation and the Minister of Economy of the Russian Federation or, on their instructions, one of their deputies, participate in meetings of the Board of Directors with the right of an advisory vote.

The Bank of Russia and the Government of the Russian Federation inform each other about proposed actions of national importance, coordinate their policies, and conduct regular consultations.

The Bank of Russia advises the Ministry of Finance of the Russian Federation on the issues of the schedule for issuing government securities and repaying government debt, taking into account their impact on the state of the banking system and the priorities of the unified state monetary policy.

In order to improve the monetary system of the Russian Federation, a National Banking Council is being created under the Bank of Russia, consisting of representatives of the chambers of the Federal Assembly of the Russian Federation, the President of the Russian Federation, the Government of the Russian Federation, the Bank of Russia, credit organizations, as well as experts.

The Chairman of the National Banking Council is the Chairman of the Bank of Russia. The National Banking Council includes two representatives each from the chambers of the Federal Assembly of the Russian Federation, one representative each from the President of the Russian Federation and the Government of the Russian Federation, as well as the Minister of Finance and the Minister of Economy of the Russian Federation. The remaining members of the National Banking Council are appointed by the State Duma on the proposal of the Chairman of the Bank of Russia. The number of members of the National Banking Council should not exceed 15 people.

Meetings of the National Banking Council at least once every three months.

The National Banking Council performs the following functions:

Considers the concept of improving the banking system of the Russian Federation;

Reviews draft main directions of the unified state monetary policy, foreign exchange regulation and foreign exchange control policies, gives conclusions on them and analyzes the results of their implementation;

Carries out examination of draft legislative and other regulatory acts in the field of banking;

Considers the most important issues of regulating the activities of credit institutions;

Participates in the development of the basic principles of organizing the settlement system in the Russian Federation.

The Bank of Russia performs the function of a “bank of banks” and is an authority banking regulation and supervision over the activities of credit institutions. It carries out constant supervision over compliance by credit institutions with banking legislation and regulations established by it.

the main objective Banking regulation and supervision is to maintain the stability of the banking system, to protect the interests of depositors and creditors. The Bank of Russia does not interfere in the operational activities of credit institutions, except in cases provided for by federal laws. The Bank of Russia carries out supervisory and regulatory functions both directly and through the banking supervision body created under it. The Central Bank regulates the activities of credit institutions and supervises them in the following areas:

Regulation of mandatory economic standards for credit institutions; determining the limits of an open currency position, the procedure for forming reserves to cover risks;

Opening correspondent accounts, depositing required reserves of credit institutions in special accounts, accepting their available funds as deposits at a fixed rate;

Lending to credit organizations;

Managing the liquidity of the banking system through the purchase and sale of government securities to banks; in 1996, the Central Bank of the Russian Federation introduced new tool regulation of bank liquidity - repo-type transactions.

In order to influence the liquidity of the banking system, the Central Bank of the Russian Federation refinances banks by providing them with short-term loans and determines the conditions for providing loans secured by various assets:

Registration of issues of securities of credit institutions;

Establishment of rules for conducting individual banking operations, maintaining accounting records, drawing up accounting and statistical reporting of credit institutions;

Registration and licensing of the activities of credit organizations (monitors the legality and expediency of the creation of banks and non-bank credit organizations, such control is carried out in the process of considering the issue of registering a credit organization in the Book state registration credit institutions, issuance and revocation of licenses for the right to carry out banking operations in rubles and foreign currency);

Supervision of compliance with banking legislation, regulations of the Central Bank of the Russian Federation, inspection of the activities of credit institutions.

Thus, for credit institutions, the Bank of Russia establishes rules for conducting banking operations, maintaining accounting records, drawing up and submitting accounting and statistical reporting. In order to ensure the sustainability of credit institutions, the Bank of Russia establishes mandatory economic standards for them: the minimum amount of authorized capital, the minimum amount of required reserves placed with the Bank of Russia, etc.

These powers of the Bank of Russia manifest its coordinating and control functions over the activities of credit institutions. Locally, these powers are exercised through the main territorial departments of the Bank of Russia, which are its branches.

The Bank of Russia, in accordance with the law, is the lender of last resort. It helps create conditions for the sustainable functioning of credit institutions without interfering in their operational activities.

If a credit organization violates federal laws, regulations and instructions of the Bank of Russia, fails to provide information or provides incomplete or unreliable information, the Bank of Russia has the right to demand that the credit organization eliminate the identified violations, as well as impose a fine or limit its conduct of certain operations or revoke its license.

Interacting with credit institutions, their associations and unions, the Bank of Russia advises them on the most important issues of a normative nature. In addition, he considers proposals on issues of regulation of banking activities.

The Bank of Russia can carry out banking operations to service representative and executive bodies state authorities, local governments, their institutions and organizations, state extra-budgetary funds, military units, military personnel, employees of the Bank of Russia, as well as other persons in cases provided for by federal laws.

The Bank of Russia also has the right to serve clients who are not credit institutions in regions where there are no credit institutions.

The Bank of Russia does not have the right:

Carry out banking operations with legal entities that do not have a license to conduct banking operations and individuals, except for the cases provided for in Art. 47 of the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”;

Acquire shares (shares) of credit and other organizations, except for the cases provided for in Art. 7 and 8 of the said Federal Law;

Carry out transactions with real estate, with the exception of cases related to supporting the activities of the Bank of Russia, its enterprises, institutions and organizations;

Engage in trading and production activities, except for cases provided for by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”;

Extend extended loans. An exception may be made by decision of the Board of Directors.

The Bank of Russia does not have the right to provide loans to the Government of the Russian Federation to finance the budget deficit, or to purchase government securities during their initial placement, except in cases where this is provided for by the federal law on the federal budget.

The Bank of Russia does not have the right to provide loans to finance budget deficits of constituent entities of the Russian Federation,

local budgets and budgets of state extra-budgetary funds.

The Bank of Russia bears responsibility in the manner established by federal laws.

Funds from the federal budget and state extra-budgetary funds are kept in the Bank of Russia, unless otherwise established by federal laws.

The Bank of Russia, without charging a commission, carries out transactions with the federal budget and state extra-budgetary funds, with the budgets of constituent entities of the Russian Federation and local budgets, as well as operations to service public debt and operations with the gold and foreign exchange reserves of the Russian Federation.

The powers of the Bank of Russia to service public debt are determined by federal laws.

The Bank of Russia and the Ministry of Finance of the Russian Federation, if necessary, enter into agreements on carrying out these operations on behalf of the Government of the Russian Federation.

The Bank of Russia can be liquidated only on the basis of the adoption of the relevant federal law. The Law on Liquidation of the Bank of Russia also determines the procedure for using its property.

3.2 State and prospects for the development of the monetary system in Russia

The legal basis for the functioning of the monetary system in Russia is determined by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” dated July 10, 2002 No. 86-F3:

The official currency in our country is the ruble;

The relationship between the ruble and gold is not established by law, and the exchange rate of the ruble to foreign monetary units is determined by the Central Bank of the Russian Federation;

The Bank of Russia has the exclusive right to issue cash, organize its circulation and withdraw on the territory of the Russian Federation; it is responsible for the state of money circulation in order to maintain normal economic activity in the country;

The types of money that have legal tender force are banknotes and metal coins, which are backed by all assets of the Bank of Russia, including gold reserves, government securities, reserves of credit institutions held in the accounts of the Central Bank of the Russian Federation;

Samples of banknotes and coins are approved by the Bank of Russia;

Cash and non-cash money operate on the territory of Russia.

In order to organize cash circulation on the territory of the Russian Federation, the Bank of Russia is entrusted with the following obligations:

Forecasting and organizing the production, transportation and storage of banknotes and coins, as well as the creation of their reserve funds;

Establishment of rules for storage, transportation and collection of cash for credit institutions;

Establishing signs of solvency of banknotes and the procedure for replacing damaged banknotes and coins, as well as their destruction;

Determining the procedure for conducting cash transactions.

Since June 1997, the Bank of Russia put into effect the Regulation “On the procedure for conducting cash transactions in credit institutions on the territory of the Russian Federation” dated March 25, 1997.

The regulation of monetary circulation assigned to the Bank of Russia is carried out through the use of instruments generally accepted in a market economy: changing interest rates on loans to commercial banks, reserve requirements and conducting open market operations.

To carry out issuance and cash regulation, cash services for credit institutions and enterprises, the main territorial departments of the Central Bank, cash settlement centers have circulating cash desks for accepting and issuing cash and reserve funds of banknotes and coins.

Reserve funds of cash notes and coins – These are the stocks of unissued banknotes and coins in the vaults of the Central Bank. These funds are created by order of the Central Bank, which sets their value based on the size of the working cash register, the volume of cash turnover, and storage conditions.

Commercial banks do not provide for the creation of such funds, because they have operating cash desks. Since June 1997, commercial banks have been set a limit on the minimum allowable balance of cash in the operating cash desk at the end of the day to ensure the timely issuance of money from the accounts of legal entities, as well as from the deposit accounts of citizens.

The Central Bank of the Russian Federation “recounted” the ruble banknotes in circulation as of July 1, 2006. At the same time, the share of 1000-ruble notes is 22%, 500-ruble notes – 54%, 100-ruble notes – 18.5%, 50-ruble notes – 4.5 %, 5 and 10 rubles -1% .

The Central Bank of the Russian Federation reported an increase of 9.3% in the money supply in Russia in the first six months of this year to 1.75 trillion. rub. At the same time, the increase in non-cash funds amounted to 8.5% (up to 1.11 trillion rubles), cash 10.5% (up to 0.64 trillion rubles).

In April 2005, the Government of the Russian Federation and the Central Bank of the Russian Federation adopted the “Strategy for the development of the banking sector of the Russian Federation for the period until 2008”.

In accordance with this document, the main goal of development of the banking sector for the medium term (2005-2008) is to increase its stability and operational efficiency.

Reforming the banking sector will contribute to the implementation of the socio-economic development program of the Russian Federation for the medium term (2005-2008), primarily in overcoming the raw material orientation of the Russian economy through its accelerated diversification and the realization of competitive advantages. At the next stage (2009-2015), the Government of the Russian Federation and the Bank of Russia will consider the effective positioning of the Russian banking sector in international financial markets a priority.

At the turn of the 21st century, Russia as a sovereign and independent state created the main institutions of a market economy, including the central bank as a subject of monetary regulation. With the help of the active, sometimes tough monetary policy of the central bank, the state managed to form certain trends in monetary regulation in the early years of the 21st century.

The trend towards increasing the attractiveness of the national currency was a consequence of the fact that, under the influence of a profound transformation in the Russian economy, the problems of money circulation changed significantly and their radical solution was required.

Ensuring the free flow of capital and introducing new money to meet the necessary needs of the economy (served primarily by market relations), the functioning of money circulation within the framework of forecast planning and in the conditions of existence various forms property began to be implemented with high degree decentralization and close connection between non-cash and cash circulation.

The strengthening of the nominal exchange rate of the national currency in 2006 became an important signal for money market participants to revise their investment portfolios, and for participants in money circulation to apply measures to optimize investment portfolios.

In the context of an increase in money supply, measures to regulate money circulation are tightened, depending on the state of the balance of payments and the state budget of the country. Of significant importance is the increase in the share of “long” money in the structure of the money supply, which has a downward effect on the dynamics of the circulation velocity. The gradual increase in monetization of the economy acts as a factor contributing to a decrease in the velocity of money circulation. The formation of the ability to adequately respond to subjects in the production sector of the economy largely depends on the behavior of the central bank and its credit policy. Increasing the central bank's responsibility for the competitiveness of business entities, i.e. clarification of the state of affairs in the real sector of the economy and protection of the national producer helps to consolidate this trend.

Maintaining the current dynamics of the velocity of money circulation allows for a more accurate assessment of the demand for money. There is a clear and legally regulated formation of the role functions of various economic structures, primarily the central bank and commercial banks, for issuing money and, accordingly, a change in their position, a more precise regulation of money circulation.

The formation of the money supply in the volumes necessary to satisfy the economically justified demand for the national currency is also facilitated by the tendency to increase the money multiplier.

Trends towards the globalization of world economic relations and the transformation of the national economies of individual countries into a single world economy have a strong impact on money turnover in Russia. The processes of capital flow are intensifying; work force, goods and services. At the same time, the gradual but steady liberalization of currency regulation and foreign trade activities by the state makes it possible to ensure the relative stability of the national currency. Such stability is determined by the competitiveness of goods and the state of the country's balance of payments. With the formation of world capital markets and the development of technology for processing various financial transactions by credit institutions, currency restrictions are being eliminated. This allows the state to declare a requirement to transfer the Russian ruble to the status of a freely convertible currency since 2007.

Consistent decline in inflation and stability of the steel exchange rate basic conditions increasing confidence in the national currency and preference by economic agents for assets in Russian rubles compared to assets in foreign currency.

The state of liquidity of the national banking system constantly requires a clear definition of the sources of growth of the monetary base, the effective use of monetary regulation instruments and other measures aimed at achieving transparency of monetary circulation with the highlighting of its shadow part. Given the immaturity of financial markets, the fact of the absence of market instruments for managing the money supply is especially evident.

The increase in public confidence in the banking system is evidenced by the continued trend towards rapid growth of time deposits. Increasing organized savings of citizens by long terms contributes to the growth of real incomes of the population.

In terms of enhancing the efficiency of regulation of money circulation, the priority remains to achieve the stability of the banking system by increasing the attractiveness of the national currency as a store of value.

The development of the banking sector as a whole is characterized by the further consolidation of positive trends in the growth of assets, equity (capital), as well as attracted funds, including household deposits.

The change in the structure of total assets of credit institutions in favor of lending to the non-financial sector is a long-term trend.

The main weakness of today's Russian banking system and individual commercial banks is, of course, associated with the extremely low level of capitalization, which is especially evident in international comparison. The total capital of all Russian banks is currently about ($6 billion), which is lower than the equity capital of any of the hundred largest banks in the world. Even the largest Russian banks In terms of these indicators, they are inferior not only to Western European banks, but also to leading credit organizations in Central and Eastern Europe.

The capital of the banking system, sufficient to service the normal reproduction process, should be, according to world practice, 6-7% of the country's GDP. In Russia it is approximately 2 times lower.

Our banks cannot stand comparison not only internationally, but also in comparison with large Russian industrial enterprises or service enterprises. The structure of industrial production and exports in Russia is characterized by quite high level concentration, in which several dozen enterprises provide a very large share of commodity and financial flows. As a result, in terms of product sales volume, investment needs, capitalization level, and profit margins, many leading industrial enterprises significantly exceed the capabilities of individual commercial banks

The speedy restoration and expansion of the capital base of the banking system, as well as the centralization and concentration of national banking capital are the most important prerequisites for achieving the global political goal of transforming Russia into a developed country with a competitive economy. The vacuum in the Russian banking market risks being filled by more powerful foreign banks, whose presence has recently been growing dynamically in both the retail and corporate segments of the market.

The active role of the state in overcoming systemic banking crises was noticeable in all countries. Amounts exceeding $100 billion were allocated to restore solvency and restructure US savings and loan banks, for example. The rehabilitation of the French bank Credit Lyonnais cost the state $20 billion. This was done not because the French do not know how to count, but because, having calculated well, they considered it profitable. And most importantly, they found money for it. In the Russian monetary policy of the last five years, there is no data on attempts to centrally restore bank solvency.

Direct factors that complicate the process of restructuring the banking system are discriminatory taxation in comparison with international practice, since we have a significant amount of expenses coming from after-tax profits, and discriminatory taxation of bank income over more high stakes than other enterprises are taxed.

The dollarization of Russia has historically developed because up to 2/3 of its external debt and payments on it are denominated in dollars; the dollar market is the most capacious for private borrowing; Basically, contracts for the export of raw materials are issued only in dollars.

From the very beginning, such dollarization was contrary not only to national interests, but also to the nature of the country’s foreign economic relations; Now it comes into conflict with the leading trends in the global monetary situation. The world is gradually abandoning the dollar, and its hypertrophy in the world monetary system is resulting in instability for its holders, because the share of the dollar in servicing 43% of world economic turnover does not in any way correspond to the real share of the United States of 20% of GDP and 15% of world trade turnover. Therefore, it gradually and objectively decreases; the US share in the foreign trade of Russia itself is no more than 5%, that is, the ruble turns out to be 2/3 tied to the currency most economically distant from it and to the economy of the country with which the Russian national economy has minimal relations. This contradicts the economic criteria for the voluntary entry of any country into a certain currency zone and makes dollarization for Russia a psychological rather than an economically justified phenomenon, that is, it objectively places the formation of the ruble exchange rate on the basis not of real economic comparisons, but of speculative expectations. As a result, the ruble has more than once been undervalued in relation to the dollar, even not in times of crisis, which led to the loss of part of Russia’s national wealth during the exchange of goods and to an underestimation of the real value of its assets acquired by foreign investors when investing in its economy and during privatization. Thus, the income of non-residents when purchasing Russian Government short-term bonds (GKOs) turned out to be much higher than the treasury obligations of other states.

It is characteristic that under these conditions the Russian financial market has already begun to demonstrate a rejection of the dollar. Over the past five years, the share of Russia's external debt denominated in European currencies has increased, according to EU experts, from 1/4 to 1/3 and continues to increase, including due to the placement of Eurobonds.

According to experts, the new euro currency unit removes a number of previously unique advantages of the dollar, namely:

1) in order to save on overhead costs and currency risks, many European traders are switching to the euro as a contract currency, even in commodity trading;

2) the united capital market, replacing on the basis of the euro the previously narrow and fragmented markets of the countries of its “zone”, will become over time no less capacious and liquid than the American one;

3) finally, the countries of the “euro area” have a bloc of 30% of votes in the IMF versus 18% for the United States, and this is important given the known special relations between the IMF and Russia.

Under these conditions, the prerequisites are objectively being formed for abandoning the unjustified pegging of the ruble exclusively to the dollar and switching to its peg to a basket of international currencies, where the euro will play a significant role, which is based on the collective gold and foreign exchange reserves of the countries of its “zone” and their orderly public finances (subordinate to general stabilization criteria) and which, obviously, will be more stable in an exchange rate sense than the dollar. It has prospects for dominant use in the countries of Central and Eastern Europe and the Baltic states joining the EU, which are Russia’s traditional external markets. Finally, the existing Partnership and Cooperation Agreement between the Russian Federation and the EU creates a certain basis for interaction between the competent Russian financial authorities and the supranational monetary authorities of the EU governing the “euro area”, which, naturally, is absent between Russia and the US Federal Reserve System.

CONCLUSION

Monetary policy is designed to help establish a general level of production in the economy, characterized by full employment and the absence of inflation.

The main tasks facing all central banks are maintaining the purchasing power of the national currency and the stability of the country's credit and banking system.

Monetary regulation carried out by the Central Bank of the Russian Federation, being one of the components of the state’s economic policy, at the same time makes it possible to combine macroeconomic impact with the ability to quickly adjust regulatory measures.

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

One of the most important areas of activity of the central bank is the refinancing of credit and banking institutions, aimed at ensuring the stability of the banking system. The central bank's refinancing tools include the provision of loans against bills of exchange and pawn loans, that is, borrowing on a short- and medium-term basis. To increase the level of liquidity of banking institutions, central banks carry out their refinancing with varying degrees of intensity. At the same time, only stable banking institutions experiencing temporary difficulties can use refinancing loans. When conducting monetary policy, the most important assets of the Federal Reserve Banks are securities and loans to commercial banks.

Monetary policy is carried out through a complex chain of cause-and-effect relationships: political decisions affect the reserves of commercial banks; changes in reserves affect the money supply; a change in the money supply changes the interest rate; changes in interest rates affect investment and the price level.

The advantages of monetary policy are its flexibility and political acceptability. Monetary authorities face a dilemma - they can stabilize interest rates or the money supply, but not both. Under certain conditions, an alternative may arise - to use monetary policy to influence the value of the dollar and thereby eliminate trade imbalances or use monetary policy for the purpose of economic stabilization within the country.

Today, the directions of Russia’s monetary policy depend on oil prices, and high prices for oil (which we have today), Russia not only will not win, but will face very difficult problems to resolve. The Central Bank will not be able to buy up all the additional currency that will enter the country without exceeding the permissible level of increase in the money supply. Withdrawing funds by increasing the supply of bonds is fraught with an increase in interest rates, which in turn will lead to an even greater influx of funds into the country. But one cannot count on the sterilization capabilities of the budget, since the authorities, as a rule, increase government spending when additional funds are received. This means either high inflation or a significant strengthening of the ruble, and figures for the strengthening of the ruble are called up to 14%, then a crisis situation may follow.

However, there is no clear evidence that the banking system is coping or is ready to respond to these powerful challenges of the real economy.

What is needed in order to better fit into the international settlement system and international financial flows? The Russian banking system must be improved. Improvement is primarily necessary in the area of ​​banking supervision, to increase the reliability of bank reporting through the application of severe penalties and other sanctions to credit institutions that resort to deliberate distortion of their reporting.

When we're talking about on the separation of supervisory functions from the terms of reference of the Central Bank of the Russian Federation, then perhaps this will be advisable in the future, but today this only weakens, and does not strengthen, the capabilities that the state has to control the banking system.

The second, from my point of view, important direction is the convergence of the Russian banking accounting system with international banking reporting standards.

Currently, the existing differences are simply fantastic and give rise to the opacity of banking reporting and distrust in it. Mutually exclusive data may be published on the official website of the Central Bank of the Russian Federation, which casts doubt on the reliability of bank reporting. Let's take Vneshtorgbank. First quarter of 2006 The result of activities according to Russian accounting standards is minus a billion rubles. Result for the same period, calculated according to international standards financial statements, - plus 200 million, which is essentially correct. During the second quarter the bank had positive value profit and Russian system accounting. This situation makes objective analysis impossible.

Unfortunately, the share of loans to the real sector in the total structure of bank assets has decreased, and this indicator, calculated as a percentage of GDP, has also decreased and amounts to about 12%. If we compare this level with the indicators of other countries, even European countries with economies in transition (about 100%), it turns out that we are at the very beginning of the path to effective financial intermediation, we are just acquiring a banking system that should respond to the financial needs of a growing economy, are already quite acute and require the activity of financial intermediaries.

List of used literature

1. Regulatory legal acts of the Russian Federation.

1. Civil Code of the Russian Federation. Part one.

2. Constitution of the Russian Federation.

3. the federal law“On the Central Bank of the Russian Federation (Bank of Russia).”

4. Federal Law “On Banks and Banking Activities”.

5. Federal Law on Accounting.

2. Literature

1. Babich A.M., Pavlova L.N. Finance, money circulation and credit. Textbook.- M.: UNITI, 2000.
2. Boriskin A.V. Money Credit Banks / E.F. Boriskin, A.A. Tarabtseva. – St. Petersburg: SpetsLit, 2000.
3. Goncharov D.. About banking and commercial secrets. // Legality. 2000, No. 1, p. 52.
4. Money, credit, banks: textbook / coll. Auto; edited by Lavrushina O.I.. – 3rd ed., revised. and additional – M.: KNORUS, 2006.
5. Money. Credit. Banks. Textbook. - M.: KIORUS, 2006.
6. Kozhukhar L.I. Fundamentals of general theory and statistics - M.: Finance and Statistics, 2000.
7. Lavrushin O.I. Money, credit, banks. – M.: Finance and Statistics, 2001
8. Medvedkov S. Economic policy and banking system // Questions of economics. – 2005.
9. General theory of money and credit./Ed. Zhukova E. F. - M.: UNITI, 2003.
10. Oleinik. O.M. Fundamentals of banking law. Lecture course. – M.: Yurist, 2000.
11. Semenyuta O.G. Fundamentals of banking in the Russian Federation. - Rostov-on-Don: Phoenix, 2001.
12. Tagirbekov K.R. Fundamentals of banking: a textbook for universities. - M., 2001.
13. Finance. Money circulation and credit. Ed. G.B. Polyakova. M., 2001.
14. Finance. Money turnover. Credit. Ed. Drobozina. M., “Finance”, publishing association “Unity”, 2000.
15. Yani P.S. Law enforcement agencies and entrepreneur. – Supplement to the journal “Legal Bulletin of an Entrepreneur.” – M.: JSC “Business School”. – 2004.
16. Aslund, A., P. Boone, S. Johnson (1996) “How to Stabilize: Lessons from Postcommunist Countries”, Brookings Papers on Economic Activity, 1, pp. 217–291.
17. van Els P., Locarno A., Morgan J. and Villetelle J.-P. Monetary policy transmission in the euro area: What do aggregate and national structural models tell us? ECB Working Paper No. 94, December 2001.

3. Online informationInternet.

Approximate structure of the Central Bank

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Money-credit policy state is a set of measures affecting money circulation and the state of credit in order to achieve non-inflationary economic growth and full employment. The central bank implements monetary policy.

Monetary policy is based on the principles of monetarism. Its main advantage over fiscal policy is efficiency and flexibility. Because it is administered by the central bank rather than the country's parliament, it is much less subject to political influence.

A negative point in comparison with fiscal policy is the indirect nature of the impact of monetary policy on the economy, mediated by certain “transmission mechanisms”. The Central Bank is able to exert predominantly indirect influence on commercial banks in order to reduce or increase their loans, which, in turn, contributes to financial stabilization, strengthening monetary circulation, expanding investment and, ultimately, economic growth in the country.

The main goals of the state’s monetary policy are:

• mitigation of cyclical fluctuations in the economy;
• curbing inflation;
• investment stimulation;
• ensuring full employment;
• regulation of economic growth rates;
• ensuring the stability of the balance of payments.

The central bank strives to achieve its goals

by influencing the intermediate links of the monetary regulation mechanism: money supply, interest rate, currency exchange rate.

There are passive and active monetary policies. Under passive Policy understands changes in monetary parameters that arise as a result of the state’s implementation of fiscal (budgetary and tax) policy. Conducting active policy, The state, with the help of specific monetary policy instruments, influences the money market to achieve its goals.

There are two types of monetary policy: stimulating and restrictive.

Stimulating monetary policy (credit expansion) is carried out in order to increase economic activity in the country by increasing the money supply and reducing the price of money (interest rates).

Restrictive monetary policy (credit restriction) is aimed at curbing inflationary economic growth and involves a reduction in the volume of money supply and an increase in the price of money.

We can also distinguish between long-term and short-term monetary policy. They differ in their results. In the short term, monetary policy has a greater influence on national output and a lesser influence on prices. In the long run, on the contrary, it has a predominant effect on the price level, only slightly affecting the real volume of output.

Monetary policy is carried out using both direct (administrative) and indirect (economic) methods of influence.

Direct The method of monetary policy is the introduction of credit restrictions: limits on the quantitative and qualitative parameters of banks’ activities.

Economic (indirect) monetary policy instruments accepted in world practice are:

• change in the discount rate (refinancing rate);
• change in the required reserve ratio;
• open market transactions with securities;
• implementation of foreign exchange interventions.

Politics credit restrictions The central bank can use it at the stage of overheating of the economy to reduce business activity. For these purposes, quantitative restrictions are established on the amount of loans issued, which entails curbing banking activities and reducing the growth rate of the money supply. It should be noted that credit restrictions worsen the situation primarily of small and medium-sized enterprises, as banks strive to issue loans to their most stable, traditional clients - large firms. The method of quantitative restrictions is currently not very actively used, and is prohibited in some countries.

As part of direct regulatory policy, the central bank sets various standards that commercial banks must maintain at the required level. These may be balance sheet liquidity standards, standards for the maximum amount of risk per borrower, or capital adequacy standards for a commercial bank. The Central Bank may also recommend optional so-called assessment standards to banks.

If commercial banks detect violations of banking legislation, customer service rules, or other serious shortcomings in their work, the central bank may apply strict administrative measures to them, up to and including deprivation of the license and liquidation of the bank.

Accounting and interest politics, or politics refinancing, commercial banks is to regulate the discount interest rate at which the central bank issues loans to commercial banks. In Russia, a similar interest rate is called refinancing rates. The level of this rate is usually the upper limit of the market bank interest rate and affects its size. An increase in the refinancing rate by the central bank makes loans more expensive for commercial banks. They, in turn, seek to compensate for losses by increasing rates on loans provided to their borrowers, which leads to a reduction in lending operations of commercial banks. Conversely, a decrease in the refinancing rate creates conditions for reducing the interest rate, expanding the lending activities of commercial banks and reviving investment activity in the country.

This method has a number of disadvantages. If refinancing is used little or is not carried out at the central bank, then the effectiveness of this method decreases. During periods of unfavorable market conditions, reducing the discount rate only creates the preconditions for reducing bank interest rates and injecting money into the economy. But the central bank cannot force commercial banks to take loans from it and expand lending activities. In addition, a reduction in the discount rate may lead to an outflow of capital from the country.

Required reserve policy, According to many experts, it is the most effective, but too strict mechanism of monetary regulation.

By pursuing a policy of minimum reserves, the central bank influences the size of the money supply through the action of the banking and money multipliers. As mentioned earlier, required reserves are the most liquid assets that credit institutions are required to have to ensure their own liquidity (i.e., the ability to fulfill obligations to clients), usually in the form of deposits with the central bank or in other highly liquid forms determined the central bank. Required reserve ratio represents the percentage ratio of their amount to the absolute or relative (increment) indicators of passive (deposits) or active (lending) operations. Standards can be established both for the entire amount of obligations or loans, and for a certain part of them.

The policy of mandatory minimum reserves is implemented in two main directions.

• 1. By periodically changing the required reserve ratio, the central bank maintains the degree of liquidity of commercial banks at the minimum acceptable level, depending on the economic situation in the country.
• 2. By changing the reserve ratio, the central bank influences the scale of active operations of commercial banks and the possibility of them creating non-cash funds (deposit issue). When the amount of money in circulation exceeds the permissible volume, the central bank carries out credit restriction. It increases the required reserve ratio, thereby reducing the ability of commercial banks to issue loans and forcing them to reduce the volume of active operations. Reducing the required reserve requirement increases the ability of banks to provide loans, increases the bank multiplier and increases the money supply.

The disadvantage of this method of monetary regulation is, as already indicated, its rigidity. It is capable of affecting the foundations of the entire banking system of the country. At the same time, some credit institutions, for example specialized banks with small deposits, find themselves in an advantageous position compared to large banks with significant deposits. In recent decades, many developed countries have preferred more “subtle” methods of tuning the economy. There is a reduction in the required reserve ratio and even their abolition for some types of deposits.

Open market operations in world practice they currently act as the main instrument of monetary policy. This monetary policy instrument is soft because it is not associated with the establishment of any standards. Its essence lies in the fact that the central bank carries out purchase and sale operations of government securities on the open financial market. Selling securities means “tying up money” and is used to increase their prices and reduce the money supply.

If the central bank has set itself the task of reducing the interest rate, it begins to buy securities, and funds enter the circulation sphere. As a result of the sale of securities, banks have increased resources for lending, excess reserves grow, which increases the money multiplier and causes an increase in the supply of money and a decrease in the interest rate.

Depending on the form of the central bank's operations with securities, they can be direct or reverse (repo).

Direct operation means the ordinary purchase or sale of a security.

Reverse operation consists of buying or selling a security, subject to the obligatory completion of a reverse transaction at a predetermined rate. This is a very flexible and soft instrument, essentially similar to refinancing against securities.

Carrying out currency interventions, those. operations on buying and selling foreign currency in the foreign exchange market, also used by the central bank to regulate money supply. Thus, by selling foreign currency, the central bank “ties up” the funds of business agents, reduces the money supply and strengthens the national currency. By buying currency, the central bank injects additional funds into the economy, increases the money supply, and also helps to strengthen foreign currencies and depreciate its own currency.