Central Bank and its place in the credit system

The first level of credit system in our country represents a Central Bank capacity building. And his activities are regulated by the law. Enshrined in law targets and tasks, rights and obligations, as well as a mechanism in the face of global expertise CBR and practice. The Bank is an organ of the State leadership and play a “Bank of banks”, enjoys the rights and powers of the monopoly issue banknotes, currency regulation, oversight and supervision of banks and credit institutions, store and manage the country’s gold and currency reserves. These and some other tasks prescribed by law is the competence of the central banks in the world today. And protect the interests of the State, rather than the narrow commercial interests, including some companies and industries and sectors of society.

The main tasks of central banks:

The monetary base;
Ensure stability of banknotes;
A decade of monetary policy;
Organization of calculation and cash services;
Protect the interests of depositors;
Supervise commercial banks and other credit institutions;
Operations on foreign trade activities;
Official management reserves of gold and currency.

Independently identifies parameters and duration of monetary policy instruments (interest rates, types and quantities of reserve requirements, limits and order of operations, etc.).

Monetary policy focuses on indirect methods of exposure including:

CBR interest rates should affect the interest rates of commercial banks;

The required precautions and refinancing standards on the size and structure of banking operations;

Measurement of monetary growth and volume of money circulating; open market operations

Intervention in the foreign exchange market foreign currencies.

Quantitative restrictions in the form of limits on the refinancing or regulate commercial banks hold some types of transactions which may, in accordance with the legislation applied only in exceptional cases and only after consultation with the Government.

Status and prospects of operation of commercial banks and other credit institutions are important to the national economy. Therefore, the Central Bank’s monetary policy is supplemented by Bank management, oversight and supervision of financial institutions and capital markets.

Handling all banks, creating the conditions for sustainable performance. First and foremost, issues and revokes the license of Bank operations registration laws and registration for commercial banks.

To influence the liquidity of the banking system, recapitalize with short term loans at interest rate, specifies the conditions for granting loans secured against different assets.

To ensure the sustainability of the economic conditions of the banking system for CBR and determines the economic criteria of commercial banks activity including:

The minimum authorized capital;
Balance sheet liquidity ratios;
The minimum amount of required reserves deposited
Maximum one borrower risk.

Oversee compliance of prudent regulations banks, also controls the correct application of the law on banks. It establishes common rules for accounting and statistical reports and transactions in banks. Verify banking and Central Bank itself or by auditors. However, he did not interfere in the operational activities of the banks.

The Bank is a legal entity. Economically independent institution exercising those expenses from their income. Collective management is the Board of Directors of the Bank. Chaired by the President of the World Bank. Their institutions at various levels of administrative division. In the independent republics.

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