Central Bank of Russia

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Central Bank of Russia
Банк России
Bank Rossii
Central Bank of Russia logo
Central Bank of Russia logo
Headquarters
Headquarters
Headquarters Neglinnaya Street 12, Moscow, Russia
Established 1860 (historic), 1990 (modern)
Chairman Elvira Nabiullina
Currency Russian ruble
RUB (ISO 4217)
Reserves $360.2 B, As of 28 February 2015
Bank rate 11.5%
Website Official website

The Bank of Russia (Russian: Банк Росси́и; IPA: [bank rɐˈsʲijɪ]) is the central bank of the Russian Federation, founded in 1990, headquarterd on Neglinnaya Street in Moscow. Its functions are described in the Russian constitution (Article 75) and in the special Federal Law.

Under Russian law, half of the bank's profit must be channeled into the government's federal budget. The Central Bank of Russia is a member of the BIS.[1]

Role and duties[edit]

The Bank of Russia was founded on July 13th, 1990. According to the constitution,it is an independent entity, with the primary responsibility of protecting the stability of the national currency, the ruble.[citation needed]

It is the main regulator of the Russian banking industry, responsible for banking licenses, rules of banking operations and accounting standards, serving as a lender of last resort for credit organizations.[citation needed]

It holds the exclusive right to issue ruble banknotes and coins through the Moscow and St. Petersburg mints, the Goznak mint.[citation needed] The central bank issues commemorative coins made of precious and non precious metals as well as investment ones made of precious metals, which are distributed inside and outside the country.[2] In 2010 in honor of its 150th anniversary it issued a 5-kilo commemorative gold coin Alexander II .[3]

Ownership of commercial bank[edit]

The Bank of Russia owns a 57.58% stake in Sberbank,[4] which creates potential conflicts of interest both in the competitive landscape as well as in the regulatory policy of the Russian banking sector.

Chairmen[edit]

Name Year
Georgy Matyukhin 1990—1992
Viktor Gerashchenko 1992—1994
Tatiana Paramonova 1994—1995
Alexander Khandruyev November 8 to 22, 1995
Sergei Dubinin 1995—1998
Viktor Gerashchenko 1998—2002
Sergei Ignatyev 2002—2013
Elvira Nabiullina 2013–present

Politics[edit]

In December 2014, amidst falling global oil prices, Western sanctions over the Ukraine crisis, capital flight, and fears of recession, the bank had increased the one-week minimum auction repo rate up by 6.5 points to 17 percent. This caused a run on the rouble, and on January 29, the bank decreased the rate by two points to 15 percent.

In January 2015, the head of monetary policy, Ksenia Yudayeva, a proponent of strict anti-inflation policy, was replaced by Dmitry Tulin, who is "seen as more acceptable to bankers, who have called for lower interest rates".[5]

See also[edit]

References[edit]

  1. ^ "Inside the Risky Bets of Central Banks", The Wall-Street Journal. Dec. 12, 2012
  2. ^ Commemorative and Investment Coins of the Bank of Russia
  3. ^ "Russia to issue 5 kg gold coin", The Financial Express. May 19, 2010. Accessed May 19, 2010.
  4. ^ Sberbank shareholders, official website: http://www.sbrf.ru/moscow/ru/investor_relations/information_for_shareholders/share_capital_structure/
  5. ^ Jason Bush, Lidia Kelly and Alexander Winning (30 January 2015). "Russian central bank makes surprise interest rate cut". Reuters. Retrieved 31 January 2015. 

Further reading[edit]

  • Barenboim, Peter (2001). "Constitutional Economics and the Bank of Russia". Fordham Journal of Corporate and Financial Law 7 (1): 160. 

External links[edit]

Coordinates: 55°45′47″N 37°37′17″E / 55.76306°N 37.62139°E / 55.76306; 37.62139