Central Bank of Russia

Central Bank of Russia
Банк России
Bank Rossii
Central Bank of Russia logo
Central Bank of Russia logo
Headquarters

Headquarters
Headquarters 12 Neglinnaya str., Moscow, Russian Federation
Established 1860 as State Bank
Chairwoman Elvira Nabiullina
Currency Ruble
RUB (ISO 4217)
Reserves $382.4 B, As of 12 February 2016
Bank rate 10.5%
Website Official website
Central Bank of Russia logo on Russian ruble.
Obverse: Double-headed eagle, БАНК РОССИИ (Bank of Russia logo), face value and year. Reverse: Vine sprig and face value.

The Central Bank of Russia also known as the Bank of Russia (Russian: Банк России) is the central bank of the Russian Federation, founded in 1860 as The State Bank of the Russian Empire,[1] headquartered on Neglinnaya Street in Moscow.

Its functions are described in the Russian constitution (Article 75) and in the special Federal Law.

History

Timeline of central banking in Russia
Dates System
1769–1818 State Assignation Bank
1818–1860 State Commercial Bank
1860–1917 State Bank of Russia
1917–1922 People's Bank of the RSFSR
1922–1991 State Bank of the USSR
1991–present Central Bank of Russia
Sources:[2]

State Bank of the Russian Empire

GosBank headquarters in Saint Petersburg (1905)

The decision to create a State Bank of the Russian Empire was made by Emperor Peter III on May 1762,[3] which was modeled on Bank of England and would have the right to issue bank notes. However, due to the coup on June 28, 1762 and the murder of the Czar, the project was implemented. The outbreak in 1768 the Russian-Turkish War and deficit of the state budget forced Catherine II, in turn, refer to the idea of issuing a paper money, and in December 1768 she formed the State Assignation Bank, which existed until 1818 and was replaced by the State Commercial Bank, but the first central banking body in Russia was established on 12 June [O.S. 31 May] 1860 as The State Bank (GosBank) of the Russian Empire (Russian: Государственный банк Российской Империи) which was formed on the base of the State Commercial Bank by ukaz of Emperor Alexander II. This ukaz also ratified the Statues of the bank. According to the Statute, it was a state-owned bank, intended for short-term credit of trade and industry.

In early 1917 the Bank had 11 branches, 133 permanent and 5 temporary offices and 42 agencies. On 7 November 1917 the Russian State Bank was disestablished and replaced byou The People's Bank which existed until the establishment of the Soviet Gosbank.

State Bank of the Soviet Union

Main article: Gosbank

The Central Bank of the Russian Federation

The Central Bank of the Russian Federation (Bank of Russia) was established July 13, 1990 as a result of the transformation of the Russian Republican Bank of the State Bank of the USSR. It was accountable to the Supreme Soviet of the RSFSR. On December 2, 1990 the Supreme Soviet of the RSFSR passed the Law on the Central Bank of the Russian Federation (Bank of Russia), according to which the Bank of Russia has become a legal entity, the main bank of the RSFSR and was accountable to the Supreme Soviet of the RSFSR. In June 1991, the charter was adopted by the Bank of Russia. On December 20, 1991 the State Bank of the USSR was abolished and all its assets, liabilities and property in the RSFSR were transferred to the Central Bank of the Russian Federation (Bank of Russia), which was then renamed to the Central Bank of the Russian Federation (Bank of Russia). Since 1992, the Bank of Russia began to buy and sell foreign currency on the foreign exchange market created by it, establish and publish the official exchange rates of foreign currencies against the ruble.

Role and duties

According to the constitution, it is an independent entity, with the primary responsibility of protecting the stability of the national currency, the ruble.

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.

It holds the exclusive right to issue ruble banknotes and coins through the Moscow and St. Petersburg mints, the Goznak mint. 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.[4] In 2010 in honor of its 150th anniversary it issued a 5-kilo commemorative gold coin Alexander II.[5]

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.[6]

The Bank of Russia owns a 57.58% stake in Sberbank, the country's leading commercial bank.

Chairmen

Governors of the State Bank

The Governor was appointed by the Emperor of Russia.

№ Name (governor) Photo Term of office Appointed by
Start of term End of term
1 Alexander von Stieglitz June 10, 1860 1866 Alexander II
2 Evgeniy Lamanskiy 1866 1881
3 Alexey Tsismen 1881 1889 Alexander III
4 Alexey Tsismen 1881 1889
4 Yuliy Zhukovskiy 1889 1894
5 Eduard Pleske 1894 1903 Nicholas II
6 Sergey Timashev 1903 1909
7 Alexey Konshin 1909 1914
8 Ivan Shipov 1914 1917

Chairman of the Board of the USSR State Bank

The Chairman was appointed by the Premier of the Soviet Union.

№ Name (governor) Photo Term of office Appointed by
Start of term End of term
1 Aron Sheinman[7] 1921 1924 Vladimir Lenin
2 Nikolai Tumanov March 5, 1924 January 16, 1926 Alexei Rykov
3 Georgy Pyatakov April 19, 1929 October 18, 1930
4 Moissei Kalmanovich October 18, 1930 April 4, 1934 Vyacheslav Molotov
5 Lev Maryasin April 4, 1934 July 14, 1936
6 Solomon Kruglikov July 14, 1936 September 15, 1937
7 Alexey Grichmanov September 15, 1937 July 16, 1938
8 Nikolai Bulganin October 2, 1938 April 17, 1940
9 Nikolai Sokolov April 17, 1940 October 12, 1940
10 N. Bulganin October 12, 1940 May 23, 1945 Joseph Stalin
11 Yakov Golev May 23, 1945 March 23, 1948
12 Vasily Popov March 23, 1948 March 31, 1958 Georgy Malenkov and Nikolai Bulganin

13 N. Bulganin March 31, 1958 August 15, 1958 Nikita Khrushchev
14 Alexander Korovushkin August 15, 1958 August 14, 1963
15 Alexey Poskonov 1963 1969 Alexei Kosygin
16 Miefodiy Svieshnikov 1969 1976
17 Vladimir Alkhimov October 11, 1976 January 10, 1986 Nikolai Tikhonov
18 Viktor Dementsev January 10, 1986 August 22, 1987 Nikolai Ryzhkov
19 Nikolai Garetovsky August 22, 1987 June 7, 1989
20 Viktor Gerashchenko June 7, 1989 August 26, 1991 Valentin Pavlov
21 Andrei Zverev August 26, 1991 December 20, 1991 Ivan Silayev

Governors of the Central Bank

Head of the Board of Governors of the Central Bank
Incumbent
Elvira Nabiullina
since June 24, 2013
Appointer President of Russia
Formation May 31, 1860 (1860-05-31)
First holder Alexander von Stieglitz
Website Bios

The Head of the Board of Directors of the Central Bank is the head of the central banking system of the Russian Federation. The Head is chosen by the President of Russia; and serves for four-year-terms after appointment. A Head may be appointed for several consecutive terms (Sergey Ignatyev was the Governor of the Central Bank for 11 years, and he was appointed three times, in the longest serving term in post-soviet Russia).

№ Name (governor) Photo Term of office Appointed by
Start of term End of term
1 Georgy Matyukhin December 25, 1990 May 16, 1992 Boris Yeltsin
2 Viktor Gerashchenko November 4, 1992 October 18, 1994
3 Tatyana Paramonova October 19, 1994 October 22, 1995
4 Alexander Khandruyev November 8, 1995 November 22, 1995
5 Sergei Dubinin November 22, 1995 September 11, 1998
6 Viktor Gerashchenko September 11, 1998 March 20, 2002
7 Sergei Ignatyev March 21, 2002 June 23, 2013 Vladimir Putin
9 Elvira Nabiullina June 24, 2013 present

Politics

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".[8]

See also

References

  1. ↑ History of the Bank of Russia. 1860-2010. In 2 vols. Ed.: Y. A. Petrov, S. Tatarinov. 2010.
  2. ↑ CBR. "banking history".
  3. ↑ Empty citation (help)
  4. ↑ "Commemorative Coins - Banknotes and Coins - Bank of Russia". cbr.ru.
  5. ↑ "Russia to issue 5 kg gold coin" Archived May 23, 2010, at the Wayback Machine., The Financial Express. May 19, 2010. Accessed May 19, 2010.
  6. ↑ "Inside the Risky Bets of Central Banks", The Wall-Street Journal. Dec. 12, 2012
  7. ↑ "The State Bank of the USSR". Bank of Russia Today. Bank of Russia. Retrieved 26 May 2015.
  8. ↑ 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

External links

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

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