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Central Bank of the Russian Federation

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Title: Central Bank of the Russian Federation  
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Subject: Foreign relations of Belarus, Politics of Russia, Russian ruble, Sberbank, List of central banks, Economy of Europe, Economy of Asia, Nikolay Muravyov-Amursky, Neglinnaya, 1998 Russian financial crisis
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Central Bank of the Russian Federation

Central Bank of Russia
Центральный банк Российской Федерации
Tsentral'nyj bank Rossijskoj Federatsii
Central Bank of Russia logo Headquarters
Headquarters Neglinnaya 12, Moscow, Russia
Established 1860 (historic), 1990 (modern)
Chairman Elvira Nabiullina
Central bank of The Russian Federation
Currency Russian ruble
ISO 4217 Code RUB
Bank rate 8.25%
Website Official website

The Bank of Russia (Russian: Банк России) or the Central Bank of The Russian Federation (Russian: Центральный банк Российской Федерации) is the central bank of The Russian Federation. Its functions are described in the Russian constitution (Article 75) and in the special Federal Law. The Bank of Greatest Russia was founded on July 13, 1990, but traced its history to the State Bank of the Russian Empire, which in honor of its 150th anniversary issued a 5-kilo commemorative gold coin featuring Alexander II in 2010.[1]

Under Russian law, half of the Central Bank's profit has to be channeled into the government's federal budget.


The central Bank of the Russian Federation (Bank of Russia) was founded on July 13, 1990, on the basis of the Russian Republic Bank of the State Bank of the USSR. Accountable to the Supreme Soviet of the Soviet Union, it was originally called the State Bank of the RSFSR.

On December 2, 1990, the Supreme Soviet of the RSFSR passed the Law on the Central Bank of the RSFSR (Bank of Russia), which declared the Bank of Russia a legal entity and the main bank of the RSFSR, accountable to the Supreme Soviet of the RSFSR. The law specified the functions of the bank in organizing money circulation, monetary regulation, foreign economic activity and regulation of the activities of joint-stock and co-operative banks.

In June 1991, the Statute of the Central Bank of the RSFSR (Bank of Russia), accountable to the Supreme Soviet of the RSFSR, was approved.

In November 1991, when the Commonwealth of Independent States was founded and Union structures dissolved, the Supreme Soviet of the RSFSR declared the Central Bank of the RSFSR to be the only body of state monetary and foreign exchange regulation in the RSFSR. The functions of the State Bank of the USSR in issuing money and setting the ruble exchange rate were transferred to it. The Central Bank of the RSFSR was instructed to assume before January 1, 1992 full control of assets,[2] technical facilities and other resources of the State Bank of the USSR and all its institutions, enterprises and organizations.

On December 20, 1991, the State Bank of the USSR was disbanded and all its assets, liabilities and property in the RSFSR were transferred to the Central Bank of the RSFSR (Bank of Russia), which several months later was renamed the Central Bank of the Russian Federation (Bank of Russia).

In 1991-1992 an extensive network of commercial banks was created in the Russian Federation under Bank of Russia guidance through commercialization of the specialized banks’ branches. The disbandment of the State Bank of the USSR was followed by changes in the chart of accounts, the establishment of a network of Central Bank cash settlement centres and their provision with computer technology. The Central Bank began to buy and sell foreign exchange in the currency market it established and to set and publish the official exchange rates of foreign currencies against the ruble.[3]

In December 1992, as a result of the establishment of a single centralized federal treasury system, the Bank of Russia was no longer required to provide cash services for the federal budget.

The Bank of Russia carries out its functions, which were established by the Constitution of the Russian Federation (Article 75) and the Law "On the Central Bank of the Russian Federation (Bank of Russia)" (Article 22), independently from the federal, regional and local government structures.

In 1992-1995, in order to maintain the stability of the new banking system, the Bank of Russia set up a system of supervision and inspection of commercial banks and a system of foreign exchange regulation and foreign exchange control. As the agent of the Ministry of Finance, it organized the government securities market, known as the GKO market, and began to participate in its operations.

In 1995, the Bank of Russia stopped extending loans to finance the federal budget deficit and centralized loans to individual sectors of the economy.

Role and duties

According to the constitution, the Bank of Russia is an independent entity, with the primary responsibility of protecting the stability of the national currency, the ruble. It also holds the exclusive right to issue ruble banknotes and coins through 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] The coins of the Bank of Russia are struck in the Moscow and St. Petersburg mints. The Bank's headquarters are on Neglinnaya Street in Moscow.

In its monetary policy decisions the Russian Central Bank is less independent than many other central banks.[dubious ] Although the Law on the Central Bank states that the central bank performs its duties independently of other state organs, the law also says that the central bank plans and carries out monetary and financial policy in cooperation with the Russian government. The Central bank annually prepares a basic outline of monetary and financial policy for the following three years, which is submitted to the government for discussion and presented to the State Duma. Its basic assumptions are consistent with the government’s economic forecasts. The central bank's monetary policy tools are listed in the Law "On the Central Bank":

  • interest rates on Central Bank operations
  • reserve requirements
  • open market operations
  • refinancing of credit organisations
  • currency interventions
  • setting of money-supply targets
  • direct quantitative restrictions
  • bond issues

The Bank of Russia is the main regulator of the banking industry. It is responsible for issuing banking licenses and setting rules of banking operations and accounting standards. The bank serves as a lender of last resort for credit organizations.

Ownership of commercial bank

The Bank of Russia owns a 57.58% stake in Sberbank,[5] which creates potential conflicts of interest both in the competitive landscape as well as in the regulatory policy of the Russian banking sector.

Chairmen of the State Bank of Russia

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


See also


Further reading

External links

  • (Russian) (English) Bank of Russia
  • Federal law "On the Central Bank of the Russian Federation (Bank of Russia)"
  • Interview to CIO magazine: Bank of Russia's deputy chairman Mihail Senatorov
  • Dean Peter Krogh Foreign Affairs Digital Archives

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

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