The Central Bank of Russia is a separate banking organization that is authorized to perform special state tasks. This is the most common definition, but to be more accurate, the exact term does not exist. Now it is worthwhile to dwell in more detail.
Functions
The Central Bank of Russia plays a huge role in ensuring the financial stability of the state currency. Main functions:
1. Minimizing the amount of inflation over the longest possible period. Translated into a simpler language, this means that the Central Bank of Russia must maintain price stability at the same level. It is difficult to note a high result in achieving this goal. The ideal, and therefore utopia is zero inflation. That is, the value of any product on the market remains unchanged. Unfortunately, the reality is harsh. This affects to a greater extent precisely the population of the country. Since the price increase is not planned 2-4 percent, but much more.
2. High control and development of the whole financial and banking system of the country as a whole. Such a task implies the elimination of monopolies in the banking structure. This also includes the issuance of licenses to commercial organizations. After all, only the Central Bank of Russia is authorized in this activity. And you yourself understand that this is a huge responsibility and invaluable work. But, of course, everything is so good only in words. Bureaucracy reigns everywhere in everyday life. Innocent citizens become deceived by commercial firms for which they have not been followed properly. The other side of the coin refers to legal entities that are capable of really making their interesting proposals to the banking structure. As a result, the entire process of obtaining a license will take about a year and, of course, with the lion's share of the interest that will go to the state treasury. Therefore, sometimes you should not be surprised at the frantic interest rates on loans, because private traders are aimed at making a profit, and they have already given a decent amount to the state.
Rights and Status
- Endowed with the right to issue money and regulate the monetary circulation of the country.
- The Bank (and all its components) is federal property.
- Although the organization is independent of the State Duma, all reporting on the activities of the Central Bank of Russia goes there.
Conclusion
The central bank is a supporting component of the entire banking structure of our country. The efficiency of this organization is difficult to determine for a person who is not working in this field, so estimates can be taken and analyzed only from conversations of other people.