Golden Recursion Inc. logoGolden Recursion Inc. logo
Advanced Search
Central Bank of Russia

Central Bank of Russia

Central bank of the Russian Federation

The mission of the Bank of Russia is to ensure financial and price stability and promote the development of a competitive financial market.

The Bank of Russia has a special constitutional and legal status, as set out in Article 75 of the Constitution of the Russian Federation. It defines the exclusive right of the Bank of Russia to issue money and its main function is to protect and ensure stability of the rouble.

The Bank of Russia is independent of other federal authorities, authorities of the constituent entities of the Russian Federation, and local authorities.

The status, goals, functions, and powers of the Bank of Russia are determined by Federal Law No. 86-FZ of 10.07.2002 "On the Central Bank of the Russian Federation (Bank of Russia)" and other federal laws.

In 2013, the Bank of Russia was delegated the authority to regulate, control and supervise financial markets.

As a mega-regulator, the Bank of Russia creates conditions for the development of all sectors of the financial market and the stability of the financial system as a whole. This task determines the approaches to the supervision and regulation of credit institutions, insurance companies, pension funds, microfinance organizations, and other financial market participants.

Legal status and functions.

Article 75 of the Constitution of the Russian Federation establishes a special legal status of the Central Bank of the Russian Federation, gives it the exclusive right to issue currency (Part 1) and stipulates the protection and stability of the rouble as its main function (Part 2). The status, purposes, functions and authorities of the Bank of Russia are also spelled out in Federal Law No. 86-FZ of July 10, 2002, 'On the Central Bank of the Russian Federation (Bank of Russia)' and other federal laws.

In accordance with Article 3 of the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', the objectives of the Bank of Russia are: protecting and ensuring stability of the ruble; developing and strengthening the banking system of the Russian Federation; ensuring stability and development of the national payment system; developing the financial market of the Russian Federation; ensuring stability of the financial market of the Russian Federation.

A key element of the legal status of the Bank of Russia is its independence, which implies, above all, that the Bank of Russia is a special public and legal institution that has the exclusive right to issue currency and organise its circulation. The Bank of Russia is not a government body, at the same time, its powers are by their nature related to the functions of the government, as their implementation involves the application of the measures of state coercion. The Bank of Russia exercises the functions and powers assigned to it by the Constitution of the Russian Federation and the Federal Law On the Central Bank of the Russian Federation (Bank of Russia) independently of the federal government bodies, government bodies of the subjects of the Russian Federation and local authorities. The independence of the Bank of Russia is reflected in Article 75 of the Constitution of the Russian Federation, as well as in Articles 1 and 2 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".

The Bank of Russia's rule-making powers are based on its exclusive right to issue regulations that are binding on the federal authorities, authorities of constituent entities of the Russian Federation, local authorities, and all legal entities and individuals on the matters referred to its competence by the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" and other federal laws. Article 104 of the Constitution of the Russian Federation does not give the Bank of Russia the power to initiate legislation, but it is involved in the law-making process not only by virtue of issuing its own regulations, but also because the drafts of federal laws and statutory acts of federal bodies of executive power concerning the functions of the Bank of Russia must be submitted to the Bank of Russia for conclusion.

The Bank of Russia is a legal entity. The authorized capital and other property of the Bank of Russia are federal property, and the Bank of Russia is endowed with property and financial independence. The authority to own, use and dispose of the property of the Bank of Russia, including the gold and foreign currency reserves of the Bank of Russia, shall be exercised by the Bank of Russia itself in compliance with the objectives and in accordance with the procedure established by the Federal Law "On the Central Bank of the Russian Federation (the Bank of Russia)". No property of the Bank of Russia may be seized or encumbered with liabilities without its consent, unless otherwise is prescribed by the federal law. The financial independence of the Bank of Russia shall be shown by the fact that the Bank of Russia shall finance its expenditures from its own revenues. The Bank of Russia has the right to defend its interests in court, including international courts, courts of foreign states, and arbitration courts.

The state is not liable for the obligations of the Bank of Russia, just as the Bank of Russia is not liable for the obligations of the state, unless they have assumed such obligations or unless otherwise stipulated by federal laws. The Bank of Russia shall not be liable for obligations of credit institutions and non-credit financial institutions, except in cases where the Bank of Russia assumes such obligations, and credit institutions and non-credit financial institutions shall not be liable for obligations of the Bank of Russia, except in cases where credit institutions and non-credit financial institutions assume such obligations.

The Bank of Russia is accountable to the State Duma of the Federal Assembly of the Russian Federation (hereinafter - the State Duma), which appoints and dismisses the Chairman of the Bank of Russia (as advised by the Russian President) and members of the Board of Directors of the Bank of Russia (as advised by the Chairman of the Bank of Russia, agreed with the Russian President); sends and recalls representatives of the State Duma to the National Financial Council within its quota, and also considers the o On the basis of the proposal of the National Financial Council the State Duma shall be entitled to decide on the audit of the financial and economic activities of the Bank of Russia, its structural subdivisions and institutions by the Accounts Chamber of the Russian Federation. In addition, the State Duma shall hold parliamentary hearings on the activities of the Bank of Russia with the participation of its representatives, as well as hear the reports of the Chairman of the Bank of Russia on the activities of the Bank of Russia in presenting the annual report and the main directions of the unified state monetary policy.

Timeline

January 28, 2022
Правовой статус и функции | Банк России

Further Resources

Title
Author
Link
Type
Date

References

Golden logo
By using this site, you agree to our Terms & Conditions.