The meaning of credit restriction in a large legal dictionary. Credit expansion and credit restriction: domestic experience of monetary regulation H) increases the refinancing rate

Between 1991 and early 1995, the Central Bank Russian Federation pursued a policy of credit restriction. The refinancing rate was increased from 20% as of January 1, 1991 to 210% as of October 15, 1993. In the period from April 29, 1994 to August 24, 1994, the rate was gradually reduced to 130%, but already from October 12, 1994, the Bank of Russia again raised it to 170%, and soon to 180% and 200% per annum (as of on 11/17/94 and 01/06/95, respectively). During this period (1991 – early 1995), the Bank of Russia increased the required reserve ratio. Thus, as of June 1, 1991, the required reserve ratio was 2%. Gradually increasing this standard, the Bank of Russia, from February 1, 1995, introduces differentiation of required reserve standards depending on the terms and currency of commercial banks’ obligations: for demand accounts and time-limit obligations up to 30 days - 22%, for time-limit liabilities of banks from 30 days to 90 days - 15%, for term obligations over 90 days - 10%, for current accounts in foreign currency - 2%.
As a result of these tough measures of the main bank on monetary regulation of the economy, the following results were achieved:

Table 1.4.1

during 1991 – 1995

Analyzing the table data, we can conclude that the annual index value is significantly exceeded consumer prices above the corresponding growth rate value money supply, which indicates that monetary policy aimed at compressing the money supply. Monetary regulation measures carried out to curb inflation achieved their goal, as evidenced by the dynamics of the consumer price index.
Since the spring of 1995, the Central Bank of the Russian Federation has been implementing a policy of credit expansion. The refinancing rate was reduced from 195% as of May 16, 1995 to 21% as of October 6, 1997. During the same period, the required reserve standards change, as evidenced by the table data: Table 1.4.2
Changes in required reserve ratios from May 1, 1995 to May 1, 1997.

Date modified	Reserve requirements depending on the terms of obligations of commercial banks, %
required reserve ratio	On demand and up to 30 days	30-90 days	Over 90 days	For current accounts in foreign currency
1.05.95	20	14	10	1,5
1.05.96	18	14	10	1,25
1.06.96	20	16	12	2,5
1.08.96	18	14	10	5
1.11.96	16	13	10	5
1.05.97	14	11	8	6

As the table data shows, the required reserve ratios for obligations credit organizations in rubles in the analyzed period decrease slightly, but for accounts in foreign currency they increase significantly - 4 times.
As a result of the implementation of these activities, the following indicators were achieved:

Table 1.4.3
Dynamics of the consumer price index and the rate of annual growth of the money supply for the M2 aggregate during 1996–1997

Analyzing the data in the table, we can conclude that there has been a change in the relationship between the dynamics of the consumer price index and the growth rate of the money supply for the M2 aggregate: the growth rate of the money supply exceeded the inflation rate for the analyzed indicator. In general, during 1996-1997 the positive trend reducing inflation rates. The situation changes in 1998 as a result of the August crisis. Trying to prevent a crisis, the Bank of Russia, as a monetary regulatory authority, increases the refinancing rate. Initially, the rate was increased to 28% as of November 11, 1997, then to 42% as of February 2, 1998, after which a chaotic change in the refinancing rate occurred: in the period from July 11, 1997 to August 1, 1998, the rate changed 10 times , both in the direction of increase and in the direction of decrease. During the same period, reserve requirements for funds attracted by banks in foreign currency increase: up to 9% as of November 11, 1997 and up to 11% as of February 1, 1998. Despite the measures taken, the crisis could not be prevented. To reduce the negative impact of the crisis of August 24, 1998, the Bank of Russia is introducing a single standard for funds raised by credit institutions in rubles and foreign currency in the amount of 10%. For Sberbank of Russia, the required reserve requirement for attracted funds in rubles was reduced to 7%, after which a week later, on September 1, 1998, reserve requirements for attracted funds in rubles and foreign currency for Sberbank of Russia and credit organizations with a share of investments in government securities (GKO-OFZ) in working assets is 40% or more, reduced to 5%; for credit institutions whose share of investments in government securities in working assets is 20-40%, reserve requirements for funds raised in rubles and foreign currency are set at 7.5%.
Despite the implementation of these measures, the Bank of Russia was unable to prevent an inflationary surge, while the consumer price index for 1998 was 84.4%, and the growth rate of the money supply for the M2 aggregate was 20.9%.
In the post-crisis period, the Bank of Russia continues to implement a policy of credit expansion, gradually reducing the refinancing rate. However, at the same time main bank countries increases reserve requirements, as a result of which two instruments of monetary regulation of different directions operate simultaneously, which led to the following results: Table 1.4.4.
Dynamics of the consumer price index and rates
annual growth of money supply according to the M2 aggregate
during 1999 – 10 months of 2001

Analyzing the table data, we can draw the following conclusions: the growth rate of the money supply exceeds the inflation rate according to the consumer price index. With a significant increase in the money supply (by 55.6% in 1999 and 62.5% in 2000), prices for consumer goods increased by 36.5% and 20.2%, respectively. Positive dynamics of decreasing inflation rates were also observed in 2001. Consequently, the increase in the total volume of money supply did not lead to the development of inflationary processes, which also demonstrates the regulatory role of the main bank of the country.

Monetary regulation is based either on a policy of credit expansion or on a policy of credit restriction. If the state pursues a policy of expansion, then there is an increase in the volume of money supply, loans, a decrease in the loan interest rate and, as a result, an increase in business activity in the economy, which means an increase in production volumes, investment in production, but a possible deterioration in monetary circulation.

On the contrary, restriction leads to an improvement in money circulation and a decrease in production volume.

The main methods of monetary regulation are:

· Accounting policy carried out central bank.

· Operations on open market.

· Regulation of required reserve standards.

Accounting policy carried out by changing the level of the interest rate at which the central bank provides loans to commercial banks (this is the refinancing rate). In the conditions of the pre-crisis recovery, the central bank increases the level of discount interest and thus forces commercial banks to increase fees for their loans - this credit restriction. As a result, the amount of credit provided to the economy decreases as credit becomes expensive and demand for it falls. In this way, the crisis of overproduction is contained.

In a crisis, the central bank lowers the level of loan interest, which stimulates the supply of loans to the economy and leads to an increase in the money supply - This is credit expansion.

Open market operations mean that the central bank carries out the purchase and sale of securities. To reduce production volumes, volumes of credit investments and money supply, the central bank sells securities to commercial banks - this is a credit restriction.

To revive the economy, the central bank buys securities from commercial banks, which means increasing the resources of commercial banks for credit investments in the economy. All this is accompanied by an increase in the money supply - this is credit expansion.

When selling securities, the central bank sets a level of interest on securities that provides commercial banks with a higher income than lending operations. On the contrary, by purchasing securities, the central bank reduces the level of interest on securities, which makes the presence of these securities in the assets of commercial banks unprofitable.

Regulation of required reserve standards assumes that commercial banks are required to store part of their resources in reserve accounts at the central bank. The volume of reservation is regulated by state legislation. Thus, in the Russian Federation, according to the law “On the Central Bank”, this norm is limited to 20%, in the USA – 5%, in other countries up to 10%. Reservations are made from attracted resources in the form of deposits. Regulation of required reserve norms is effective, but not market method, this is an administrative method. An increase in required reserve standards leads to a direct reduction in the bank’s resources for credit investments, which leads to a reduction in the volume of loans and a reduction in the money supply, which corresponds to restriction policy. On the contrary, a reduction in required reserve requirements frees up the resources of commercial banks for lending, which corresponds to expansion policy.

During a crisis, the state uses such a tool as currency intervention. This method is participatory central bank in purchase and sale transactions foreign currency in order to maintain exchange rate national currency. If the exchange rate of the national currency falls, the central bank sells foreign currency, thereby reducing the state’s gold and foreign exchange reserves - this is an extremely expensive method and is used in exceptional cases.

Credit and its main forms

1. Origin and essence of credit, usurious and commercial loans

2. Loan capital and sources of its formation

3. Loan interest

4. Difference between a money loan and a capital loan

5. Bank loan

6. State loan

7. Consumer loan

8. International credit

Monetary policy is a set of measures taken by the state in the field of money circulation and credit, aimed at ensuring economic growth and employment, equalization of the balance of payments. In our country, monetary policy is determined by the Bank of Russia together with the Government of the Russian Federation, annually developing the Main Directions of a Unified State Monetary Policy, which are then adopted by the State Duma. The last of these materials is the Main Directions of the Unified State Monetary Policy for 2012 and the period of 2013 and 2014.

In the theory of organizing the activities of central banks, two main types of monetary policy are considered: monetary restriction and monetary expansion.

Restrictive monetary policy is aimed at limiting monetary emission, i.e. to reduce the money supply in circulation. This is the so-called dear money policy, which is usually carried out during periods of high inflation.

Expansionary monetary policy accompanied by an expansion of monetary emission; its goal is to increase the money supply in circulation. This is a "cheap money policy", usually carried out during periods economic downturn in order to provide conditions for expanding lending to enterprises and stimulating investment activity.

By carrying out credit expansion, central banks pursue the goals of increasing production and reviving the market situation, while with the help of credit restriction they are trying to prevent the “overheating” of the market situation observed during periods of economic expansion and limit inflationary processes.

Goals Monetary policy can be divided into:

• on ultimate goals, representing major macroeconomic goals that are common to all countries market economy. For example, this is keeping inflation at an acceptable level, achieving full employment, growth in real output;
• intermediate goals, they are also called benchmarks, which are more specific and set to achieve final goals. These may include the state of the money supply, exchange rate, interest rate.

The final goals of the Bank of Russia for the coming years include the following.

The monetary policy of the Bank of Russia will be focused on consistently reducing inflation, and in the longer term, on maintaining consistently low rates of price growth (price stability). Such a policy will help ensure sustainable economic growth and improve the well-being of the population. Interim goals related to inflation in the Main Directions of the Unified State Monetary Policy for 2012 and the period 2013–2014. formulated in this way: in accordance with the scenario operating conditions domestic economy and the main parameters of the forecast for the socio-economic development of Russia, the Government of the Russian Federation and the Bank of Russia have set the task of reducing inflation in 2012 to 5–6%, in 2013 – to 4.5–5.5%, in 2014 – to 4 –5% (based on December to December of the previous year). The specified purpose on inflation by consumer market corresponds to core inflation of 4.5-5.5% in 2012, 4-5% in 2013 and 3.5-4.5% in 2014.

After setting goals, the central bank selects methods and tools that will facilitate their implementation. Monetary Policy Methods – These are ways of influencing all benchmarks, implemented through the selection and application of certain monetary policy instruments to achieve set goals. Monetary policy methods include:

• direct methods, which include administrative measures in the form of Bank of Russia directives regarding the volume of money supply and prices for financial market. For example, these include: level limiting interest rates on loans, restrictions on refinancing volumes, currency restrictions, etc.;
• economic, or indirect methods regulation of monetary policy - influence the motivation of behavior of economic entities through market mechanisms. The consequences of their use are less predictable, and their use is most effective in the presence of a developed money market. Examples of such methods can be: the establishment of mandatory reserve standards, open market operations, foreign exchange interventions, etc.

Monetary policy instruments – This

operations, ways in which the central bank can change supply and demand in the money market, bank reserves, money supply and volumes of lending to the economy. It is the selected set of measures in the field of money circulation and credit that makes it possible to achieve the goals of monetary policy.

Article 35 of the Law on the Bank of Russia defines the following main instruments of monetary policy:

• interest rates on Bank of Russia operations;
• standards for required reserves deposited with the Bank of Russia (reserve requirements);
• open market operations;
• refinancing of credit institutions;
• foreign exchange interventions;
• establishing benchmarks for money supply growth;
• direct quantitative restrictions;
• issue bonds on its own behalf.

Interest rate policy involves the establishment and periodic review by the Bank of Russia of official base rates, and rates for its main operations are also being revised. Interest rate policy is called refinancing rate policy or discount rate policy. Refinancing rate is the interest rate at which the central bank, as lender of last resort, provides loans to commercial banks. Discount rate- the percentage at which the central bank discounts bills of commercial banks, thus lending them against securities. Note that in modern Russia these terms are used as synonyms. With this tool the central bank:

• influences the supply and demand of the credit market;
• regulates the level of liquidity of commercial banks;
• regulates the volume of money supply in the country;
• if necessary, provides financial assistance to credit institutions.

Required reserve standards, deposited with the Bank of Russia (reserve requirements) are established by the board of directors of the Bank of Russia as a percentage of the obligations of credit institutions (no more than 20%), i.e. Part of the attracted funds from clients is necessarily reserved in interest-free accounts of the Bank of Russia. When mandatory reserve standards increase, the resource base of credit institutions and supply in the credit market are reduced; when they decrease, the opposite effect occurs.

Open market operations means the purchase and sale by the Bank of Russia of government securities, bonds of the Bank of Russia and some others, as well as short-term transactions with these securities. If it is necessary to limit the money supply in circulation, the Bank of Russia begins to offer the above-mentioned securities on the open market. Since the reliability of such securities is high, the population begins to actively buy them. If credit institutions are bought up, their resource base is reduced. If private individuals buy, the volume of deposits in banks decreases, which again leads to a reduction in the resource base of banks. Thus, the supply of loans is reduced in proportion to the credit multiplier. To increase the money supply in circulation, the Bank of Russia buys government securities from the population and credit institutions - banking resources increase and the money supply increases accordingly.

Bank refinancing- is lending by the central bank to credit institutions through the rediscounting of bills of exchange, repurchase agreements, pawnshop operations and other types credit operations. In addition to the already mentioned refinancing rate, the Bank of Russia establishes the procedure, forms and limits for refinancing. The Bank of Russia uses this tool in the event of a liquidity crisis at a credit institution.

Currency interventions carried out with the aim of maintaining the exchange rate of the national currency and represent the purchase and sale of foreign currency by the Bank of Russia for foreign exchange market. The exchange rate policy is aimed at achieving a balance of interests of importers and exporters, strengthening confidence in the ruble, increasing the attractiveness of investments in domestic financial assets, reducing capital flight from Russia.

Setting benchmarks for money supply growth or targeting occurs in accordance with the Main Directions of the Unified State Monetary Policy. The Bank of Russia considers as the main indicators of the money supply: the inflation rate, the speed of money circulation, the growth rate of the money supply, the structure of the money supply, the dynamics money multiplier, liquidity in the banking system and other indicators.

Direct quantitative restrictions involve the establishment of limits on the refinancing of credit institutions and the conduct of certain banking operations by them. Direct quantitative restrictions are applied in exceptional cases after consultations with the Government of the Russian Federation. The conduct of certain banking operations by credit institutions is limited only if the credit institution violates the legislation of the Russian Federation and the regulations of the Bank of Russia. Decisions on the introduction of direct quantitative restrictions must be published in the Bank of Russia Bulletin no later than 10 days after the decision is made.

The issue of bonds is carried out by the Bank of Russia on its own behalf in accordance with the Regulation of the Bank of Russia dated March 29, 2006 No. 284-P “On the procedure for issuing bonds of the Bank of Russia”. Bonds of the Bank of Russia are placed and circulated among credit institutions. Limit size the total nominal value of all issues outstanding as of the date the Board of Directors of the Bank of Russia made a decision on additional issue, is established as the difference between the maximum possible amount of required reserves of credit institutions and the amount of required reserves of credit institutions, determined in accordance with current regulations required reserves.

Monetary (or monetary) policy is a government policy that influences the amount of money in circulation in order to ensure price stability, full employment, and growth in real output. Implements monetary policy Central Bank.

Monetary Policy Methods- a set of techniques and operations through which subjects of monetary policy influence objects to achieve their goals.

§ Direct methods - administrative measures in the form of various directives of the Central Bank regarding the volume of money supply and prices in the financial market. The implementation of these methods gives the fastest economic effect from the point of view of the central bank, behind the maximum volume or price of deposits and loans, behind the quantitative and qualitative variables of monetary policy.

§ Indirect methods of regulating monetary policy affect the motivation of behavior of business entities using market mechanisms, have a large time lag*, and the consequences of their use are less predictable than when using direct methods. However, their use does not lead to market distortions. Go to indirect methods characteristic of the global process of liberalization, increasing the degree of independence of central banks.

* Time lags are a certain period of time between the moment the need arises to apply a particular measure in the field of monetary policy and the awareness of such a need

There are also general and selective methods:

§ General methods are predominantly indirect, influencing money market generally.

§ Selective methods regulate specific types of credit and are mainly prescriptive in nature. Thanks to these methods, private problems are solved, such as limiting the issuance of loans to certain banks and refinancing on preferential terms.

1. Credit expansion– aimed at stimulating credit and money issue; (policy of “cheap” money) means expanding the scope of lending to the economy, weakening control by the Central Bank over the increase in the amount of money in circulation, and reducing the level of interest rates.
2. Credit restriction – their containment and limitation; (policy of “expensive” money) is aimed at limiting monetary emission, i.e. tightening conditions and limiting the volume of operations of commercial banks, increasing interest rates.

Methods from tetras:

1) interest rates on transactions

2) standards require reserves.

3) open market operations

4) refinancing of banks

5) deposit operations

6) foreign exchange regulation

7) direct quantitative restrictions

Commercial banks: concept, functions, operating principles.

COMMERCIAL BANK- non-state credit institution specializing in deposit acceptance, short-term lending and settlement services clients, also involved intermediary operations, which carries out universal banking operations for enterprises in all industries mainly through monetary capital and savings attracted in the form of deposits.

Commercial banks act as the main link banking system. Regardless of their form of ownership, commercial banks are independent market entities.

Commercial banks differ:

1. by accessory Authorized capital and the method of its formation: in the form joint stock companies and partnerships, cooperative commercial banks, in the form of joint-stock companies with participation foreign capital, state commercial banks (savings bank), foreign banks.

2. by types of transactions performed: universal, specialized (mortgage).

3. by territory of activity: republican, regional.

Principles:

Work within the limits of actually available resources.

Full economic independence, implying economic responsibility bank for performance results. Economic independence presupposes freedom of disposal of one’s own funds and attracted resources, free choice of clients and investors, and disposal of income remaining after taxes.

Relationships commercial bank with clients are built as normal market relations, i.e. installing financial relations With clients, the bank proceeds from the criteria of profitability, risk and liquidity.

Regulation of the activities of a commercial bank in market conditions is carried out only indirectly economic methods(regulation of the refinancing rate, etc.).

Functions of banks:

1. Credit intermediation, which banks carry out through redistribution cash, released in the process of circulation of enterprise funds and cash income of individuals.

2. Stimulating savings on the farm. The task of banks is to create such forms of raising funds that will really interest the client in accumulating resources.

3. Mediation in payments between economic entities. Particularly important is the responsibility of banks for the timely and complete execution of customer orders for making payments.

25. Active and passive operations of commercial banks
Passive operations of commercial banks - these are operations to generate sources of funds, bank resources, which are reflected in the liability side of its balance sheet.
The resources of commercial banks consist of two sources:
own funds (capital) and resources equivalent to it;
raised funds.
A feature of the banking business is that it (the bank) operates primarily on someone else’s capital. Own capital usually makes up less than 10% of a commercial bank's resources, borrowed funds - more than 90%.
Consideration of a bank's liabilities usually begins with equity. Firstly, because this is the only capital without which it is hardly possible to start a business in any field of business. Secondly, because the value of the bank’s own capital is significantly higher than its specific gravity in total liabilities. Equity- not only the core on which the bank’s activities rely from the first day of its existence, but also its “last line of defense” in the event of an unfavorable combination of circumstances.
The bank's borrowed funds constitute the overwhelming majority of the commercial bank's resources. Carrying out passive operations allows the bank to attract (get for use) temporarily free financial resources of depositors (creditors) and other clients. The following main groups can be distinguished as part of passive operations:
accepting deposits and deposits (on demand, urgent, etc.) from legal entities and individuals, opening and maintaining settlement, current and other similar accounts of legal entities;
obtaining loans from commercial banks or the Central Bank of the Russian Federation ( interbank loans);
issue of non-investment securities (certificates of deposit, bills, etc.).
Active operations of a commercial bank mean the use of attracted and own funds to receive appropriate income.
The main types of active operations of the bank are:
providing loans of various types to legal entities and individuals for a certain period, for various purposes and on various conditions;
investments in securities (bonds, shares, etc.) issued by the state or others legal entities, i.e. transactions with securities on one’s own behalf and at one’s own expense;
implementation investment projects;
“repo” type operations;
currency dealing operations;
leasing operations.
Active operations of banks are carried out by banks in order to make a profit while simultaneously complying with legal regulations, maintaining the required level of liquidity and rationally distributing risks across certain species operations. The need to comply with these requirements forces banks to place part of their funds in investments that do not generate income or bring it extremely limited size(cash on hand, funds in accounts with the Central Bank and other types of liquid assets).

At the same time, the needs of comprehensive support for the bank’s activities and its further development determine the presence in its assets of such items as bank buildings and equipment, investments in branches, associated companies engaged in specialized banking transactions. Although, strictly speaking, these positions cannot be attributed to the active operations of banks, they actually represent nothing more than the deployment of the resources at their disposal.

According to your tasks active operations can be divided into operations aimed at maintaining the bank’s liquidity at one level or another, and operations aimed at making a profit. It goes without saying that there is a certain relationship between these types of operations necessary to maintain the bank’s liquidity.

CREDIT RESTRICTION CREDIT RESTRICTION is a limitation by banks and the state of the size of a loan in order to prevent the leakage of gold reserves abroad, to avoid the collapse of banks and inflationary processes.

Large legal dictionary. - M.: Infra-M. A. Ya. Sukharev, V. E. Krutskikh, A. Ya. Sukharev. 2003 .

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