Central Bank of Russian Federation was established in the year 1990 on the basis of Russian Republic Bank of the State Bank of USSR. At the time of its foundation, the bank was known as State Bank of RSFSR and was answerable to Supreme Soviet of the RSFSR for all its functions and activities.
Slowly but steadily, the Central Bank of Russia took over all the functions and responsibility of the assets and liabilities of the State Bank of the USSR. It became the apex bank in the country with a main objective of maintaining the stability of the national currency i.e., ruble. The headquarters of Central Bank of Russian Federation are sited at Neglinnaya Street in the Russian capital Moscow.
Objectives of Central Bank of Russian Federation
Central Bank of Russian Federation is also known as Bank of Russia. The main objectives of this apex banking organization are listed below:
- To built up and maintain the confidence of depositor, investor and creditor in the banking sector
- To enhance the effectiveness of banking sector in accumulating funds from various sectors including enterprise and household and converting them into investments and loans.
- To prevent credit institutions from participating in illegal and dishonest activities such as funding for terrorism and money laundering
Functions of Central Bank of Russian Federation
- To issue currency and manage its circulation
- To set the rules for banking operations across the country
- To organize and implement foreign exchange regulation and foreign exchange control in compliance with federal legislation
- To supervise the activities of credit institutions and banking groups across the country
