In the diversity of the banking system, there are leaders and major players in the market. The European Central Bank is the largest among the banking giants of the European Union.

History on a European scale

The date of birth of the European Central Bank (ECB) is 06/01/1998. The basis for the formation of the bank was the Amsterdam Agreement, signed in 1997. The headquarters are located in Frankfurt am Main (Germany). The Bank is independent from the rest of the European Union (EU) and regulates the monetary policy of the Eurozone countries.

The idea of ​​creating the ECB arose long before its actual founding. The generalization of the market of European countries began immediately after the end of World War II. The European Economic Community united the largest countries in Europe in 1957. Somewhat later, a conventional monetary unit was approved for mutual settlements - ECU (currency unit). The ECU rate was linked directly to a basket of European currencies. ECU was initially introduced into non-cash payments, however, in some countries it was issued in the form of cash bills, government loans and bonds. Since the beginning of 1999, the ECU has been replaced by the euro at a rate of 1:1. This step helped firmly fix the exchange rates of the national currencies of the European Union countries against the euro. The euro has become a full-fledged self-sufficient monetary unit. At the beginning of 2002, the euro was introduced into cash circulation and from that moment the smooth growth of the European currency began.

At the end of the 80s of the twentieth century, a memorandum “On the creation of the European monetary area and the European Central Bank” was created, approved and signed. After the conclusion of the international treaty establishing the EU, the first European Monetary Institute (EMI) was formed. The main function laid down in the foundation of the EMI was the transition to a single currency for all - the euro. Thus, the time has gradually come for the transformation of the EMI into the European Central Bank.

Functions of the ECB

The main tasks of the ECB include the following functions:

• regulation and distribution of money supply between financial institutions, the state and financial companies;

• responsibility for Eurozone monetary policy;

• creation and control of the execution of Eurozone monetary policy;

• availability of exchange reserves of Eurozone countries and competent management;

• monetary issue of euro banknotes;

• order to set the interest rate;

• control over the level of inflation (no more than 2%) and stable pricing policy in the Eurozone countries.

To fully implement its functions, the ECB provides for the holding of loans-for-shares auctions for other large banks, offers stabilization loans, conducts transactions on open markets and takes part in foreign exchange transactions.

Despite the fact that the ECB is an independent bank and defends this right, it has to annually submit an official report to the European Parliament (Council of Europe).

ECB leadership and capital levels

Currently, the European Central Bank is a legal entity based on international agreements. The authorized capital at the time of the bank's formation amounted to more than 5 billion euros. The main shareholders were the central banks of European countries (the German federal bank Deutsche Bundesbank, banks of France, Italy and Spain).

The highest governing bodies of the ECB are the Governing Council, consisting of the heads of the central banks of European countries, as well as members of the executive board and the board.

History of ECB Presidents

The Chairman is the head of the executive board, the governing board and the general council of the ECB. In addition, the chairman is entrusted with the functional responsibility of representing the bank abroad. The President of the European Central Bank is appointed by majority vote in the European Council for a term of 8 years without the right of re-election.

The Presidents of the ECB who headed their post were:

Wim Duisenberg (reign: 1998 - 2003). First president not to serve a full 8-year term. The transition period of the EMI in the ECB has begun. Tied the guilder exchange rate to the German mark. He had a great influence in the formation of the euro and the removal of the guilder from circulation. Until the beginning of 2002, guilder coins and banknotes remained an authorized means of payment, then their place was taken by the pan-European currency, and guilders forever remained in the “piggy banks” of numismatists.

Jean-Claude Trichet (reign: 2003 - 2011). During the reign of the ECB, it was repeatedly criticized by political authorities. Thus, the President of France (Nicolas Sarkozy) saw the main function of the bank as focusing on economic growth. Trichet, with the support of Germany, demanded the bank’s independence from the “internal” conditions of the European Union countries. During the financial crisis and the general rise in oil prices, Trichet purchased bonds of member states of the Eurozone, in connection with which some members of the board resigned in protest. However, it is worth noting the merits of Trichet: he maintained control over the interest rate and did not violate the principles of the price stabilization policy.

Mario Draghi (reign: 2011 - present). Draghi's rule fell on the most difficult period, when the beginnings of doubts about the future of the EU appeared in European political circles. In 2016, Great Britain left the union. Draghi's policy at the ECB is characterized by restraint in relation to rising inflation and a constant avoidance of solving Greece's problems with loans.

Operations of the European Bank

Due to the global economic crisis, the ECB switched to the following types of operations:

• Main refinancing operations (reverse liquidity arrangements) carried out every week with a maturity of 2 weeks. The main goal is the volume of refinancing for the financial sector.

• Long-term refinancing operations (reverse transactions to organize liquidity), carried out once a month with a repayment period of 3 months. The main goal is to provide counterparties with additional and long-term collateral.

• Fine-tuning operations are necessary to mitigate the impact of unexpected liquidity fluctuations.

• Structural transactions are special issuance of debt certificates, reverse and forward transactions. The main goal is to change, through adjustments, the EU's structural position on the financial sector.

ECB rate

At the moment, the most worrying issue for the European bank remains the growth of inflation and the level of interest rates. In June 2014, the deposit rate went into negative territory and currently stands at -0.4%, while the ECB interest rate is zero:

Current rates and their history can be seen on the ECB website: http://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/html/index.en.html. The bank's board of governors in July 2017 expressed the view that wage growth assumptions were too high and risky given the "dead" labor market. A slight increase in wages and the strengthening of the euro give a forecast for 2019 of a decrease in the inflation rate.

The ECB has firmly signaled €60 billion in bond purchases each month until the end of this year and the ability to increase the pace or duration of purchases if necessary.

In addition, the zero key rate will remain at the current level for some time after the end of the purchase. The ECB, despite the actions of the US Federal Reserve, which began the game of raising rates, continues its own monetary policy.

It is worth noting that the Bank of England, despite the UK’s exit from the EU, supports a policy similar to the ECB.

ECB rate

ECB rates can also be viewed on the official website of the European bank http://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/index.en.html.

By clicking on the chart icon on the right, you can get the exchange rate of the required currency to the euro from the beginning of its appearance, i.e. since 1999. For example, this is what the full dollar to euro exchange rate looks like:

As you can see, in the early 2000s there was a period when the dollar was worth more than the euro (which, by the way, not everyone knows about), and the quote range was from 0.85 to 1.6. The rate of the European Central Bank for the European currency is approved based on the results of trading sessions on world exchanges, i.e. in fact, based on the trading results of the world's largest banks. In calculating quotes, the main role is played by the opening price (initial exchange transaction) and closing price (final exchange transaction).

The basis for approving their own exchange quotations among commercial banks is the ECB rate published on the official portal - the link is given above. Using archived data on quotes (published on the bank’s official portal), you can view the dynamics of daily changes in currency quotes over a certain long-term period (month, quarter, etc.).

Official website ecb.europa.eu

European Central Bank is a leading international financial institution uniting the financial and monetary systems of the countries that are members of the European Union and the Euro Area, created in order to pursue a unified and independent policy of the member countries of the European Union, ensuring the stability of the EU currency and prices in the Eurozone. , the creation of official foreign exchange reserves of the European Union, the organization of international lending and mutual financial assistance between the states of the European Union.

European Central Bank is the central bank of the European Union, established on June 1, 1998. The bank's headquarters are located in the German city of Frankfurt am Main, Germany. The bank's staff includes all representatives of member states of the European Union. A financial institution, which is completely independent from other governing bodies of the European Union, determines the monetary policy of the EU countries, sets key interest rates, manages the official reserves of the European System of Central Banks (ESCB), and has the right to authorize the issue of banknotes within the monetary union.

Goals, objectives and functions of the European Central Bank

The European Central Bank is the main bank of the Eurozone and the European Union, created to coordinate the monetary policy of the member countries of the European Monetary Union. The European Central Bank itself makes it a priority to maintain stable prices and control the level of inflation in countries that use the euro currency.

One of the goals of the creation of the European Union was the formation of a single market, ensuring the free movement of capital, goods and services between more than 360 million residents of the united states. To facilitate payments between them, a single currency was created - the euro. Today, the European Central Bank is a special legal entity operating on the basis of international agreements. Its authorized capital at its creation amounted to more than 5 billion euros; its shareholders are the central banks of European countries.

The highest body of the Central Bank of Europe is the board of governors, which includes members of the executive board and heads of central banks of the euro area member countries. The current management of the bank's activities is entrusted to the executive board, which consists of six members, including the chairman and his deputy. Their candidacies are proposed by the governing council and must be approved by the European Parliament, as well as the heads of state of the euro area.

The main functions of the European Central Bank are:

• development and implementation of monetary policy of the European Union and Eurozone states;
• maintenance and management of official monetary reserves of euro area countries;
• monetary issue of euro banknotes;
• establishing basic interest rates;
• maintaining economic stability in the Eurozone, primarily the inflation rate not exceeding 2 percent.

To carry out these functions, the European Central Bank in practice provides stabilization loans, conducts collateral public auctions for leading banks, participates in foreign exchange transactions, and also makes other transactions on open markets.

In its activities, the Central Bank of Europe is formally independent. At the same time, it must report annually to the European Parliament, the European Commission, the Council of the European Union and the Council of Europe.

Financial integration of the countries of the European Union is a multifaceted process that affects the entire system of global finance. The directions and degree of this influence depend to a large extent on the stability, stability, attractiveness of the new Euro, as well as on the goals, guidelines, and mechanisms for implementing the common monetary policy of the European Union countries, or more precisely, the EMU members.

Organizational structure and tasks of the European System of Central Banks (ESCB)

Currently, the ESCB exercises control over monetary policy in the euro area. The European System of Central Banks (see figure) is an international banking system consisting of the Central Bank of Europe and the national central banks of the member states of the European Union. National central banks (NCBs) of countries that are not members of the European Monetary System - England, Denmark, Greece and Sweden - are members of it with a special status: they do not have the right to take part in decision-making.

The creation of the European Economic Monetary System was a real breakthrough in the field of monetary integration.

Firstly, without leaving the global international monetary system, the European Communities clearly declared their “monetary independence”, which was fully consistent with their increased role in the global economy. For the first time, they decided to build their collective monetary policy independently, reinforcing this independence with an adequate institutional mechanism.

Secondly, instead of focusing on the dollar and the synchronized movement of the exchange rates of their currencies in relation to it, Western European countries decided to focus on the stability of these currencies themselves. A stable parity ratio was to be considered henceforth as a normal state. It could be revised only in cases of extreme necessity, and not unilaterally, but by decision of the Commission of the European Communities and Member States.

Thirdly, the spineless “snake” was replaced by a more structured system that, at least theoretically, had a certain internal core - the ECU. It was a fundamentally new collective unit of account, which was a “basket” of currencies of all participating countries.

Fourth, by creating the European Economic Monetary System, member states took the unprecedented step of consciously transferring to collective jurisdiction a significant part of their national sovereignty in the field of monetary policy.

First, the ECU parity was determined as the sum of the weighted average parities of individual currencies. Next, the reverse operation was carried out - the parity of each individual currency in the ECU and its central exchange rate, that is, the rate in relation to the ECU, were established. A grid of cross values ​​of bilateral exchange ratios of individual currencies was compiled on the basis of their central rates. The limits of permissible fluctuations in market exchange rates of individual currencies were determined, which should not exceed 2.25% (6% for the Italian lira).

The unit of account of the European Economic Community, the ECU, was abolished and was replaced by a new pan-European monetary unit, the euro. Accordingly, all references to ECU in legal documents should be replaced by references to the euro, and funds in the ECU converted to euros in the specified ratio. The initial exchange rate of the euro is set in the ratio: 1 euro = 1 ECU (as of December 31, 1998).

The mechanism of the European Economic Monetary System included four main elements:

– mandatory unlimited interventions when fluctuation limits are reached;

- a deviation indicator introduced at the insistence of France, it was intended to give economic content to the ECU as the internal basis of the grid of currency parities. A currency was considered to be seriously deviating from the central rate if the deviation indicator exceeded 0.75. This meant that a situation had arisen in which the national authorities had to “correct the situation through adequate measures”;

– credit instruments. The introduction of a mechanism for maintaining exchange rates and a system of foreign exchange interventions entailed the creation of a short- and medium-term lending system, which includes the following elements:

A system of swap loans between central banks whose exchange rates have reached acceptable limits;

Short-term foreign exchange support, which was provided within relatively small quotas within the total amount of 14 billion. A loan under this line could be provided for a maximum of 8 months;

Medium-term financial assistance with a loan ceiling of 11 billion.

Short-term lending was carried out by the central bank without any conditions, and medium-term loans were provided subject to the implementation of economic policies approved by the Council of Ministers of the EEC at the level of finance ministers.

To make payments within Europe, two pan-European banking settlement systems have been in place since the first day of 1999:

• TARGET (Trans-European Automated Real-time Gross settlement Express Transfer system) with domestic clearing settlement systems - RTGS (Real Time Gross Settlements);
• EBA (European Banking Association system).

TARGET is an interbank settlement system for euros that operates in real time. TARGET consists of interconnected 15 national automated real-time wholesale settlement systems - RTGS, located in each of the EMU participating countries and operating on the basis of common infrastructure, procedures, and the payment system of the Central Bank of Europe in the form of mechanisms for the mutual ringing of these centers ( Interlinking System). The governments of the EEC member countries that are not currently included in the “euro area” also considered it necessary to create RTGS centers on the bases of their National Central Banks.
In addition to solving the above tasks, the European System of Central Banks in the course of its activities also performs the following functions:

Monetary issue of banknotes and coins

The ECB is the only organization authorized to authorize the issue of banknotes denominated in euros. The ESCB will issue these banknotes, which will become the only legal tender in the countries of the European Monetary System.

Cooperation in the field of banking supervision

The role of the ESCB in banking supervision is quite limited. The system should only contribute to the orderly conduct of relevant activities, and can offer recommendations on the scope of applicable legislation and the manner in which it should be applied. The ESCB's charter includes provisions giving it the right to more direct participation in banking supervision, but such a transfer of powers would require a unanimous decision of the EEC Council.

Advisory functions

The European Central Bank advises the Council of Europe or the governments of the EEC member countries on all projects within its competence: on issues of monetary circulation, means of payment, national central banks, statistical data, payment and settlement systems, stability of credit institutions, financial markets, etc.

Collection of statistical data

To properly use monetary policy instruments, they must be based on reliable and comparable statistics. This applies in particular to financial and banking data needed, for example, to calculate the reserve requirement base, as well as price statistics, as long as they are related to the fulfillment of the aforementioned ultimate goal of the ESCB's monetary policy. In particular, partially harmonized consumer price indices have already appeared in the system.

To the extent that it does not damage the main purpose of its existence - maintaining price stability, the European System of Central Banks is called upon to support the general economic policy within the European Economic and Monetary Union.

The ECB can engage in the usual operations of central banks: providing loans, including pawn loans (secured by debt securities), to financial institutions and open market operations in various financial instruments denominated in any currency, including the currencies of countries outside in the EMU, as well as with precious metals. The same operations can be carried out by National Central Banks, guided by the general principles developed by the European Central Bank.

The Statute of the European Central Bank provides for significant decentralization of the activities of the European System of Central Banks, so that operations such as repos and foreign exchange interventions are independently carried out by the National Central Banks. Each of them can also independently determine which commercial bank assets are acceptable as collateral for debt.
A characteristic feature of the activities of the European Central Bank is that all fundamental decisions taken by a simple or qualified (2/3 votes) majority provide for a “weighted” vote of the heads of central banks, in which the “weight” (i.e. the number of votes of each of them) ) is determined in accordance with the share of the corresponding country (its central bank) in the total capital of the Central Bank of Europe. This does not apply to members of the Executive Directorate, each of whom has only one vote.

The Central Bank of Europe and National Central Banks do not have the right to lend (in any form) to interstate (in the EEC system), state, regional and local authorities and organizations operating on the basis of state law. This, however, does not apply to state credit institutions, which in this case are treated in the same way as private credit institutions.

ECB and National Central Banks can establish links with central banks and financial institutions of other countries and international organizations and carry out all types of banking activities with them, using any financial assets and currencies.

Legal status of the Central Bank of Europe

The European Central Bank occupies a leading position in the institutional structure of the European banking system, uniting and coordinating the monetary and financial systems of European countries, and is the managing and organizing core of the European System of Central Banks.

Principles of independence in the activities of the European Central Bank

The European Central Bank operates on two principles: the principle of independence and the principle of accountability.
The principle of independence is placed at the forefront in Art. 130 agreement and art. 7 of the Statute, which reveal its meaning and content. The principle of independence affects the freedom (autonomy) in making relevant decisions by the body whose activities it determines. Of course, the degree of independence of one or another organ varies. For example, the degree of independence of the central bank does not compare with the degree of independence of the judiciary, which is significantly higher, but, nevertheless, in certain cases one can speak of an independent central bank as the fourth power in the state.

First of all, the principle of independence covers those functions and powers of the European Central Bank and NCBs that are enshrined in the Statute and the Treaty and, therefore, does not apply to other functions of these structures, namely, functions performed not in connection with the implementation of the objectives of currency regulation.

This principle is aimed at excluding potential political influence on these structures from the institutions of the bodies and institutions of the European Union, any government bodies (which are understood as both legislative and executive, as well as judicial bodies, and within the meaning of the article of the Statute, all three are covered level of management hierarchy in the state - national, regional and local).

The next point in revealing the semantic content of the principle of independence concerns the circle of persons who are prohibited from exerting political pressure on the currency regulation authorities of the European Union. However, the President of the Council of the EU and members of the European Commission, or members of the European Parliament hearing the President or members of the Executive Committee (Article 284(3) of the agreement), should try to create an atmosphere of open dialogue and not cross the fine line separating the free exchange of views from political influence prohibited by the Treaty.
The general principle of independence includes several elements that form its content. These include:

• organizational independence;
• personal (personal) independence;
• functional independence;
• Financial independence.

Board of Governors of the European Central Bank

The Governing Council, the supreme governing body, includes all members of the Executive Directorate and the governors of the national central banks (NCBs) of the member states of the European Economic and Monetary Union. The general management of the Board of Governors is carried out by the Chairman of the Board.

Thirteen Committees operate under the leadership of the Board of Governors:

• committee of internal auditors;
• banknote committee;
• budget committee;
• external communications committee;
• Accounting and Cash Revenue Committee;
• legal committee;
• market operations committee;
• Monetary Policy Committee;
• International Relations Committee;
• statistics committee;
• Banking Supervision Committee;
• Information Systems Committee;
• Payment and Settlement Systems Committee.

President of the European Central Bank

The President of the Central Bank of Europe is simultaneously the chairman of all three of its governing bodies: the Board of Governors, the Executive Directorate and the General Council; Moreover, in the first two cases, he has a casting vote in the event of an equal distribution of votes. In addition, the President represents the European Central Bank in external organizations or appoints a proxy for this role. In relation to third parties, he, by law, represents the European Central Bank.

Distribution of income of the ECB and national central banks

The income received by national central banks in implementing the monetary policy objectives of the ESCB (hereinafter referred to as “cash income”) is distributed at the end of each budget year. The monetary income of each national central bank is equal to the annual income derived from the assets held by it to secure bank notes in circulation and to secure obligations arising from deposits created by credit institutions. These assets are determined by national central banks in accordance with benchmarks set by the Board of Governors.

The cash income of each national central bank is reduced by any amount of interest paid by that central bank on obligations arising from deposits created by credit institutions. The Governing Council may decide to reimburse national central banks for costs incurred in connection with the issue of banknotes or, in exceptional circumstances, for individual losses that are associated with monetary policy operations carried out on behalf of the ESCB. Reimbursement shall be made in such form as the Board of Governors deems appropriate; these amounts can be reimbursed from the cash income of national central banks.

The amount of cash income of the national central banks is distributed among them in proportion to the paid-up shares of these banks in the capital of the ECB, subject to any decision taken by the Board of Governors. Settlement and settlement of account balances arising from the distribution of cash income are carried out by the European Central Bank in accordance with guidelines established by the Board of Governors.
The net profit received by the Central Bank of Europe is distributed in the following order:

– an amount determined by the Board of Governors, which cannot exceed 20% of net profit, is transferred to the general reserve fund with a limit of 100% of capital;

– the remaining net profit is distributed among shareholders of the Central Bank of Europe in proportion to the shares paid by them.

If the ECB records a loss, this loss shall be covered from the general reserve fund of the European Central Bank and, if necessary, on the basis of a decision of the Governing Council, from the cash revenues for the relevant budget year in proportion to the amount and within the limits of the amounts allocated to the national central banks.

European Central Bank at the present stage

At the present stage of activity of the Central Bank of Europe, the question of the future of the euro, which has two main aspects: domestic and international, is relevant.
The internal aspect is determined by the fact that a single currency, a common monetary and exchange rate policy, and close foreign economic ties do not eliminate the relative isolation of peoples, states and economies within the Economic and Monetary Union and, therefore, a possible conflict of interests. This is the main weakness of the euro as a currency: behind it is not a single sovereign state with clearly defined interests and political goals, but a conglomerate of different states. The supranational bodies they created have broad, but still limited, delegated powers.

A high level of economic and political integration has been achieved within the EMU. There has been a customs union and a common trade policy for more than thirty years. A single internal market has been created; trade within the EEC accounts for about 60% of the total foreign trade turnover of its member countries. The existing system of law and institutions of the Community ensures fairly effective management of integration processes.

The euro is based on a single monetary and exchange rate policy, which is fully vested in the supranational European Central Bank. The fight against inflation has been declared the highest policy priority of the European Economic Monetary System, which is the most important condition for the stability of the single currency.
The international aspect of the problem essentially boils down to how well the euro fits into the monetary system and what impact the crisis state of this system has on the new currency. Stock markets (primarily American) are clearly “overheated”; the volume of dollars circulating in the world significantly exceeds the capacity of their reabsorption by the American economy. The United States dollar today, of course, remains the dominant reserve currency. It is here that the volumes of almost half of the trade transactions carried out in the world are measured. In 80% of all financial transactions, the dollar is one of the parties.

At the same time, the economy of the United States of America is seriously vulnerable, as evidenced by the current financial crisis. The dollar cannot remain the only favorite of financial markets. Experts warn that if holders of large gold and foreign exchange reserves, such as Japan and China, transfer a significant portion of their holdings into euros, the US currency and the US economy could collapse. The share of the dollar in the currency system is decreasing, while the share of the euro is increasing. However, this process occurs with multidirectional trends: periods of rise in the euro exchange rate alternate with periods of its fall.
The main emphasis in developing anti-crisis measures in most developing economies is on reducing interest rates by central banks (with the exception of the Russian Federation, Belarus and a number of other countries), reducing required reserve ratios for credit institutions in order to release additional volumes of liquidity, creating new mechanisms for providing liquidity to financial institutions, increasing the size of guarantees on bank deposits and using swap lines with the monetary authorities of other countries.
The European Central Bank's monetary policy measures aimed at stimulating economic activity are as follows:

• the list of instruments accepted as collateral for debt under ECB loans has been expanded;
• The volumes and terms of lending to market participants by the European Central Bank have increased, including the provision of loans by the Central Bank of Europe in United States dollars.

The problems of the current state of the European economy and the activities of the European Central Bank were discussed at an international press conference held in August 2013 with the participation of the President of the Central Bank of Europe M. Draghi.

As follows from the reports of the ECB President and other participants, the ECB decided to leave the interbank rate unchanged at 0.5% indefinitely. In contrast to the situation with the English economy and the statement of the UK Central Bank, inflation in the Eurozone as a whole was about 1.6%, which is below the current target of 2%. After a 6-quarter decline in economic activity, this indicator has stabilized at a minimum level, which corresponds to the current situation in the business cycle.

It is also noted that the markets are not in the best condition. However, experts expect growth in Eurozone exports due to rising external demand. Moreover, the policy of maintaining growth in domestic demand is likely to continue.

Thus, the European Central Bank expects recovery and stabilization of the Eurozone in the near future, despite weakness in domestic demand, which leads to lower inflation. There is an increase in prices in the administrative sector, as well as in the commodity market, which does not look quite usual against the backdrop of low economic activity.

The European Central Bank hopes for recovery and stabilization of the Eurozone

The ECB is counting on the recovery and stabilization of the Eurozone.

On the other hand, the European Central Bank is concerned about the current situation in the credit market and notes the continued fragmentation of the Eurozone. Thus, it was noted that risks on bonds of Eurozone countries will be reduced, with the exception of securities of Spain and Italy, which should lead to mixed results, because These are the two countries that have suffered the most in recent years.

As a result, it can be said that the ECB has left its policy unchanged indefinitely (ie until announced otherwise). However, the current situation allows us to hope for stabilization at low levels of activity (at least without further decline) according to the current situation in the business cycle. On the other hand, the European Central Bank will continue to maintain liquidity in the money market “as long as the market needs it.”

Development of banking integration in the European Union and the Eurozone.

The European Union has today gone through the stages of banking integration, expressed in the adoption of the First and Second Banking Directives, the Consolidated Banking Directive, the CRDIV/CRR Package, however, the achieved level of integration of EU states in the banking sector is recognized by Europeans as insufficient to withstand systemic risks and crises. Thus, today on the agenda of the European Union is the implementation of the project of the Deep and Genuine Economic and Monetary Union (Deep and Genuine EMU).

As noted in European Commission documents, the asymmetry between integrated financial markets, on the one hand, and the still nationally segmented financial stability architecture, on the other, has led to inappropriate coordination among competent authorities at all stages of the current crisis.

Fundamental reform of the Economic and Monetary Union is based on four building blocks: an integrated financial system, an integrated fiscal system, an integrated economic policy system, measures to ensure the necessary democratic legitimacy and accountability.

The goal of the Deep and True EMU project is to move towards a Full Fiscal and Economic Union. In such a deep and genuine EMU, the economic and fiscal policies of the Member States should be subject to greater coordination and control at European level.

Stages of movement towards “genuine EMU”

• 1. At the first stage (within 6-18 months), priority should be given to the full deployment of new economic management tools and the introduction of the Single Supervisory Mechanism, after which the introduction of the Single Resolution Mechanism for banks will be provided ).
• 2. The second stage (from 18 months to 5 years) involves fiscal integration (including the possibility of demanding a revision of the state budget in accordance with European obligations), deepening coordination in the field of taxation and employment.
• 3. The third stage (will begin no earlier than in five years) - the establishment of an autonomous eurozone budget, providing for the budgetary provision of EMU.

In May 2012, the European Central Bank (ECB) put forward the idea of ​​a Banking Union, which could unite either the eurozone states or most EU countries. It is expected that the Banking Union will strengthen national banks and reduce their dependence on government finances provided for the repurchase of sovereign debts. In addition, the objectives of the Banking Union will be to tighten supervision in the eurozone banking sector, as well as create a pan-European deposit protection system.

Upon completion of the creation of the Banking Union, the following should function: a single supervisory mechanism, a common deposit insurance system, and an integrated crisis management structure.

The single supervisory mechanism, launched in November 2014, consists of the ECB and national regulators. The ECB exercises prudential supervision over credit institutions registered in EU member states of the eurozone, and has all the powers of national regulators of these countries.

An analysis of the functioning of the EU banking union should be carried out in order to borrow the positive experience of the EU for the development of banking integration in the EAEU and BRICS, as well as in order to learn the experience of anti-crisis regulation in the banking sector. The information base here can be the “Banking Union” section on the website of the European Commission, the website of the European Central Bank and the website of the EU Banking Supervisory Authority.

A separate area of ​​influence of foreign banking systems on the Russian banking sector is the interaction of banking systems within the framework of regional integration associations, primarily the EAEU and BRICS. This interaction is manifested both at the micro level (the establishment of correspondent relations between banks of member countries and the intensification of cross-border payments due to the intensification of mutual trade and mutual investments, the penetration of banking capital into each other’s banking systems), and at the level of the banking community of these countries (joint forums, working groups).

In the conditions of intensification of regional economic integration with the participation of the Russian Federation, the analysis of integration processes in the banking sector of the EAEU and BRICS states, as well as the prerequisites and current state of the formation of supranational legal and institutional foundations of banking integration within the framework of these integration associations, takes on particular importance.

This analysis can be carried out on the basis of analytical reports and statistical data published by specialized bodies and organizations.

• 1. Information portal of the Interstate Bank of the CIS, which publishes quarterly reviews of the monetary policy of the EAEU member states, covering the legal framework for the activities of national (central) banks, monetary policy instruments and other trends in the development of financial markets of these countries, statistical information of central ( national) banks of the EAEU states, including the main macroeconomic indicators and indicators of financial markets, summary materials on mutual payments of the EAEU member states, prepared by the Central Bank of the Russian Federation based on data from the central (national) banks of the EAEU states, materials of meetings of the Council of Governors of the central (national) banks EAEU countries analytical reviews, articles, news from the CIS and EAEU countries.
• 2. The Eurasian Development Bank, which produces the CIS Mutual Investment Monitoring, the EDB Integration Barometer, and the CIS Macromonitor. We also draw attention to the report “Quantitative analysis of economic integration of the EU and the EAEU”.
• 3. The Eurasian Economic Commission, which publishes materials from the meetings of the Financial Policy Department and the Advisory Committee on Financial Markets.

The problem of integration of the banking systems of the EAEU member states is addressed by the Protocol on Financial Services (Appendix No. 17 to the Treaty on the Eurasian Economic Union), according to which the member states will carry out harmonization in the financial market by 2020, and by 2025 a single body will be created on regulation of the financial market with a location in the city of Almaty.

Integration processes in the BRICS group have reached a qualitatively new level since 2014. The results of the 6th BRICS summit, held on July 15, 2014 in Fortaleza (Brazil), were the following documents.

• 1. Agreement on the creation of the New Development Bank (NDB), the purpose of which is to mobilize resources to finance infrastructure projects. The Bank's initial declared capital will be $100 billion. USA. Its initial subscribed capital will be $50 billion. USA and will be equally distributed among Bank representatives.
• 2. Agreement on the creation of a BRICS Contingent Foreign Exchange Reserve Pool, the initial size of which will be $100 billion. USA. This Pool, as stated in the Declaration, will play a positive role as an insurance mechanism, help countries avoid short-term liquidity problems and promote deepening cooperation among the BRICS countries, and will also help strengthen the global financial safety net and will be an important addition to existing international mechanisms.
• 3. Memorandum of Understanding on cooperation between export credit and export credit insurance institutions of the BRICS countries.
• 4. Agreement on cooperation in the field of innovation within the framework of the Interbank Cooperation Mechanism of the BRICS countries.

At the summit, it was decided to develop a “Strategy for Economic Cooperation of the BRICS Countries” and “General Principles for Deepening the Economic Partnership of the BRICS Countries,” which will define measures for the development of economic, trade and investment cooperation within the BRICS framework.

Particularly important for the development of mutual trade and investment cooperation is the promotion of the BRICS Development Bank project, which was announced at the Durban summit in March 2013. This project has already become the subject of research in foreign economic science. Thus, the subject of analysis has already become the size and quality of capital, the quality of the loan portfolio, the degree of financial “sophistication” of the instruments used, the possibility of expanding membership for non-BRICS countries, etc. BRICS Bank is recommended to use the experience and expertise of existing development banks, such as the Latin American Bank Development Bank (CAF), European Investment Bank (EIB), Brazilian Development Bank (BNDES), German Development Bank (KfW), South African Industrial Development Corporation, Chinese Development Bank, as well as others.

One of the formats of interaction within the group is the BRICS Banking Forum.

Analysis of economic (including banking) integration into BRICS can be carried out using the following information resources.

• 1. Website of the Ministry of Foreign Affairs of the Russian Federation “Russia in BRICS”.
• 2. Website of the National BRICS Research Committee.
• 3. Website of the project “Civil BRICS”.
• 4. Website of the Russian part of the BRICS Business Council.
• 5. European analytical website “EURO-BRICS”.

Particular attention should be paid to this area of ​​influence of foreign banking systems on the domestic banking sector, such as the provision of liquidity (primarily long-term) by foreign banks to Russian credit institutions and the interaction of foreign and Russian banks in cross-border payment relations.

In this regard, it is necessary to point out the political factors that currently complicate these relationships. Thus, the short-term suspension of transactions on credit cards of SMP-Bank and InvestCapitalBank in 2014 by the international payment systems Visa and Mastercard contributed to the intensification of the creation of a national payment card system in Russia and the transfer of Visa and Mastercard processing from abroad to Russia. As a measure to ensure the financial security of Russia, a decision was made to speed up the procedure for creating and launching a national payment card.

The negative impact of the disconnection of Russian banks (Sberbank, VTB, Gazprombank, VEB and Rosselkhozbank) from sources of long-term funding on the indicators of liquidity and stability of the Russian banking sector, the threat of disconnection of Russian banks from the SWIFT interbank communications system, the suspension of the process of including the ruble among the settlement currencies of the international foreign exchange system CLS contribute to the search for alternative interbank payment systems and sources of long-term funding.

In this regard, the possibilities of creating a national analogue of SWIFT and (or) connecting Russian banks to the Chinese analogue of SWIFT (China International Payment System (CIPS)), joining Russia to the Asian Infrastructure Investment Bank (AIIB) created by China, and developing the New BRICS Development Bank are seen as promising. .

Thus, it should be summarized that the analysis of the degree, directions, forms of influence of national and supranational banking systems on the Russian banking sector should be carried out taking into account the development trends of the global financial system, the specifics of regional integration processes based on a diverse range of sources of statistical, analytical and scientific information.

• A blueprint for a deep and genuine economic and monetary union Launching a European Debate. P. 3. URL: http://ec.europa.eu/commission_2010-2014/president/news/archives/2012/ll/pdf/blueprint_en.pdf. (date of access: December 29, 2012).
• A blueprint for a deep and genuine economic and monetary union Launching a European Debate P. 12. URL: http://ec.europa.eu/commission_2010-2014/president/news/archives/2012/ll/pdf/blueprint_en.pdf ( access date 12/29/2012).
• Communication from the Commission to the European Parliament and the Council.A Road map to Banking Union. COM (2012) 510 final. Brussels, 12.9.2012. P. 3-6.URL: http://ec.europa.eu/internal_market/finances/docs/committees/reform/20120912-com-2012-510_en.pdf
• http://ec.europa.eu/finance/general-policy/banking-union/index_en.htm
• http://www.ecb.europa.eu/home/html/index.en.html
• http://www.eba.europa.eu/
• http://www.isbnk.info/ The Interstate Bank, being the Secretariat of the Council of Heads of Central (National) Banks of the EurAsEC member states, coordinates the exchange of information on the most pressing economic and financial issues, including the development of national banking systems of the Commonwealth, the organization of banking supervision , the state of balances of payments and foreign exchange markets and the macroeconomic development of these countries.
• http://www. isbnk. i nfo/analytics_moneta ry_overview. htm I
• http://w ww. isbnk. i nfo/statistics_monetary. htm I
• http://www.isbnk.info/analytics_payments.htmi
• http://www.isbnk.info/analytics_meetings.html
• http://www.isbnk.info/analytics_review.html
• http://www.eabr.org/ The Eurasian Development Bank (EDB), established in 2006, is an international financial organization designed to promote the economic growth of member states, the expansion of trade and economic ties between them and the development of integration processes in the Eurasian space through carrying out investment activities. The Bank's activities are aimed both at creating conditions for sustainable economic development and deepening integration processes between the EDB member states, and at solving problems in overcoming the consequences of the global financial and economic crisis.
• http://www.eabr.Org/r/research/centre/projectsCII/invest_monitoring/
• http://www.eabr.Org/r/research/centre/projectsCII/projects_cii/index.php?id_4=42459&linked_block_id=0
• http://www.eabr.Org/r/research/publication/makromonitor_cis/
• http://www.eabr.0rg/r/research/centre/projectsCII/projects_cii/index.php?id_4=41401&linked_block_id=0
• http://www.eurasiancommission.org/ru/act/finpol/dofp/Pages/default.aspx
• http://economy.gov.ru/minec/about/structure/depSNG/agreement-eurasian-economic-union
• For a comparative analysis of the banking systems of Russia, Belarus and Kazakhstan, see: Ponamorenko V.E. Current state and prospects for harmonization of banking legislation of the member states of the Common Economic Space // Eurasian Legal Journal. 2014. No. 3 (70). pp. 19-25.
• http://www.brics.mid.ru/brics.nsf/WEBdocBric/C9903DE836DEDC0244257D17002A789F
• Stephany Griffith-Jones. A BRICS Development Bank: a dream coming true? URL:UNCTAD/OSG/DP/2014/1
• Right there.
• http://www.brics.mid.ru/
• http://nkibrics.ru/
• http://civilbrics.ru/
• http://brics.tpprf.ru/ru/
• http://www.leap2020.net/euro-brics/?lang=en/

The main European banking systems are considered, which, despite the diversity of levels of development, features of functioning and management, constitute a single “organism”. The integration processes observed in Western Europe are reflected in the convergence of the banking systems of individual countries and the tendency towards the unification of banking legislation. At the same time, integration, conditioned by the requirements of the modern market, faces the opposite factor - the desire of its own producers and financial institutions to preserve their national identity. This process may be based on: the desire to protect national security, the fear of relatively weak institutions being absorbed in the course of competition by stronger foreign ones and therefore lobbying for the isolation of the domestic market, negative public opinion provoked by nationalists, and much more.

Each of the European banking countries has made its own development path, which began in different centuries. They still retain many traditions, which are currently expressed mainly in the structural structure, the system of relationships between banks and the state, the place and role of the central bank in the hierarchy of state power.

Many of the European systems have gone through a phase of mobilization towards state-regulated financing of the real economy. Having fulfilled the forced role of lender to priority areas of the economy, banks received a poor loan portfolio and an ineffective internal management system, adjusted to administrative subordination to government bodies. Therefore, in the process of liberalizing economic management mechanisms, such banks turned from being conductors of the state’s financial policy into a brake on economic reforms, a threat to a general financial crisis, the elimination of which requires either large government expenditures or finding schemes for attracting external investment, including from abroad. Moreover, financial institutions from more prosperous countries, due to uneven economic development, received better opportunities for their foreign expansion, which, among other factors, still determines the distribution of ownership of European banks and the division of national markets, taking into account the attractiveness of its individual segments. As a rule, the causes of banking crises are political miscalculations of government authorities in the choice of economic models, errors in the field of financial regulation and banking supervision, and a number of others. This cause-and-effect relationship can be briefly characterized by the following thesis: “The problems of the financial and credit system today are a reflection of the state’s desire to appear better yesterday.”

From the analysis of the European banking systems considered, the following conclusions can be drawn:

One of the most important issues that determine the level and prospects for the development of national banking systems is the independence of the country's central bank in implementing monetary policy. There are no states in which the authorities do not declare financial and price stability as one of their goals. Therefore, to determine their real policy, attention should be paid to the degree of liberalization of monetary policy. To implement a liberal monetary policy, a central bank independent of the Government is simply not needed. In this case, the presence of two opposing centers only brings harm, and the central bank must pursue the policy of the government's technical agent in the field of monetary policy. If the government really chooses to achieve or maintain price stability as a goal, then a central bank independent of the Ministry of Finance is simply necessary. The Ministry of Finance, which dominates the Central Bank and whose task is to finance budget expenditures in the event of a budget deficit, uses the central bank as a source of covering it. The data presented in the chapter fully confirm this conclusion. Therefore, in most countries of Western Europe there is a tendency to give the Central Bank more independence.

The general control of the authorities, especially the legislative one, over the activities of an independent Central Bank is one of the most important counterbalances to its broad powers in matters of managing the country’s financial and credit system, the role of which can be compared to the circulatory system of a living organism.

The legislation of Western European countries allows central banks to have private or mixed public-private ownership. However, maintaining such a structure of the Central Bank is a tribute to tradition, and the participation of private shareholders in their management is purely formal. The overwhelming majority of central bank profits are not paid to shareholders and are not used for the needs of the banks themselves, but are transferred to the budget.

Central banks pursuing tight monetary policies should have their own research services. The experience of the Bank of France and the Austrian National Bank confirms this conclusion. These banks not only have an extensive information base for developing and making decisions on monetary policy and in the field of interaction with banks, but they themselves are of interest to the business community, which contributes to their useful interaction.

Countries with traditions of evolutionary banking have naturally turned into European and global financial centers. The exception in this case is Germany, where banks were repeatedly exposed to destructive effects during well-known historical processes. But the enormous economic potential and consistent, reasonable policies of the German authorities allowed it to become a new world financial center.

Popular wisdom says: “Money leads to money”; also, a developed, reliable and stable banking system attracts foreign financial and credit institutions and, most importantly, clients, whose funds, instead of going to the use of national banks, contribute to the further strengthening of positions foreign leaders.

The fragmentation of the banking system, the absence of banks that are among the world leaders, make it easily vulnerable to external adverse influences, difficult to regulate and poorly mobilized to solve global problems, contribute to the lack of national banking standards, slow down the development of new banking technologies and lead to other negative consequences .

Banking systems develop more successfully in countries with a high cultural level of the population and a rational style of thinking that prevails among them.

A common European trend is to combat money laundering. Countries that are reticent to limit customer banking secrecy rights gain an advantage over their neighbors and experience pressure from them.

"International banking operations", 2009, N 4

Today, the euro is the second most important reserve currency, and, according to many experts, in particular the former head of the US Federal Reserve Alan Greenspan, there are all the prerequisites for the euro to replace the US dollar as the world's main reserve currency. The article presents an analysis of the situation around the single European currency in connection with the financial crisis.

The impact of European Central Bank policy on foreign exchange markets

The single European currency is under the jurisdiction of the supranational banking system (the European system of central banks, led by the European Central Bank). Therefore, the actions of the European Bank have a direct impact not only on the economies of the member states of the European Union, but also on the entire international financial and monetary system.

Due to the current global economic turmoil, the actions of the national central banks of the member states of the European Union have become even more dependent on the policies of the European Central Bank, to which, following the decision to create a monetary union and the introduction of the euro, responsibility for the monetary and exchange rate policy of the European Union was delegated. All operations in the money and forex markets began to be carried out by the European System of Central Banks.

The stability of prices in the European Union and the stability of the euro in the monetary and financial markets depend on how well-coordinated, calibrated and timely decisions are made by the leadership of the European Central Bank, primarily by the Governing Council.

As stated by the European Central Bank, the start of the recovery of the European economy is expected no earlier than in 2010. However, given the fact that the policy of the monetary authorities of the currency bloc has always been characterized by conservatism and lack of flexibility, stable growth of economic indicators in the euro area will be possible speak later than the specified date. Thus, anti-crisis decisions of the leadership of the European Central Bank may make it possible to predict the future position of the euro in the international monetary and financial system and the economy of European countries.

The difficulty of coordinating the monetary policy of the authorities is explained by the specifics of the integration union of European states. Being an integrated supranational association of states that have transferred a significant part of their sovereign rights, especially in the economic and monetary spheres, to the supranational bodies of the European Union and taking into account the different levels of development of the economies of the member states (especially for post-Soviet states that have recently become members of the European Union) , The European Union requires mandatory consideration of the financial indicators of each individual state that is its member.

Therefore, the actions of national central banks are subject to the policies of the European Central Bank, which, in turn, is dependent on the state of affairs in the national banks of the countries belonging to the euro area.

To the greatest extent, the independence of national banks of European countries was limited in 1998 in connection with the introduction of the euro into cash circulation, for which the European Central Bank and the European System of Central Banks were formed, which have all the powers to conduct the monetary policy of the European Union, in particular the right for the issue of euros. It is these institutions that have become the most independent from political influence in the European Union.

Transition to a single European currency

The rather long process of transition of the member states of the European Union to a single European currency was ensured by a coherent system, which was approved in 1997 at the Amsterdam summit of the European Union, which determined the main elements of monetary policy, including the new exchange rate mechanism (IOC-2), as well as adopted program documents - "Agenda 2000", which defined the main directions of development of the European Union and its policies in the coming century, and the "Pact of Stability and Growth", which paved the way for the introduction of the euro on January 1, 1999. The latter document is very important for member states of the European Union, since it for the first time provided for the introduction of penalties against member states in case of violation of state budget standards.

In accordance with this document, if a participant in the economic and monetary union exceeds the limit established in the Maastricht Treaty<1>budget deficit limit, the European Council accepts recommendations to this country within three months. Over the next four months, these recommendations must be implemented, otherwise, after a three-month period, sanctions are applied to the violating country: an interest-free deposit in the amount of 0.2% of GDP plus 1/10 of the difference between the real budget deficit (% of GDP) and the established limit. After two years, if the situation does not improve, the deposit automatically turns into a fine. In addition, at the above-mentioned intergovernmental conference, the mechanism of the European Monetary System-2 was agreed upon. This system assumed the regulation of relations between the euro and the national currencies of countries that are not members of the monetary union.

<1>An agreement signed on February 7, 1992 in Maastricht (Netherlands), which laid the foundation for the European Union, in particular establishing responsibility for the monetary policy of the European Union of the European System of Central Banks.

In addition, the security of the single European currency is realized through the efficiency of the technical framework for payments and settlements, in particular the system through which large-scale cross-border transactions can be processed within the same day.

In Europe, there are three alternatives for making international payments:

1. payment system of the European System of Central Banks TARGET<1>;
2. the euro clearing system of the Banking Association, currently called the European Banking Association (EBA - Euro Banking Association);
3. national clearing systems that will perform the functions of aligning working hours in the country with cutoff times for interstate payments, aligning reporting formats, and providing remote access to local payment systems and banks in the economic and monetary union.

<1>Trans-European Automated Real-Time Gross Settlements Express Transfer - TARGET, a transnational automatic settlement system for large payments in real time, which is based on national real-time gross settlement systems time of countries that use eurocurrency for payments (http://www.target.com/).

The TARGET system, which accounts for about 25% of all cross-border payments in the European Union, is directly linked to national RTGS (Real-Time Gross Settlements) clearing systems and allows payments to be processed in real time if there is sufficient coverage in the paying bank's account. The main task of the TARGET system is to reduce the time it takes for payments to pass between financial institutions in the euro area and guarantee their security as much as possible.

The TARGET structure is a decentralized payment system, with only the most general functions remaining under the jurisdiction of the European Central Bank.

The Euro Banking Association is a Euro clearing net settlement system where information is exchanged throughout the day and final settlement occurs at the end of the settlement day. Founded in 1985 in Paris to promote the commercial use of ECU<2>, it unites 56 clearing banks from 16 countries. This is a very effective system that meets all the requirements of bilateral and multilateral netting. About a third of all cross-border payments in the European Union pass through it.

<2>Abbreviation for European Currency Unit - a European currency unit that operated in Europe from 1979 to 1998, before the introduction of the euro; The ECU was calculated based on the quotes of all currencies that were part of the European monetary system, and became a universal means of payment - an accounting and payment unit that allows making payments between countries and issuing loans.

Structure and functions of the European Central Bank

The European Central Bank has the maximum degree of supranational powers in the European Union system. Pursuing its policies together with national governments whose interests are not always similar, the European Central Bank demonstrates its independence in the following four areas: institutional, operational, personal and financial.

These areas of action are fixed by the Maastricht Treaty, which established that the governors of the national central banks of the European Union, members of the General Council of the European Central Bank, should not have political views and have personal freedom; the members of the three councils of the European Central Bank discussed below are elected for a term of eight years, and the presidents of national banks are elected for a term of five years; the bank has operational freedom: the European Central Bank is given independent choice in the use of money market instruments.

Monetary policy pursued by the European Central Bank is based primarily on open market operations, as well as minimum reserve policies and credit management.

Of significant importance is the “general principle” enshrined in a special article of the charter, according to which the European System of Central Banks is governed by the leadership (“decision-making bodies”) of the European Central Bank, and above all by the Governing Council, which includes the Executive Committee and the governors of the central banks of the member countries . Members of the Executive Committee are appointed by the European Council of Heads of State and Government on the recommendation of the Economic and Financial Council for eight years, with no possibility of reappointment.

The powers to formulate and implement the common monetary policy of the EU countries are vested in the Governing Council, whose main functions are: adapting instructions and making decisions to ensure the achievement of the goals of creating the European System of Central Banks; determination of key elements of the monetary policy of the European Economic and Monetary Union, such as interest rates, the size of the minimum reserves of national central banks; approval of the rules of the internal organization of the European Central Bank and the procedure for representing the European System of Central Banks in the field of international cooperation.

The Executive Directorate, consisting of the President, Vice-President and four members, conducts monetary policy in accordance with the instructions and rules adopted by the Governing Council of the European Central Bank and determining the actions of national central banks.

The General Council, the third governing body, includes the President and Vice-President of the European Central Bank and the governors of the national central banks of all countries of the European Economic Community, regardless of their participation in the European Economic and Monetary Union. The main tasks of the General Council include the following:

• implementation of advisory functions of the European System of Central Banks;
• development and adoption of the necessary rules for standardizing accounting and reporting on operations carried out by national banks.

The President of the European Central Bank, Jean-Claude Trichet, is also the Chairman of all three of its governing bodies: the Board of Governors, the Executive Directorate and the General Council. According to EU legislation, he represents the European Central Bank in external organizations.

When creating the European System of Central Banks, the main goal was to maintain price stability, as stated in the statutes of the European System of Central Banks and the European Central Bank. According to the named document, it is achieved by implementing the following specific tasks:

• defining and implementing EU monetary policy;
• conducting international currency transactions;
• storage and management of official foreign exchange reserves of countries participating in the European Monetary System;
• ensuring the normal functioning of the payment system.

The single monetary policy, determined by the Governing Council of the European Central Bank, is implemented in a decentralized manner by national central banks. It must satisfy the following conditions:

• compliance with market principles;
• equal treatment for everyone;
• simplicity;
• searching for the best ratio of efficiency and cost;
• decentralization;
• continuity;
• consistency.

It must also be consistent with the management decisions of the European System of Central Banks.

The European System of Central Banks stores and manages the official gold and foreign exchange reserves of the countries participating in the European Economic and Monetary Union. Each national central bank's contribution is determined according to its share in the capital of the European Central Bank (under the statute of the European Central Bank, central banks must transfer foreign exchange reserves totaling the equivalent of €50 billion).

Foreign exchange reserves remaining at the disposal of national banks are used by them to fulfill their own obligations in relation to international organizations.

The scope of activities of the European Central Bank includes:

• providing loans, including pawn loans, to financial institutions;
• open market transactions with various financial instruments;
• establishing minimum reserve requirements for credit institutions of member countries of the European Monetary Union.

The powers to ensure the smooth passage of payments and manage foreign reserves of member countries, carry out foreign exchange transactions with third countries, store and manage official international liquid reserves of member states, and ensure the uninterrupted functioning of payment and settlement systems are also vested in the European Central Bank.

National banks must contribute to the implementation of the common monetary policy of the eurozone, and the European Central Bank, in turn, contributes to the “smooth implementation of the policies pursued by the competent authorities regarding the sound supervision of credit institutions and the stability of the financial system.”<1>.

<1>European Union. Past present Future. Single European Act. Treaty on European Union. M.: International Publishing Group "Pravo", 1994. P. 23.

The European Central Bank and national central banks may:

• establish relations with financial institutions in third countries and international organizations;
• purchase and sell all types of assets in foreign currency and precious metals;
• carry out all types of banking operations in relations with third countries and international organizations.

The main monetary policy instruments of the European System of Central Banks are defined in the statute (Articles 17 - 24). These include conducting open market operations, regulating the discount rate through deposit and loan transactions, and establishing minimum reserve requirements for credit institutions.

Monetary policy in times of financial instability

In accordance with the Constitutional Treaty of 2004<1>The European Central Bank is included in the system of institutions of the European Union, which will allow it, subject to the acceptance of this document by all its member states, to play a major role in financial and monetary policy, to ensure the further achievement of the goals and objectives of European integration on the basis of integrated basic structural components.

<1>An international treaty designed to act as a constitution for the European Union and to replace all previous constituent acts of the European Union. Signed in Rome on October 29, 2004. Not yet in force.

However, while the Constitutional Treaty has not been adopted by all states belonging to the European Union (thereby creating a turbulent political situation in Europe, which also affects the development of the economy), and the vastness of the international monetary and financial system is destabilized, the action plan for the further development of the European banking system was radical revised, resulting in unprecedented measures to reform the monetary system.

European Union Commissioner for Economic and Monetary Affairs Joaquín Almunia on April 6, 2009 in Brussels called on EU members to show solidarity and coherence in their actions, as well as to cooperate in international affairs in order to have a greater influence in decision-making in the global economy. The European Union became a participant in the initiative to hold the Group of 20 financial summit in London, which advocated reforming the current international financial system and strengthening control over financial structures. The Union played an important role in stimulating economic recovery - today, the financial institutions of the European Union are actively taking measures to coordinate their actions within the framework of the International Monetary Fund.

Simultaneously with these statements, the European Central Bank, since last fall, has been taking the most active actions to limit the impact of the global financial crisis on the economy and financial markets of the eurozone.

In particular, the European Central Bank ensures a coordinated reduction in rates by the leading central banks of the world, despite the fact that the interest rate has always been considered as an instrument to combat inflation as the main goal enshrined in the bank's charter.

The risk of deflation of the European Union's economy has forced its leadership to take new measures. On 27 November 2008, the European Commission sent a communication to the Council entitled “European Economic Recovery Plan”. It begins by saying that the current circumstances present “a real test for the governments and institutions” of the European Union, which must demonstrate imagination, commitment and flexibility. The authors of the document emphasize that member states must jointly resist the recession. For credibility, the thesis ends with the phrase: “We will sink or swim together.”

The plan is built on two pillars - increasing consumer demand and strengthening the competitive position of the European Union in the long term. For this purpose, a strategy of “smart” investments has been developed, including investments in improving energy efficiency and energy conservation, in clean technologies, as well as in the development of research infrastructure.

The main principles of the plan are solidarity and social responsibility. Of course, such a document, characterized by excessive emotionality, more testifies to the insufficient coordination of the economic policies of the EU member states at the beginning of the crisis, despite the existence of a common economic policy and the Lisbon Strategy (designed to “make the EU economy the most competitive and dynamic in the world, based on knowledge , ensure its sustainable development, increase the number of jobs, increase productivity and quality of work, and increase social cohesion") than the existence of an effective anti-crisis plan. The effectiveness of this program will be judged no earlier than the end of 2009.

The situation in the international economic and monetary system made it possible to consider the possibility of shortening the two-year transition period required for potential participants in the eurozone, which was discussed at the European Union summit on March 1, 2009. It was intended to reduce the transition period during the financial crisis, but not to soften the requirements for countries- candidates. However, there is no positive decision on the issue yet. The European Central Bank is against the accelerated accession of states to the eurozone. During the discussion of the issue of early accession, Poland, in particular, asked.

Further strengthening of the position of the European banking system in the economic and monetary fields largely depends on the process of tying third countries to the single European currency, which has been very active lately, and is only accelerating as the financial crisis deepens.

Currently, 16 of the 27 countries of the European Union are members of the eurozone. The latest to join the zone was Slovakia, on whose territory the euro was introduced on January 1, 2009. Latvia, Lithuania and Estonia are now in a transition period, the duration of which may change by decision of the European Central Bank or the European Commission, depending on the readiness of the countries' economies to join. However, the European Central Bank predicts that a prolonged recession will seriously hit the weakened banking sectors of the sixteen countries that make up the euro area.

Therefore, the best way out of this situation, according to some heads of central banks of the European Union, is to implement strong support for eurozone banks, as well as to continuously monitor the effectiveness of the measures taken by the European Central Bank.

A.V.Sysoeva

State University -

High School of Economics

General provisions

The functioning of the ESCB is ensured by the ECB and its bodies, which are vested with the power to make decisions and legally binding regulations. According to Art. 106 (2) EU Treaty The ECB is a legal entity. In each Member State, it enjoys the widest legal capacity granted to legal entities under national laws. In particular, he can acquire or alienate movable and immovable property and be a party in court. It is subject to the provisions of the Protocol on Privileges and Immunities. The bank, in particular, is exempt from paying taxes to the state in whose territory it is located (in this case in Germany, in the city of Frankfurt) for transactions carried out by it, and is exempt from paying fees usually established on the amount of business transactions.

The specificity and peculiarity of the legal status of the ECB, which is equated by the Lisbon Treaty with the institutions of the Communities and the Union, is that in practice it is not an administrative body, but a banking institution with its own capital and resources.

Thus, the ECB is, first of all, a Central Bank, performing all the functions inherent in a banking institution, and at the same time it is an institution endowed with administrative power and the right to issue legal regulations. As with the European Monetary Institute (EMI), the ECB is subject to the principle of independence. Neither it, nor the national Central Banks, nor the members of the governing bodies of the ECB, in the exercise of their powers, tasks and duties, shall seek or receive instructions either from the EU institutions or from the national authorities of the Member States. Accordingly, the institutions of the Union and the national authorities are obliged to refrain from any action aimed at influencing the heads of the ECB or national central banks in the performance of their tasks related to the implementation of the constituent treaties and the provisions of secondary law relating to the creation and functioning of the monetary union.

The ECB ensures the implementation of the tasks assigned to the ESCB, either independently or through national central banks. At the same time, in addition to the monetary functions that are fundamental to solving the tasks assigned to the ESCB, the European Bank must also perform other important functions.

For example, in accordance with Art. 105(4) of the EU Treaty it has the right to advise on any proposed Community act within its competence. It should also be noted that the ECB also advises national authorities on any draft legal act within its competence, but within the framework and under the conditions established by the Council.

The ECB may submit opinions on matters within its competence to the relevant Community institutions or organizations or national authorities.

In order to implement the tasks of the ESCB, the ECB, with the help of national central banks, collects the necessary statistical information from the competent national authorities, or directly from participants in economic activities. To this end, it cooperates with Community institutions and bodies, as well as with the competent authorities of Member States or third countries and with international organizations. As far as possible, national central banks carry out the same tasks.

The ECB shall promote, where necessary, the harmonization of rules and practices in the organization of the collection, processing and dissemination of statistical data in the areas within its competence.

The Council determines the circle of individuals and legal entities, taking into account the requirements for collecting information, maintaining its confidentiality, as well as provisions ensuring its mandatory provision.

In the field of international cooperation, the ECB decides on issues of representation of the ESCB. The ECB and, with its approval, national central banks, may participate in international monetary organizations.

The ECB compiles and publishes quarterly reports on the activities of the ESCB. The ESCB's consolidated financial report is published every week. In accordance with Art. 109 b (3) of the EU Treaty, the ECB shall submit its annual report on the activities of the ESCB and on monetary policy, both in the previous and current year, to the European Parliament, the Council and the Commission, as well as the European Council. The above-mentioned reports and reports are made available to interested parties free of charge.

In accordance with Art. 105 a (1) of the EU Treaty, the Governing Council has the exclusive power to authorize the issue of banknotes within the Community. The ECB and national central banks may issue such banknotes. Banknotes issued by the ECB and national banks are the only banknotes of their kind to have legal tender status within the Community. The ECB should respect, as far as possible, existing practice in the issuance and design of banknotes.

It should be emphasized that according to Art. 105(6) of the Treaty, the Council may adopt a unanimous decision obliging the ECB to carry out specific tasks relating to the supervisory policy of credit institutions and other financial institutions, with the exception of insurance undertakings.

To fully implement the functions assigned to it, the Eurobank is endowed with significant legal powers. In particular, based on the provisions of Art. 108a of the EU Treaty the ECB has the right:

• * adopt regulations to the extent necessary to solve the tasks facing it, as well as in cases requiring the adoption of certain acts by the Council;
• * make decisions necessary to fulfill the tasks assigned to the ESCB by virtue of the Treaty and the Statute;
• * give recommendations and conclusions.

Regulations as one of the sources of secondary EU law have general application. They are binding in their entirety and are acts of direct application in all Member States. Recommendations and conclusions are non-binding. The decision is binding in its entirety on those to whom it is addressed. It is noteworthy that on the basis of Art. 190-192 of the Treaty, the rules provided for in relation to the regulations of the EU institutions apply to regulations and decisions. The ECB may decide to publish its decisions, recommendations and opinions.

The ECB has the power to impose one-time fines or periodic penalties on enterprises for failure to comply with obligations arising from its regulations and decisions.

The ECB is given the power to bring legal proceedings, and in individual cases the acts or omissions of the ECB must be open to review and interpretation by the Court. Disputes between the ECB, on the one hand, and its creditors, debtors or any other persons, on the other, are dealt with by the competent national courts, except in cases falling within the competence of the Court of Justice of the European Union.

The ECB is subject to Art. 215 of the EU Treaty regarding the liability regime. National central banks are responsible in accordance with their national laws.

The Court is competent to rule on any arbitration clause contained in a contract entered into by or on behalf of the ECB, regardless of whether that contract is governed by public or private law. The ECB's decision to bring a claim before the Court of Justice is taken by the Governing Council.

The Court is competent to hear disputes concerning the fulfillment by national central banks of the obligations arising from the Statute. If the ECB considers that national central banks have not fulfilled their obligations under the Statute, it must give a reasoned opinion on the matter after giving the national central bank concerned an opportunity to make its observations. If the national central bank concerned does not implement the recommendations of the opinion within the time limit set by the ECB, the latter may refer the matter to the Court of Justice.

Thus, the Court of Justice of the European Union acts as the final arbiter in resolving disputes within the ESCB, that is, in disputes between the ECB and national central banks.

The ECB shall enjoy in the territory of the Member States such privileges and immunities as are necessary for the performance of their tasks, in accordance with the conditions laid down in the Protocol on the Privileges and Immunities of the European Communities annexed to the Treaty establishing the Single Council and the Single Commission of the European Communities.

Organizational structure of the ECB

According to paragraph 3 of Art. 106 EU Treaty and Art. 9.3 of the Statute, the management of the European Central Bank is carried out by its governing bodies, namely the Board of Governors, the Management Board and the General Council.

The main governing body of the ECB is the Governing Council. It consists of 6 members of the ECB Board and the governors of the national central banks of the 12 member states that are part of the eurozone. Each member has one vote. The main task of this body is to develop monetary policy for the euro area. In this regard, the Board of Governors can set the interest rates at which commercial banks can receive money. Protocol Protocol on the Statute of the European System of Central Banks and of the European Central Bank annexed to the Treaty establishing the European Community. O.J. C 191 of 07/29/1992. also includes provisions to ensure the effective functioning of the Governing Council in the process of eurozone enlargement. These amendments were introduced by EU Council Decision No. 223/2003, which relate to the rotation system.

The Board consists of the President and Vice-President of the ECB and four other members. They are appointed by the heads of state or government of countries included in the euro area. This body ensures the implementation of monetary policy in accordance with the instructions of the Board of Governors and gives the necessary instructions to the National Central Bank. The Board also organizes meetings of the Governing Council and is responsible for the day-to-day management of the ECB.

The General Council is the third governing body of the ECB, consisting of the President and Vice-President of the ECB and the governors of the national central banks of all EU member states. The President of the Council of the EU and one member of the Commission have the right to attend meetings of the General Council of the ECB, but cannot participate in voting. In Art. 47 of the Protocol provides an exhaustive list of the responsibilities of the General Council, namely:

• - implementation of intermediate tasks of the ECB;
• - participation in the advisory function of the ECB;
• - collection of statistical information, participation in the report on the activities of the ECB, etc.

Legal regulation of financial activities and monetary operations of the ESCB

To implement the main objective of its monetary policy, the ESCB has extensive monetary functions. In accordance with Article 17 of the Statute, the ECB and national central banks may, for the purpose of conducting their operations:

• * open accounts for credit institutions, government agencies and other market participants;
• * accept assets, including securities, held concurrently in accounting records.

All lending operations of the ESCB are carried out subject to the provision of adequate collateral, which can be, first of all, liquid credit instruments that meet the standards of the entire euro area. At the same time, the use of liquid and non-liquid assets that have economic significance only within states and approved in them is not excluded.

In order to achieve the objectives of the ESCB and fulfill its tasks, the ECB and national central banks may carry out the following operations:

• - operations on capital markets
• § by direct purchase and sale (with immediate payment or for a period) or under a repurchase agreement;
• § by granting and receiving loans and marketable securities, in Community and other currencies, as well as in precious metals;
• - credit transactions with credit institutions and other market participants, with the provision of a loan that has adequate collateral.

The ECB lays down general principles for the functioning of the open market and for the carrying out of credit operations by itself or by national central banks, including the announcement of the conditions under which they are prepared to engage in such operations.

The ECB may require credit institutions established in Member States to hold minimum reserves in the accounts of the ECB and national central banks, in accordance with monetary policy objectives. The Board of Governors may establish rules relating to the calculation and determination of required minimum reserves. In cases of violations, the ECB has the power to levy punitive interest and apply other sanctions with similar effects.

The Council determines the basis for the minimum reserves, the maximum permissible ratios between the value of these reserves and their base, as well as the appropriate sanctions in case of non-compliance.

The Board of Governors may, by a 2/3 majority of the votes cast, decide to use the most appropriate methods of exchange control. The Council, based on an appropriate procedure, determines the scope of application of such methods if their use imposes obligations on third parties.

It should be especially noted that the European Central Bank has declared its intention to maintain continuity and use all forms of ESCB monetary policy that have proven themselves to be positive.

In accordance with Art. 104 of the EU Treaty, overdrafts or any other type of authorized credit with the ECB or national central banks in favor of Community institutions and bodies, central governments, regional, local and other public authorities governed by public law or public enterprises of the Member States are prohibited. and direct purchases of debt from them by the ECB or national central banks.

However, the ECB and national central banks can act as fiscal agents in relation to the above-mentioned structures.

It should be noted, however, that these rules do not apply to public credit institutions, which, in the context of the creation of reserves by central banks, are accorded the same treatment by national central banks and the ECB as private credit institutions.

In order to ensure the efficiency and sustainability of the clearing and payment system within the Community and with third countries, the ECB and national central banks may provide credit.

The external functions of the ECB and national central banks include the following:

• * establishing and maintaining relations with central banks and financial institutions in third countries and, if necessary, with international organizations;
• * acquisition and sale on terms of immediate payment and for a term of all types of assets in foreign currency and precious metals. However, the term “foreign currency assets” includes securities and all other assets denominated in the currency of any country or in units of account and expressed in any form;
• * storage and management of the above assets;
• * carrying out all types of banking operations in relations with third countries and international organizations, including the provision and receipt of loans.

In addition to operations arising from their tasks, the ECB and national central banks may engage in operations carried out for administrative purposes and intended for their staff.

The ECB may provide recommendations and advice to the Council, the Commission and the competent authorities of the Member States regarding the scope and implementation of Community legislation concerning the sound supervision of the activities of credit institutions and the stability of the financial system. Subject to any decision of the Council in the context of Article 105(6) of the EU Treaty, the ECB may carry out special tasks concerning policies relating to the reasonable supervision of credit institutions and other financial institutions, with the exception of insurance undertakings.

The financial year of the ECB and national central banks begins on the first day of January and ends on the last day of December. The annual reports of the ESCB are prepared by the Management Board in accordance with the principles established by the Governing Council. Reports are approved by the Board of Governors and then published. For analytical and operational purposes, the Board prepares a consolidated balance sheet of the ESCB covering those assets and liabilities of national central banks that fall within the scope of the ESCB. To this end, the Governing Council establishes the necessary rules to standardize the reporting and provision of data on operations carried out by national central banks.

The accounts of the ECB and national central banks are audited by independent external auditors recommended by the Governing Council and approved by the Council. Auditors are given the competence to examine all the books and accounts of the ECB and national central banks and all information about their operations.

Of fundamental importance are Articles 28 and 29 of the Statute concerning the capital of the ECB and the criteria for subscription to it. According to these provisions of the Statute, the capital to be available after the establishment of the ECB was 5 billion euros. However, due to the fact that at that time 4 EU countries were not members of the Economic Monetary Union, the capital of the ECB immediately after its founding amounted to 3947 million euros. At the same time, the Charter provides that the capital may be increased by an amount that will be determined by a decision of the Board of Governors adopted by a qualified majority. An important feature of the functioning of the ECB is the fact that the only subscribers and holders of ECB capital are national central banks.

Following the establishment of the ESCB and the ECB, a so-called allocation criterion was established for subscription to ECB capital. In accordance with this criterion, each national central bank established its own quotas equal to the amount:

• * 50% of the share of the Member State concerned in the Community population in the penultimate year preceding the year of creation of the ESCB;
• * 50% of the Member State concerned's share of the gross domestic product, at Community market prices for the last five years preceding the penultimate year before the establishment of the ESCB.

These percentage values ​​must be rounded to the nearest value with an accuracy of 0.05.

The Board of Governors determines by a qualified majority the amount and form of capital repayment. The shares of national central banks in the authorized capital of the ECB cannot be transferred, pledged or seized.

If the allocation criterion changes, national central banks transfer capital shares to each other in the amounts necessary to bring the allocation of capital shares into line with the application of the allocation criterion. The Board of Governors shall determine the terms and conditions of such transfers.

The shares assigned to national central banks are adjusted every five years after the establishment of the ESCB. The adjusted distribution criterion is applied in practice from the first day of the following year.

Through national central banks, the ECB is backed by foreign reserve assets that are not the currencies of member states, the euro, reserve reserves of the International Monetary Fund (IMF) and special drawing rights (SDRs), amounting to up to €50,000 billion in equivalent. The Governing Council decides on the proportions declared by the ECB following its establishment and on the amounts declared at a later date. The ECB has the right to hold and manage foreign reserves transferred to it and to use them for the purposes set out in the Statute.

The contributions of each national central bank are set in proportion to its share in the authorized capital of the ECB. Each national central bank is credited by the ECB on demand proportionate to its contribution. The Board of Governors determines the face value and payments for such claims. Further demands for foreign reserve assets in excess of the established limits may be satisfied by the ECB, within the limits and in accordance with the conditions established by the Council in accordance with the existing procedure.

The ECB can hold and regulate IMF and SDR reserves and pool such assets into a common fund.

National central banks must be authorized to conduct operations in order to fulfill their obligations to international organizations. All other transactions with foreign reserve assets remaining in national central banks after the above-mentioned transfers, and transactions of Member States with their current exchange balances above a certain limit, are subject to the approval of the ECB in order to ensure consistency in exchange rates and Community monetary policy. The Governing Council shall develop guidelines to facilitate such operations.

The income accumulated by national central banks in the course of their implementation of the ECB's monetary policy (so-called “foreign exchange earnings”) is distributed at the end of each financial year. The amount of foreign exchange earnings of each national central bank shall be equal to its annual income remaining after notes in circulation and deposit liabilities to lending institutions have been deducted from its assets. These assets must be reserved by national central banks, in accordance with the guidelines established by the Board of Governors.

If the balance sheet structures of national central banks, in the assessment of the Governing Council, do not permit the application of the above rules, the Governing Council may decide by qualified majority that foreign exchange earnings should be measured in accordance with some alternative method for a period of not more than five years. The foreign exchange earnings of each national central bank are reduced by an amount equivalent to the interest paid by that central bank on its deposit obligations to credit institutions.

The Governing Council may decide that national central banks should be reimbursed for expenses incurred by them in connection with the issue of banknotes or, in exceptional circumstances, for special losses incurred as a result of the exchange rate policy pursued by the ESCB. Reimbursement must be made in a form acceptable to the Board of Governors. These amounts can be offset by taking into account the foreign exchange earnings of the national central bank.

The amount of foreign exchange earnings of national central banks is distributed by the national central banks in proportion to their paid-up share in the capital of the ECB, subject to any decision taken by the Council.

Non-cash settlements and settlement of balances arising after the distribution of foreign exchange earnings are carried out by the ECB in accordance with the main guidelines established by the Governing Council.

The net profit of the ECB is distributed as follows: an amount determined by the Governing Council and not exceeding 20% ​​of the net profit is transferred to the general reserve fund, subject to a limit equal to 100% of capital; the remaining net profit is distributed among the ECB shareholders in proportion to their paid-up share of capital. In the event of losses incurred by the ECB, the shortfall may be made up from the general reserve fund of the ECB and, if necessary by decision of the Governing Council, from the foreign exchange profits of the financial year concerned, in proportion to and within the limits of the amounts distributed among the national central banks.

Tasks of the ESCB at the present stage

Currently, the main objectives of the European economic system are:

• - determination and implementation of monetary policy in the Eurozone;
• - management of foreign exchange operations and retention and attraction of official foreign investments in the Eurozone countries;
• - issue of banknotes in the Eurozone;
• - facilitating the smooth operation of payment systems;
• - collection of necessary statistical information;
• - monitoring the development of the banking and financial sectors;
• - facilitating the smooth exchange of information between the ESCB and supervisory authorities.

The ECB has developed a strategy to maintain price stability - the so-called monetary policy strategy. This strategy is based on two pillars: the fundamental role of money - this is determined by the recommended level of increase in the money supply in the broad sense of the word, while inflation is considered only as a result of having too much money with a limited number of goods and services. This monetary concept, known as MoM, defines the amount of cash in circulation, short-term deposits of credit institutions (as well as other financial institutions) and short-term liabilities issued by these institutions. The recommended level of annual growth of the MoM indicator (since 1999: 4.5%) is intended to assist the Governing Council in conducting analysis and providing information regarding monetary concepts. The second pillar of the ESCB's monetary policy strategy is a broad assessment of the prospects for further price growth and the risks of price stability in the Eurozone. This assessment is carried out using a wide range of economic indicators that inform about further price increases. Such indicators are: wage levels, exchange rates, various measures of economic activity, fiscal policy indicators, etc. In general, together, these two pillars of the ECB strategy provide a detailed study and analysis of monetary, financial and economic development. This allows the ECB to set the best rate to maintain price stability. The ECB's monetary policy also supports the value of the euro outside the Eurozone.

To achieve price stability, the Eurosystem uses certain monetary policy instruments. Their goal is to influence market rates, ensure liquidity of the banking system and determine the main direction of monetary policy. The directions of monetary policy are formulated by the Governing Council of the ECB. In many cases they are carried out by national central banks.

The main instruments of the ECB's monetary policy are: refinancing operations, targeted operations, regulation of the official interest rate, and acceptance of deposits.

The main refinancing operations are used to ensure liquidity of the banking system and determine the main direction of monetary policy. They are held once a week and are considered completed after two weeks.

Long-term refinancing transactions also provide liquidity, but are carried out monthly and are considered completed after three months.

There are also two other possibilities: regulation of the official interest rate and the possibility of accepting deposits.

Point operations are carried out on a temporary basis in order to determine the liquidity of the market situation and manage rates. A specific feature of these operations is an attempt to mitigate the interaction of unexpected fluctuations in market rates.

In the current economic situation in Russia, our compatriots strive to reliably invest their available funds in order to minimize the risks of losses. The first thing that comes to mind is European banks. There are many reliable ones on the Old Continent. We will talk about them.

General information

The diversity of ownership forms is a characteristic feature of the banking system of European countries. On this basis, financial institutions are distinguished:

• government;
• joint stock;
• corporate;
• private;
• mixed.

If we apply the “functional purpose” criterion, European banks are divided into:

• Emission. In Russia, as in other countries, this is the Central Bank. Issuing cash into circulation is the main function of financial institutions of this type. It is clear that they do not work with private clients.
• Deposit. The main activity of such banks is the accumulation of savings of the population. They receive profit from performing various operations with these funds.
• Commercial. Credit organizations of this category carry out all operations that are permitted by banking legislation.

In addition, financial institutions can be universal or specialized. The former provide the entire range of banking services for servicing clients of different categories - individuals and legal entities. Specialized banks include organizations, for example, that issue loans only for housing. In Russia this is DeltaCredit Bank. His specialty is mortgages.

According to the type of organization of work, financial organizations are standard and operate only on the basis of Internet banking. In Europe, the latter includes the Dutch ING Direct from the ING Groep consortium, which operates online in 5 countries of the Old Continent.

In general, to achieve success, European banks currently use the following types of software and hardware systems:

• Automated - allow clients to perform transactions without leaving their home.
• Intelligent. Systems of this type collect information about a specific client from all existing databases and, after processing it, offer to select the optimal banking products.

How lists of reliable banks are formed

When determining the reliability of banks, experts use a number of criteria. Let's name the main ones:

• Bank size. This indicator demonstrates the stability of a financial organization and its ability to survive possible crises in the foreseeable future. In addition, this parameter gives an idea of ​​the possible period of operation of the bank in normal mode.
• Credit rating. A very important indicator demonstrating the level of reliability of a financial organization. Depositors focus specifically on the rating when choosing a bank.
• Availability of information about the bank. To obtain the necessary data, you need to visit the website of the financial institution. If the pages of the Internet resource do not contain information about the history of the bank and its founders, it is better to refuse cooperation with this credit institution.
• Investment characteristics of banks. Their analysis allows us to draw a conclusion about the safety of opening a deposit in a particular financial institution. We are talking about the following indicators:

• level of liquidity and profitability;
• volume and quality of existing assets;
• dynamics in combination with the structure of the credit institution’s balance sheet;
• degree of capitalization.

Interest on deposits is far from the main criterion. It is more important to pay attention to the bank's shareholders. It’s good if they include a large financial and industrial group.

You should also know that the proper level of reliability of foreign banks operating in our country is ensured by the support of the parent company.

The most reliable European banks

One of the characteristics by which the degree of reliability of a banking structure is determined is the volume of its assets. Below is a ranking of the largest financial institutions in Europe, based on this indicator:

• HSBC (London, UK). The retail network includes about 3,800 branches opened in 66 countries in Europe, Asia, Africa, South and North America, and serves 38 million customers.
• BNP Paribas (Paris, France). The key area of ​​work is corporate and investment banking. This includes operational and structural leasing, financing of export trade transactions, a wide range of foreign currency transactions, etc.
• Barclays (London, UK). Financial analysts position this organization as a universal bank. That is, clients can not only place deposits here, but also apply for loans. Barclays also issues and services plastic cards, provides cash settlement services, acquiring, processing, etc.
• Deutsche Bank (Germany, the board is located in Frankfurt am Main). In terms of the number of employees and volume of assets, it is the largest financial conglomerate in Germany. The main direction is investment activity. In this segment of the banking market, its share accounts for 20%.
• Credit Agricole (France, headquartered in Paris). The organization has 3 levels: subsidiaries, regional banks, local banks. Credit Agricole owns 39 corporate and retail local financial institutions, in which it controls 25% of the capital. This structure makes it difficult to manage the organization, but allows you to receive discounts on the stock exchange in France.
• Royal Bank of Scotland (Edinburgh, UK) is the only one in Albion that, besides the Bank of England, has the right to mint banknotes.
• Societe Generale (Paris, France). This bank is represented in 82 countries of the world, in which it serves more than 30 million clients. In 2011, its structural unit “Bank Societe Generale Vostok” merged with Rosbank. Russians can borrow the required amount from this new financial institution in rubles and foreign currency, open a current and deposit account, receive a credit and debit card, place a deposit, etc.
• Grupo Santander (Spain, headquartered in Santander). This financial structure includes more than 780 companies. Grupo Santander is the title sponsor of the British, German, Spanish and Chinese Grands Prix. In addition, it acts as a partner of such teams as Scuderia Ferrari and McLaren in Formula 1.
• Lloyds Banking Group (London, UK). This financial holding company provides not only services standard for banking - consumer and mortgage lending. His area of ​​interest also includes insurance of individuals, legal entities and the risks of non-repayment of loans received by clients.
• ING Groep (Amsterdam, Netherlands). This financial institution provides retail, investment and commercial banking services. In addition, he works in the insurance market. ING Groep also provides services in the field of pensions. Its most active activities take place in the Benelux countries.
• UBS (Zurich, Switzerland). In 2011, the largest Swiss financial holding UBS was included in the list of 29 systemically important banks for the global economy by the G20 Financial Stability Council. For this reason, the organization is required to meet more stringent equity requirements.
• UniCredit (Milan, Italy). He began his activities in Russia during the USSR era - in 1989. As of 2019, 91 branches of this bank were opened in the Russian Federation. Interbank transactions are used to transfer funds to the accounts of residents of other CIS countries.
• Nordea (Stockholm, Sweden). This financial group has more than 1,400 branches in 19 countries around the world, serving 700 thousand corporate and 10 million private clients. The list of services provided to ordinary citizens is quite wide: private banking, bank safes, debit cards, overdraft-type loans, consumer and mortgage loans, car loans, deposits, account management.
• Intesa Sanpaolo (Turin, Italy). The main areas of activity of this financial group in the Russian Federation are:

• trade finance;
• salary projects;
• investment life insurance;
• implementation of state support programs for medium and small businesses;
• attracting funds from the population in the form of deposits;
• documentary business;
• card issue;
• servicing accounts of individuals and legal entities;
• lending.

• Banco Bilbao Vizcaya Argentaria (Bilbao, Spain). This is the second largest financial group in Spain after Santander. It provides all categories of clients with a wide range of services, ranging from account management to insurance.
• Standard Chartered (London, UK). Although the headquarters of this structure is in London, it does not have branches in the UK. The main activities are carried out in Asia and Africa, primarily in Hong Kong and Singapore. The Hong Kong subsidiary of Standard Chartered is one of the three banks that issues dollars in this country.
• Natixis (Paris, France). The creation of a bank branch on the territory of the Russian Federation pursued the goal of medium-term lending to enterprises of the Russian mining complex that export natural resources. Serving individuals is not a priority activity of this financial institution.
• Commerzbank (Frankfurt am Main, Germany). After acquiring Dresdner Bank in 2009, this bank became one of the largest credit institutions in Germany and Europe. Commerzbank offers foreign companies professional assistance in organizing business in the Russian Federation and provides the largest Russian companies with a wide range of financial services.
• Danske Bank (Copenhagen, Denmark). The list of services of this bank on the Russian market includes the following items:

• customs and corporate cards;
• trade finance;
• electronic banking;
• currency control services;
• payments within Russia and abroad;
• maintaining accounts in different currencies, etc.

Please note that not a single Swiss bank is included in the top 10.

Conclusion

More and more foreign banks are appearing on the financial market of our country. Providing the most favorable conditions for savings programs and lending, they pose serious competition to domestic similar institutions. According to analysts, this phenomenon, along with undoubted advantages, has a negative impact on the Russian economy, because interest on loans is transferred to the accounts of foreign credit institutions.

In addition, domestic banks are forced to reduce lending rates. This, in turn, leads to a decrease in taxable profit, which is why fiscal fees paid to the budget also decrease.

Top 10 most stable banks in the world: Video