Russia's integration into the world economy and the expansion of economic ties forced the country's government to take measures to improve the banking system. In Russia, the so-called authorized banks appeared, which began to play a decisive role in currency regulation.
An authorized bank is a banking institution with special functions for monopoly certification of transactions carried out by other banks. At their core, these are commercial organizations that have permission to conduct a variety of foreign exchange transactions. Permission to carry out such activities is given by the Russian government. It also controls the activities of such banking structures.
The basis on which the existence of authorized banks is possible was a two-tier banking system. Its upper level is occupied by the country's Central Bank, which, on behalf of the state, issues money and performs the functions of a regulator. The Central Bank has the right to issue licenses to second-tier banks to conduct operations that are classified as banking by law.
In banking legislation, a general license is distinguished, which contains a set of the simplest operations, as well as private licenses for certain types of operations. Those financial institutions that receive private licenses become monopolies for special operations. They are called authorized banks.
The status of an authorized bank implies the dual nature of this institution. On the one hand, such a bank has a licensed right to conduct foreign exchange transactions. On the other hand, such a right is combined with the obligations of foreign exchange control. In the second case, the activities of authorized banks are focused on control over the conduct of foreign currency transactions by residents, over export-import transactions and the transfer of foreign currency earnings to current or transit foreign currency accounts.
If we take into account the budgetary legislation, authorized banks can, on instructions from state authorities, carry out banking operations with finances in the budget. The authorized bank ensures the targeted use of budget funds of various levels, which are allocated for the implementation of special programs. Currently, a significant part of the state budget, as well as tax deductions from citizens, passes through authorized banks.
As agents of foreign exchange control, authorized banks check the compliance of transactions with legislation, check the availability of licenses and permits, assess the completeness of accounting and reporting on foreign exchange transactions. Authorized banks control the fulfillment of obligations to sell the currency that came from the export of goods.
Through authorized banks, settlements are made on transactions of an external economic nature, for which the participants in the operations are required to issue passports of transactions. Authorized banks are not allowed to charge cash payments to their employees in foreign currency; this applies to both salary and bonus bonuses.
Authorized banks have found their place in economies where there is incomplete, regulated competition in financial markets.
