The Federal Bank has a second name - the Federal Reserve Bank. This bank was first created in the United States, and now there are banks with this status in Russia.
The word "federal" is closely related to the word "state". These two concepts have a similar definition, so the Federal Bank in other words can be described as a bank owned by the state.
Federal bank: definition
There are several Federal banks in the Russian Federation, each of which is part of the system of the Central Bank of the Russian Federation. In total, each of these banks forms a centralized system with a vertical government structure. Banks of this type are formed exclusively on the basis of state ownership. With a certain frequency, each branch submits a report to the Federal Assembly and the State Duma of the Russian Federation.
The system is managed by a board of directors, which consists of 12 members and a manager appointed by the President of the Russian Federation. In turn, he chooses 12 councilors. He must coordinate his choice with the President. This composition is re-elected every 4 years.
Functions of the divisions of the Federal Bank
Federal banks of Russia have a number of obligations:
- fulfill the instructions of the Central Bank;
- monitor the balance between commercial lending institutions and national banks;
- protect the credit rights of individuals and legal entities;
- monitor price stability;
- control interest rates on loans and other loans.
In Russia, the most famous representatives of such banks are:
- Agrosoyuz.
- Baltic Bank.
- Development-Capital.
- Continental.
- United Bank of the Republic.
- Stavropolpromstroybank.
Phones and other contact details of the branches of the Federal Bank can be obtained from the unified state reference service. As of 2011, the number of branches of the Federal Bank began to decline sharply.
In addition to the branches of the Federal Bank, the system of the Central Bank of the Russian Federation includes other objects: territorial branches of Federal banks, educational organizations, field organizations, cash settlement centers, branches of Federal banks. Each organization has its own tasks and goals.
Purpose of branches of the Federal Bank
Each branch has its own Board of Governors, the composition of which is approved by the bank's management. Branches take part in the implementation of uniform credit and monetary policies, but the main purpose of each branch is to maintain the smooth functioning of the banking system.
There are field organizations to service military units. They are subordinate to two higher authorities at once: the Bank of Russia and the Ministry of Defense of the Russian Federation. They are required to additionally comply with military law.
