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The functions of the Central Bank of Russia expansion: A step forward or two steps back?

The functions of the Central Bank of Russia expansion: A step forward or two steps back?

Journal of Institutional studies, , Vol. 6 (no.4),
p. 137-147

The role of the Central Bank of Russia at the present stage of development of our country is discussed in the paper. The author investigates the question whether the Bank of Russia can act as a megaregulator. The author analyzes whether the central bank acts as a key regulator in the financial sector or its functions should be limited by the banking sector. The world experience of a megaregulator model is considered in order to identify the main advantages and disadvantages of this model with reference to Russia. On the basis of this analysis, the author came to conclusion that the model of a mega-regulator on behalf of the Central Bank of Russia cannot contribute to the effective development of the Russian financial system. Based on the characteristics of the banking sector at the present stage of development the main directions of its regulation by the Bank of Russia are highlighted, including a special policy of regulation and supervision of banks with state participation in the capital and a new model of regulation of mergers and acquisitions in the banking sector.

Keywords: the Central Bank; megaregulator; the financial sector; the banking sector; state controlled banks; mergers and acquisitions in banking sector

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Publisher: Ltd. "Humanitarian perspectives"
Founder: Southern Federal University
ISSN: 2076-6297