For the first time since 1998 the Russian Central Bank could end the year with a loss on its operations, reports RBC with reference to the explanatory note of the Ministry of Finance to draft the Federal budget for 2017-2019. In this document, in particular, says that “several factors may affect the financial result of the Bank of Russia for 2017 and subsequent years” and lead to the formation of loss.
However, the profit of the Central Bank falls now, the Agency said.
At the end of last year, the Central Bank was first listed in the Federal budget 90% of its profits, earning 112.6 billion rubles. However, starting in 2016 on revenues of the Central Bank affects the emerging structural surplus liquidity in the banking sector, stated in the explanatory Memorandum.
The Finance Ministry predicts that in 2016, the profit of the Central Bank will be less than a third of the result 2015. The income from the transfer of a part of profit of the Central Bank of the Russian Federation in the Federal budget for 2017 is expected to reach 31.5 billion rubles, which 69,642 billion less than the amount of income listed in 2016. The Ministry of Finance generally does not expect any revenues from the Central Bank in the Federal budget in the years 2018-2019.
Central Bank is a legal entity and the Bank on the nature of the activities, but with functions of a public authority. His main responsibilities are the control of inflation and supervision of the banking system. The profit of the Bank of Russia mainly formed by the provision of liquidity to commercial banks and the foreign exchange market (by law, the receipt of income the main objective of the Central Bank is not).
Almost all of the profits (90%) of the Central Bank is transferred to the budget, and the remainder directed to reserves and various funds.
In summer, the regulator has returned to practice weekly Deposit auctions for the collection of excess liquidity, barbireau thus a little more than 1.5 trillion rubles. The placement of funds in banks, the Central Bank will increase its interest expenses and this will decrease the profit of the regulator.