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THE DEVELOPMENT OF THE SPHERE OF SUPERVISORY ACTIVITIES OF THE BANK OF RUSSIA AS A MEGA-REGULATOR OF THE FINANCIAL MARKET
S.E. Korshunova, Graduate Student
Supervisor: A.B. Bass, Candidate of Economic Sciences, Associate Professor Financial University under the Government of the Russian Federation (Russia, Moscow)
DOI: 10.24411/2411-0450-2020-10601
Abstract. The article examines the main aspects of the development of the Bank of Russia's supervisory activities as a mega-regulator of the financial market. Five main institutional models of the organization of banking supervision, functioning in foreign practice, are characterized. The study of models of financial supervision of foreign countries with developed markets makes it possible to form a combined model of supervision over financial market entities, which is, according to a number of researchers, the most effective model of supervision and regulation. This model is based on supervisory business-processes. In relation to the financial supervisor, the term "business-processes" is used in the meaning of "functional activities". The functions of the Bank of Russia as a mega-regulator of the financial market for control and supervision over financial and non-credit organizations are considered. It is emphasized that the activity of the Central Bank in the securities market is characterized by changes in the sphere of its regulation. As in the banking sector, their activities were influenced by the actions of the Central Bank. Having become a mega-regulator, the Bank of Russia has tightened its supervision over the professional activities of stock market participants.
Keywords: financial market mega-regulator, banking supervision, models of financial supervision offoreign countries, supervisory activities of the Bank of Russia, professional activities of stock market participants.
In the world practice of banking supervision and regulation, each country or group of countries has developed its own banking supervision instruments, which together form a model for organizing banking supervision. However, for all the variety, many banking supervision models have common features. The result of studying the models of organizing banking supervision largely depends on the classification used.
According to the subject composition, five main institutional models of the organization of banking supervision can be distinguished:
- consolidation of supervision over central banks;
- mixed;
- consolidation of supervision over independent specialized bodies;
- securing supervision over the megaregulator;
- international or supranational [2].
1. The first model is based on the legislative consolidation of exclusive powers in the sphere of regulation and supervision of bank-
ing activities for central banks. Historically, this model was dominant, by now it has almost lost its dominant position, but it is still in demand in life. This model is used in Spain, Greece, Portugal and Russia.
2. In the second ("mixed") model, the functions of supervision and control are performed by specialized bodies with the direct participation of the central bank and the ministry of finance. A classic example of this model is the organization of banking supervision in the United States.
The role of the central bank in the United States is played by the Federal Reserve System, established in 1913, which is very different in structure and management principles from the central banks of other countries. One of the main criteria underlying its structure is taking into account the interests of local banking circles and avoiding excessive centralization of management.
The operations and management of state-registered US banks are usually overseen by state supervisors, but most banks are also sub-
ject to, albeit to a limited extent, federal regulation. Banks and financial institutions in the United States can be federal (called national banks) or state bodies.
Financial institutions are supervised by the following main supervisors, which have an agreement to avoid double duty:
- Board of Governors of the Federal Reserve System;
- Federal Deposit Insurance Corporation, which insures deposits in banks and other credit institutions;
- Office of the Comptroller of the Currency - the bureau of the Ministry of Finance that oversees national banks;
- Office for Supervision of Savings Institutions;
- National Association of Credit Unions (supervising the activities of credit unions) [2].
The "mixed" model is also used in France, Italy and the Netherlands. However, in this case, there is a division of supervision in two areas, one of which is ensuring the stability of financial institutions, the second is ensuring the correctness of business. So, in particular, in the Netherlands, the Bank of the Netherlands supervises all financial institutions, and the Financial Markets Service supervises business (the legislative structure was formalized at the beginning of 2005).
3. The third model provides for the supervision of banking activities through independent specialized bodies, in close cooperation with the Ministry of Finance with the participation of the central bank. This model is inherent in the banking systems of Canada, Great Britain, and to a lesser extent Austria and Germany.
In particular, in the UK, financial markets are regulated by the Financial Services Authority, an independent non-governmental organization mandated by the Financial Services and Markets Act 2000. Commenting on the experience of this country, I would like to note that the reform of financial supervision, initiated in 1997, was designed for a long period of time and continues to this day.
Thus, in May 1997, the UK Treasury Secretary announced the beginning of the reform of financial markets regulation and the establishment of a new regulator. The reform in-
volved the merger of banking supervision with the regulation of investment services under the auspices of the Securities and Investment Committee. Subsequently, the new department was named the Financial Services Department. The first stage of the reform was completed in June 1998, when the Financial Services Authority was endowed with banking supervision functions transferred to it from the Bank of England.
The tasks of the Financial Services Authority include helping the Bank of England and the country's Treasury to ensure stability and confidence in financial markets, raising investor awareness of the risks associated with the use of various financial products, protecting consumer interests and reducing financial crime. including the fight against money laundering. At the same time, the emphasis is on documentary supervision.
One of the fundamental principles in the activities of the Financial Services Authority is to create equal conditions for all participants in the financial market and eliminate obstacles in international competition. The named goals serve as a kind of measure of the effectiveness of the Financial Services Authority, determine the limits of responsibility of this supervisory authority. In choosing measures of influence on the supervised institutions, the Financial Services Authority proceeds from the fact that they will cost, and whether the desired result will be achieved. The Financial Services Authority controls the admission of banking institutions to financial markets, taking into account the protection of the interests of potential consumers.
In addition, by law, the Financial Services Authority is empowered to suppress manipulation in financial markets. In October 2004, following a Treasury decision, the Financial Services Authority began regulating mortgage lending and in January 2005 (based on the Insurance Mediation Directive) regulating general insurance.
The activities of the Financial Services Authority are fully funded by market participants - supervised organizations. The Treasury Department appoints the Financial Services Board, represented by the chairman, senior executive director, executive and nonexecutive directors. The council determines
the overall strategy, but the day-to-day management falls within the purview of the executive body. The Financial Services Authority is accountable to the Ministry of Finance as well as to parliament. Interaction between the Financial Services Authority, the Bank of England and the Treasury Department (Treasury) is coordinated within the framework of the permanent Financial Stability Committee [3].
Unlike the UK, in terms of organizing banking supervision, in Germany the country's central bank (Bundesbank) retains its participation in the supervisory process. Since 2002, the main functions of banking supervision in Germany have been assigned to a single financial supervisory authority - the Federal Office for the Supervision of Financial Services (BAFIN), which oversees the activities of commercial banks in cooperation with the Bundesbank in accordance with the agreement between them on the spheres of activity and responsibility.
Currently, the Federal Office for the Supervision of Financial Services (BAFIN) controls about 2400 credit institutions, about 800 financial institutions and about 700 insurance companies. The main tasks of the Federal Office for the Supervision of Financial Services (BAFIN) are to guarantee the solvency of these organizations, as well as to protect customers and investors. The Federal Office for the Supervision of Financial Services (BAFIN) has also combined the tasks of the former federal supervisory bodies - the Federal Office for Supervision of the Credit and Insurance System and the securities trade. As a result, government supervision of credit institutions, financial service providers and insurance companies spans the entire financial market.
The Bundesbank is engaged in operational supervisory activities. Both departments agreed that the Bundesbank, in the course of ongoing supervision, will continue to collect, analyze and evaluate the annual balances of banks, audit reports and other statutory reporting forms, as well as hold meetings with bank representatives. As part of the current supervision, the Bundesbank will review the equity capital of credit institutions and the quality of risk management, which will be-
come more important after the entry into force of the new Basel Accord (Basel II). In some cases, the Federal Office for the Supervision of Financial Services (BAFIN) will carry out such checks by its own employees. It is also envisaged to conduct inspections by the combined forces of both departments. The Federal Office for the Supervision of Financial Services (BAFIN) cannot directly interfere with the current operations of the bank, but has the right to demand compliance with credit legislation, which provides for monetary fines for violation of established rules. In some cases, criminal liability is also provided.
4. The fourth model unites countries that have adopted legislative decisions to create a mega-regulator in the financial services market. The creation of a single regulator of financial markets is justified by the unity of the subject of regulation and control, by the fact that the basis of any financial service and activities for its provision are identical to each other signs, no matter who provides such a service (banks, investment funds, brokers), and in whatever it did not consist [4].
Any financial services at its core have the same idea of attracting other people's funds and managing them in order to deliver material benefits to the investor, shareholder, depositor, and manager.
The first unified financial supervisory authorities appeared in Norway in 1986. It was followed in 1988 by Iceland and Denmark. In 1991, Sweden joined this process, in 1997 -Great Britain, and in 2002 - Austria and Germany. On the eve of the European Union (EU) accession, a similar reform of financial supervision took place in Estonia, Latvia, Hungary and Malta. In Asia, universal supervisory bodies have been established in Japan, China, Kazakhstan, South Korea, Singapore and a number of other countries.
In almost all of these countries, supervision functions are separate from central banks. The exceptions are Singapore, where the powers of the mega-regulator are assigned to the central bank, and Ireland, where the mega-regulator is created on the basis of an autonomous division of the central bank.
5. Fifth model: international or supranational. Implemented by the Bank for International Settlements, headquartered in Switzer-
land, and the European Union, which issues Directives that have a significant impact on the financial markets of the member states [5].
The specified model of the organization of banking supervision was formed due to the fact that the activities of banks every year more and more outside the framework of a single country and takes on a global character, which entailed the need for convergence (streamlining) of national norms, regulations and regulations. This creates an opportunity to maintain "uniform rules for playing the game" for all market participants - competitors, to stimulate the integration of financial markets.
In terms of the sources of information used, we distinguish four models of supervision, which are based on:
- analysis of materials of external audit of the bank (Germany, Great Britain);
- on-site inspections of banks by employees of banking supervisory authorities (USA, Italy, France, Japan);
- use of materials, both own on-site control and external audit (Canada);
- the establishment of strict requirements for published reporting or the so-called model of "market discipline" (first introduced in New Zealand).
Of particular interest for Russia is a model based on data from external auditors, since Article 73 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" provides for the possibility of involving audit organizations in conducting inspections [1].
With such supervision, banks are required to audit once every six months or once a year. In some cases, inspectors hold meetings with auditors or bank management. This type of supervision implies that the auditors will immediately inform the supervisory authorities if they discover serious problems with the bank or violate banking legislation. The defining moment in this model is the ability of the supervisor to influence the bank's choice of auditors, as well as the statutory frequency of audits twice a year. Usually the bank has the ability to select an auditor from a list approved by the supervisory authorities and inform them when the auditor changes. In any
case, supervisors have the option to remove auditors or cancel audit results if the results are unsatisfactory.
The representatives of this model of supervision are the United Kingdom and Germany. Great Britain does not have inspectors working on a permanent basis at all, but the Bank of England necessarily conducts periodic on-site inspections of banks in order to assess certain areas of the bank's activities or problems encountered. In Germany, supervisors are authorized to carry out on-site inspections of banks, but they are very rare, mainly working with external auditors.
Using this oversight model in the United States, Italy, France and Japan, auditors are assigned approximately the same assessment objectives:
- capital adequacy;
- asset quality;
- quality of management;
- the level of profitability and liquidity.
Thus, in the world practice of banking supervision and regulation, each country or group of countries has developed its own banking supervision instruments, which together form a model for organizing banking supervision. However, for all the variety, many banking supervision models have common features. The result of studying the models of organizing banking supervision largely depends on the classification used. According to the subject composition, five main institutional models of the organization of banking supervision can be distinguished -the consolidation of supervision over central banks, mixed, the consolidation of supervision over independent specialized bodies, the consolidation of supervision over a megaregulator, and international or supranational.
The study of the models of financial supervision of foreign countries with developed markets makes it possible to form a combined model of supervision over financial market entities, which is, according to our opinion, the most effective model of supervision and regulation. Its peculiarity lies in the fact that it is composed of elements of supervisory practice from different countries, representing the best, most successful examples. It is premature to talk about the possibility of its implementation in Russia due to the inconsistency
with the real conditions and characteristics of the financial industry, legislation, and supervisory activities in our country [4].
This model is based on supervisory business processes. If it is appropriate to use the term "business processes" in this context, then you can define them as a set of interrelated activities, tasks, technologies carried out by an organization and aimed at creating a specific product or service for consumers. In relation to the financial supervisor, the term "business processes" is used in the meaning of "business processes", "functional activities".
In addition, financial supervisory authorities, among other things, are engaged in the implementation of public services, consisting in the activities of regulation, financial supervision and control over the work of financial market entities, as well as ensuring the stability and sustainability of the financial system as a whole.
The model is an early warning system based on continuous risk monitoring and preventive measures.
Financial supervision can be defined as an ongoing process involving a number of stages. Three most significant stages of supervision can be conventionally identified:
1) planning the activities of the supervisory authority;
2) supervision of the activities of financial institutions in combination with preventive intervention, if necessary and in order to prevent the realization of risks;
3) administrative impact on financial institutions in case of failure to take corrective actions recommended by the supervisory authority [6].
Standard surveillance activities include:
- licensing as an administrative (technical) supervision tool;
- monitoring of prudential reports (on compliance with prudential capital requirements and sufficiency of financial resources, solvency, risk management, etc.);
- assessment of the financial condition of the operating activities of a particular financial institution (by business lines, as well as in comparison with competitors);
- holding regular meetings with the company's management;
- conducting regular risk-oriented on-site inspections of companies with the highest and highest risk levels;
- in some cases, attending board meetings to assess the results of on-site inspections by the supervisor;
- comparative checks (surveys) of companies to identify best practices;
- analysis of the business model (business model) and corporate strategy;
- a comprehensive assessment of the company's activities in order to monitor behavior;
- market analysis (by segments, products);
- advising companies on the implementation of measures to restore financial stability (corrective actions), which will require the supervisor;
- monitoring the adoption of corrective actions, which may include requesting additional information and / or conducting follow-up checks.
When analyzing the business model and corporate strategy, the supervisor investigates potential threats to the company's viability and threats that it itself may pose to other market participants in the course of its business.
The analysis includes a study of the process of generating income (from what sources and how income is derived) and the associated risks. In other words, the purpose of the supervisor is to assess the sustainability and vulnerability factors of a company's business model.
The measures of administrative influence of the financial supervisory authority include:
- official investigation of the company's affairs;
- restriction, suspension, license revocation;
- restrictions or special conditions for specific types of activities;
- monetary fines;
- appointing a court administrator to manage the company's affairs;
- initiation of criminal proceedings against companies and individuals (directors, managers);
- dismissal of individuals from their managerial positions (including automatic dismissal in cases of convictions for a crime related to dishonest behavior and bankruptcy);
- disqualification of employees (for example, auditors, actuaries in an insurance company) for a certain period;
- liquidation of the company, bankruptcy procedure, etc. [5].
The financial supervisory authority is obliged to maintain a register of disqualified persons, lists of companies in bankruptcy, statistics on fines and publish them on its website. Also, in order to ensure the efficiency and transparency of the oversight work, it is advisable to form the reporting of the supervisory authority on the administrative measures taken over a specific period of time, as supervisory authorities of a number of countries do.
Thus, the risk-oriented concept of financial supervision with an emphasis on preventive measures, adopted in developed countries, presupposes a differentiated approach, i.e. targeted work with specific companies to formulate plans for supervisory work, use the recommended risk assessment methods.
For a long time, regulation, control and supervision of the domestic financial market and the activities of its participants was distributed among various ministries and departments. Moreover, their functions in this area were largely duplicated. This situation led to the inefficiency of the entire system of state regulation, control and supervision of the Russian financial market and acted as a brake on the development of this most important sector of the country's economy.
For the first time the idea of creating a mega-regulator of the financial market in Russia was announced at the end of 1999 by Cadogan Financial. Within the framework of the project of the technical assistance program, the main recipient of which was supposed to be the Federal Commission for the Securities Market of Russia, a state executive body that at that time was authorized to carry out state regulation of the Russian securities market, Cadogan Financial proposed to form a mega-regulator on the basis of the Federal Commission for the Securities Market of Russia. However, for a number of objective and subjective reasons, this idea has not received further development [6].
At the level of the Government of the Russian Federation, the creation of a mega-
regulator of the financial market was seriously discussed only four years later, in November 2003. At one of the meetings of the Government of the Russian Federation, as part of a discussion of the state and problems of the Russian financial market, it was proposed to create a unified federal control and supervisory a body in the field of financial markets, combining in it all the control and supervisory functions carried out by state bodies in the field of the financial market, with the exception of the functions of the Bank of Russia.
The first real steps to create a megaregulator of the financial market in Russia were made in the course of the administrative reform, which was initiated by the Decree of the President of the Russian Federation of 09.03.2004 № 314 «On the system and structure of federal executive bodies». The Federal Service for Financial Markets of Russia was created instead of the Federal Commission for the Securities Market of Russia, with practically all its functions (about 180 in total). In addition, the Federal Service for Financial Markets of Russia was transferred to a number of functions and other government agencies that previously regulate various aspects of the functioning of the financial market, including the securities market, and the activities of its participants.
As a result, the Federal Service for Financial Markets of Russia became a regulator and controller of not only the securities market, but also some other segments of the domestic financial market. At the same time, the Federal Service for Financial Markets of Russia retained the legal (rule-making) function. The Federal Service for Financial Markets of Russia, unlike other federal services in the structure of federal executive bodies, had the right not only to exercise law enforcement functions, but also to issue normative legal acts regulating relations in the sphere entrusted to it.
Once again, the question of the megaregulator of the financial market returned already within the framework of the project to create a so-called international financial center in the country, the concept of which was approved at a meeting of the Government of the Russian Federation in early February 2009, and the action plan was approved by
the order of the Government of the Russian Federation of 11.07.2009 №911-p.
According to the initiators of the project, its implementation should have helped to increase the attractiveness of Russian financial institutions for national and foreign participants: investors, issuers, financial intermediaries (depositories, brokers, etc.). Note that initially, within the framework of the listed documents, the creation of a mega-regulator of the financial market was not envisaged. They only talked about the modernization of the financial market regulation system as one of the necessary conditions for the creation of an international financial center in the country.
Moreover, the concept directly indicated the premature creation of a mega-regulator of the financial market at this stage of the formation of an international financial center in Russia. Instead, it was proposed to ensure effective coordination of existing financial market regulators by creating interdepartmental coordinating structures for this, including: the Presidential Council for the Development of the Financial Market in the Russian Federation; Government Commission on the establishment of an international financial center in the Russian Federation.
Nevertheless, in December 2011, new steps were taken to create a mega-regulator of the financial market in Russia. They were initiated by the Ministry of Finance of Russia, which first came forward with an initiative to liquidate the Federal Service for Financial Markets of Russia and transfer its functions to its jurisdiction, and then to abolish Rosstrakhnadzor and transfer its functions of control and supervision over the activities of insurance companies to the Federal Service for financial markets of Russia with the consolidation of a rule-making function in the financial market.
The choice was made in favor of the second option. This proposal of the Ministry of Finance of Russia was implemented in April 2011. As a result, Rosstrakhnadzor was abolished, and its control and supervisory functions were transferred to the Federal Service for Financial Markets of Russia. At the same time, the Ministry of Finance of Russia became the main state regulator of the financial
market, and supervisory and control powers in the sphere of the financial market were distributed between the Bank of Russia and the Federal Service for Financial Markets of Russia.
The Bank of Russia was still responsible for the work of credit institutions (in part, for their banking activities), ensuring their compliance with market rules and refinancing them. The activities of the Federal Service for Financial Markets of Russia were focused on the control and supervision of other activities in the financial market, including professional activities in the securities market, insurance activities, etc.
At the same time, the Federal Service for Financial Markets of Russia and the Bank of Russia retained some regulatory functions regarding the adoption of orders and instructions within their competence. A number of issues related to the financial market in terms of its antimonopoly regulation, control and supervision in the field of advertising remained under the jurisdiction of the Federal Antimonopoly Service (FAS) of Russia, and the Ministry of Labor of Russia continued to regulate the activities of non-state pension funds.
The idea of creating a mega-regulator of the financial market regained its relevance at the end of August 2012 as part of the discussion at the level of the Government of the Russian Federation of issues of transferring the powers to regulate the financial market assigned to the Ministry of Finance of Russia to the Federal Service for Financial Markets of Russia and expanding the scope of activities of the Federal Service on financial markets of Russia due to the powers of the Ministry of Labor of Russia to regulate non-state pension funds. At the same time, the Federal Service for Financial Markets of Russia advocated an increase in the number of its employees and the allocation of additional funding. Consideration of these issues resulted in a broader project - the creation of a single control and supervisory body for all participants in the financial market. This proposal came from representatives of the working group on the creation of an international financial center in Russia. In general, it was supported by the Government of the Russian
Federation, and then by the President of the Russian Federation, who indicated the need to complete the process of creating a megaregulator of the financial market by the end of 2013 [7].
However, the interested parties disagreed on their approaches to creating a megaregulator of the financial market. Four main options were considered. According to the first option, it was supposed to preserve the existing system of state regulation, control and supervision of the financial market, strengthening the Federal Service for Financial Markets of Russia (technically, financially, etc.). The second option involved the creation of a mega-regulator of the financial market on the basis of the Bank of Russia with the accession of the Federal Service for Financial Markets of Russia.
Then an option appeared, providing for the transformation of the Federal Service for Financial Markets of Russia into a special agency under the control of the Board of Directors of the Bank of Russia. An option was also considered, within which the mega-regulator of the financial market should be an independent specialized body acting as a person of public law, combining the functions of regulation and supervision of all sectors of the financial market.
Each of the listed options had both advantages and disadvantages. Meanwhile, it was clear to all serious experts from the very beginning that in fact the choice had already been made, and the discussion of different options was necessary as a "smokescreen" to create the appearance of "democratic" decision-making [8].
Of course, at the highest level of the Russian government, priority was given to the option providing that the basis for the megaregulator of the financial market will be the Bank of Russia, to which all the functions of the Federal Service for Financial Markets of Russia will be transferred, and the latter will be abolished. The legitimization of this decision took place at the end of July 2013. Most of the provisions of regulatory legal acts entered into force on 01.09.2013. Thus, from that date, a mega-regulator of the financial market, represented by the Bank of Russia, began to function in Russia.
Consider the powers of the Bank of Russia in the area of control and supervision.
In order for the Bank of Russia to be able in practice to perform the functions of a mega-regulator of the financial market, it was endowed with a number of new powers that were previously exercised by the Federal Financial Markets Service of Russia. He took over the powers of the Federal Service for Financial Markets of Russia for the legal regulation of the financial market (without the right to submit draft federal laws and draft regulations of the President of the Russian Federation and the Government of the Russian Federation to the Government of the Russian Federation).
In addition, now the Bank of Russia exercises the powers of control and supervision over financial and non-credit institutions, which include:
- professional participants in the securities market (brokers, dealers, managers, depositories, specialized registrars);
- management companies and specialized depositories of an investment fund, a unit investment fund and a non-state pension fund;
- joint stock investment funds;
- clearing organizations;
- trade organizers, including exchanges (commodity, currency and stock) and over-the-counter trade organizers;
- central depository;
- subjects of insurance business, including insurance companies and insurance brokers;
- non-state pension funds;
- microfinance organizations;
- credit consumer cooperatives;
- housing savings cooperatives;
- credit bureau;
- actuaries;
- rating agencies;
- agricultural credit consumer cooperatives.
- pawnshops.
In addition, the Bank of Russia exercises control and supervisory powers in relation to issuers in their activities in the financial markets, as well as in the field of corporate relations in joint stock companies. In these areas, the Bank of Russia exercises control and supervision in order to protect the rights and
legitimate interests of shareholders and investors.
At the same time, it should be noted that regulation, control and supervision over some segments of the financial market are outside the competence of the Bank of Russia. Thus, the Ministry of Finance of Russia regulates the formation and investment of pension savings. To perform this function, he was empowered to adopt normative legal acts in the field of formation and investment of pension savings, including acts approving the procedure for calculating the net financial result of temporary placement of insurance contributions, the procedure for calculating the results of investing pension savings, model agreements of the subjects of relations on investment of pension savings, lists of rating agencies whose ratings are used for the purpose of investing pension savings, and the procedure for communicating to the insured persons the application form for choosing an investment portfolio (management company).
The Ministry of Labor of Russia regulates and monitors the observance by the Pension Fund of the Russian Federation of the legislation on the formation and investment of pension savings (except for the functions of control over the Pension Fund of the Russian Federation assigned to the Bank of Russia). He was granted the right to approve the form of reports of the Pension Fund of the Russian Federation on the receipt of insurance contributions, on the direction of pension savings for investment, on the results of investment, on the funds accounted for in a special part of the individual personal accounts of insured persons, etc., as well as the right to consider these reports.
At the same time, the Ministry of Finance of Russia and the Ministry of Labor of Russia have the right to send requests for the provision of relevant information to the Pension Fund of the Russian Federation, a specialized depository, management companies, brokers, credit institutions and non-state pension funds. Antimonopoly control in the financial market, as before, is carried out by the Federal Antimonopoly Service (FAS Russia) [8].
In connection with the emergence of new powers for the Bank of Russia, changes have also occurred in its internal structure of man-
agement bodies. First, the composition and competence of the Board of Directors of the Bank of Russia has somewhat changed, which should now include not 12 members, but 14. Second, the term of office of the Chairman of the Bank of Russia has changed, which is now five years, whereas previously it was limited to four years.
Thirdly, a new body, acting on a permanent basis, exercising regulatory, control and supervisory functions of the Bank of Russia in the financial market - the Financial Supervision Committee (analogous to the Banking Supervision Committee) has been created.
Fourth, the status of the National Banking Council has increased, which is now called the National Financial Council.
This is the supreme collegial governing body of the Bank of Russia, consisting of twelve people, of whom two are members of the Federation Council, three are deputies of the State Duma, three are representatives of the President of the Russian Federation, and three are representatives of the Government of the Russian Federation.
The National Financial Council also includes the Chairman of the Bank of Russia. And finally, fifthly, in connection with the integration of the Federal Financial Markets Service of Russia into the structure of the Bank of Russia, a special subdivision was created - the Bank of Russia Service for Financial Markets. Over the next few years, it is the SBRFD that will directly ensure the performance by the Bank of Russia of the functions of regulation, control and supervision in the field of financial markets.
When considering the instruments for regulating the financial sector of the economy, special attention should be paid to the actions taken by the Central Bank in the new status of a mega-regulator. Key events can be identified in each of the segments of the financial market. The banking system in the structure of the financial sector of Russia is characterized by a leading role, which is confirmed by the statistics of the Bank of Russia, according to which, at the end of 2019, the banking system assets accounted for 90% of the assets of the entire financial system (including credit institutions, securities companies, insurance companies, non-state pension funds, invest-
ment funds, general bank management funds, state financial corporations).
This is one of the main reasons for the isolation of banking regulation, which is a system of measures by which the state, through the Bank of Russia or another supervisory body, ensures the stable and secure functioning of the banking system. The system of measures means the development and publication of specific rules or instructions based on the current legislation and determining the structure and methods of banking in the country.
In modern conditions, banks are the most important tools for influencing macroeco-nomic processes. In such conditions, the goal of supervision is to bring the activities of credit institutions in line with the requirements of legislation and regulations.
Supervisory activities of the Central Bank of the Russian Federation are carried out in the following areas:
- establishment of mandatory performance standards for credit institutions; opening correspondent accounts and special accounts for depositing the required reserves of banks;
- refinancing of credit institutions; regulation of bank liquidity by performing operations on the open market; establishment of rules for conducting banking operations, maintaining accounting records, drawing up and submitting accounting and statistical reports.
The integrity of the entire system of supervision over the activities of credit institutions is ensured by the legal framework, which includes legislative acts establishing the subjects and objects of supervisory activity, the functions and powers of supervisory bodies. The Bank of Russia is authorized to verify compliance by credit institutions with laws, mandatory economic standards and regulations of the Bank of Russia, but does not have the right to interfere in their operational activities, with the exception of cases provided for by federal laws.
Supervision over the activities of credit institutions is carried out on the basis of two federal laws: "On the Central Bank of the Russian Federation (Bank of Russia)" dated July 10, 2002 № 86-FL; "On Banks and Banking Activities" dated 02.12.1990 №395-
1-FL, as well as on the basis of numerous regulatory legal acts issued by the Bank of Russia in accordance with the current legislation. Banking supervision is also based on the generally recognized Basel Principles for Effective Banking Supervision issued by the Basel Committee on Banking Supervision.
The main provision of Basel III standards is the tightening of requirements for the form of the capital of the first level, which includes only ordinary shares and retained earnings. The capital of the first level should be increased from the current 4% to 6% of assets (required by the Basel II principles), weighted by risk. The share capital, together with retained earnings, should also be increased -from 2% of risk-weighted assets to 4.5%.
In addition, increased norms of reserve and stabilization capital are established, which each bank must have. Two special capital buffers are introduced - reserve and countercyclical. Reserve capital should be 2.5% of assets, countercyclical buffer capital is introduced in case of overheating of the economy during periods of credit booms and can range from 0 to 2.5%. The requirements proposed in the Basel III regulation seem to be very strict (their implementation will put most banks in a difficult position), however, the period set for bringing the bank's performance indicators in line is rather long, which will allow credit institutions to painlessly increase capital. At the same time, many more Russian banks faced difficulties not only with the Basel II standards, but also during the transition to the international financial reporting system) [9].
Only the largest state-owned banks -Sberbank, VTB, Rosselkhozbank Gazprombank, as well as subsidiary banks -Raiffeisenbank, Rosbank and a number of other banks meet the requirements of Basel III. At the same time, by 2020, in certain segments of the banking market, in particular, in the market for lending to large corporate clients and the population, the positions of foreign banks decreased.
It should also be noted that according to KPMG estimates, almost half of the banks currently do not meet the new requirements. The top fifty Russian banks have not enough resources (more than 300 billion rubles) to meet Basel III requirements for fixed assets.
At the same time, the twenty largest domestic banks may face difficulties with their implementation. Therefore, of course, the transition to the new Basel standards will require both time and financial costs. The task of introducing the next set of measures outlined in the Basel Agreement is intended to be solved by supervisory authorities based on an analysis of the readiness of the national banking system.
If we talk about the methods and tools of banking supervision, there are many different classifications and approaches.
One group of scholars argues that the banking supervision process involves two main methods:
1) regulation (prudential, remote, documentary supervision), which implies the implementation of the observation process based on the reporting data submitted by credit institutions to the supervisory authorities of the Bank of Russia;
2) audits (inspections, inspections, on-site inspections), in accordance with which the supervisory authorities of the Bank of Russia carry out inspections of credit institutions in order to identify deficiencies in their activities.
The implementation of these methods provides for: the banking supervisory authority has powers and tools to systematize and analyze reporting and statistical data received from commercial banks; whether supervisory authorities have tools for independent assessment of reported data through on-site audits or through external audits; development of prudential norms and requirements by the supervisor and bringing them to the attention of commercial banks; the authority of the banking supervisor to give binding character to its decisions.
Technologically, in the process of supervision, it is supposed to use two main tools: receiving reports from banks and their remote analysis; local bank checks.
Improving the organization of substantive supervision will be facilitated by:
- the introduction of the institution of bank curators, who should be the main organizers of supervision over the activities of specific banks;
- creation of an early warning system based on the model of the development of the situation in a credit institution, and the introduction of this system into supervisory practice;
- further development of tools for inspection activities, including the orientation of inspectors to the substantive component of supervision, coordination of documentary and inspection supervision functions. It should be noted that the implementation in Russia of the set of measures proposed by the Basel Agreement will help to increase the efficiency of the national banking system, and will strengthen the confidence of foreign investors, which is important in the context of the transformation of the global banking system.
In practical terms, it has become very important that the Bank of Russia has been cleaning up the banking sector since 2013 in order to rehabilitate it. At the same time, the Central Bank is guided by certain criteria for revoking a license. This can be a bank's capital adequacy of less than 2%, violations related to failure to meet the requirements for the amount of the authorized capital and the bank's own funds on time, failure to fulfill monetary obligations to creditors after the due date within 14 days and other requirements.
A banking license can also be revoked for the following reasons: inaccuracy of the information required for issuing a license and the information provided in reports, the absence of banking operations performed for a period exceeding one year from the date of issuance of the license, banking operations that do not correspond to the issued license.
Most often, the Bank of Russia records violations related to non-compliance with federal legislation in the field of banking activities, significant inaccuracy of reports and inability to satisfy the monetary claims of creditors.
As for other measures in the banking sector, it should be noted that in the context of the threat of Russia's disconnection from the international interbank SWIFT system, an extremely important event was the creation at the end of 2014 of the Financial Messaging System, which allows transferring financial messages on domestic transactions with high degree of protection and safety.
Thanks to the created service, uninterrupted and reliable transmission of electronic messages on financial transactions will be possible even if disconnected from the global system. Despite the fact that the decision to disconnect the banking system of the Russian Federation from SWIFT has not been implemented, about half of Russian banks have already connected to the Financial Messaging System, and the number of those connected is only growing [10].
Thus, the creation of a national system for the transfer of financial data made it possible to increase the security of the banking system and strengthen the entire financial market.
The activity of the Central Bank in the securities market may be reflected by changes in the sphere of its regulation. As in the banking sector, their activities were influenced by the actions of the Central Bank. Having become a mega-regulator, the Bank of Russia has tightened its supervision over the professional activities of stock market participants.
This also manifested itself in the application of radical measures, including the cancellation of licenses. These actions are related to a certain extent to the forced termination of the activities of the banking sector, which is the result of the same strictly pursued policy of the Bank of Russia in relation to credit institutions. In recent years, the largest number of licenses has been revoked due to the facts of revealed violations.
The consequence of the reduction in a significant number of professional participants in
companies appearing in the industry is an increase in the concentration of assets, control over which is distributed among organizations that have avoided exclusion from the market and have managed to strengthen their positions.
The Bank of Russia adopted the Ordinance "On the requirements for own funds of professional participants in the securities market and management companies of investment funds, mutual funds and non-state pension funds", according to which the capital requirements for non-credit financial institutions were reduced and the amount of claims was differentiated depending on the operations.
Requirements for dealers and brokers, which previously amounted to 35 million rubles, have now been reduced to 3 million rubles provided that they do not lend and use client funds in their field of activity. For brokers entitled to use clients' funds on the basis of an agreement, the minimum amount of capital is from 35 million rubles reduced to 15 million rubles provided they comply with the standards of self-regulatory organizations (SROs). Requirements for the size of securities managers decreased from the previous value of 35 million rubles up to 5 million rubles, for depositories - from a value equal to 60 million rubles to 15 million rubles subject to the standards of self-regulatory organizations (SRO). These measures are taken and aimed at stimulating the development of the securities market.
the securities market and the absence of new
References
1. About the Central Bank of the Russian Federation (Bank of Russia) [Electronic resource]: Federal Law of the Russian Federation of 10.07.2002. № 86-FL // SPS "Consultant Plus".
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3. Lavrushin O.I. Banking: a textbook for universities. - M.: Finance and statistics, 2019. -667 p.
4. Egorova N.E., Smulov A.M. Enterprises and A.M. Smulov. - M.: Delo, 2018. - 356 p.
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6. Mirkin Y.M. Russian securities market: the impact of fundamental factors, forecast and development policy. - M.: Alpina Publisher. 2019. - 624 p.
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РАЗВИТИЕ СФЕРЫ НАДЗОРНОЙ ДЕЯТЕЛЬНОСТИ БАНКА РОССИИ КАК МЕГАРЕГУЛЯТОРА ФИНАНСОВОГО РЫНКА
С.Е. Коршунова, студент
Научный руководитель: А.Б. Басс, канд. экон. наук, доцент Финансовый университет при Правительстве РФ (Россия, г. Москва)
Аннотация. В статье рассмотрены основные аспекты развития надзорной деятельности Банка России как мегарегулятора финансового рынка. Охарактеризованы пять основных институциональных моделей организации банковского надзора, функционирующие в зарубежной практике. Исследование моделей финансового надзора зарубежных стран с развитыми рынками дает возможность сформировать комбинированную модель надзора за субъектами финансового рынка, которая представляет собой, по имеющемуся мнению ряда исследователей, наиболее эффективную модель надзора и регулирования. Данная модель построена на бизнес-процессах надзорной деятельности. Применительно к органу финансового надзора термин «бизнес-процессы» используется в значении «деловые процессы», «функциональные мероприятия». Рассмотрены функциия Банка России как мегарегулятора финансового рынка по контролю и надзору за финансовыми и некредитными организациями. Подчеркивается, что деятельность Центрального банка на рынке ценных бумаг характеризуется изменениями, произошедшими в сфере его регулирования. Как и в банковском секторе, влияние на их деятельность оказали действия Центрального банка. Став мегарегулятором, Банк России ужесточил надзор за осуществлением профессиональной деятельности участников фондового рынка.
Ключевые слова: мегарегулятор финансового рынка, банковский надзор, модели финансового надзора зарубежных стран, надзорная деятельность Банка России, профессиональная деятельность участников фондового рынка.
