The difference between a central bank and a commercial bank. The essence of the central bank and its origin The difference between the central bank and commercial banks

Central bank operations

Within the framework of the functions established by law and achieving the goals and objectives set, the Central Bank of the Russian Federation:

- conducts operations to issue money into circulation;

– carries out credit, settlement, cash and deposit operations;

– buys and sells government securities on the open market;

– buys and sells bonds issued by the Bank of Russia and certificates of deposit;

– buys and sells foreign currency, as well as payment documents and obligations denominated in foreign currency issued by Russian and foreign credit institutions;

– buys, stores, sells precious metals and other types of currency values;

– accepts securities and other assets for safekeeping and management;

– issues guarantees and bank guarantees;

– carries out transactions with financial instruments used to manage financial risks;

– opens accounts in Russian and foreign credit institutions on the territory of the Russian Federation and the territories of foreign states;

– issues checks and bills of exchange in any currency;

- Conducts other banking operations.

Operations performed by the central bank can be classified depending on certain criteria (table).

Classification of types of central bank operations

Criteria for classifying central bank operations	Types of Central Bank Operations
By nature	Banking and non-banking
By content	Economic, legal, technical, to ensure the internal security of the bank
By the nature of the work performed	Analytical, managerial, accounting, accounting, etc.
For planning activities	Strategic and tactical
By stage of implementation	First and next
According to the frequency of	One-time (one-time) and reusable (recurring)
Relative to the national market	Domestic and international
By currency	In rubles, in foreign currency, multicurrency
In relation to the bank of the bank	Active, passive, off-balance sheet

The Central Bank works at the macro level of economic relations, serves the general national economic needs, does what no other bank does, emitting cash into the economy.

The difference between a central bank and a commercial one can also be found in other parameters.

By target orientation. Making a profit, as already noted, is not the target motive for the activities of the central bank. Unlike the latter, a commercial bank, on the contrary, works for profit.

By type of property. The capital of central banks, as will be shown later, most often belongs to the state, while for commercial banks in a market economy, the most typical form of ownership of capital.

By number and capital base. Each individual country has its own single national central bank; commercial banks, depending on national traditions, the scale of the economy and the size of the territory, there can be tens, hundreds and even thousands. Naturally, therefore, according to the capital base, commercial banks are divided into big, medium and small credit institutions. It is not necessary to divide central banks by the amount of capital, since in each individual country there is only one central bank.

By line of business. Commercial banks, carrying out a certain set of services, can be both universal, so specialized. This criterion for the classification of central banks has been changed, because by its status and powers delegated to it, it acts as a universal monetary institution that performs a wide range of operations and services.

Industry-specific. Commercial banks often focus on servicing a particular sector of the economy. They emphasize their commitment to the sectoral focus of their activities even in the title. In different countries there are, for example, foreign trade, export-import, industrial, agricultural, oil, gas, marine, aviation and banks similar to them, at the base or the main clients of which are enterprises of the corresponding industry (sub-sector) of the economy.

On a regional basis. According to the nature of their activities, central banks are national institutions, serving economic entities throughout the country. In the context of the tasks assigned to them, they also enter into international monetary and credit relations. Commercial banks can be divided into regional (local), urban, interregional, international.

By clients. The clients of both central and commercial banks are legal and individuals. The fundamental difference, however, is that central banks do not serve directly producers of goods (except in cases where there are no business banking institutions in a particular locality), the clients of the central bank are commercial banks that serve specific agents of the economy, government, military and others. publication institutions).

By law. Most often, central and commercial banks are regulated by various types of legislation. The activities of the central bank This scope of public law,commercial banking activities scope of business law, special laws governing the activities of banks as commercial structures.

By the nature of subordination (accountability)central banks as entities representing state power in the monetary sphere, most often accountable only to the legislature (parliament, State Duma, etc.), to which they periodically report on the results of their activities. Commercial banks accountable only to their shareholders, before which at the annual meeting they announce the results of their work for the reporting period.

On legal support of the beginning of the activity. The beginning of the activities of the central bank is established act of the supreme government. The State Bank of the Russian Empire, for example, was established by the Decree of the Russian Empire, the Central Bank of the Russian Federation (Bank of Russia) by the Decree of the President of the Russian Federation. Napoleon, for example, reorganized the Bank of France by law, making it the bank of banks. The creation of the Bank of England was approved by a bill of parliament (Tonnage Act).

The beginning of the activities of a commercial bank puts the receipt of a license from the central bank. There may be several such licenses, including a license to carry out foreign exchange transactions.

As directed by senior management. Insofar as central bank is of national importance and most of its capital is more often completed on a public basis, the head of the central bank is appointed and approved by the president and the country's highest legislative body . Supervisor commercial bank appointed by its shareholders.

For supervision and control. Control over the work of the central bank is carried out at the state level. In the Russian Federation, for example, an audit organization with a high professional reputation is appointed to audit the activities of the Bank of Russia. The Bank of Russia may be audited by the Accounts Chamber of the Russian Federation on certain issues of its activity.

Supervision and control over the work of commercial banks can be carried out either by specially authorized government agencies or by central banks (as is the case, for example, in the Russian Federation).

In the Russian Federation, the banking system is represented by the Central and commercial banks, as well as other non-banking credit institutions. We can say that the banking system of the Russian Federation is a two-tier one. The upper level is represented by the Central Bank, and the lower level is represented by all the others.

Central Bank of the Russian Federation

The Central Bank of Russia is the largest bank operating in Russia. It is the subject of monetary regulation. Its goals and objectives are regulated at the level of the Constitution and federal legislation.

All banks can be divided into two categories: issuing, which is the Central Bank, and commercial banks. A feature of the issuing bank is that it has the right to issue national monetary units, as well as to regulate the circulation of funds in Russia.

Commercial banks

This category of banks includes credit institutions that are created to serve legal entities and individuals, giving them the opportunity to conduct various financial transactions. Banks attract deposits, provide loans, and also carry out settlement, payment and intermediary operations. In addition, commercial banks participate in transactions in the stock and bond markets.

Commercial banks and the Central Bank differ in that the purpose of the former is to make a profit. Bank profit is called margin. It is calculated as the difference between the interest rate on loans issued by the bank and the interest rate on deposits.

Services provided by commercial banks

The adjective "commercial" indicates that the bank is set up to make a profit. But there are also banks that are more specialized in providing certain banking services.

The most common services provided by commercial banks are the following:

• granting loans to individuals and legal entities;
• conducting foreign exchange transactions;
• car loans;
• mortgage;
• exchange of damaged banknotes for unspoiled ones;
• creation and maintenance of settlement accounts for economic entities;
• operations with precious metals.

Tasks and goals of financial institutions

The tasks of the Central and commercial banks are different. The Bank of Russia operates in three main areas. First, he should try to maintain the stable functioning of the banking system, and also try to reduce the rate of liquidity decline in the entire banking system in the country as much as possible. Secondly, the Central Bank of Russia must ensure the reliability and efficiency of the entire payment system. The third task of the Central Bank is to maintain the purchasing power of the ruble, as well as to maintain a stable exchange rate.

At the moment, the government of the Russian Federation has established a floating exchange rate regime for the ruble. Previously, the Central Bank tried to maintain the exchange rate of the national currency due to targeted influence on the foreign exchange market.

Unlike various non-bank credit institutions and commercial banks, the Central Bank does not pursue any commercial goals in the course of its activities. The Bank of Russia is responsible for the development of the financial market in the Russian Federation, and also ensures its stability. Making a profit is not his main goal. This is the main difference between commercial banks and the Central Bank of the Russian Federation.

Importance of commercial banks

As mentioned earlier, the main objective of the operating activities of commercial banks is to make a profit. This is where their commercial interest lies. A commercial bank can be created on the basis of any form of ownership and is a business entity.

Commercial banks play an important role in the modern economy. They are intermediaries and carry out the distribution of capital between industries and regions of the state. One of the main tasks of commercial banks is to ensure the uninterrupted circulation of funds and capital in the state. Also, this category of banks is responsible for providing loans to industrial enterprises, the state and the population. In addition, commercial banks create conditions for the accumulation of funds of organizations and citizens.

Functions of the Central Bank

Due to the fact that commercial banks and the Central Bank pursue different goals in their activities, their functions also differ. To solve the tasks assigned to the Central Bank, it performs the following functions:

• storage of gold and foreign exchange reserves;
• accumulation and storage of reserves of credit institutions;
• control over credit institutions;
• issue of credit funds;
• lending to commercial banks;
• monetary regulation of the sector of the economy.

In order to perform these functions, there are many methods. The Bank of Russia has the right to change the norms of required reserves of banks and carry out market operations. Such operations include the purchase and sale of government bonds, bills of exchange and other securities.

Also, the Central Bank has the right to change the size of lending rates. This task is implemented within the framework of credit regulation. Another important area of ​​activity is the development of an exchange rate policy. All of the above methods are called general, since they affect the activities of all commercial banks, as well as the credit capital market.

In addition to general methods, there are also selective ones. Their application is aimed at regulating certain types of loans (annuity or consumer, for example). Also, these methods can be focused on providing loans to a variety of industries.

Examples of selective methods are credit ceilings (limits), which are a direct limitation on the amount of loans that can be provided by certain banks in the Russian Federation. The second example of selective methods is the regulation of the conditions under which certain types of loans are issued. The central bank can set the difference between rates on loans and deposits.

"Bank of Banks"

The Central Bank does not cooperate with entrepreneurs and the population of the Russian Federation. Its main clients are commercial banks, which are intermediaries between the Central Bank of the Russian Federation and economic entities.

The Central Bank holds the cash of commercial banks. This money is called reserves. Historically, reserves have been held to pay off deposits. The minimum amount of the reserve in relation to the amount of liabilities on deposits is set by the Bank of Russia.

As a "bank of banks", the CBR is the body that regulates the entire Russian payment system. Under his responsibility is the creation and organization of interbank settlements, coordination and regulation of settlement systems. The Central Bank is the center of the entire banking system of the Russian Federation.

Functions of commercial banks

The main functions of the Central Bank and commercial banks differ significantly. If the work of the Central Bank is more of a regulatory nature, then the activities of commercial banks are associated with the redistribution of monetary resources and stimulation of savings.

The main function is to mediate loans. The bank is engaged in the redistribution of money that can be released in the process of turnover of the capital of enterprises and incomes of individuals. Redistribution of funds is carried out horizontally, that is, from the lender to the borrower. There are no intermediaries in this area. The payment for the use of capital is set under the influence of supply and demand.

The second function of commercial banks is to stimulate the creation of savings in the economy. In theory, it is the funds of commercial banks that should make up the bulk of the money intended for reforms in the economic sector.

The main incentive to create savings is the increase in deposit rates. In addition to them, guarantees of the reliability of depositing accumulated funds in a bank can act as an incentive. The third function, which is performed by commercial banks, is to mediate payments between economic entities.

Varieties of commercial banks

The economic role of commercial banks is growing every year. This is reflected in the fact that the scope of their activities is expanding, as well as new financial services. There are banks in the world that provide their customers with more than three hundred services.

Banks can be classified according to different criteria. Depending on how the authorized capital is formed, commercial banks can be created in the form of joint-stock companies or LLC. In addition, they can be created with the participation of foreign banks or foreign capital.

Based on the types of operations that are performed by commercial banks, they are divided into universal and specialized. According to the territory of their activities, commercial banks can be divided into federal and regional.

Joint stock commercial banks

This category of banks is the most widespread in the world. The first joint-stock bank on the territory of the Russian Federation appeared in the middle of the 19th century in St. Petersburg. Joint stock banks can be divided into open joint stock companies and closed ones. Shares of OJSC can be purchased and sold by anyone. The subject composition of transactions with CJSC securities is significantly limited.

The largest Russian commercial banks are Sberbank, VTB, Alfa-Bank, FK-Otkritie and Gazprombank. These banks are the most profitable in the Russian Federation. Recently, Tinkoff Bank has been gaining popularity. Its feature is the complete rejection of branches. All transactions are made online. The bank has a large number of partners, in the terminals of which you can withdraw cash from a bank card.

Bank licenses

A banking license is a state license that is issued to a commercial bank and gives it the right to conduct various banking operations. First of all, we are talking about the fact that the document allows you to attract clients' money as deposits, issue loans and carry out settlement and payment transactions by opening bank accounts.

In the Russian Federation, the Central Bank is responsible for issuing a permit to a commercial bank. A commercial bank is allowed to conduct banking operations only in accordance with the obtained license, which is issued by the Central Bank in the manner established at the legislative level.

The license must be registered in the registry. It indicates all transactions that can be carried out by the bank, as well as the currency in which these transactions can be carried out. The validity of the document is unlimited, however, the Bank of Russia may revoke licenses from commercial banks for violation of certain conditions for conducting activities.

Relations between the Central Bank of Russia and commercial banks

The main difference between the Central Bank and the commercial one lies in the controlling role of the former. It performs the functions of general regulation of the activities of each individual commercial bank.

The Bank of Russia uses all economic methods of management. And only in the case when their use is not capable of achieving the desired effect, the Central Bank can use administrative methods of management in the process of regulation. The relationship between the Bank of Russia and commercial banks operating in the territory of the state is determined by the current banking legislation.

In order to regulate commercial banks, the Central Bank may increase or decrease the minimum required reserve rates, which are placed by commercial banks in the main bank of the state. Also, the Central Bank of the Russian Federation provides loans to commercial banks and can change their volumes along with interest rates.

The amount of the balance of funds, which is subject to reservation in the Central Bank, is determined on the basis of data from the balance sheet of commercial banks. In their balance sheet, all funds that were attracted as loans should be taken into account. The relationship of an economic nature between commercial banks and the Central Bank of Russia lies in the fact that the latter provides loans to commercial banks, and they, in turn, can issue loans to business entities.

Banks are credit and financial institutions, the most important functions of which are: the accumulation of temporarily free funds and their provision on loans to enterprises that are temporarily in need of money.

The main purpose of the bank is to mediate in the movement of funds from the lender to the borrower and from the seller to the buyer.

Banks as subjects of the financial market have two essential features that distinguish them from other subjects.

First, banks are characterized by a double exchange of debt obligations: they place their own debt obligations (deposits, deposit certificates), and the funds mobilized on this basis are placed in debt obligations and securities issued by others.

Secondly, banks are distinguished by the assumption of unconditional obligations with a fixed amount of debt to legal entities and individuals, for example, when placing customer funds into a deposit account, when issuing certificates of deposit, etc.

A characteristic feature of commercial banks that distinguish them from state banks and credit cooperatives is that the main purpose of their activities is to make a profit (this is the commercial interest in the system of market relations).

The mobilization of all funds and their transformation into loan capital is provided by the banking system.

In most countries with developed market economies, the banking system has a two-tier structure: the first level forms the central bank, and the second level - commercial banks.

The central bank represents the concentration of all credit relations.

Modern central banks are characterized by a dual position: on the one hand, their activities are regulated by the state, on the other hand, they have independence in conducting credit policy.

Main functions of the Central Bank:

– monopoly right to issue (issue) banknotes;

- concentration of minimum reserves of commercial banks, providing them with credit support, exercising control over the activities of commercial banks;

– regulation of the economy by monetary methods;

- storage of free cash resources of the government in the form of deposits, transferring to it all its profits in excess of a certain predetermined rate, mediation in payments in lending to the government.

All modern central banks are joint-stock. The block of shares may belong to the government (England, France); can be divided between the state and private institutions.

Commercial banks are private (non-state banks) operating on a market basis and carrying out a wide range of financial and credit operations:

- issuance of loans and acceptance of deposits;

– mediation in payments;

- buy and sell shares;

– property management by proxy;

– placement of government loans;

– advice on financial and credit issues;

- Lease transactions.

The main difference between commercial banks and central banks is that they do not have the right to issue banknotes.

Commercial banks are of two types: universal, carrying out a wide range of operations, and specialized, carrying out one or several financial transactions (Sberbank, Mortgage Bank).

In banking practice, the following main types of banking operations are distinguished: active and passive.

Active operations are the provision of loans. Among modern active banking operations, leasing and factoring operations stand out. Leasing provides a long-term lease (of buildings, machines, structures, industrial purposes). Factoring is a financing system, according to which the supplier of goods assigns short-term claims on commodity transactions to a factoring company.

Passive operations - mobilization of monetary savings and bank income. All deposits in the bank are divided into deposits (any, except savings) and savings deposits (accumulation of cash savings).

In addition to active-passive operations, banks provide the following services: cash and non-cash payments, operations with currency, gold, issue and storage of securities, trust operations, etc.

Thus, all banking operations are carried out either on a credit basis (active-passive), allowing you to receive interest, or on a commission basis (banking services), i.e. at the expense of their clients and clients who bring commissions.

Banking operations bring bank profits to the bank.

Profit is the difference between income from active operations and passive operations. The bank's income also includes profit from investments, exchange operations, commercial remuneration.

Along with banks, non-bank credit and financial institutions operate in a market economy. For a long time they played a subordinate role in the monetary system, yielding to commercial banks. These are specialized financial institutions: savings institutions, insurance companies, pension funds, investment funds.

Specialized credit and financial institutions accumulate small capitals and savings of wide sections of society, which, thanks to their intermediation, are used for investment in the economy.

The universality of operations, characteristic of both banks and specialized financial institutions, turns the latter into a kind of commercial banks.

central bank is a state body designed to establish and regulate the credit system of the state. It is in charge of the activities of all commercial banks in the country, since the settlement accounts of these particular entities of the system are under the jurisdiction of the Central Bank. He develops a system of principles for accounting and reporting for all credit institutions, and they, in turn, are obliged to obey them. If necessary, this state body may issue loans to commercial banks for their financial and economic operations. In addition, the Central Bank and only it is authorized to issue or issue banknotes.

Commercial Bank- a non-governmental organization whose main function is to meet the needs of legal entities and individuals of the country in order to obtain their own benefit. They can issue loans for a variety of needs and accept deposits from the population at different interest rates, maintain settlement accounts of companies, perform currency exchange operations and transactions with securities and precious metals. In addition, commercial banks have the right to exchange damaged banknotes for new ones. The settlement account of such a credit institution is located in the Central Bank, and if necessary, it can receive credit funds from the Central Bank of Russia.

Thus, we can say that the Central Bank dominates all commercial banks, develops various regulations and principles for banks to conduct their activities, and also controls their work by conducting various checks and analyzing reports. In turn, the activities of commercial banks are aimed at meeting the interests of the population and legally registered economic entities of the country. They can issue loans, accept deposits, exchange currency, sell precious metals.

The Central Bank, being a type of bank, differs from its other varieties. The main difference is that it works at the macro level of economic relations, serves the general national economic needs, does what no other bank does, emitting cash into the economy. The difference between a central bank and a commercial one can be found in other parameters:

1. By target orientation. Making a profit is not the target motive of the central bank. Unlike the latter, a commercial bank, on the contrary, works for profit.

2. By type of ownership. The capital of central banks is most often owned by the state, while commercial banks in a market economy are most characterized by a joint-stock form of ownership of capital.

3. By number and capital base. Each individual country has its own single national central bank; commercial banks, depending on national traditions, the scale of the economy and the size of territories, there can be tens, hundreds and even thousands. Naturally, therefore, according to the capital base, commercial banks are divided into large, medium and small credit institutions. It is not necessary to divide central banks by the amount of capital, since in each individual country there is only one central bank.

4. By areas of activity. Commercial banks, carrying out a certain set of services, can be both universal and specialized. This criterion for the classification of central banks has been changed, because by its status and powers delegated to it, it acts as a universal monetary institution that performs a wide range of operations and services.

5. By industry focus. Commercial banks often focus on servicing a particular sector of the economy. They emphasize their commitment to the industry even in the title. In different countries there are, for example, foreign trade, export-import, industrial, agricultural, oil, gas, sea, aviation and similar banks, the basis or main clients of which are enterprises of the corresponding sector of the economy. Of course, central banks, whose activities provide for the general national economic needs, cannot be sectoral in nature.

6. On a regional basis. In accordance with the nature of their activities, central banks are national institutions serving economic entities throughout the country. In the context of the tasks assigned to it, they also enter into international monetary and credit relations. Commercial banks can be divided into regional (local), city, interregional, international.

7. By clients. Clients of both central and commercial banks are legal entities and individuals. The fundamental difference, however, is that central banks do not serve directly producers of goods (except in cases where there are no business banking institutions in a particular locality), the clients of the central bank are commercial banks that serve specific agents of the economy, government, military and others. institutions.

8. By law. Most often, central and commercial banks are regulated by various types of legislation. The activity of the central bank is the area of ​​application of public law, the activity of a commercial bank is the area of ​​application of economic law, special laws governing the activities of banks as commercial structures.

9. By the nature of subordination (accountability). Central banks, as entities representing state power in the monetary sphere, are most often accountable only to the legislature. Commercial banks are accountable only to their shareholders, to whom at the annual meeting they announce the results of their work for the reporting period.

10. Legal support for the start of activities. The beginning of the activities of the central bank is established by an act of the supreme state power. The State Bank of the Russian Empire, for example, was established by the Decree of the Russian Empire, the Central Bank of the Russian Federation - by the Decree of the President of the Russian Federation. The beginning of the activities of a commercial bank puts the receipt of a license from the central bank. There may be several such licenses, including a license to carry out foreign exchange transactions.

11. On supervision and control. In the Russian Federation, for example, an audit organization with a high professional reputation is appointed to audit the activities of the Bank of Russia. The Bank of Russia may be audited by the Accounts Chamber of the Russian Federation on certain issues of its activity. Supervision and control over the work of commercial banks can be carried out either by specially authorized government agencies or by central banks.

Topic 1 The essence of the central bank and its origin PLAN 1. ESSENCE OF THE CENTRAL BANK 2. Differences between the central bank and the commercial bank 3. The structure of the central bank 4. The origin and evolution of central banks. 1. ESSENCE OF THE CENTRAL BANK. Central banks of different countries are engaged in a wide variety of activities. They not only carry out lending operations traditional for banks, arrange settlements in cash and non-cash forms, store funds, but also manage the country's gold and foreign exchange reserves, analyze and forecast the state of the national economy, and perform supervisory and control functions. . Working in the field of economic relations at the macro and micro levels, central banks deal with the logistics and operation of the facilities and equipment entrusted to them, have their own technology centers and information systems, collect and process relevant information. . The combination of economic, organizational and logistical operations to a certain extent veils the essence of the central bank, making it a "many-sided" institution. In order to answer the question, what is the essence of the central bank, it is necessary, firstly, to determine what, along with its general features, is its specificity, secondly, what constitutes the basis of its activities, thirdly, what is the structure of the central bank. . Considering that the central bank belongs mainly to the sphere of economic relations, it should be characterized as an economic institution. In the arsenal of the central bank, mainly economic methods of regulation, its monetary policy is based on the use of money, credit, interest, exchange rate as tools to stimulate economic development. . In the operations performed by the central bank, another important property is also noticeable: for the most part, they are all connected with the exchange. Therefore, for good reason, the central bank can be called an institution of exchange that serves the transfer of material goods from one economic entity to another. . In a sense, the central bank is a trading institution. . By accumulating the funds of clients (commercial banks) in their accounts, central banks redistribute them on a repayable basis, lending to the temporary needs of those banks that need temporary financial assistance in the form of refinancing. . The activity of the central bank is manifested mainly at the macro level of economic relations. Providing a rational organization of money circulation, non-inflationary development, it creates conditions for preserving the value of money and thus for the social development of the whole society. . At the same time, as a legal entity, the central bank carries out separate operations with specific other economic entities. The micro-level of economic relations here is fully manifested, however, the central one, unlike commercial banks, does not work for itself, but for the economy as a whole. This gives us the right to characterize its activity as the activity of a national institution. . The Central Bank is a non-profit organization. Like any economic institution, it provides its products and services to economic entities and, like commercial banks, receives a certain fee for them to compensate for its costs. However, unlike commercial organizations, making a profit is not the goal of the central bank. . When revealing the essence of the central bank, it is necessary to consider its activities at the macro level, in relation to the economy as a whole. . Disclosure of the essence of the bank requires an analysis of the totality of banking operations carried out over a long historical development. . Like any bank, it can lend, make settlements, accept funds from other economic entities for storage, and issue means of payment. The basis of the bank's activities as such lies in the performance of these monetary operations. These activities are the main ones. 2. Differences between a central bank and a commercial bank. The Central Bank works at the macro level of economic relations, serves the general national economic needs, does what no other bank does - emits cash into the economy. Other options: . . . . . . . By target orientation. By type of property. By number and capital base. By line of business. By law. By clients. By the nature of subordination (accountability). . For supervision and control. 3. The structure of the central bank. The structure of the bank from the standpoint of its essence is its construction, which enables it to function as a specific institution. In the structure of the central bank, like any other bank, there are four blocks. . The first block is bank capital, which in most cases reflects the capital of national central banks as part of the capital allocated by the state when organizing this institution. Unlike the capital of commercial banks, separated from the capital of industry and trade, the capital of the central bank is most often formed with the help of state budget resources. . The second block covers the specific activities of the central bank, which together perform monetary operations that form the basis of its economic turnover, and, unlike commercial banks, issue cash into circulation. . The main principle of the activity of the central bank is to protect the economic interests of the state, primarily in the field of regulation of money circulation. Activities of this kind are independent in nature. . The third block is a special group of people with knowledge and skills in the field of banking and regulation of monetary relations. The staff of the central bank are civil servants. . The fourth block, which goes beyond the scope of economic theory, is often called production, because it covers banking equipment, buildings, structures, means of communication and communication, information systems, and certain types of production materials. 4. Origin and evolution of central banks. The central bank is the result of the evolutionary development of banking. Having emerged a little over 330 years ago, banks of this type have made a noticeable development path from ordinary monetary institutions to state banks, having received broad powers to regulate money circulation in the country. . The origin of the first money circulation banks in Europe dates back to the middle of the 17th century. By that time, bills of exchange and money certificates were already being used, paper money was being put into circulation, and exchange operations were being improved with the development of international trade. . Despite the fact that the first bank to issue was the Bank of Stockholm (in 1650 it issued certificates of deposit for gold coins, which were issued to the bearer and circulated on an equal basis with other types of money throughout the kingdom of Sweden), the first issuing bank is considered to be created in 1694 the Bank of England, as it began to issue banknotes and discount commercial bills. . The creation of a central bank of issue was due to the processes of concentration and centralization of capital, the transition to a single national monetary system. . Subsequently, in addition to issuing banknotes, the role of the state treasurer, intermediary between the state and commercial banks, and the conductor of the state's monetary policy was assigned to the central banks. . With the formation and development of central banks, their issuing activity was improved, gradually they acquired the monopoly right to issue banknotes as a means of payment. . In the conditions of the modern economy, central banks are “banks of banks”, the emission activity of which turns into the most important factor in regulating the economy.