Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

The Role of Legal Acts of the Central Bank of the Russian Federation in Ensuring Bank Security

Author(s): Elena N Pastushenko, Larisa N Zemtsova

The international legal principles of banking regulation and supervision, developed by the Basel Committee on Banking Supervision, require elaborating the risk-oriented approach in Russian legislation. The financial and legal doctrine and the development of Russian banking legislation and law enforcement practice testify to the growing role of the Central Bank of the Russian Federation in the financial activities of the state. This also applies to issues of the implementation by the Bank of Russia of the regulatory function as an element of its public-law status. The public-law status of the Bank of Russia assumes its authority in such distinguished aspects as: a subject ensuring national security, a subject ensuring economic security; a subject of strategic planning; a subject implementing the strategy of financial literacy improvement; a subject implementing the strategy for protecting the rights and legitimate interests of consumers of financial services; a subject providing a critical information infrastructure in the banking sector and other areas of the financial market. In modern conditions, there is a forming trend of expansive release of conceptual program documents by the Bank of Russia. We can differentiate two types of conceptual program documents issued by the Bank of Russia: these are, firstly, conceptual program documents based on setting forth provisions on their status in federal laws and, secondly, conceptual program documents issued by the Bank of Russia on its initiative, i.e. for reasons not specified in federal laws. These relevant issues of monetary policy, financial market and financial technology development, availability of banking services, reflected in the above conceptual program documents, can be described as elements of the concept of the legislative policy of the Central Bank of the Russian Federation. Conceptual program documents of the Bank of Russia determine the directions of statutory regulation and law enforcement practice of the Bank of Russia. This reflects the interconnection and interdependence of the types of the Bank of Russia’s legal acts as elements of its competence to implement legally mandated functions, including the function of ensuring banking security: regulatory, law enforcement, and interpretative acts as well as treaties of the Bank of Russia. From the standpoint of the principle of legality of banking activity, a proposal is made to fill gaps in legal regulation. The necessity to consolidate provisions on the legal nature of letters, information letters, explanations, methodological recommendations as interpretative acts of the Bank of Russia that are not normative acts of the Bank of Russia with an officially published regulatory act of the Bank of Russia is justified.

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