Central Credit Institution: Forgotten History and Possible Innovations in Modern Conditions

Abstract

The subject of the study is the historical experience of creating the Central Credit Institution of urban public banks of the Russian Empire and the possibility of its application in modern conditions.The purpose of the study is to develop practical measures to create a special banking association of local banks on the terms formulated by the Bank of Russia for the purpose of discussion with financial market participants, representatives of the expert and scientific community’s.The relevance of the study is due to the request of the Bank of Russia, the Association of Banks of Russia in the search for new approaches to expanding the development potential of local banks through the creation of special banking associations. The United State Archives of the Orenburg Region served as the research location. The research methodology is based on the use of historical and logical analysis methods. The development of the Central Credit Institution of urban public banks at the beginning of the last century was studied in relation to its historical context and various stages of preparation. The surviving justifications, draft constituent documents, draft charter may be of interest when developing specific practical proposals for the creation of a special banking association of modern local banks with them accepting joint liability for each other’s obligations, maintaining partial operational independence and delegating a number of functions to the parent bank. It is concluded that the results of the study can be applied by the Bank of Russia, the Association of Banks of Russia and proactive local banks to develop practical measures for the creation of a special banking association of local banks declared by the Bank of Russia.

Keywords

• special banking association
• central credit institution
• charter
• city council
• city public bank