Licensing of banks

Banking activities involve carrying out a large volume of financial transactions aimed at making profit. In this regard, it carries considerable risks. Function of control and regulation of banking operations in Russia The Central Bank. This organization allows the banks to their work by issuing a license. Licensing objectives are: - protection of clients from institutions unprofessional management - strengthening public confidence in the banking system - providing stability and financial development of the state. All banks operating in our country must have a license. In the case of companies engaged in banking activities without this document, the Central Bank may apply to the arbitration court demanding the cessation of their activities. Article 172 of the Penal Code provides for responsibility for the crime. As the penalty is a penalty of up to 1 million rubles. and imprisonment for up to five years. Licensing of banking activities carried out by issuing the following types of permits: - to conduct banking operations in rubles - to operations in foreign currency - to attract deposits and placement of precious metals - the organization of collection - to attract individual deposits in rubles and foreign currency - for operations with precious stones and metals - on the trust securities. After a successful beginning of the bank of its license to conduct certain activities may be replaced by a single document - a general license.