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Cash issuance is carried out. What is emission

Alexander Kaptsov

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For the development of commodity production and the growth of commodity exchange, it is necessary that the amount of money supply correspond to this process. When this balance is disrupted, the state begins to issue new money. How many and what kind of banknotes are needed is decided by experts, since excess money supply can also lead to negative phenomena in the economy.

Money emission - what is it? Goals and essence of the procedure

The issue of new banknotes in the state is carried out almost constantly, because worn and damaged banknotes have to be replaced (their service life is up to 5 years). As a result of such a replacement, the total amount of money in circulation does not increase. If, with the release of new coins and banknotes, the money supply begins to grow, then we can talk about emission. Its main goal is the formation of working capital to expand production.

The issue of money in Russia is based on several principles:

Monopoly . Only the State, represented by the Central Bank, has the right to issue new banknotes, withdraw funds from circulation and redistribute cash flows.
Obligations . The ruble on the territory of the Russian Federation is the only official means of payment for settlements.
Exchangeability . The Russian ruble can be exchanged in any amounts upon presentation of identification documents by the subject.
Lack of binding . The ratio of the ruble to gold and other precious metals is not established.

As a result of money emission, the increase in the monetary base is exchanged for part of the national income, due to which the influx of funds into commercial banks increases and enterprises are credited.

Main types of money issue and organization conditions

Experts distinguish 2 types of money issue:

Spot . This is when new banknotes and coins of different denominations come into circulation to stimulate the country's economy. The printing press can be started when wages increase, prices for consumer goods rise, trade turnover increases, and so on.
Cashless . It is characterized by an increase in the volume of funds in bank accounts when financial and credit structures carry out active operations. In terms of volume, this type of emission prevails over cash emission.

At first, non-cash emission is carried out, so it is primary. Only then are additionally issued funds transferred to the accounts of commercial banks in the form of budget allocations or loan proceeds from the Central Bank. These funds are used to issue loans to entrepreneurs and the public.

When issuing cash, additionally issued banknotes are transferred to banks, and then similar amounts are debited from their correspondent accounts by bank transfer.

During the circulation process, money of one type can be easily converted into another, since they are interconnected. For example, cash that clients deposit at the bank's cash desk is credited to their accounts and transferred to the non-cash category. If part of the amount is somehow withdrawn from the account, then the non-cash money again becomes cash.

Who issues money in Russia?

In accordance with the legislative framework, the Central Bank has a monopoly right to issue money in Russia. The Board of Directors makes responsible decisions on the issue of new money supply or the withdrawal of part of the funds from circulation. The Central Bank pays special attention to the development of new banknotes, their design, durability and ways to protect money from counterfeiting.

Coins are minted in the mints of Moscow and St. Petersburg. Paper money is printed in specialized printing houses, where banknotes are provided with an increased level of security.

The process of making money is strictly controlled by the Central Bank . It determines the required volume of emission and distributes cash evenly among the constituent entities of the Russian Federation.

How money is issued in the Russian Federation: procedure and mechanism of the procedure

To determine the size of the proposed issue, the Central Bank collects data on the passage of cash through the cash desks of commercial banks and identifies regions where there is a need for additional infusion of funds. Since it is very difficult to transport cash from the Center to remote areas, there are cash settlement centers (CCCs) in the regions, where banknotes are stored in reserve. In the generally accepted understanding, this is not money yet. They will have such a function only after they are put into circulation.

The RCC also has circulating cash desks, where commercial banks deposit all cash, and then it is distributed among them based on requests.

If the amount of cash receipts in bank accounts begins to exceed the established limit, then the money is withdrawn from circulation and transferred to the reserve fund. When the need for them arises again, the reverse process occurs with the permission of the Central Bank.

What will the excess emission of money lead to: possible problems in the country’s economy

An increase in cash in circulation would seem to stimulate consumer demand and enhance economic potential. But in fact, an excess money supply contributes to rising prices for goods and services without affecting the development of production. As a result of excessive money emission . And as a result, there is a redistribution of income. A person with a fixed salary has a decrease in purchasing power, while entrepreneurs with a hot commodity have unreasonable income. The country's balance of payments is disrupted.

Only financial institutions, exchanges and exporters benefit from inflationary processes. Ordinary citizens, as always, lose, losing not only from rising prices, but also from the abolition of wage indexation and so on. Prices are also rising for imported products, since the state cannot regulate the foreign exchange and food markets. Credits become unavailable.

Emission is the release of money into circulation, which leads to a general increase in the money supply in circulation. Issues can be cash or non-cash.

The following principles for issuing cash apply in Russia:

The principle of optional collateral (no official ratio is established between the ruble and gold or other precious metals);

The principle of monopoly and uniqueness (the issue of cash, the organization of its circulation and withdrawal on the territory of Russia are carried out exclusively by the Bank of Russia);

The principle of unconditional compulsoryness (the ruble is the only legal tender on the territory of Russia);

The principle of unlimited exchangeability (no restrictions on amounts or subjects of exchange are allowed; when exchanging banknotes and coins for banknotes of a new type, the period of their withdrawal from circulation cannot be less than one year and more than five years);

The principle of legal regulation (the decision to issue money into circulation and withdraw it from circulation is made by the Board of Directors of the Bank of Russia).

If cash is issued only by the state, then non-cash money can also be created by commercial banks by issuing loans. The process of creating money is called credit expansion or credit multiplier (see article Banking multiplier)

Issue of securities in the Russian Federation

Issue of securities- the sequence of actions of the issuer regarding the placement of issue-grade securities established by law.

Stages of securities issue

A standard issue of securities involves the following stages:

approval of the decision to issue equity securities;
state registration of the issue of issue-grade securities;
placement of issue-grade securities (that is, transfer of securities to primary owners);
state registration of a report on the results of the issue of issue-grade securities or submission to the registration authority of a notification on the results of the issue of issue-grade securities.

In some cases, the procedure for issuing securities may differ from the standard one. So, for example, when establishing a joint stock company or reorganizing legal entities, carried out in the form of merger, division, separation and transformation, the procedure for issuing securities is as follows:

making a decision on the placement of equity securities;
placement of issue-grade securities;
approval of the decision on the issue and the report on the results of the issue of issue-grade securities;
simultaneous state registration of the issue and report on the results of the issue of issue-grade securities.

Purposes of issuing securities

The issue of securities is carried out by issuers for one of the following purposes:

Formation of the initial authorized capital upon establishment of a joint stock company;
Change in the amount of the authorized capital of a joint-stock company;
Consolidation or splitting of previously issued securities;
Reorganization of a joint-stock company or other forms of legal entities (upon transformation into a joint-stock company);
Change in the scope of rights granted by previously issued securities of a business company;
Replenishment of equity capital (attracting non-borrowed investments);
Attracting borrowed investments.

Sources

Law of the Russian Federation dated July 29, 1998 N 136-FZ “On the securities market”
“Standards for issuing securities and registering securities prospectuses” (approved by Order of the Federal Financial Markets Service of Russia No. dated January 25, 2007 N 07-4/pz-n)

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Money- an integral element of economic turnover. The issuance of money, in cash or non-cash form, occurs constantly to satisfy market needs. Emission is the release of money into circulation. The bank provides a loan to the client - non-cash money is issued into circulation. The bank client withdraws money from the account and receives it at the bank's cash desk - the turnover is replenished with cash. Conversely, when borrowers repay loans or depositors deposit funds into accounts, cash flow decreases.

Emission concept

The word “emission” came to us from the Latin language, translated emissio – release, emitto – release. An issue is the release of money and/or securities into circulation. In developed countries, central banks and treasuries have the exclusive right to issue money. Banks of issue issue credit money, and the treasury issues treasury bills and small change coins. Each specific country has its own emission system, which determines the rules for issuing banknotes, as well as the size of the issue of cash, its norms and forms of security. Forms of issue.

The main forms of emission include the following:

Issue of bank cards – production of bank cards.
Money issue is the release of cash or non-cash money into circulation.
Issue of securities – release of issue-grade securities into circulation.
Issue of postage stamps – putting postage marks into circulation.

Issue of bank cards

Issue of bank cards- this is the activity of the bank in issuing cards into circulation. Card issuance is an important level of organizing the plastic card business in a commercial bank and requires a professional approach and highly qualified specialists.

The bank’s activities in issuing cards into circulation can be divided into several stages:

Registration of contractual relations with clients, opening of card accounts;
Production of plastic cards, issuance to the client, maintenance of plastic cards;
Conducting card account transactions;
Closing a card account, confiscating and destroying a plastic card.

The first stage is to check submitted applications for the issuance of cards and formalize contractual relations with clients. The basis regulating the relationship between bank institutions and the client is the card account agreement.

The card account agreement must reflect the following conditions:

name of bank institution and client
name of payment system
type of card
procedure for using the card, including the procedure for providing an overdraft (if provided)
card validity period (if set)
conditions for conducting currency exchange transactions
contract time
procedure for replacing and withdrawing a card
rights and obligations of the parties
responsibility of the parties
dispute resolution procedure
terms of placement and procedure for writing off the amounts of the security deposit (if established)
rewards for card transactions
amount and procedure for depositing funds by individuals
terms of termination of the contract
grounds for termination of the contract earlier than the established period
the procedure for returning funds to individuals in the event of failure to fulfill an obligation or termination of a contract earlier than the established period
other conditions in accordance with the law

Issue of bank cards in Russia

According to the Bank of Russia, more than 65% of banks issue and/or acquire payment cards (661 credit institutions out of 965), the number of bank cards issued by them (data as of July 1, 2012) amounted to 220 million, which is 24% more than in the past year.

More than 80% of issued bank cards were issued by the international payment systems VISA and Mastercard. Russian payment systems (Sbercard, Zolotaya Korona, STB Card, Union Card) control from 6% to 12% of the market.

The leader in issuing debit bank cards in Russia is Sberbank (about 45% of all cards issued). As of April 1, 2007, the volume of Sberbank card issues reached 18.77 million cards, having increased by 7% in the 1st quarter of 2007. At the same time, the number of cards of the international payment systems VISA and MasterCard amounted to 15.63 million cards (83% of the total issue volume), including: MasterCard and Maestro – 9.21 million cards; VISA and VISA Electron – 6.42 million cards. The number of Sbercard microprocessor cards amounted to 3.14 million cards.

According to Visa International, at the end of the 2nd quarter of 2007, Russian banks issued 39.4 million VISA cards, which is 47% more than last year.

Money issue

Monetary, or fiduciary issue, is the issue of banknotes (in Russia - rubles). At the moment, the money issue is not backed by gold. Although previously, banknotes were released into circulation only when it was covered by gold reserves. The issue of cash in Russia is subject to the following principles: Non-obligatory collateral (the relationship between gold and the ruble has not been officially established). Monopoly and uniqueness (only the Central Bank of Russia can issue funds into circulation). Unconditional obligation (the ruble is the only means of payment in Russia established by law). Unlimited exchangeability (no restrictions on exchange amounts). Legal

regulation, both the issue and withdrawal of money from circulation, is the responsibility of the Board of Directors of the Central Bank.

Issue of non-cash money

Deposit-check emission can be carried out either by the Central Bank or privately. This form of emission is the basis of non-cash payments. Deposit check emission exceeds the emission of cash in volume. Typically, the issue of non-cash money occurs during the issuance of loans. Due to issued loans, the so-called bank multiplier increases, increasing the money supply.

The issue of non-cash money also occurs at the moment when a bill of exchange is used as a means of payment for a product or service. And if the bill is repaid, the additional issue is liquidated, that is, credit compression occurs.

The following principles for issuing cash apply in Russia:

the principle of optional collateral with gold (no official ratio is established between the ruble and gold or other precious metals);
banknotes and coins of the Bank of Russia are unconditional obligations of the Bank of Russia and are backed by all its assets;
the principle of monopoly and uniqueness (the issue of cash, the organization of its circulation and withdrawal on the territory of Russia are carried out exclusively by the Central Bank of Russia);
the principle of unconditional obligatoriness (the ruble is the only legal tender on the territory of Russia);
the principle of unlimited exchangeability (no restrictions on amounts or subjects of exchange are allowed; when exchanging banknotes and coins for banknotes of a new type, the period of their withdrawal from circulation cannot be less than one year and more than five years);
the principle of legal regulation (the decision to issue money into circulation and withdraw it from circulation is made by the Board of Directors of the Bank of Russia).

Current situation

According to the Bank of England, in December 2013, approximately 97% of the money supply in the economy was bank deposits, mostly created by private banks themselves as a result of lending.

Also significant is the fact that an increase in the money supply in the interests of economic development, as a rule, is possible only by increasing the debts of economic entities to banks. Moreover, the growth of the money supply (and debts) in the modern economy outpaces the growth of GDP (see Turner, 2014). At the same time, the growth of debts, which is faster than GDP, is pushing towards a financial crisis.

In this regard, some economists propose increasing the reserve requirements for current accounts to 100%. This idea was first proposed by Frederick Soddy in the 1920s, and later similar proposals were made by Irving Fisher and Henry Simons. Various versions of this kind of reform have also been proposed by Milton Friedman (1960), James Tobin (1987), John Kay (2009) and Lawrence Kotlikoff (2010). In their opinion, this will deprive banks of the opportunity to create new money in the form of loans and transfer the issue of money exclusively to the state. IMF economists modeled Fisher's proposals in 2012 and concluded that there was "strong support" for the claims.

advantages of the system he proposes. A further development of Fisher's proposals (mainly related to the specifics of monetary circulation in electronic form) is the work of Joseph Huber and James Roberts “Creating New Money” (2000). The NGO Positive Money was created in the UK; it is campaigning to deprive banks of the right to issue and create “sovereign money”.

Issue of securities and its features

The issue of securities is the release into circulation of shares, bonds and other types of important securities. Moreover, all procedures must be carried out in strict accordance with the law. An issuer of securities is a company that issues securities.

The main purpose of issuing government securities is to attract additional financial resources by the company. If shares are used for this, then the authorized capital of the enterprise increases, in the case of bonds, loan conditions apply. Moreover, all stages are controlled by government agencies that regulate the securities market.

An issue can be resorted to in order to issue securities with new rights, change the par value of shares that are already in circulation, and also establish a joint stock company.

Securities issuance standards

On the territory of the Russian Federation, certain rules apply for the issue of shares, additional shares and bonds. A procedure for their preparation has also been established. Securities issuance standards are a document that regulates all the described actions. They allow you to regulate the issue of shares of a joint-stock company upon its registration, additional securities that are distributed among shareholders, as well as additional shares.

Also, standards for issuing securities determine the rules for issuing bonds that are placed through subscription, and securities that are placed through conversion. Shares are placed upon establishment of a joint-stock company among its owners. For this, subscription and conversion are used.

Main stages of securities issue

If we consider the usual procedure for issuing securities, it includes the following stages of registration of a prospectus for the issue of securities:

A decision is made to issue securities.
The decision on the issue or additional issue of securities is approved.
State registration of securities prospectus.
Placement of securities.
State registration of the report on the results of the issue.

The procedure for issuing securities is best carried out in the sequence described above. If it is violated, then conditions are created for the issue to be recognized as unfair. As a result, a decision may be made to refuse state registration of securities.

When registering an issue of shares, it is necessary to carry out many operations, as well as draw up various documentation. It must be filled out legally correctly and contain no errors. It is best at this stage to contact specialists who will provide qualified assistance.

The prospectus for the issue of securities by banks and other organizations is intended to disclose reliable and complete information that will serve as the basis for investors to make an objective decision to purchase them.

How is the issue organized?

As a rule, when carrying out an issue, professional stock market participants or underwriters are involved. They sign an agreement with the issuer, after which they are responsible for a number of obligations affecting the issue of securities and their placement. The underwriter receives a certain fee for his services.

The underwriter services the entire procedure for issuing securities: justifies the issue, determines the parameters, prepares the required documents, registers them with government agencies, and places them among investors (third-party organizations may be involved).

Often, underwriters undertake certain obligations that are associated with the placement of an issue.

They can be of the following types:

The purchase of all securities at a set price, after which they are placed at market value. The intermediary assumes all risks if shares or other securities are not sold.
Obligations to purchase only the under-allocated portion (it can be actual and fixed), risks are associated only with these securities.
The underwriter assumes all the responsibilities of an intermediary: he helps with the placement of the issue, but he is not responsible for the under-placement of securities. This risk falls entirely on the issuer of the securities.

Types of emissions

Emission processes can be characterized from different angles. From the point of view of priority, emissions are usually divided into primary and secondary.

A primary issue occurs either when a business entity issues its securities for the first time, or when a security is issued for the first time by that entity. For example, a company decides to issue its bonds for the first time, or a newly formed joint stock company issues its first shares. This also includes the situation when a company that previously issued only ordinary shares or bonds decided to issue for the first time, for example, its convertible bonds or preferred shares.
A subsequent issue is a repeated placement of certain securities of a given commercial organization. According to the placement method, the issue can be carried out by distribution, subscription and conversion.
The distribution of securities is their placement among a previously known circle of persons without concluding a purchase and sale agreement. Issue by distribution is possible only for shares, but not for bonds. The distribution of shares takes place either upon the establishment of a joint stock company, or upon their placement among its shareholders (bonus issue).
Subscription is the placement of securities by concluding a purchase and sale agreement (i.e. on a reimbursable basis). Subscription can be carried out in two forms: by closed or open subscription.
A closed subscription is the placement of a security among a previously known, limited circle of investors.
An open subscription is the placement of a security among a potentially unlimited number of investors on the basis of wide publicity.
Conversion is the placement of one type of security by exchanging it for another under predetermined conditions.

In general, the placement of shares can be carried out by distributing them among the founders of the joint-stock company, additional shares among shareholders, subscription and conversion (exchange) of other types of company securities into shares.

Bonds are placed only by subscription or conversion.

During the issue process, both registered and bearer securities can be issued; both in documentary and non-documentary forms.

The placement of a security, understood as the totality of all possible relations between the issuer of a security and other participants in the securities market, is its primary market.

Issue of postage stamps

Issue, or issue (from the Latin emissio - release), in philately - the putting into circulation of one or another postage stamp as a postage mark, as well as the totality of all copies of the circulation of this stamp printed for this purpose within a single printing order.

As a rule, postage stamps or their series are issued (issued) at once, however, there are also cases of phased introduction of circulation into postal circulation - both already published and also published in stages (with a difference of several days, months, annually or even less often). The totality of copies of a stamp (stamps) put into circulation during each stage is considered their separate issue, issue - regardless of whether these issues differ from each other in appearance and properties.

Brand publishing policy

Here it is important not only to determine the themes, plots and denominations of the planned issues, but also the circulation. To do this, it is necessary, if possible, to take into account the needs of the post office for postage stamps (approximately 10 percent of the circulation), the number of stamps sold through subscriptions and for free sale to philatelists, the foreign trade association "International Book" - abroad, the stock laid by DIEZPO for long-term storage for implementation in the future, the popularity of motifs and plots and other factors.

Large supplies and excess supply over demand reduce the popularity of the release. Large circulations, high denominations not related to postal rates, a large annual number of issues, poor artistic and printing performance negatively affect the popularity of stamps of a particular country, leading to a decrease in demand and, consequently, income of the postal administration. However, the artificial limitation of circulations, the abuse of issuing low-circulation stamps, overprints, number blocks that are not available for free sale or

sold under special conditions contribute to speculation and, in turn, lead to a decline in the popularity of brands in a given country.

Thus, not only philatelists, but also the postal administration of each country are interested in moderate, thoughtful, economically sound stamp publishing activities, or, as it is commonly called, emission policy. In fact, in the post-war decades, the post office of a number of countries, in pursuit of high incomes, brought down torrential streams of stamps on philatelists - bright pictures with far-fetched plots, high denominations. Their circulation is not related to the needs of the post office, but is intended only for “deep drainage” of the pockets of philatelists. The philatelist must learn to distinguish postage stamps issued by postal administrations pursuing a moderate emission policy from stamps issued for speculative purposes.

Harmful releases

According to the definition of the International Federation of Philately (FIP), harmful issues (issues) are considered to be the appearance of postal stamps, the real purpose of issuing which is to abuse the trust of philatelists and make money from them, and not for postal necessity. Such emissions are qualified by the FIP as “harmful to philately” and are considered speculative.

Such harmful issues are initiated not only by legitimate postal administrations (for example, the Arabian principalities in 1963–1973), but also by private individuals and commercial structures, and they can imitate legitimate issues, as well as be published on behalf of fictitious ones or those who do not have full power in any area. or the territory of issuers - brands of virtual states, “governments in exile,” rebel groups, etc. Such products are called speculative fiction and/or fraudulent issues.

At its congresses, the FIP improves the criteria for identifying harmful emissions; on this basis, the FIP “black list” is formed. All stamps included in this list are not permitted to be exhibited at philatelic exhibitions under the patronage of the FIP. Similar measures are being taken for their part by the International Bureau of the Universal Postal Union (UPU), the World Association for the Development of Philately (WARF), and other organizations.

In addition, the vast majority of illegal issues are ignored by reputable stamp catalogs, and in cases of legitimately issued stamps that are on the FIP “black list”, the catalogs, as a rule, do not provide illustrations, do not assign catalog numbers and are limited to a general brief information record about the nature of such stamps. emissions.

Emission – issue – emission – release of funds and securities into circulation.

The issue of funds is regulated by law and carried out by the state, which distributes this function between the central bank and the treasury. The Central Bank issues credit money - bank notes (banknotes). The Treasury issues treasury notes and change coins.

The release of banknotes into circulation in all forms leads to an increase in the money supply in circulation. Main forms of emission:

1) issue of credit money - banknotes;

2) deposit - check issue;

3) issue of securities.

According to the Constitution of the Russian Federation, money emission, i.e. the release of money into circulation in the Russian Federation is carried out exclusively by the Central Bank of the Russian Federation (clause 1, article 75). The monetary unit in the Russian Federation is the ruble. The introduction and issue of other money in the Russian Federation is not allowed. The Constitution of the Russian Federation, while entrusting the Bank of Russia with the function of issuing money into circulation, does not limit the powers of the Bank of Russia to any one form of issue. The Bank of Russia issues money in cash and non-cash forms.

The Bank of Russia carries out, in accordance with the procedure established by the legislation of the Russian Federation, the issue into circulation and withdrawal from circulation of banknotes on the territory of the Russian Federation. Non-cash issue of money is carried out in the process of deposit and loan operations. The Bank of Russia regulates cash and non-cash issues by means of monetary policy. The use of the issue of money directly to finance the state budget deficit of the Russian Federation is prohibited.

In order to limit the ability of commercial banks to carry out deposit emission, the Constitution of the Russian Federation grants the exclusive right to carry out money issue in all its forms to the Bank of Russia. However, in the Federal Law, the monopoly function of the Bank of Russia to issue money is limited only to the issue of cash. The function of the Bank of Russia to organize their non-cash circulation is similarly limited and not provided for by current legislation (Article 29 of the Federal Law). Non-cash, like cash, monetary circulation is subject to regulation in federal legislation. But this area of money circulation is not regulated by banking or other legislation. The procedure for issuing non-cash money and organizing its circulation by any government body of the Russian Federation or the Bank of Russia is not defined by law.

Abroad, money issuance is carried out by central (issuing) banks and treasuries (the former issue credit money - banknotes, the latter - treasury notes and change coins). Deposit-check emission, which serves as the basis for non-cash payments, is carried out by commercial and central banks. The issue of securities (shares and bonds) is carried out by joint-stock companies, as well as the state.

The central (issuing) bank in most countries is owned by the state. But even if the state does not formally own its capital (USA, Italy, Switzerland) or partially owns it (Belgium - 50%, Japan - 55%), the central bank performs the functions of a government body. The Central Bank has a monopoly on the issue of banknotes, the main component of the cash supply. It stores official gold and foreign exchange reserves, carries out government policy, regulating the monetary sphere and foreign exchange relations. The Central Bank participates in the management of public debt and provides cash and settlement services to the state budget.

The main passive operation of the central bank and one of the forms of emission is the issue of banknotes, the acceptance of deposits of commercial banks and the treasury, and operations for the formation of equity capital.

1. Fiduciary issue - issue of banknotes, banknotes, unsecured by the reserve of precious metals (primarily gold) of the issuing bank. Historically, the issue of banknotes was allowed only if there was a gold reserve, however, this rule was gradually abandoned. Nowadays fiduciary emission is dominant.

The main source of central bank resources in most countries is the issue of banknotes. At the present stage, the issue of banknotes is not backed by gold. Gold backing of banknotes has been abolished, although in some countries it formally continues to operate.

Central bank loans can be credited to commercial bank and treasury accounts maintained at the central bank. In this case, it is not the banknote issue, but the deposit issue of the central bank.

The source of resources for central banks are deposits from the treasury and commercial banks. Commercial banks can deposit part of their cash reserves, including mandatory ones, into interest-free accounts with central banks. In a number of countries, required reserves are credited to special accounts, usually interest-free. This procedure applies, in particular, in Russia. Central banks can also open time accounts with fixed interest rates for commercial banks. Typically, the bank's equity capital accounts for no more than 4% of liabilities.

2. Another form of issue is deposit-check issue. Produced by commercial banks and serves as the basis for non-cash payments. In terms of volume, deposit-check emission significantly exceeds the emission of cash.

3. Also one of the forms of issue is the issue of securities.

The procedure for issuing equity securities, unless otherwise provided by the legislation of the Russian Federation, includes the following stages:

The issuer's decision to issue equity securities;

Registration of issue of issue-grade securities;

For the documentary form of issue – production of securities certificates;

Placement of issue-grade securities;

Registration of a report on the results of the issue of securities.

The issue of money can lead to inflation.

Inflation is a crisis state of the monetary system that arose in the middle of the 18th century in connection with the huge issue of paper money. The term “inflation” literally means “swelling” and has long been associated with the depreciation of money and rising commodity prices. However, the practice of foreign countries shows that inflation can occur with a relatively stable money supply.

Modern inflation is associated not only with a decline in the purchasing power of money as a result of rising prices, but also with the general unfavorable state of economic development of the country. It is caused by the contradictions of the production process generated by various factors in the sphere of production and sales, as well as money circulation, credit and finance.

The following factors influence inflation:

Issue of paper money;

The growth of the money supply exceeds production processes;

Rising costs and prices for goods;

Inflationary expectation.

It is necessary to distinguish between internal and external causes of inflation. External – reduction in revenues from foreign trade due to falling fuel prices. Internal ones consist in the lag of consumer industries with a higher development of heavy industry.

There are two types of inflation.

1. Demand inflation. Traditionally, inflation occurs when there is excess demand. The demand for goods is greater than the supply of goods due to the fact that the manufacturing sector is not able to meet the needs of the population. This excess demand causes prices to rise. A lot of money with a small number of goods.

2. Cost inflation. This phenomenon is expressed in rising prices due to rising production costs. Depending on the rate of price growth in the market, inflation is distinguished:

Creeping, with an annual rate of price growth of 3-4%. Such inflation is typical for developed countries, which view it as a stimulating factor;

Galloping, with an average annual rate of price growth of 10-50% (sometimes up to 100%), which prevails in developing countries;

Hyperinflation, with annual rates of price growth exceeding 100%, is characteristic of countries in certain periods when they are experiencing a radical change in their economic structure.

Under the influence of inflation, the economic situation in the country is worsening, because:

Production volume decreases as price fluctuations and increases make production development prospects uncertain;

There is a flow of capital from production to trade and intermediary operations, where the turnover of capital is faster and there is more profit, and it is also easier to evade taxation;

Speculation is expanding as a result of sharp and uneven price changes;

Credit transactions are limited, since no one believes in debt;

The state's financial resources are depreciating.

The main form of stabilization of the monetary system is the state's anti-inflationary policy through monetary reform and state regulation of the inflation process. Currency reform is a complete or partial transformation of the monetary system, carried out by the state with the aim of streamlining and strengthening monetary circulation. It is carried out using various methods (nullification, restoration, devaluation, redenomination) depending on the economic situation of the country, the degree of depreciation of money, and state policy through the adoption of a one-time legislative act.

Nullification is carried out by canceling the old depreciated monetary currency and introducing a new one.

Restoration involves restoring the previous gold content of the currency and increasing the gold rate.

Devaluation is a decrease in the exchange rate of the national currency in relation to foreign ones.

Revaluation is an increase in the exchange rate of the national currency in relation to foreign ones.

Denomination is a reduction in the face value of the money supply in circulation by exchanging banknotes for new ones in the proportions of their depreciation, i.e. method of crossing out zeros.

Shock therapy is a type of confiscatory monetary reform. It includes the exchange of paper money at a deflationary rate, a complete or partial freeze of bank deposits of the population and entrepreneurs, and the widespread use of free pricing.

State regulation of the inflation process means a set of government measures aimed at limiting price increases and stabilizing the monetary system through deflationary and income policies.

Deflationary policy includes methods of limiting money demand by reducing government spending, increasing interest rates on loans, increasing tax pressure, and limiting the money supply. But it does not contribute to economic growth. Income policy involves control and complete freezing of prices and wages or the establishment of strict limits on their growth.

There are many ways to stimulate the country's economy. Here it is important to take into account many factors and not make mistakes. One of the most effective is to increase income from issuing money. Using this procedure, it will be possible not only to improve the economic situation throughout the country, but also to issue new banknotes, replacing damaged ones.

What is money emission?

The issue of money is the release of new banknotes into free circulation. This issue of money is carried out by the state and is regulated by law. State bodies are required to distribute this function between the central bank and the treasury. The first is engaged in the issue of credit funds - bank notes (banknotes). The second issues special treasury notes, as well as small change coins. Among the main forms of emission are:

Issue of credit funds - banknotes.
Deposit check.
Valuable papers.

Why is it necessary to issue money?

This procedure, like all others, has its own tasks. Thus, the targeted issue of money is carried out to replace damaged banknotes and to stimulate the country’s economy. As a result of the issue of securities, the company can expand its own production, modernize it, or solve other problems, as additional material resources become available. However, it is important to understand that issuing new shares that come to the market, rather than being distributed among the management of the enterprise, reduces the share of the original shareholders.

Issuing money - pros and cons

A process such as the issue of funds has not only advantages, but also its negative consequences. It is important to remember the dangers of issuing money. Thus, as a result of this process, the purchasing power of money may decrease. That is, we can say that the issue of money leads to inflation. Among the advantages of issuing funds:

Modernization company.
Stimulating the country's economy.
Possible expansion of production of an enterprise or company.

Who issues money?

An important financial procedure, the issue of money is carried out only by state central banks. New banknotes and coins are released into circulation to replace unusable banknotes or to improve the economic situation. The non-cash settlement base is a deposit-check issue of securities, which can also be produced by commercial banks. In many cases, non-cash issue involves issuing loans to organizations and individuals.

Issue of money and its types

There are the following types of money issue:

Cash– it is associated with an increase in commodity turnover in prices, since money can service procedures in special markets.
Non-cash money– it is carried out by crediting issued money to the accounts of correspondents of commercial banks in the form of loans.
Budget issue– it is associated with the issuance of special treasury notes and government securities for the specific purpose of financing the state budget deficit.
Credit issue– is associated with the entry into circulation of credit funds arising during credit procedures.

Issue of non-cash money

This economic process represents an increase in the volume of funds in bank accounts after financial institutions conduct active operations. This procedure is primary in relation to cash. Non-cash money is issued by banks, which issue cash to clients in cases where they have money in their bank accounts. At the same time, non-cash funds are debited from the client’s accounts for the amount issued.

The nature of cash and non-cash funds alone can determine the unity and interconnection of emission processes. In the modern world, two types of issues are of a credit nature. In other words, additional means of payment, regardless of their form, can be put into circulation on the basis of specific credit transactions.

Issue of cash

This procedure refers to the release of funds into circulation, in which the amount of money in circulation should increase. Cash issuance is carried out by state central banks. What matters here is not only the setting of the predicted emission size, but also its distribution throughout the country. The procedure for issuing cash is usually carried out in a decentralized manner.

For the reason that the need of commercial financial institutions for cash depends on the need for it not only of legal entities, but also of individuals, it is changing. Cash moves from non-cash money, which is in deposit accounts and at the same time acts as an important part of the cash flow created by commercial banks as a result of the functioning of the bank multiplier.

Type