Abstract
Motivated by increased availability of monetary data, this study investigates the activity of the Soviet state bank (Gosbank). The analysis shows that the main financial source of Gosbank moved from state budget funds to household deposits in the early 1960s. After that, the expansion of bank financing was based on household deposits. This did not lead to a corresponding development of macroeconomic monetary management because of the lack of a financial market. Further research should be undertaken to quantitatively evaluate the macroeconomic efficiency of the use of bank funds.
Similar content being viewed by others
Notes
It would be more appropriate to use the term means of settlement used by households and by enterprises instead of cash and non-cash money. Soviet households could use means of settlement in a non-cash form, such as bank transfers and credit cards. Thus, cash money includes non-cash means of settlement. However, non-cash money does not correspond to deposit money. Although deposit money includes household deposits, household deposits were not non-cash money because they were not allowed to be used as means of settlement in the non-household sphere. Despite this ambiguity, I use the terms cash and non-cash money in accordance with the traditional Soviet nomenclature.
Hereafter, the term wage payment includes an enterprise's use of cash money to pay for various monetary benefits to households and small expenses.
The Chervonets banknotes were used until the currency reform of 1947 (Kravtsovaya, 1983, p. 104).
Smirnov (1982, p. 40) wrote that it was necessary to change the item of a bank loan at each step in the production process (ie, stock of material, production costs, sales inventory, distribution, and settlement) because of the restrictive method of granting bank loans.
There were two other major revaluations of the ruble. One was a devaluation from 1.139 ruble/USD to 5.04 ruble/USD on 1 April 1936; the other was an appreciation from 5.3 ruble/USD to 4.0 ruble/USD on 1 March 1950 (Holzman, 1974, pp. 256–258; CBR, 2012). The 1937 devaluation caused an increase in the net foreign assets equivalent to 8% of the balance sheet total as of 1 January 1938; the 1950 appreciation caused a decrease in the net foreign assets equivalent to 1% of the balance sheet total as of 1 January 1951. In both cases, the figures include the changes caused by factors other than the revaluation (Kashin and Mikov, 2010, pp. 38, 38, 54, 55, 82, 122). It is not clear how Gosbank adjusted the differences between the creditor and debtor sides caused by the revaluations.
Batyrev (1939) argued that both cash and non-cash money should be managed in an integrated manner. This issue did not seem to gather serious attention at that time.
The result of the unit root test was not reported because the estimation was performed to find any correlation, spurious or substantial, between cash and non-cash money.
Most of the household deposits held by Gosbank before 1963 were the deposits made by war participants during the war (Kashin and Mikov, 2010, p. 83).
See the reference for the citation style of the archive materials of RGAE.
The Soviet literature explains how the household deposits accepted by Sberekassa were transferred to the Ministry of Finance from 1958 to 1962 in different ways. Allakhverdyan (1962, p. 319) and Melkov (1969, p. 21) wrote that the government borrowed from Sberekassa not in the form of governmental bond sales. Conversely, Soviet statistical materials (RGAE1562/41/543/15–20; RGAE1562/41/654/9) showed the revenue item of the state budget, Government bonds purchased by Sberekassa, during the period in the same way as they did before 1958.
The borrower was not only the economy. The foreign governments borrowed also as discussed above. Moreover, Zakharov (2007, p. 60, 178) wrote that Sberekassa directly loaned a certain amount of its household deposits to the government after 1963. It is unknown whether Gosbank's balance sheets reflect these transactions.
References
Alkhimov, VS (ed). 1981: Gosbank SSSR i ego rol’ v razbitii ekonomiki strany 1921–1981. Finansy i statistika: Moskva.
Allakhverdyan, D (ed). 1962: Finansy SSSR. Gosfinzdat: Moskva.
Atlas, M . 1967: Razvitie bankovskikh sistem stran sotsializma. Finansy: Moskva.
Barkovskii, ND . 1976: Problemy kredita i denezhnovo oborota. Finansy: Moskva.
Batyrev, V . 1939: K voprosy o roli deneg i kredita v rasshirennom sotsialistiicheskom vosproizvotstve. Problemy Ekonomiki (5): 63–77.
Birman, I . 1980: The financial crisis in the USSR. Soviet Studies 32 (1): 153–172.
Birman, I . 1981: Secret income of the Soviet state budget. Martinus Nijhoff: The Hague.
Campbell, R . 1966: The problem of financial equilibrium. In: Bornstein, M and Fusfeld, D (eds). The Soviet Economy. R. D. Irwin: Homewood.
Central Bank of Russia (CBR). 2012: Kursy valyut za period do 01.07.1992, http://www.cbr.ru/currency_base/OldVal.aspx, last accessed on 31 March 2012.
Chetvernikov, P . 1972: Sberegatel’nye Kassy SSSR za 50 let. Finansy: Moskva.
Dembinski, P . 1988: Quantity versus allocation of money. Kyklos 41 (2): 281–300.
D’yachenko, VP . 1958: Razvitie gosudarstvennogo banka SSSR. Nauka: Moskva.
D’yachenko, VP . 1978: Istoriya fiansov SSSR. Nauka: Moskva.
Dymshits, I et al. 1956: Finansy i Kredit SSSR. Gosfinizdat: Moskva.
Ericson, R . 2006: Command versus ‘shadow’. Comparative Economic Studies 48 (1): 50–76.
Garvy, G . 1977: Money, financial flows, and credit in the Soviet Union. Cambridge University Press: Ballinger.
Goskomstat SSSR. 1990: Nrodnoe khozyaistvo SSSR v velikoi otchestvennoi voine 1941–1945 gg. Goskomstat: Moskva.
Gregory, P . 2004: The political economy of Stalinism. Cambridge University Press: Cambridge.
Holzman, FD . 1974: Foreign trade under central planning. Harvard University Press: Cambridge.
Ikonnikov, V (ed). 1954: Denezhnoe obrashchenie i kredit SSSR. Gosfinizdat: Moskva.
IMF, WB, OECD, and EBRD (IMF). 1991: A study of the Soviet economy. 3 vols. OECD: Paris.
Kashin, Y and Mikov, V . 2010: Balansy Gosudarstvennogo Banka SSSR, 1922–1990 gg. Po Stranitsam Arkhivnykh Fondov Tsentral’nogo Banka Rossiiskoi Federatsii, Vypusk 9. Moskva: CBR.
Kim, B-Y . 2002: Causes of repressed inflation in the Soviet consumer market, 1965–1989. Economic History Review LV (1): 105–127.
Kravtsovaya, GI (ed). 1983: Denezhnoe obrashchenie i kredit. Vysheishaya shkola: Minsk.
Krol, I . 1983: Nekatory voprosy razvitiya teorii kredita. Denigi i kredit (1): 26–34.
Kuschpeta, O . 1978: The banking and credit system of the USSR. Martinus Nijhoff: Leiden and Boston.
Lavigne, M . 1978: The creation of money by the state bank of the USSR. Economy and Society 7 (1): 29–55.
Lavrushin, O . 1974: Kredit v sotsialisticheskom obshchestve. Finansy: Moskva.
Levchuk, IV . 1971: Ssudnyi fond i kredit. Finansy: Moskva.
Levchuk, KI . 1988: Effektivnost’ kratokosrochnykh kreditnykh vlozhenii. Finansy i statistika: Moskva.
Manoilo, F . 1972: Stroibank SSSR. Finansy: Moskva.
Melkov, AE . 1969: Kreditnye resursy gosudarstvennogo banka SSSR. Finansy: Moskva.
Millar, J . 1975: History and analysis of Soviet domestic bond policy. Soviet Studies 27 (4): 598–614.
Nakamura, Y . 2011: Did the Soviet command economy command money? Europe-Asia Studies 63 (7): 1133–1156.
Narodonoe Khozyaistvo SSSR v 19xx g. various years: Statisticheskii Ezhegodnik (Narkhoz 19xx). Gosstatizdat and Finansy i statistika: Moskva.
Nove, A . 1992: An economic history of the USSR. 3rd Edition. Penguin Books: London.
Podshivalenko, PD (ed). 1983: Finansirovanie i kreditrovanie kapital’nykh vlozhenii. Finansy i statistika: Moskva.
Poskonov, AA (ed). 1967: Kreditno-denezhnaya sistema SSSR. Finansy: Moskva.
Powell, R . 1972: Monetary statistics. In: Treml, V and Hardt, J (eds). Soviet Economic Statistics. Duke University Press: Durham, pp. 397–432.
Resheniya. 1968: Resheniya partii i prvitel’stva po khozyaistvennym voprosam. vol. 4. Politizdat: Moskva.
Riesz, M . 1973: The main issues of credit theory in the past 25 years. Acta Oeconomica 10 (2): 233–246.
Rotleider, A Ya (ed). 1979: Denezhnoe obrashcheniya i kredit SSSR. Finansy: Moskva.
Round Table. 1989: Bankovskaya sistema. Den’gi i kredit (12): 3–13.
Rybin, V and Mozhaiskova, I . 1979: Deni’gi, finansy i kredit v ekonomicheskom mekhanizme resshirennogo vosproizvodstva razvitogo sotsializma. Nauka: Moskva.
Rubel, M and Crump, J (eds). 1987: Non-market socialism in the nineteenth and twentieth centuries. Macmillan: London.
Savluk, M . 1982: Razvitie marksistitskoi teorii deneg v sotsialisticheskom obshchestve. Vysha shkola: Kiev.
Shenger, YE . 1961: Ocherki sovetskogo kredita. Gosfinizdat: Moskva.
Shteinshleiger, S . 1956: Krugooborot denezhnykh sredstv pri rashirennom sotsialisticheskom vosproizvodstve. Voprocy ekonomiki (9): 106–116.
Sigg, H . 1981: Grundzuege des Sowjetischen Bankwesens. Paul Haupt: Bern and Stuttgart.
Smirnov, N . 1982: Nekotorye voprosy effektivnosti bankovckogo mekhanizma. Denigi i Kredit (9): 36–41.
Strumilin, S . 1961: Ekonomicheskaya Zhizn’ SSSR. Sovetskaya Entsiklopediya: Moskva.
Suhara, M . 2008: Value added by the Soviet industry sectors. mimeo reported at the Slavic Research Center of Hokkaido University on 28 June 2008.
Vainshtein, AL . 1969: Nrodny dokhod Rossii i SSSR. Nauka: Moskva.
Volkov, A (ed). 1987: Finansy i Kredit. Ekonomika: Moskva.
Wiles, P . 1968: Communist international economics. Basil Blackwell: Oxford.
Zakharov, VS . 2007: Ocherki bankovskoi sistemy SSSR. Finansy i statistika: Moskva.
Zverev, A . 1990: Finansy vneshne-ekonomichekikh svyazi. Mezhdunarodnye otnosheniya: Moskva.
Zwass, A . 1979: Money, banking and credit in the Soviet Union and Eastern Europe. Macmillan: London.
Archive materials
(The archive materials of the Russian State Archive of Economy (Rossiiskii Gosudarstvennyi Arkhiv Ekonomiki: RGAE) are referred to in the conventional way to indicate the Fond number/the Opisi number/the Delo number/[if available] theList number as RGAE w/x/y/z).
Gosplan SSSR and TsSU SSSR, Narodonoe khozyaistvo SSSR (1913–1957 gody), RGAE 1562/41/233.
Ministerstvo finansov SSSR, Finansovyi plan narodonogo khozyaistva na pyatiletie 1926/1927–1930/1931 gg., RGAE 7733/4/1052.
Ministerstvo finansov SSSR, Gosudarstvennyi byudzhet SSSR na 1918–1937 gg., RGAE 7733/15/491.
Ministerstvo finansov SSSR, Ekonomichskie obzory po ispolneniyu gosudarstvennogo byudzheta SSSR za 1923/24–1943 gody i materialy k gosudarstvennomu byudzhety SSSR, RGAE 7733/36/1847.
Tsentral’noe statisticheskoe yplavlenie pri sovete ministrov SSSR, Balans narodonogo khozyaistva SSSR za 1955–1957 g. g., RGAE 1562/33s/3108.
Tsentral’noe statisticheskoe yplavlenie pri sovete ministrov SSSR, Balans narodonogo khozyaistva SSSR za 1961–1962 g. g., RGAE 1562/33s/4925.
Tsentral’noe statisticheskoe yplavlenie pri sovete ministrov SSSR, Statisticheskie dinamicheskie ryady za 1913–1951, RGAE 1562/41/65.
Tsentral’noe statisticheskoe yplavlenie pri sovete ministrov SSSR, Finansy SSSR, Statistichekii Sbornik, RGAE 1562/41/543.
Tsentral’noe statisticheskoe yplavlenie pri sovete ministrov SSSR, Finansy SSSR, Statistichekii Sbornik, 1961–62 gg., RGAE 1562/41/654.
Acknowledgements
I would like to thank the members of the Russian historical economic statistics research group for their comments and suggestions in the early stage of this study. I am greatly indebted to Prof. Kuboniwa of Hitotsubashi University, the head of the research group, for helpful advice and the data. I am also grateful to the Editor for the useful comments and suggestions on the earlier draft of this paper and to Sergei Deogtev of the RGAE and Elena Katasonova of the Russian Academy of Sciences for their kind support for my work at the RGAE. This work was financially supported by JSPS KAKENHI Grant Numbers 24530392 and 24330085.
Author information
Authors and Affiliations
Appendix A
Appendix A
Notations and Sources: When two or more sources give slightly different figures for the same year, the figure of the newer source was taken.
Columns from (a) to (m), Gosbank balance-sheet items: (See Table A1) Kashin and Mikov (2010) for the balance sheet data except for household deposits (HDP) in 1930 to 1961. The balance sheet data for 1922 to 1940 are the data adjusted to the changes in the balance sheet compilation methodology (Kashin and Mikov, 2010, pp. 114–125). MNY: money gold, precious metals, and cash held by Gosbank, EMS: cash emission. EMS does not exclude the cash that Gosbank holds. The cash in circulation (CAS in Table 1) is defined as: CAS=EMS–MNY. CFG: credits to foreign governments. The CFG figures with † for 1953 to 1956 are shown for reference; these figures are included in the foreign assets (Kashin and Mikov, 2010, p. 86). The CFG became a separated balance sheet item in 1957. HDP: The HDP figures in italic for 1930 to 1961 were the amounts of the household deposits that Sberekassa held and, thus, were not included in Gosbank’s balance. They are taken from Nakamura (2011, p. 1154). Gosbank’s household deposits were negligible and included in the other liabilities (OL) until the take-over of Sberekassa by Gosbank in 1963. The HDP figures from 1962 and after were the figures shown in the Gosbank’s balance sheets. See Table 1 for the other notations.
Column (n): Nominal produced national income (PNI): RGAE7733/4/1052/51 for 1923–1927. The figures for 1928–1931 and 1935 are based on the data in Vainshtein (1969). The amounts of turnover tax were added to the original Vainshtein figures of 1928–1931, following Suhara (2008). The 1933 figure was estimated by Suhara (2008). The 1932, 1934, and 1936 figures were interpolated. RGAE (1562/41/65/36) for the figures of 1937 to 1949. Vainshtein (1968, p. 111), RGAE1562/33s/3108/4, and RAGE1562/33s/4925/2 for 1950 to 1960. Narkhoz (1964, p. 575), Narkhoz (1979, p. 405), Narkhoz (1982, p. 378), Narkhoz (1983, p. 378), Narkhoz (1984, p. 424), and Narkhoz (1990, p. 11) for 1961 to 1987.
Column (o): State budget expenditure (SBE): RGAE (7733/15/491/25, 29) and RGAE (7733/36/1847/119, 127, 129) for 1923–1937. Note the figures for 1923–1937 were adjusted to the budget classification for 1938 and after. RGAE (7733/36/1847/125–6) explains the details of the adjustment. RGAE (1562/41/543/21–25) and RGAE (1562/41/654/9) for 1931–1962 except for 1940–1945. Goskomstat SSSR (1990. p. 15) for 1940–1945. Narkhoz (1962, p. 635), Narkhoz (1963, p. 654), Narkhoz (1964, p. 770), Narkhoz (1965, p. 781), Narkhoz (1968, p. 774), Narkhoz (1969, p. 770), Narkhoz (1970, p. 730), Narkhoz (1975, p. 742), Narkhoz (1980, p. 522), Narkhoz (1982, p. 521), Narkhoz (1984, p. 573), Narkhoz (1985, p. 559), Narkhoz (1990, p. 16) for the other years.
Rights and permissions
About this article
Cite this article
Nakamura, Y. Soviet Banking, 1922–1987: An Analysis of Gosbank Balance Sheets. Comp Econ Stud 55, 167–197 (2013). https://doi.org/10.1057/ces.2012.40
Published:
Issue Date:
DOI: https://doi.org/10.1057/ces.2012.40