The current credit and banking system of the USSR and its functions

Abstract

Before we consider the characteristics of the current credit- and banking system and describe its functions, we need to analyse the influence of the economic reform of Kosygin on the credit system. In so doing we need to remember that in this respect we are not concerned with a one-time impact. While it is true that the reform should have been completed within three years, it has, in fact, become a long drawn out process involving not only the reorganization of the central planning and management agencies and the reorientation of business management, but also the gaining of new insights into ways and means to perfect the economic order of the USSR. In spite of the fact that the overwhelming majority of Soviet enterprises had already adopted the system introduced in 1965, the completion of the reform will have to take place during the course of the current five year plan (1971–1975 inclusive)¹.