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Management of Structural Liquidity Surplus of the Banking System

Author

Listed:
  • Darya V. Shvandar

    (Financial University under the Government of the Russian Federation, Moscow 125993, Russia)

  • Olga V. Koncevich

    (Financial Research Institute, Moscow 127006, Russia)

Abstract

Shocks of fallen oil price, sanctions and devaluation declined inflation significantly from the target range throughout 2014–2016. Now when price growth is observably coming down disbursements from sovereign funds generate banking liquidity surplus, treating to erode the monetary policy signals. This forces to analyze pros and cons of different solutions relying on available Russian and international experience and, in particular, to consider the scope of interaction between the monetary regulator and the government, which is only one besides the central bank has the tools for targeted impact on the banking system liquidity.

Suggested Citation

  • Darya V. Shvandar & Olga V. Koncevich, 2017. "Management of Structural Liquidity Surplus of the Banking System," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 57-70, June.
    • Handle: RePEc:fru:finjrn:170305:p:57-70
    as

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    References listed on IDEAS

    as
    1. Nadezhda A. Smirnova, 2015. "Development of the Formation Mechanism of the Russian Ruble Exchange Rate," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 59-66, December.
    2. Tatyana L. Zhuravleva & Maxim A. Leonov, 2015. "Russian Banking System in Recent Years: General and Regional Perspectives," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 47-58, December.
    3. M. Barik Bathaluddin & Nur M. Adhi P & Wahyu A.W., 2012. "The Impact Of Excess Liquidity On Monetary Policy," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 14(3), pages 1-23, January.
    4. Rasul A. Musaev & Denis V. Kleshko, 2015. "Development of Refinancing System of the Russian Banking Sector," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 42-51, April.
    5. Mr. Simon T Gray & Ms. Runchana Pongsaparn, 2015. "Issuance of Central Bank Securities: International Experiences and Guidelines," IMF Working Papers 2015/106, International Monetary Fund.
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    Cited by:

    1. N. P. Pilnik & I. G. Pospelov & S. A. Radionov, 2020. "On Limits of the Influence of the Bank of Russia Key Rate on Indicators of the Russian Banking System," Studies on Russian Economic Development, Springer, vol. 31(2), pages 229-237, March.

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    More about this item

    Keywords

    banking system liquidity; structural surplus; sovereign funds; central bank; profit (losses); capital; monetary policy instruments; floor system;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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