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Banks behavior patterns as a response to the population financial activity in the macroeconomic shocks in Russia

Author

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  • Evlakhova, Yu.

    (Rostov State University of Economics, Rostov-on-Don, Russia)

  • Alifanova, E.

    (Rostov State University of Economics, Rostov-on-Don, Russia)

  • Tregubova, A.

    (Rostov State University of Economics, Rostov-on-Don, Russia)

Abstract

This paper finds out the behavior patterns of the Russian banking sector and systemically important banks in response to changes in the population financial activity under the economic shocks. The results show that the Russian banking sector has a behavior pattern that includes the sequence of actions: the outflow of deposits - vulnerability to non-repayment of loans - deposit bubble - credit bubble. We find no consistent evidence that systemically important banks show the same sequence of actions during the crises. We also find that the banking sector behavior and systemically important banks' behavior varied in 2008-2009, but became the same in the crisis of 2014-2015. The coincidence of behavior patterns of the banking sector and systemically important banks increases the systemic risk. Research on intragroup differences between systemically important banks will allow finding solutions to reduce the risk.

Suggested Citation

  • Evlakhova, Yu. & Alifanova, E. & Tregubova, A., 2021. "Banks behavior patterns as a response to the population financial activity in the macroeconomic shocks in Russia," Journal of the New Economic Association, New Economic Association, vol. 50(2), pages 74-95.
    • Handle: RePEc:nea:journl:y:2021:i:50:p:74-95
    DOI: 10.31737/2221-2264-2021-50-2-4
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    More about this item

    Keywords

    deposits; retail loans; deposit bubble; credit bubble; systemic risk; exponential smoothing;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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