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The Effect of US Monetary Policy on the Activities of Russian Banks in the Low Interest Rate Environment

Author

Listed:
  • Nadezhda Ivanova

    (Bank of Russia, Russian Federation)

  • Ekaterina Petreneva

    (Bank of Russia, Russian Federation)

  • Konstantin Styrin

    (Bank of Russia, Russian Federation)

  • Yulia Ushakova

    (Bank of Russia, Russian Federation)

Abstract

This paper studies the cross-border transmission of US monetary policy to Russia in 2000-2019 via its effect on activities of Russian banks in the low interest rate environment in comparison with normal times. Specifically, we investigate dynamic responses of lending, funding, and risk taking. The main finding is that, in normal times, the dynamic responses of dependent variables of interest are consistent with the prevalence of the international lending channel whereas in the low rate environment the patterns are different for different indicators: in some instances the dynamic effect of interest is attenuated compared with normal times, in others, it is reinforced.

Suggested Citation

  • Nadezhda Ivanova & Ekaterina Petreneva & Konstantin Styrin & Yulia Ushakova, 2023. "The Effect of US Monetary Policy on the Activities of Russian Banks in the Low Interest Rate Environment," Bank of Russia Working Paper Series wps114, Bank of Russia.
    • Handle: RePEc:bkr:wpaper:wps114
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    References listed on IDEAS

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    More about this item

    Keywords

    monetary policy; international spillovers; cross-border transmission; low interest rates;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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