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Bank supervision Russian style : rules versus enforcement and tacit objectives

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  • Claeys, Sophie
  • Lanine, Gleb
  • Schoors, Koen

Abstract

We focus on the con.ict between two central bank objectives individual bank stability and systemic stability.We study the licensing policy of the Central Bank of Russia (CBR) during 1999.2002.Banks in poorly banked regions, banks that are too big to be disciplined adequately, and banks that are active on the interbank market enjoy protection from license withdrawal, which suggests a tacit concern for systemic stability.The CBR is also found reluctant to with- draw licenses from banks that violate the individual's deposits-to-capital ratio as this conflicts with the tacit CBR objective to secure depositor confidence and systemic stability.Keywords: Bank supervision, bank crisis, Russia.JEL Classification : G2 N2 E5

Suggested Citation

  • Claeys, Sophie & Lanine, Gleb & Schoors, Koen, 2005. "Bank supervision Russian style : rules versus enforcement and tacit objectives," BOFIT Discussion Papers 10/2005, Bank of Finland, Institute for Economies in Transition.
  • Handle: RePEc:bof:bofitp:2005_010
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    Cited by:

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    2. Denis Shibitov & Mariam Mamedli, 2019. "The finer points of model comparison in machine learning: forecasting based on russian banks’ data," Bank of Russia Working Paper Series wps43, Bank of Russia.
    3. Claeys, Sophie, 2005. "Optimal regulatory design for the Central Bank of Russia," BOFIT Discussion Papers 7/2005, Bank of Finland, Institute for Economies in Transition.

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    More about this item

    Keywords

    bank supervision; bank crisis; russia.jel classification : g2 n2 e5;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • N2 - Economic History - - Financial Markets and Institutions
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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