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Digest Finance
 

The Role of the Bank of Russia's Repo agreements in Ensuring the financial sector's stability

Vol. 30, Iss. 1, MARCH 2025

Received: 28 November 2024

Accepted: 16 December 2024

Available online: 27 March 2025

Subject Heading: MONETARY SYSTEM AND CURRENCY CIRCULATION

JEL Classification: E50, Е58, Е59

Pages: 4-23

https://doi.org/10.24891/df.30.1.4

Valerii V. SMIRNOV I.N. Ulianov Chuvash State University (ChuvSU), Cheboksary, Chuvash Republic, Russian Federation
v2v3s4@mail.ru

https://orcid.org/0000-0002-6198-3157

Subject. This article examines the issues related to repo agreements of the Bank of Russia.
Objectives. The article aims to determine the role of repo agreements of the Bank of Russia in ensuring the stability of the financial sector.
Methods. For the study, I used analysis and synthesis, special economic and mathematical methods, in particular, and correlation and regression analysis.
Results. The article determines the impact of the Bank of Russia's repo agreements on the process of balancing between the needs of the banking system and regulatory measures in the context of maintaining the multidirectional movement of rates and volumes in repo auctions. It reveals the market's confidence in the reliability of federal loan bonds of the Ministry of Finance of Russia due to the actions on repo operations of the Bank of Russia, which increase the share of State and municipal securities in relation to corporate debt securities owned by Russian banks and transferred under repo transactions with the Bank of Russia.
Conclusions. The identified role of the Bank of Russia's repo agreements in ensuring the stability of the financial sector, associated with balancing between the needs of the banking system and regulatory measures, is informatively important for the expert community regarding the understanding of the prospects for the existence of the Russian financial system.

Keywords: banking system, other financial organizations, regulatory measures, federal loan bonds, real sector of the economy

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