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About application-specific of REPO-operation in activity of Bank of Russia

Available online: 25 May 2011

Subject Heading: BANK TECHNOLOGIES

JEL Classification: 

Application-specific of REPO-operation of Bank of Russia with a view of maintenance of liquidity of bank system in crisis conditions is considered. It is shown that owing to absence of effectively acting tools given by developed financial market, the REPO-CREDITING mechanism in the Russian conditions in a crisis situation has undergone essential changes as at the expense of expansion of the list of the financial assets accepted as mortgage provision, and change of number of the commercial banks admitted to participation in auctions.
     The measures taken in extraordinary conditions have led to REPO-MECHANISM transformation is shown by methods of the microeconomic analysis. From the mechanism of «thin fine tuning» current liquidity of bank system in which realization commercial banks «first echelon» earlier took part, this mechanism is transformed to one of elements of granting of liquidity on a level with already existing sectors of financial market performing crediting of bank system (MIACR, МBB, etc.).
     The given circumstance has caused sharp growth of indebtedness of bank system that has negatively affected efficiency of use REPO-operations as the tool of «thin fine tuning».

Keywords: balance, currency, liquidity, pawn ticket, monetary policy, REPO

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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