+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»






Finance and Credit

Economic boundaries of the Bank of Russia's operations

Vol. 27, Iss. 5, MAY 2021

Received: 28 January 2021

Received in revised form: 11 February 2021

Accepted: 25 February 2021

Available online: 28 May 2021

Subject Heading: Financial system

JEL Classification: Е50, Е58, Е59, G21, G24

Pages: 1093–1115


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


Subject. The article focuses on operations of the Central Bank’s of the Russian Federation.
Objectives. The study is to determine economic boundaries of operations of the Central Bank of the Russian Federation.
Methods. The study is based on the systems approach and methods of statistical, neural network and cluster analysis.
Results. Analyzing the tomorrow-today dynamics of difference of the weighted average exchange rate RUB/USD and EUB/EUR and supply of USD and EUR, I discovered the supply of USD steadily exceeded the supply of RUB/EUR starting from 2018. Analyzing trends in growth rates of international reserves and money base (in its narrow sense), I found a growth in monetary growth starting from 2015 and currency reserves, cash in circulation (out of the Bank of Russia), statutory reserves of credit institutions in the Bank of Russia starting from 2017. Analyzing the importance of growth rates of market indicators, I identified its effective configuration referring to the dynamics of SP500. However, I point out stocks of Rostelecom, gold and RUB/USD. The article demonstrates the important ties between RTS index and stocks of Gazprom and Rostelecom, USD index ? RUB/USD, gold, SP500. Considering the existing structure of the Russian economy, the upper and base boundaries of the Bank of Russia’s operations are Repo rate and RUB/USD respectively.
Conclusions and Relevance. The above economic boundaries of the Bank of Russia’s operations allow financial institutions to pursue an increase in the sustainability of the banking system, preserve the ownership structure, legal form and corporate governance, and use derivatives in order to decrease borrowings costs. The study contributes to the knowledge and competence of governmental officials so as to make administrative decisions on sources of growth in the Russian economy and respective opportunities.

Keywords: exchange rate, activity, transaction, growth rate, Bank of Russia, economic boundaries


  1. Glaz'ev S.Yu. [On bringing macroeconomic policy in line with national development goals set by the President of Russia]. Nauchnye trudy Vol'nogo ekonomicheskogo obshchestva Rossii = Scientific Works of the Free Economic Society of Russia, 2020, vol. 221, no. 1, pp. 69‒78. URL: Link (In Russ.)
  2. Aganbegyan A.G. [Crisis as a window of opportunity for socio-economic development]. Nauchnye trudy Vol'nogo ekonomicheskogo obshchestva Rossii = Scientific Works of the Free Economic Society of Russia, 2020, vol. 223, no. 3, pp. 47‒69. (In Russ.) URL: Link
  3. Pak O. Bank Profitability in the Eurasian Economic Union: Do Funding Liquidity and Systemic Importance Matter? The North American Journal of Economics and Finance, 2020, vol. 54, 101265. URL: Link
  4. Karas A. Russian Bank Data: Reasons of Bank Closure. Data in Brief, 2020, vol. 29, 105343. URL: Link
  5. Davydov D., Fungáčová Z., Weill L. Cyclicality of Bank Liquidity Creation. Journal of International Financial Markets, Institutions and Money, 2018, vol. 55, pp. 81‒93. URL: Link
  6. Anzoategui D., Pería M.S.M., Melecky M. Bank Competition in Russia: An Examination at Different Levels of Aggregation. Emerging Markets Review, 2012, vol. 13, iss. 1, pp. 42‒57. URL: Link
  7. Fernandes G., Mendes L.S., Leite R.O. Cash Holdings and Profitability of Banks in Developed and Emerging Markets. International Review of Economics & Finance, 2021, vol. 71, pp. 880‒895. URL: Link
  8. Korhonen I., Nuutilainen R. Breaking Monetary Policy Rules in Russia. Russian Journal of Economics, 2017, vol. 3, iss. 4, pp. 366‒378. URL: Link
  9. Kočenda E., Iwasaki I. Bank Survival in Central and Eastern Europe. International Review of Economics & Finance, 2020, vol. 69, pp. 860‒878. URL: Link
  10. Karas A., Vernikov A. Russian Bank Data: Birth and Death, Location, Acquisitions, Deposit Insurance Participation, State and Foreign Ownership. Data in Brief, 2019, vol. 27, 104560. URL: Link
  11. Faleye O., Krishnan K. Risky Lending: Does Bank Corporate Governance Matter? Journal of Banking & Finance, 2017, vol. 83, pp. 57‒69. URL: Link
  12. Fungáčová Z., Solanko L., Weill L. Market Power in the Russian Banking Industry. International Economics, 2010, vol. 124, pp. 127‒145. URL: Link60022-0
  13. Drakos A.A., Kouretas G.P., Tsoumas C. Ownership, Interest Rates and Bank Risk-Taking in Central and Eastern European Countries. International Review of Financial Analysis, 2016, vol. 45, pp. 308‒319. URL: Link
  14. Bazih J.H., Vanwalleghem D. Deriving Value or Risk? Determinants and the Impact of Emerging Market Banks’ Derivative Usage. Research in International Business and Finance, 2021, vol. 56, 101379. URL: Link
  15. Berkowitz D., Hoekstra M., Schoors K. Bank Privatization, Finance, and Growth. Journal of Development Economics, 2014, vol. 110, pp. 93‒106. URL: Link

View all articles of issue


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

Journal current issue

Vol. 28, Iss. 6
June 2022