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Finance and Credit
 

The Russian degree of the coherence of finance and economy

Vol. 27, Iss. 6, JUNE 2021

Received: 4 February 2021

Received in revised form: 18 February 2021

Accepted: 4 March 2021

Available online: 29 June 2021

Subject Heading: Financial system

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

Pages: 1356–1380

https://doi.org/10.24891/fc.27.6.1356

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. The article discusses the extent to which finance and economy are bound in Russia.
Objectives. The study determines the cohesion of finance and economy in Russia.
Methods. The study is based on the systems approach and methods of statistical, neural network and cluster analysis.
Results. The paper determined the extent to which finance and economy are connected in Russia, considering the decay in the world economic order affecting the structural consistency of the Russian economy. The connection of finance and economy in Russia was found to tend to a lower profit margin from the difference of weighted average rates and the exchange rate, which pushes the financial sector to mortgage lending. To smooth any disparities in the lending market and eliminate causes of the housing bubble, the Russian Ministry of Finance has to increment the domestic debt ? RGBI. Analyzing the dynamics of RGBI, RTSI, USDRUB, NGG2021, BRG2021, I found out that USDRUB exceeded RGBI, RTSI and BRG2021. Natural gas (NGG2021) remains the only mechanism for sustaining the volume and return on RGBI. The U.S. sanctions against the Russian gas sector force to increase the volume of RGBI. The existing degree of the cohesion of finance and economy in Russia fuels an economic collapse than can be compared with 2008.
Conclusions and Relevance. Studying the extent to which finance and economy are bound in Russia, it is possible to guide stakeholders of financial institutions, allowing them to increase the efficiency of lending for the real economy and using the potential of the resource structure of the Russian economy. The findings contribute to the available knowledge and competence of governmental officials and employees of financial institutions for choosing growth drivers of the Russian economy and seizing opportunities for this.

Keywords: banking sector, government bonds, mortgage lending, structural functionality, financial institutions

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