Russian banks' response to monetary policy

Subject. The article investigates the impact of the monetary policy of the Bank of Russia on Russian banks. Objectives. The aim is to determine the response of Russian banks to the monetary policy of the Bank of Russia. Methods. The study rests on general scientific methods, primarily, the analysis and synthesis of data, and special economic and mathematical methods, like the correlation and regression analysis. Results. The key rate is high enough to compensate for the difference in debt growth between different sectors of the economy. However, critical parameters of transactions between credit institutions and the Bank of Russia on the sale of securities providing for their repurchase at pre-agreed price in rubles for a long term and fine-tuning auctions are recorded, as well as the exit to a higher level of permanent deposit operations of credit institutions in accounts with the Bank of Russia with the loss of dominance of fine-tuning deposits. The response of Russian banks to the monetary policy of the Bank of Russia is associated with the need to compensate for the difference in debt growth of the non-financial sector and households and non-profit organizations servicing households, through instruments with short terms of execution. Conclusions. The identified response of banks to the monetary policy of the Bank of Russia will help analysts in forecasting the behavior of financial markets and assessing its impact on various assets, and government agencies in developing economic strategies and budget planning.