Support measures as an additional driver of the market value of domestic banks

The events of 2022—2023 created a setting for a quasi-natural experiment that makes it possible to assess how the Bank of Russia’s support measures influenced the stock-market valuation of banks. While the general external environment affected all participants in the equity market, banks experienced an additional influence not faced by other companies—namely, the support measures introduced by the Bank of Russia in 2022. A quantitative assessment of the effects of Russia’s macroprudential-easing policy shows that these measures acted as an extra factor supporting banks’ market value. Specifically, the share prices of banks covered by the supportive macroprudential policy changed less than those of other firms.