Year of Graduation
Influence of Central Bank's Policy on Russian Banking Efficiency
Due to the fact that globalization causes interdependence of financial systems, high risks of bankruptcies and fraud during economic crisis cause the need in state regulation for stabilization purposes. The main goal of a Central Bank is to provide sustainable banking sector development. Due to this, it elaborates new monetary policies or reforms the existing ones. The objective of this research is to assess the influence of Central bank’s monetary policy on banking efficiency on the example of Russian financial institutions. The financial regulation tools explored here are key rate, reference rate and the ratio of required reserves, which are some of the liquidity factors determined by Russian Central bank. Here, a statistical regression model with coefficient analysis implementation is constructed in order to investigate dependence of banking efficiency, measured in a number of ways, on regressors, which stand for managerial effectiveness, factors influencing profitability and Central Banks' tools. The results of this finding meet current economic condition and can be used to define a strategy of monetary policy depending on banking sector financial state.