Bank of Russia Refinancing Instruments and Their Role in Liquidity Regulation of Banking Sector

This study attempts to examine the refinancing system of the Central Bank of Russia and create an econometric model, aimed at identifying the role of refinancing instruments in the liquidity regulation of the banking sector. The results anticipated are intended to point out a correlation between the liquidity of the Russian banking sector and Bank of Russia refinancing operations. Most importantly, the impact of individual bank indicators and certain macroeconomic factors on the liquidity level of the banking sector will also be considered. The model will be tested on the data, which covers the period from 2008 to 2018. This sample considered to be the most representative for the Russian banking sector, since it has experienced both significant crises and growth over this period. The study will be presented in 3 parts. The first chapter will highlight the theoretical aspects of liquidity regulation and refinancing instruments. The second chapter will focus on the analysis of data on the liquidity of the banking sector over the past 10 years. In the third chapter I will attempt to frame the hypotheses, create and test the econometric model.