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Academic Journal
Mandatory reserve requirements of the Bank of Russia: characteristics and mechanism of action
E E Frolova, E V Karmadonova, A B Zelentsov
RUDN Journal of Law, Vol 0, Iss 2, Pp 79-92 (2015)
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| Title | Mandatory reserve requirements of the Bank of Russia: characteristics and mechanism of action |
|---|---|
| Authors | E E Frolova, E V Karmadonova, A B Zelentsov |
| Publication Year |
2015
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| Source |
RUDN Journal of Law, Vol 0, Iss 2, Pp 79-92 (2015)
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| Description |
The article focuses on the description of one of the basic tools of the monetary credit policy conducted by countries, the compulsory reserve requirements, which represent the tool of monetary policy which is used in many countries of the world, the mechanism of formulating such requirements by central banks, the degree of their influence on the liquidity of banks and the growth of cash volumes. Functions of the reserve requirements deposited on bank accounts of Russia are considered in depth. The article deals with dynamics of standard rates of required reserves; the «classical» scheme of averaging of required reserves is analyzed. Authors unitize the reserved liabilities of the credit organizations in three categories: liabilities of the credit organization to legal nonresident persons which consist of liabilities to legal nonresident persons (including liabilities to nonresident banks), liabilities to individual nonresident entrepreneurs, arising according to agreements of the bank (correspondent) account, contracts for attraction of money (credit, deposit and other agreements); liabilities of the credit organization to physical persons which consist of liabilities to physical persons (residents and nonresidents), arising according to bank deposit agreements (including certificated by savings certificates), the bank account; other liabilities of the credit organization in currency of the Russian Federation and (or) in foreign currency. An example of calculation of data for accomplishment of an obligation by the credit organization for averaging of required reserves is provided. The article also deals with the practical issues of the mechanism of action of this instrument of monetary policy, the order of reserve calculation, the Central Bank of Russia’s management of the obligatory reserves as well as assesses the legal base regulating various aspects of credit institutions’ fulfillment of the reserve requirements.
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| Document Type |
article
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| Language |
English
Russian |
| Publisher Information |
Peoples’ Friendship University of Russia (RUDN University), 2015.
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| Subject Terms | |
