Financial Instruments of Bank Liquidity Management During Sectoral Sanctions against Russia
The U.S. Treasury created two sanctions list: Specially Designated Nationals (SDN) and the Sectoral Sanctions Identifications (SSI). The first once includes almost all the largest Russian defense enterprises, the second one includes the oil companies and banks with state participation. The credit institutions and the Central Bank are faced with the problem of finding complex balanced financial instruments to maintain the liquidity of banks at an acceptable level able to influence the whole complex of factors. The financial instruments of the first order include: key rate; deposits; recapitalization of banks through the OFZ market. Financial instruments of the second order include: inflation targeting; lending to businesses and population; own funds of credit institutions.