Features of functioning of the Russian banking system in crisis
The Russian banking system alongside other entities of the economy is experiencing serious difficulties caused by limited access to external financing. The binding of the issue of money to the growth of foreign exchange reserves, and not to the needs of the economy in the long-term loans, as is happening in developed countries, and dooms the real sector of the economy to financial starvation, and the complete freedom of current and capital transactions causes the buildup of capital outflows. According to statistics from the CBR, the banking system in recent years, started to shrink because of stagnation in corporate and retail lending. The monetary policy of the Central Bank of the Russian Federation is aimed solely at combating inflation by limiting money supply to the real economy. It was therefore incorrect to consider the CBR, as written in the Law, the lender of last resort. The CBR effectively manages short-term liquidity through weekly repo transactions. Problems of development of long-term financing of economy and risk management remain outside the competence of the regulator, and the relationship between real and financial sectors of the economy are characterized by the diversity of interests and instability. We believe that it is appropriate to move from the barren to fight inflation to a policy of saturating the economy with liquidity. It is necessary to develop long-term refinancing of commercial banks by the Central Bank of the Russian Federation, to facilitate the repatriation of export revenues, as well as changes in the banking system, aimed at improving, stabilizing and consolidation of commercial banks.