Balance in the movement of Russian finance

Abstract

Subject. The article addresses the balance in the movement of Russian finance. Objectives. The purpose is to determine the balance in the movement of Russian finance. Methods. The study rests on systems approach, using the method of statistical analysis. Results. The study shows high potential of debt securities owned by Russian banks and transferred under repo transactions with the Bank of Russia, with the excess of dynamics of growth of financial assets minus liabilities of the banking system over the monetary base (in a broad definition). The paper revealed dominant growth of financial assets minus liabilities of households and non-profit organizations serving households holding the entire growth in the domestic economy with the fall of non-financial corporations and relatively stable growth of public administration. It also revealed a stable growth of debt securities issued at market value in the context of high volatility and a wide range of the volume of quoted shares of Russian issuers traded on the domestic market, and insignificant growth rates of federal loan bonds. It highlights the problem of balance in the movement of Russian finance, i.e. high volatility and a wide range of the volume of quoted shares of Russian issuers traded on the domestic market, and a drop in financial assets minus liabilities of non-financial corporations. Conclusions. The unveiled balance in the movement of Russian finance, largely maintained through the stable growth of debt securities issued at market value and a significant increase in financial assets minus liabilities of households and non-profit organizations serving households, points out to the monetary authorities the critical opportunities for the development of the financial system.