Measuring the effects of the Bank of Russia and the Government of Russia anti-crisis measures
Lymar Maria, Penikas Henry
The Bank of Russia and the Government of Russia coordinate with each other and implement a set of anticrisis measures tailored to provide financial stability and support lending during crisis times.
The objective of the current work is to measure to what extent such support measures promoted financial stability of banks and the financial market overall so to sustain lending economy-wide during the crisis periods of 2014, 2020, 2022. It is important to disentangle the joint (cumulative) effect, as well as define the specific Bank of Russia and the Government of Russia measures’ contribution.
We justify that these measures mutually assured the financial stability of the institutions and enabled them to extend lending within the economy for RUB 8 trln in 2022. Bank of Russia measures contributed to RUB 4.3 trln of the total, the Government of Russia measures added another RUB 2 trln, while the synergy of the Bank of Russia and the Government of Russia produced extra RUB 1.7 trln of the total effect. These figures reflect the direct impact of support measures only.
The most significant contribution originated from the measures designed to stabilize the financial standing of the borrowers, the use of macroprudential capital buffers, including that on the foreign-currency-denominated loans and the mortgage and consumer loans-related ones. In addition, we were able to trace the cross supporting effects when the measures tailored for one segment (retail or corporate loans) stimulated lending in the adjacent section (corporate or retail).
Current working paper provides granular details on how the results from the subsection 3.4 of the draft report (Bank of Russia, 2023a, pp.