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distribution of a company’s profit only after the company replenishes its reserves and pays dividends on preferred shares. That is why, dividend payment on

beginning of a period t, the economy has some units of oil reserves (rest ) and discovers a further number of units (disct ). Government receives profits

central bank (liquidity and quantitative easing), • loans, impaired loans and loan loss reserves (assets’ composition), • ROA, cost to income ratio (profitability), • OTC derivatives, securities (HFT,

9 A Range of Instruments are Being Used LTV FX position Reserve Req. Reserve Req. Capital Liquidity Conservation Capital SIFI LTV LoanR LoanR Liquidity Provisions

Bt + Rt |{z} |{z} |{z} |{z} |{z} Networth Deposits Loans Gov Bonds Reserves They act competitively to maximize networth Nt+1 = Lt ItL + Bt ItB

Reserves, $bn Developed countries Emerging countries Russia 800 120% 109% External debt/GDP 2019 = 29% 700 636,4 Reserves/GDP 2019 = 33% 98% 100% Reserves

adjusts the level of unsecured debt and stablize the economy • macro-prudential policies (reserve requirements on deposits and capital adequacy requirements) have small stabilizing effect Comments:

not to recognise such loans as restructured for the purpose of creating reserves and not to apply macroprudential add-ons to such loans until 30 September

letters of credit, fixed-term deposits, financial corporations’ required reserves with the Bank of Russia and the reserve position in the IMF. Transactions between credit institutions

mandatory reserve requirements. Neutral rate of interest The level of the key rate when monetary policy neither slows down, nor speeds up inflation. Required reserve