Modeling Activity of the Russian Banking Sector

Abstract

In this article comparatively simple and verisimilar description of functioning of modern Russian banking system that could be used in a model of intertemporal equilibrium is presented. This description couldn’t be replaced by simple proportions like money multipliers.

The rational expectations model of the banking system on basis of econometric analysis of moving of the main types of financial instruments in the banking system is formulated. One part of obtained econometric correlations is used as restrictions, and the rest correlations are explained by the model.

The model successfully reproduces the reaction of the banking system on unexpected events, so as for example a sizable sale of assets or the world financial crisys.