Changing Patterns of Financial Intermediation : Implications for Central Bank Policy

The most prominent changes in Russian financial intermediation in recent years were related to the growing role of domestic financial markets. These developments have presumably increased the efficiency of the Bank of Russia's interest rate policy and the efficiency of monetary transmission in general. The relative importance of banks has been growing steadily. Although the debt securities market has also developed, banks still play the dominant role. Banks effectively respond to the provision of systemic liquidity by the Bank of Russia, as evidenced by the stable share of highly liquid assets in their total assets. The Russian banking sector shows a high level of stability, which is additionally confirmed by periodic stress tests.Full publication: "http://ssrn.com/abstract=2692232" What Do New Forms of Finance Mean for EM Central Banks?