Definitions

The table sets out the main indicators characterising the banking sector’s liquidity over required reserve averaging periods. For the most part, this is the average of the values fixed as of the end of each calendar day. When analysing the situation with liquidity, it is reasonable to consider the averages over a specific required reserve averaging period, rather than daily values of the indicators. The table contains several blocks:

1. The dates of a required reserve averaging period.
2. Average liquidity and average required reserves over a period.
3. Data on the use of the Bank of Russia’s monetary policy instruments and other operations by credit institutions on average over a required reserve averaging period, with a conclusion about the structural liquidity position.
4. Information on the Bank of Russia key rate and the overnight segment of the money market.
5. Other meaningful averages over a required reserve averaging period.
6. Change in correspondent account balances over a required reserve averaging period resulting from both Bank of Russia operations with credit institutions and liquidity factors, with their main groups specified.

Required reserve averaging periods are periods during which credit institutions must maintain certain balances in their correspondent accounts with the Bank of Russia (not every day, but on average over a specific period). They are established on an annual basis by the Bank of Russia Board of Directors, and the calendar of averaging periods is published on the Bank of Russia website.

Correspondent account balances are credit institutions’ balances kept in their correspondent accounts with the Bank of Russia.

Required reserves to be averaged in correspondent accounts are the amount of balances of required reserves that credit institutions must maintain in their correspondent accounts with the Bank of Russia over a specific averaging period (not every day, but on average over a specific period).

Required reserves in special accounts are credit institutions’ balances kept in their required reserve accounts with the Bank of Russia.

Structural liquidity deficit / surplus is the difference between the Bank of Russia’s claims on banks arising from liquidity providing operations and the Bank of Russia’s liabilities to them on deposits and bonds, taking into account the difference between balances of banks’ correspondent accounts and the averaged amount of required reserves. A positive value (deficit) is the amount of liquidity that credit institutions need to borrow from the Bank of Russia to meet the reserve requirements. A negative value (surplus) reflects the amount of excess funds relative to the level of required reserves.

Demand for liquidity on market terms is a structural liquidity deficit / surplus adjusted for Bank of Russia operations, the demand for which is caused by non-market factors. These operations include Bank of Russia loans raised by credit institutions to comply with regulatory ratios, special refinancing facilities, and standing deposit facilities with the Bank of Russia placed by banks that are not willing to conduct money market transactions for whatever reason. This indicator is a more accurate measure of the amount of liquidity that the Bank of Russia needs to provide to the banking sector (a positive value) or absorb from it (a negative value) on market terms in order to achieve the operational objective of monetary policy.

Liquidity absorbed at auctions is the Bank of Russia’s liabilities to credit institutions arising following deposit auctions and the placement of Bank of Russia bonds.

Liquidity provided at auctions is the Bank of Russia’s claims on credit institutions arising following its repo and credit auctions.

Standing monetary policy facilities, net indicate the net amount of liquidity provided to (+) or absorbed from (-) credit institutions through standing monetary policy facilities, which is calculated as the difference between claims on loans, repos, foreign currency/ruble buy/sell FX swaps and the balances of standing deposit facilities.

Special mechanisms and other operations of the Bank of Russia, net indicate the net amount of liquidity provided to (+) or absorbed from (-) credit institutions through loans they raised as part of special mechanisms, irrevocable credit lines, or foreign currency/ruble sell/buy FX swaps , which is calculated as the difference between claims on issued loans and ruble funds transferred by credit institutions under foreign currency/ruble sell/buy FX swaps.

Key rate change is a change in the Bank of Russia key rate over a specific required reserve averaging period. A positive value means an increase in the key rate, while a negative value means its reduction.

Spread between RUONIA and the key rate is the arithmetic mean of the spreads between RUONIA and the Bank of Russia key rate for each calendar day of a required reserve averaging period. If RUONIA was not calculated for a specific day, the RUONIA value for the last preceding business day when RUONIA was calculated is used. Negative and positive spreads are summed up.

Outstanding RUONIA transactions is outstanding debt on overnight transactions used to calculate RUONIA.

Spread between MIACR overnight and the key rate is the arithmetic mean of the spreads between MIACR overnight and the Bank of Russia key rate for each calendar day of a required reserve averaging period. If MIACR was not calculated for a specific day, the MIACR value for the last preceding business day when MIACR was calculated is used. Negative and positive spreads are summed up.

Outstanding MIACR overnight transactions is outstanding debt on overnight transactions used to calculate MIACR. 

Autonomous liquidity factors, net reflect the overall effect on banks’ correspondent accounts produced by autonomous factors influencing the demand for liquidity and autonomous factors being liquidity sources, including the Bank of Russia’s operations to buy and sell assets for purposes not related to managing the banking sector liquidity.

Excess liquidity in correspondent accounts is the difference between the average balances of correspondent accounts over a specific required reserve averaging period and the averaged amount of required reserves that credit institutions were to keep in their correspondent accounts over that averaging period.

Credit institutions’ funds in bonds and deposits indicate the Bank of Russia’s liabilities to credit institutions on deposits placed with the Bank of Russia and Bank of Russia bonds.

Funds provided to credit institutions through loans, repos, and FX swaps indicate the Bank of Russia’s claims on credit institutions arising from loans, repos, and foreign currency/ruble buy/sell FX swaps.

Change in required reserves is a change in balances that credit institutions maintain in their correspondent and required reserve accounts opened with the Bank of Russia.

Bank of Russia operations with credit institutions indicate the net inflow (+) or outflow (-) of liquidity resulting from Bank of Russia operations with credit institutions over a specific required reserve averaging period as part of monetary policy instruments, special mechanisms, irrevocable credit lines, and foreign currency/ruble sell/buy FX Swaps.

Autonomous liquidity factors indicates the net inflow (+) or outflow (-) of liquidity over a specific required reserve averaging period which is attributable to the combined effect of all groups of liquidity factors. Liquidity factors are divided into the following three groups:

1. Bank of Russia FX interventions in the domestic market.
2. Change in the amount of cash in circulation.
3. Change in balances of general government accounts with the Bank of Russia and other operations.

Bank of Russia FX interventions in the domestic market indicate the net inflow (+) or outflow (-) of liquidity resulting from the Bank of Russia’s interventions in the domestic market.

Change in the amount of cash in circulation indicates the net inflow (+) or outflow (-) of liquidity resulting from the issuance of cash and its withdrawal from circulation.

Change in balances of general government accounts with the Bank of Russia and other operations indicates the net inflow (+) or outflow (-) of liquidity resulting from transactions on general government accounts with the Bank of Russia and other operations, including the Bank of Russia’s gold purchases in the domestic market. Additionally, it describes the effect of the following on liquidity:

1. Change in banks’ debt on Federal Treasury operations with temporarily available budgetary funds.
2. Change in domestic government debt.
3. Operations of the Russian Ministry of Finance to buy / sell foreign currency in the domestic market.