The limit of money multiplication in modern Russia

Subject. The article deals with multiplication of money in modern Russia. Objectives. The purpose is to determine the limit of money multiplication in Russia. Methods. The study draws on methods of data analysis and synthesis, correlation and regression analysis. Results. The paper shows the growth of funds of credit institutions on deposit accounts with the Bank of Russia and an increase in the ratio of standing overnight deposits to these funds, reveals an increase in net requirements to public administration bodies, with a stable level of requirements to other sectors in the context of an increasing gap between other items (net) and net foreign assets. The study established an increase in the ratio of household loans and borrowings to quoted shares of Russian issuers traded on the domestic market in the context of a decrease in the ratio of household loans and borrowings to debt securities issued on the domestic market to the ratio of household loans and borrowings to quoted shares of Russian issuers. Conclusions. The revealed limit of money multiplication in modern Russia demonstrates to the expert community the uncertainty of Russian banks in their ability to manage risks and maintain liquidity in the face of rising net requirements to government authorities, outstripping the growth of loans and borrowings relative to debt securities and stocks, despite a sharp increase in the total amount of money owned by the State, firms and households, and an increase in the ratio of the key rate to inflation.