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INFLUENCE OF THE SIZE OF REQUIRED RESERVE RATIO ON THE PROFIT OF A COMMERCIAL BANK

Author (s)

Babadzhanov D.D., Azizbaev R.A.

Abstract

The article dwells on a practical study beset with the impact of the initial impulses generated by NBT on the monetary signals of the money market and on the profitability of commercial banks, as well as the peculiarities of using the instruments of monetary transmission mechanism in the Republic of Tajikistan. It is established that with an increase in NBT reserve rate by 1%, the bank`s income fell by (fall down to) 0.21%. The article presents practical recommendations regarding the influence of monetary instruments on resources of the banking system, and hence on the provision of the real sector of economy with necessary resources. In addition, the resulting formula can serve as a practical material for NBT for forecasting when making decisions concerned with the monetary instruments with monetary regulation. (involvedintooperations)

Keywords

National Bank of Tajikistan, transmissional mechanism, monetary-crediting policy instruments, reserves of commercial banks, overnight interest rate

References

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Publication date

Monday, 15 November 2021