THE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES

The article deals with investigation of an unusual phenomenon, i. e. the origin of compulsory reserve functions as a multifunctional finance tool. Compulsory reserves (compulsory reserve requirements – norms of compulsory reserves) as a finance tool in disclosing its functional idea reveal their cha...

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Autor principal:	Tatiana S. Novashina
Formato:	article
Lenguaje:	RU
Publicado:	Plekhanov Russian University of Economics 2018
Materias:	local function averaging mechanism multifunctional character of the finance tool reserve norm compulsory reserve requirements functions of compulsory reserves the function of the interest rate buffer the function of regulating rate volatility on money market the function of regulating capital flows the function of regulating the value of loan funds the function of regulating banks’ current liquidity effect of absolute liquidity effect of ‘liquid trap’ Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/bc7bf60fd323466d8251832231564441
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spelling	oai:doaj.org-article:bc7bf60fd323466d82518322315644412021-11-15T05:20:46ZTHE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES2413-28292587-925110.21686/2413-2829-2018-2-47-56https://doaj.org/article/bc7bf60fd323466d82518322315644412018-03-01T00:00:00Zhttps://vest.rea.ru/jour/article/view/457https://doaj.org/toc/2413-2829https://doaj.org/toc/2587-9251The article deals with investigation of an unusual phenomenon, i. e. the origin of compulsory reserve functions as a multifunctional finance tool. Compulsory reserves (compulsory reserve requirements – norms of compulsory reserves) as a finance tool in disclosing its functional idea reveal their character not only in the traditional function, as a tool that regulates liquidity of the banking system but also as a tool possessing specific multifunctional nature, which allows the central banks by ensuring stability of banking organizations (key components of the banking system) functioning to guarantee stability of the banking system as a whole. The article shows this specific multifunctional character through mechanisms of averaging. Proceeding from the analysis of averaging mechanism functioning, a conclusion can be made about extending the functional set of compulsory reserves as an effective finance tool. It was pointed out that each of the mentioned functions can be presented by more local functions making up system integrity. Local functions are identified with due regard to diverse interests of the parties participating in the process of compulsory reserving. It was shown that the buffer function of the interest rate is displayed into local functions: the function of regulating rate volatility on money market and the function of regulating the value of loan funds. The author thinks that function localization possesses not only scientific value (in view of disclosing the mechanism of more effective use of this finance tool) but also a certain applied value, as it allows us to reveal real economic interests of each party and therefore, to use more efficiently the found advantages of this finance tool.Tatiana S. NovashinaPlekhanov Russian University of Economicsarticlelocal functionaveraging mechanismmultifunctional character of the finance toolreserve normcompulsory reserve requirementsfunctions of compulsory reservesthe function of the interest rate bufferthe function of regulating rate volatility on money marketthe function of regulating capital flowsthe function of regulating the value of loan fundsthe function of regulating banks’ current liquidityeffect of absolute liquidityeffect of ‘liquid trap’Economics as a scienceHB71-74RUВестник Российского экономического университета имени Г. В. Плеханова, Vol 0, Iss 2, Pp 47-56 (2018)
institution	DOAJ
collection	DOAJ
language	RU
topic	local function averaging mechanism multifunctional character of the finance tool reserve norm compulsory reserve requirements functions of compulsory reserves the function of the interest rate buffer the function of regulating rate volatility on money market the function of regulating capital flows the function of regulating the value of loan funds the function of regulating banks’ current liquidity effect of absolute liquidity effect of ‘liquid trap’ Economics as a science HB71-74
spellingShingle	local function averaging mechanism multifunctional character of the finance tool reserve norm compulsory reserve requirements functions of compulsory reserves the function of the interest rate buffer the function of regulating rate volatility on money market the function of regulating capital flows the function of regulating the value of loan funds the function of regulating banks’ current liquidity effect of absolute liquidity effect of ‘liquid trap’ Economics as a science HB71-74 Tatiana S. Novashina THE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES
description	The article deals with investigation of an unusual phenomenon, i. e. the origin of compulsory reserve functions as a multifunctional finance tool. Compulsory reserves (compulsory reserve requirements – norms of compulsory reserves) as a finance tool in disclosing its functional idea reveal their character not only in the traditional function, as a tool that regulates liquidity of the banking system but also as a tool possessing specific multifunctional nature, which allows the central banks by ensuring stability of banking organizations (key components of the banking system) functioning to guarantee stability of the banking system as a whole. The article shows this specific multifunctional character through mechanisms of averaging. Proceeding from the analysis of averaging mechanism functioning, a conclusion can be made about extending the functional set of compulsory reserves as an effective finance tool. It was pointed out that each of the mentioned functions can be presented by more local functions making up system integrity. Local functions are identified with due regard to diverse interests of the parties participating in the process of compulsory reserving. It was shown that the buffer function of the interest rate is displayed into local functions: the function of regulating rate volatility on money market and the function of regulating the value of loan funds. The author thinks that function localization possesses not only scientific value (in view of disclosing the mechanism of more effective use of this finance tool) but also a certain applied value, as it allows us to reveal real economic interests of each party and therefore, to use more efficiently the found advantages of this finance tool.
format	article
author	Tatiana S. Novashina
author_facet	Tatiana S. Novashina
author_sort	Tatiana S. Novashina
title	THE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES
title_short	THE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES
title_full	THE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES
title_fullStr	THE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES
title_full_unstemmed	THE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES
title_sort	origin of finance tool functions: compulsory reserves
publisher	Plekhanov Russian University of Economics
publishDate	2018
url	https://doaj.org/article/bc7bf60fd323466d8251832231564441
work_keys_str_mv	AT tatianasnovashina theoriginoffinancetoolfunctionscompulsoryreserves AT tatianasnovashina originoffinancetoolfunctionscompulsoryreserves
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THE ORIGIN OF FINANCE TOOL FUNCTIONS: COMPULSORY RESERVES

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