Problems of transmission of monetary policy in the regions of the Russian Federation

The article authors discuss the transmission of the effects of monetary policy on the economy of regions, and consider the factors that hinder the effectiveness of monetary policy in some regions of the Russian Federation. This applies to those entities of the federation where the banking system is not sufficiently developed, and monetary policy instruments do not find a response in the regional money markets. In this article the authors analyze the sensitivity of changes in rates for banking products to the changes in the key rate of the Bank of Russia. The features of inflationary processes and the reaction of rates on banking products in non-standard entities of the Russian Federation are studied. The underdevelopment of the banking system in the southern regions of the Russian Federation, extreme inflation rates (which are outside the confidence interval), the structure and parameters of loan portfolios - all of this shows the reasons for the weak transmission effects of monetary policy in the regional space.