Banking system of Russia in the economic sanctions

At the end of 2014 due to the devaluation processes and desire of the population to withdraw savings there was a lack of the most liquid assets. Therefore, mainly large systemically important banks of Russia faced this problem. In order to stabilize the ruble Bank of Russia was forced to increase the key interest rate from 10.5% to 17% per annum, but could not hold decline of a ruble in relation to foreign currencies, the liquidity problem had been intensified. Therefore, in early 2015, despite the decrease in the key rate to 15%, almost all small and medium-sized banks had been experienced lack of liquidity, and even increase of banks, which were allowed to participate in the credit auctions, by the Central Bank failed to relieve the tension. However, the sanctions hadn‘t affected short-term liabilities of banks, so those of them, which used the borrowings on international markets to cover cash shortages, had kept such a possibility in the future.