Balance management on the single account of the federal budget in the context of liquidity surplus of the banking sector

The study discusses the effective liquidity management of the single account of the federal budget in the context of inability to deposit money in a bank. The novelty of this research is to update the market-based measures to minimize risks to the public finances management. The study proves that the current restrictions related to the strict fulfillment of the assumed obligations can be removed by making management tools market-oriented. Fund management is discussed from the standpoint of both Treasury and commercial banks. This approach demonstrates the essential terms for commercial banks to effect a transaction and natural restrictions imposed by the Treasury. The author proposes a management option providing an ideal solution for increasing the profitability and reducing the risks of such transactions. The present situation of the investment of funds is considered. It is concluded that the current policy should be changed in the context of excessive market liquidity. At the same time, the investment of funds is to be diversified. The transition to new tools of liquidity management is presented. The tools applied are to be reformed in order to increase their attractiveness and profitability.