The Russian Landing Rate, Central Bank’s Policy Related Rate and Intermediation Premium

Authors

  • Chu V. Nguyen Marilyn Davies College of Business University of Houston-Downtown
  • Caroline LeBon Marilyn Davies College of Business University of Houston-Downtown, TX
  • Stephen Miller Marilyn Davies College of Business University of Houston-Downtown, TX
  • Cynthia B. Lloyd Marilyn Davies School of Business of the University of Houston-Downtown, TX

DOI:

https://doi.org/10.15549/jeecar.v4i1.155

Abstract

This paper illustrates asymmetries in the Russian intermediation premium as measured by the spread between the commercial lending rate and the Central Bank’s policy related rate. Empirical results have shown that the Russian intermediation premium adjusts to the threshold faster when the Central Bank’s policy related rates increase relative to lending rates as opposed to when the Central Bank’s policy related rates move in the opposite direction. The findings of this paper suggest that during the period when the Russian Federation faced formidable challenges from a sharp decline in oil prices and reduced access to international capital markets due to Western sanctions, the Central Bank of Russia was not effective in utilizing countercyclical monetary policy to achieve macroeconomic objectives and commercial banks exhibited predatory pricing behavior.

Author Biographies

Chu V. Nguyen, Marilyn Davies College of Business University of Houston-Downtown

Associate Professor of Economics and Finance,

Chaman of the FAMIS Department

Davies College of Business

University of Houston-Downtown

Caroline LeBon, Marilyn Davies College of Business University of Houston-Downtown, TX

Dr. Caroline LeBon is a Lecturer of Marketing, MMBA Department, the Marilyn Davies College of Business, University of Houston-Downtown where she teaches a variety of courses. She received a Bachelor of Arts in Applied Economics and a Master in Retail Management, Logistics and Negotiation from the University of Paris Dauphine; a Master of Science in Marketing from the University of Paris Sorbonne; and a Ph.D. in Marketing from Aix Marseille University. Before joining academia, she spent 10 years as a buyer for the leading French department store. She oversaw the selection, negotiation, and procurement for national and international brands and was responsible for sales revenues, prices, margins, promotional activities, and inventory management.

Stephen Miller, Marilyn Davies College of Business University of Houston-Downtown, TX

Stephen Miller is an Accounting Lecturer at the Marilyn Davies School of Business of the University of Houston Downtown, a Certified Public Accountant, and a Certified Internal Auditor. He was previously the Department Chair for Business Technologies and taught Accounting for the Lamar Institute of Technology in Beaumont Texas. He earned his Doctor of Management degree from the University of Maryland, and B.B.A., M.B.A., and M.S. Accountancy degrees from the Bauer College of Business of the University of Houston Central Campus.

Cynthia B. Lloyd, Marilyn Davies School of Business of the University of Houston-Downtown, TX

Dr. Cynthia B.  Lloyd is an Assistant Professor of Accounting at the Marilyn Davies School of Business of the University of Houston-Downtown, an Attorney (licensed by the states of Texas and Florida), and, a Certified Public Accountant (licensed as a CPA by the State of Texas). She previously taught accounting at Texas A&M International University, Laredo, Texas and at Indiana University-Purdue University Fort Wayne. Her research interests include studying critical qualitative and quantitative signals of factors influencing unsuccessful economies, businesses, financial, and other market sectors.

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Published

2017-04-25

How to Cite

Nguyen, C. V., LeBon, C., Miller, S., & Lloyd, C. B. (2017). The Russian Landing Rate, Central Bank’s Policy Related Rate and Intermediation Premium. Journal of Eastern European and Central Asian Research (JEECAR), 4(1), 12. https://doi.org/10.15549/jeecar.v4i1.155

Issue

Vol. 4 No. 1 (2017): Journal of Eastern European and Central Asian Research

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