A quantitative ground for decision-making in a bank on setting of optimal interest rates on retail term deposits is proposed. The offered approach is based on the variational method of synthesis of optimal deterministic control. To solve this problem, instead balance sheet interest rates it is...

Traditional banking is built on four pillars: SME lending, insured deposit taking, access to lender of last resort, and prudential supervision. This paper unveils the logic of the quadrilogy by showing that it emerges naturally as an equilibrium outcome in a game between banks and the...

Traditional banking is built on four pillars: SME lending, access to public liquidity, deposit insurance, and prudential supervision. This vision has been shattered by repeated bailouts of shadow financial institutions. This paper puts ``special depositors and borrowers'' at the core of the...

In January-November 2021, retail bank deposits increased slightly and their share in bank liabilities decreased. The factors of the slowdown were: the outflow of funds into the purchase of real estate due to the availability of mortgages; attractive conditions on the stock market; the growth of...