This article examines the relationship between financial development and economic growth. Money supply and loans relative to Gross Domestic Product (GDP) are used as indicators of financial development. The empirical results, that money supply leads economic growth while economic growth leads loans, reflect the characteristics of the Russian economy. Oil price increases and the appreciation of the ruble increased money supply under insufficient sterilisation instruments, which, in turn, fostered economic growth. On the other hand, the Russian economic boom provided an incentive for banks to increase loans and their role in initiating economic growth is limited.