Hryvnia deposits of individuals in banks grew by 8.1% - NBU

In October-December 2021, the amount of hryvnia funds of individuals in banks increased by 8.1% quarter-on-quarter and 15.3% year-on-year.

According to Ukrinform, this is said in the Banking Sector Review published on the website of the National Bank of Ukraine (NBU).

The largest increase was recorded in private and foreign banks: up 41.0% yoy and 22.4% yoy, respectively. At the same time, household term deposits in the national currency grew more slowly - by 9.6% over the year. The vast majority of new term deposits were attracted for a period of at least three months. The total amount of household deposits in foreign currency over the year decreased by 1.8% (in U.S. dollar equivalent) due to the outflow of fixed deposits

Hryvnia deposits of economic entities were up 15.5% qoq and 26.4% yoy. Banks with private capital were in lead, showing growth of 35.1% qoq and 63.2% yoy. Deposits in foreign currency (in U.S. dollar equivalent) decreased by 4.7% over the quarter due to the outflow of funds from private and foreign banks. In annual terms, deposits in foreign currency grew by 3.9%.

At the same time, the share of foreign currency deposits shrank by 2.6 pp, to 32.9% despite the weakening of the national currency exchange rate. The National Bank noted that the regulator continued the cycle of increasing the discount rate in Q4, raising it to 9% per annum, and to 10% in January 2022. However, only a few banks out of the top twenty have raised rates on household deposits in the national currency after accounting. The average value of 12-month deposits increased to 9.2% per annum at the end of the fourth quarter.

As Ukrinform reported, the total amount of deposits of individuals in banks-participants of the Deposit Guarantee Fund of Ukraine grew by UAH 68.0 billion over 2021, to UAH 675.6 billion.

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