In October-December 2021, the amount of hryvnia funds of individuals in banks increased by 8.1% QoQ and by 15.3% YoY.
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: by 41% YoY and by 22.4%, respectively. At the same time, household term deposits in the national currency grew more slowly – by 9.6%. 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 by 15.5% QoQ and by 26.4% YiY. Banks with private capital were in teh lead, showing a 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%, 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 2021, raising it to 9% per annum and to 10% in January. 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 2021. (Ukrinform/Business World Magazine)