The volume of bank deposits is growing at an unprecedented pace
The annual growth rate of ruble deposits in Russia reached a maximum of 43% in April, the Central Bank reported. This means that every month people bring more and more money to banks. Firstly, setting records for savings activity, and secondly, demonstrating that their free funds have clearly increased. How useful such a drive is for the banking system is a question that suggests a rather negative answer given the current Central Bank rate of 16%.
As for the total volume of ruble liquidity on current accounts and deposits, at the end of 2023 it amounted to 43.5 trillion rubles. This is 19% higher than the 2022 figure. The incentive for the population is clear: the ultra-high regulatory rate, which persists for many months, ensures extra-profitability on banking products. The driver for the growth of savings is also clear: according to Rosstat, real accrued wages in the country increased by 7.8% last year.
“The situation indicates that certain categories of citizens have free money,” says financial analyst Mikhail Belyaev. – For a person to want to open a deposit, high interest rates alone are not enough. We see two things: firstly, the incomes of some of the households have increased, and secondly, people began to reduce their current consumption, postponing large purchases for later in order to save something and earn money on a bank deposit. Of course, it would be a stretch to say that high interest rates will allow investors to radically improve their financial situation. The majority of people have not tens or hundreds of millions of rubles in their accounts (although there are such clients), but several hundred thousand at best. Let's say, 100 thousand rubles on deposit at a rate of 16% per annum gives 16 thousand per year. And yet, for individuals there are clearly more gains than losses.”
The same cannot be said unequivocally about banks, which must earn money (in order to at least break even) by placing client funds in high-yield instruments. And here the ultra-high key rate of the Central Bank creates various kinds of obstacles for them.
“As we know,” Belyaev sums up, “lending is difficult in all areas: both individuals are given loans with great effort, and industrial enterprises. Banks are forced to get out, come up with new, more attractive, more affordable products to attract new borrowers. However, so far they have succeeded.”