In September-October, Russians deposited 200 billion rubles into bank deposits. The regulator predicts an increase in the influx of money on deposits in the coming months, said the head of the Central Bank, Elvira Nabiullina, at a plenary meeting of the State Duma.
“There was a very important change in the behavior of citizens: they began to return cash to banks. In September-October, 200 billion rubles were returned to deposits,” said Elvira Nabiullina. According to her, the regulator predicts an increase in the amount of deposits in the coming months.
According to the head of the Central Bank, last year citizens preferred to keep their savings in cash. “Now everyone understands that deposits at 12%, 14% and even 15% are profitable,” noted Elvira Nabiullina. She emphasized that the regulator expected such a result by raising the key rate.
Ms. Nabiullina recalled that banks provide loans with depositors’ funds, therefore the sustainable growth of deposits is important for the availability of investment lending.
In September 2022, the volume of household funds in Russian banks decreased by 458 billion rubles, or 1.4%. In August 2023, the regulator said that demand for cash led to an outflow of money from Russian banks in the amount of 0.4 trillion rubles. in July.
On October 27, the Central Bank raised the key rate for the fourth time in a row by 2 percentage points, to 15%. Following the key rate, interest rates on bank deposits increased.
For more details, see the article “Autumn Conscription Rates.”