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News / 14 January 2014 | 14:44
Expert: Deposit growth dynamics to preserve last year rates

Expert: Deposit growth dynamics to preserve last year rates

If foreign loans used to be the main source of banks' liabilities before the crisis of 2008, now it is private deposits, president of the Ukrainian analytical center Oleksandr Okhrymenko says.

"At the year beginning business starts recovering its activities, thus the demand for loans is not that big as at the yearend. For the moment banks do not lack money, thus reduce deposits rates for population. Nevertheless, banks still expect growth of private deposits, as it is a profitable item of income," he said.

The expert states that certain decline in deposit growth dynamics in December of last year can be explained by the effect of holiday sales. According to him, back then Ukrainians were more focused on consumer loans to spend money for shopping.  

At the same time he pointed out that political instability also was among the reasons of decline in deposit growth dynamics.

"A part of the population surrendered to hysteria after all. However, the major part of Ukrainians has learned not to trust various political scary stories. The results of December 2013 showed that Ukrainians placed the total of 1.5 billion hryvnias on new deposits, thus demonstrating that they were not afraid of political horrors," Okhrymenko added.

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