10 July 2018
June, banks were more active in attracting household deposits. This can be seen from the
preliminary Monetary Statistics data for June 2018. Households’ hryvnia deposits in solvent banks rose by
5.9% to UAH 262.9 billion, while foreign currency deposits (in USD
equivalent) increased by 1.1% to USD 8.5 billion. The active attraction of
households’ deposits was due to the rapid growth of wages and
the further increase in private money transfers from abroad. Furthermore,
the continued substantial difference in yields on deposits in both domestic and
foreign currency amid the virtually fixed UAH/USD exchange rate contributed to
the inflow of hryvnia deposits.
By contrast, legal entities’
deposits in solvent banks decreased in month-on-month terms. The decrease
occurred in both hryvnia (by 5.6% to UAH 243.8 billion) and foreign currency
deposits in USD equivalent (by 1.3% to USD 5.1 billion). These changes were
mainly driven by scheduled transfers to the state budget from business entities
that have state corporate rights in their authorized capital.
the total portfolio of hryvnia deposits remained nearly unchanged in June, at
UAH 506.7 billion.
loan portfolio in the domestic currency decreased by 1.4% to UAH 584.9 billion.
This was due to a
decline in hryvnia corporate loans (by 1.8% to UAH 468.2 billion), as the
retail loan portfolio remained almost the same in month-on-month terms (UAH
June, most banks’ interest rates remained virtually the same in month-on-month terms.
Banks continued to
compete for corporate customers, causing a slight rise in interest rates on
corporate deposits in the domestic currency by 0.2 pp to 11.6% p.a. The cost of
legal entities’ hryvnia loans rose by 0.1 pp to 17.1% p.a., which
reflected an increase in demand for loans, the working capital loans in
The cost of
household hryvnia deposits remained virtually the same in month-on-month terms
(10.8% p.a.) due to the stable inflow of households’ funds. By contrast,
interest rates on retail loans rose by 0.6% following a rise in large banks’
credit standards for loans with the maturity of over a year. However, this was
offset by the reduced cost of short-term deposits.
In late July, read more on
the main trends of the money market in June 2018 in the Macroeconomic
and Monetary Review (July 2018).