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Signs of stabilization are gradually emerging in the deposit market

After three months of the run on banks, with emotions running high among depositors, in April, the deposit market showed signs of stabilization virtually across the entire Ukraine. Thus, since the start of the month, as of April 29, Vinnitsa, Zhytomyr, Kyiv, Rivne, Sumy, Kherson, and Khmelnytskyi oblasts have recorded the household deposit growth (of up to 1.5%)

In most regions of Ukraine, a run on household deposits was insignificant, falling within the range of statistical discrepancy. The pace of deposit runs has slowed down significantly in Transcarpathian, Zaporizhzhia, Mykolaiv, and Ternopil oblasts (to around "minus" 1.5%).

Amid social tensions and political instability, the deposit market situation remains difficult in the eastern regions of Ukraine where banks continue to experience a run on household deposits. Since early April, in Donetsk, Luhansk and Kharkiv oblasts household deposits have fallen by 4.6%, 4.4% and 4.0% respectively.

For reference: Since the start of the year, bank deposit flight severely hit the regions that saw heightened political and social tensions. The Autonomous Republic of Crimea and eastern regions have seen the largest outflow of deposits. As of April 29, deposits had shrunk by 41% in the Autonomous Republic of Crimea. In Donetsk, Luhansk oblasts deposits had fallen by 21% and19% respectively.

In contrast to these regions, in other Ukrainian regions such as Volhynian, Vinnytsia, Dnipropetrovsk, Zhytomyr, Zaporizhzhia, Ivano-Frankivsk, Kyiv, Kirovohrad, Poltava, Chernivtsi, Lviv, Sumy, Ternopil, Cherkasy, and Khmelnytskyi oblasts households withdrew deposits at a much slower pace of 10 – 13%.  

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