Banks’ domestic currency loan portfolio increased 1.2% to UAH 624.7 billion over the month. This is according to the preliminary Monetary Statistics data for November 2018.
In November, banks continued active lending to households: the hryvnia retail loan portfolio increased 2.4% to UAH 134.6 billion within the month. The corporate sector also received considerable credit support. During the reporting period, hryvnia corporate loans increased 0.9% to UAH 490.1 billion, while those denominated in foreign currency increased 1.2% (in the dollar equivalent) to USD 15.1 billion.
In November, retail deposits with solvent banks remained almost at the level of the previous month, amounting to UAH 257.7 billion and USD 8.5 billion (in the dollar equivalent).
At the same time, in the reporting month, corporate funds in accounts with solvent banks decreased, which was chiefly caused by quarterly taxes and other payments to the budget. Hryvnia deposits decreased 5.1% to UAH 233.1 billion, while foreign currency deposits (in the dollar equivalent) were reduced by 7.5% to USD 4.9 billion.
Interest rates on both retail and corporate deposits were raised.
The dynamics of hryvnia interest rates in November, except the transmission effect of the key policy rate increase in previous periods, reflected the influence of market drivers.
Increasing competition for customers prompted banks to raise interest rates on both corporate and retail hryvnia deposits (up 0.7 pp to 14.3% p.a. and up 0.4 pp to 11.4% p.a., respectively).
Interest rates on hryvnia loans also showed gradual growth due to an increase in loan demand from companies and households. Thus, in November, interest rates on both corporate and retail hryvnia loans grew, up 0.2 pp to 19.8% p.a. and up 0.5 pp to 33.1% p.a., respectively.
For more details on money market developments in November 2018, see the Macroeconomic and Monetary Review (December 2018).
For reference:
Data on loans and deposits published on the page Monetary and Financial Statistics with a breakdown by sector are different from the data in the Banking Sector Review on the Publications page, which includes the following:
- data on banks that were solvent on the reporting date (excluding insolvent banks) unless stated otherwise
- data on banks including branches in Ukraine and branches abroad
- loans extended to resident and nonresident customers, as well as loans extended to resident and nonresident banks (including deposited funds)
- deposits (funds) of resident and nonresident customers as well as deposits of resident and nonresident banks (including received loans)
- data have been adjusted for asset provisions unless stated otherwise.