Page 85 - RusRPTAug21

8.1.3 Deposits
Funds of legal entities in June decreased by RUB177bn (-0.5%) mainly in foreign foreign currency (-RUB422bn in ruble equivalent) on the accounts of companies from the oil and gas and metallurgical industries.
As a result, the share of foreign currency funds decreased to 31.1% from 32.5% as of May 31, 2021. In general, since the beginning of 2020, it has grown by almost 4 p.p., but with the exception of factor of the weakening of the ruble, the growth was less than 1 percentage point.
Household funds increased by RUB123bn (0.4%) after a noticeable outflow in May (-RUB479bn, or 1.5%). At the same time, the upward trend in current accounts continued (RUB294bn), while time deposits continued to decline (-RUB170bn). So, for half a year, the share of term deposits in the population's funds decreased from 64.6 to 61.7%. This trend is largely due to low interest rates on deposits, as well as the fact that now many banks pay interest on current accounts, which provides customers with a large flexibility at the disposal of your funds. However, in the future, in the event of an increase in deposit rates, an inflow of funds from the population on time deposits can be expected.
Household funds in escrow accounts increased by a significant RUB205bn (RUB180bn in May), which is largely due to the growth of mortgage lending.
Public funds decreased by RUB380bn (-4.4%) mainly due to the return short-term deposits of the Federal Treasury and constituent entities of the Russian Federation, but remain at a high level (RUB8.3 trillion, 8.3% of total liabilities).
85 RUSSIA Country Report August 2021 www.intellinews.com