Page 86 - RusRPTSept21

8.1.3 Deposits
Funds of legal entities in July decreased by RUB248bn (-0.7%) mainly due to with tax payments by companies from the oil and gas industry.
Household funds grew moderately - by RUB150bn, or 0.5% (+0.4% in June). As in previous months, balances on current accounts were growing, but it is noteworthy that time deposits practically stabilized, there was only a slight decrease by 0.2% after more significant reductions by 0.9% in May and 0.8% in June. Such a dynamic is likely is associated with an increase in deposit rates - the average maximum for increased by 0.8%age points, to 5.55%, in the third quarter of July compared to the third quarter of April (the beginning of the key rate increase cycle).
The growth rate of household funds in escrow accounts has slightly decreased - to RUB179bn from RUB205bn in June, which is explained by a decrease in mortgage loans.
A significant increase in public funds (RUB1.1 trillion, or 13.3%) is associated with both to the budget of the main non-oil and gas taxes (personal income tax, VAT, income tax), and with an increase in the volume of the quarterly tax on additional income from hydrocarbon production raw materials. As a result, the total amount of public funds reached RUB9.4 trillion (9.3% of the sector's liabilities, in June - 8.3%).
Pretty much this was due to the seasonal nature: public funds will decline by the end of the year as the Ministry of Finance of Russia will spend in the framework of budget execution. At the same time, there is no liquidity risk for the sector, since these funds will go back to the banking system in the form of customer funds- budget recipients.
The only thing is that they may not go to the same banks and not in the same volume where the funds of the Ministry of Finance of Russia are now placed, but a possible imbalance should settle through the interbank market. In addition, about 40% of liabilities to the Ministry of Finance of Russia are secured by highly liquid securities, which banks can use to obtain liquidity, including from the Bank of Russia, if necessary.
86 RUSSIA Country Report September 2021 www.intellinews.com