Page 76 - RusRPTOct21

8.1.3 Deposits
Customer funding (excluding state entities' deposits, and net of currency fluctuations) increased RUB156bn (0.2%) in July, which was a combination of a RUB332bn (1%) inflow of retail deposits and a RUB176bn (0.5%) decrease in corporate funds. State funding (including deposits from the Central Bank of Russia (CBR)) reached RUB1.3 trillion (10%) in July, mainly due to RUB0.8 trillion (13%) of new deposits from the Ministry of Finance. State funding represented 15% of total liabilities at end-7M21. We expect this to decrease moderately in 2H21 alongside budget payments,but to be replaced in the banking system in the form of corporate and retail accounts.
Funds of legal entities increased significantly upy RUB818bn (up 2.4%),
mainly on accounts in foreign currency ($7.7bn, or RUB564bn in ruble terms), mainly thanks to companies from the oil and gas and metallurgical industries.
Household funds increased slightly (RUB45bn, or 0.1%). Moreover, for the first time since the beginning of the year, there haseen an inflow of funds for time deposits (RUB103bn, or 0.5%), while current accounts decreased (down RUB58bn, or -0.5%).
The rise in term funds is likely associated, among other things, with the continued growth of deposit rates. For example, the average maximum rate on deposits in rubles reached 6.17% in the third part of August, having increased 0.6 percentage points from the third part of July.
The reduction in funds in current accounts would probably have been greater, taking into account seasonal back-to-school spending and summer holiday expenses, if not for the RUB200bn social payments made to families with school-age children by the government.
In September additional payments were made as part of social support measures for pensioners worth RUB0.5 trillion as part of the Kremlin’s Duma election strategy, which should also have a positive effect on the dynamics of the population's funds.
The growth of household funds in escrow accounts slowed down somewhat to RUB150bn in August after RUB179bn in July.
Public funds decreased RUB406bn (-4.3%) against the background of growth budget expenditures, including for the implementation of the above social payments to pensioners.
76 RUSSIA Country Report October 2021 www.intellinews.com