Page 160 - RusRPTAug24

8.1.3 Deposits
Corporate Deposits Decline in June, Currency Conversion for Dividends Noted. Corporate deposits in Russian banks saw a moderate decrease of 251 billion roubles, or 0.5%, in June, following a cumulative inflow of 2.7% over April and May. This reduction was driven by significant shifts between rouble and foreign currency holdings.
Rouble-denominated deposits increased by 220 billion roubles, or 0.5%, reflecting a continued preference for local currency amidst economic adjustments. In contrast, foreign currency deposits experienced a substantial decline of 470 billion roubles, equivalent to a 4.3% drop. This decrease is likely due to companies, particularly exporters in the metallurgical sector, converting foreign currency deposits into roubles to distribute dividends.
The overall movement in corporate deposits highlights a strategic shift by businesses in managing their financial resources, influenced by both internal economic policies and external market conditions.
Russian credit institutions associated with marketplaces have significantly outpaced banks in terms of deposit growth rates. This
160 RUSSIA Country Report August 2024 www.intellinews.com