Page 120 - RusRPTApr23

were not a major aspect of activities for any of these banks. Losses can be absorbed over several years as domestic operations carry on at near-normal levels..
Deposits of the general public are an essential source of bank funding, accounting for about two-thirds of banking sector total assets. At the end of 2022, finance ministry deposits and loans from the central bank accounted for about 10 % of banking sector total assets. During 2022, total deposits rose by 13 %, driven mainly by growth in corporate assets. In contrast, household assets grew by just 7 %. The on-year growth in household assets was due mainly to the payout of an exceptionally large amount of benefits in December. In January-November, the amount of household assets held by the banking sector contracted slightly from the same period in 2021.
During February and March, and again after the announcement of the partial mobilisation in late September, private customers shifted their assets out of banks. The sharpest drop was seen in foreign currency deposits, where the money was either converted into cash or transferred to foreign bank accounts. As different banks likely experienced deposit flight differently, an average for the entire banking sector can mask substantial variation across banks. Last year’s growth in banking sector total assets (12 %) was nearly the same as growth in total deposits in 2022.
120 RUSSIA Country Report Russia April 2023 www.intellinews.com