April sees household funds return to banks almost in full
In April, the situation with funding at banks stabilised. The inflow of household ruble deposits (+1.3 trillion rubles) almost fully offset the overall outflow in February—March. Along with the placement of government funds, this made it possible to bring down the amount of borrowings from the Bank of Russia to the pre-crisis level.
Lending predictably shrank as demand lowered amid rising interest rates and economic uncertainty and banks became more cautious because of higher credit risks. Corporate portfolio hardly changed (-0.03%) while mortgage loans edged down a bit (-0.1%, according to preliminary data) with a drop in the disbursements of both market-based and subsidised mortgage facilities. Unsecured consumer lending continued to decline (−1.8%, according to preliminary data).
More details are available in the information and analytical material Russian Banking Sector Development in April 2022.