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Outflow of households’ funds from banks slows down in October

21 November 2022
News

The amount of funds withdrawn by individuals from their bank accounts decreased by 0.3% in October, as compared to 1.4% in September. Balances of organisations’ accounts declined by 1.1%, mainly due to dividend payouts and tax payments. However, the reduction in clients’ funds was almost completely offset by an inflow of government funds (+7.6%), including owing to higher tax revenues.

The growth rate of mortgage lending edged down to 1.8% in October from 2.3% in September, while that of consumer lending — to 0.3% (according to preliminary data) from 0.9%. This was most probably caused by a decrease in households’ demand and a tightening of banks’ credit policy amid elevated uncertainty.

Corporate lending continued to expand fast for the third consecutive month (+2.4–2.5%), which might be associated with the replacement of external borrowings and a surge in lending for housing construction.

More details are available in the information and analytical material Russian Banking Sector Development in October 2022. For readers’ convenience, its format has been updated.

Preview photo: Maya Kruchankova / Shutterstock / Fotodom