Determinants of the savings market in Russia

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The main component of the bank’s efficient operations is a sufficient amount of deposit resources. The sharp devaluation of the national currency, the unstable situation of banks, and a significant number of bankruptcies adversely affected the propensity of the subjects to save. In the banking sector, a critical situation has developed when depositors, having lost confidence in banking institutions, began to withdraw money from deposit accounts, and in the crisis, this issue becomes the most important, because the massive withdrawal of deposits significantly worsens the liquidity of banks. With that in mind, the purpose of the article is to consider the main trends and prospects for the savings market development in Russia.
The article analyzes the strengths and weaknesses of Russia’s savings market. Using banking statistics, similarities and differences in the savings market are shown, based on determinants such as the share of deposits in bank liabilities; the volume of deposits in national and foreign currencies, the role of leading banks; number of accounts; the volume of guaranteed deposits; and banking conditions. The study focuses on an empirical analysis of the relationship between gross savings and banking variables such as demand deposits, interest spread, and the bank capital to assets ratio. The domestic market of household savings is analyzed. This conclusion is also made visible as a result of the correlation-regression experiment.

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    • Table 1. The share of retail deposits in the liabilities of leading banks as of January 1, 2016
    • Table 2. The amount of funds on retail deposits in rubles and in foreign currency in leading banks as of January 1, 2016, RUB mln
    • Table 3. Leading banks with a federal network of branches and subsidiaries as of January 1, 2016
    • Table 4. Dynamics of the number of accounts and the average amount of household deposits
    • Table 5. Comparison of the basic conditions for term retail deposits of leading banks for the amount of 250 thousand rub. as of September 10, 2016, % per annum
    • Table 6. The household term deposits conditions of leading banks for deposit of 250,000 rub. as of September 10, 2016, %
    • Table 7. Discount terms at the mortgage lending rate by credit institutions depending on the bank deposit as of September 10, 2016
    • Table 8. Interest rates on VTB24 savings account
    • Table 9. Correlation
    • Table 10. Correlation matrix
    • Table 11. The regression analysis summary