In the crisis environment, individuals don’t trust banks very much and tend to withdraw money from their personal accounts.
Photo: Denis Kurilenko
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Individuals Withdraw Money from Banks
In the crisis environment, individuals don’t trust banks very much and tend to withdraw money from their personal accounts. In September, the balance of individual accounts with Russia’s biggest 50 banks lowered by 54 billion ruble, which corresponds to 1.2 percent of the aggregate amount. The flight of depositors fuels the risks of the banks’ financial stability.
The outflow from individual accounts of the banking system reached 1.5 percent in September, Alexei Simanovsky, who heads the CBR department for banking control and supervision, said yesterday. The figure takes into account the changes in deposits with two biggest banks of the country – Sberbank and VTB.
From early September, 54 billion ruble, or 1.2 percent of the August deposits, flew out of the individual accounts with Top 50 banks of Russia. As of early September, 50 biggest banks had 4.598 trillion ruble at the individual accounts, but the amount narrowed to 4.544 trillion ruble by the end of the month.
According to the Central Bank of Russia (CBR), individual deposits with Russia’s banks amounted to 5.159 trillion ruble as of early this year, i.e. 24.4 percent to the monetary income of the population. The amount equaled 5.978 trillion ruble as of September 1, 2008.
Another trend is the money transfer from private banks to the government’s ones. The share of state banks widened from 77.5 percent to 78.8 percent in September despite the gradual decline posted earlier. Sberbank’s share on the market of individual deposits lost 1.3 percent to 50.2 percent in the first half of this year. Of interest is that the share of individual deposits with nonresident subsidiary banks went down from 8.2 percent in early September to 7.2 percent in early October.
www.kommersant.com
All the Article in Russian as of Oct. 29, 2008
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