Russian retail bank deposits rose 9.9 percent in the first six months as households cut back on spending and opted instead to save as the country’s economic decline worsens, Russia’s Deposit Insurance Agency said.
Personal bank accounts rose to 6.5 trillion rubles ($200.7 billion) in the first half from 5.9 trillion rubles at the end of last year, the Moscow-based agency said in an e-mailed report today. Adjusted for exchange-rate fluctuations, bank deposits added between 1.1 percent and 1.3 percent in the first half after the ruble lost 1.9 percent against the dollar in the period.
Bank deposits this year may exceed the agency’s forecast for a rise as great as 18 percent to 7 trillion rubles, it said. Russians responded to the economic crisis by putting 17.1 percent of their income into savings accounts last quarter, compared with 8.7 percent in the first three months of the year, according to the report.
The share of deposits denominated in foreign currencies rose to 29.4 percent of the total at the end of June from 26.7 percent at the start of the year. Foreign-currency deposits peaked at 32.9 percent of the total on April 1, the report said.
Russia’s 30 biggest banks measured by the size of personal deposits boosted their market share by 0.3 percent to 79.4 percent in the period, the agency said.
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