Yakutia's Bank Balances Surge 21% in 2023 as Interest Rates Hit 13.2%
Yakutia, Russia's largest region, witnessed a significant surge in bank balances and deposits in 2023. By the end of the year, mortgage rates on short-term savings reached 12.4%, and long-term interest rates hit 13.2%.
The total volume of funds held by legal and physical persons in banks in Yakutia grew by 21% to 323 billion rubles. This increase was driven by a 19% rise in funds in the accounts and deposits of Yakutians, reaching 188 billion rubles. Enterprises and individual entrepreneurs also saw their funds grow by 19% to 109 billion rubles.
The surge in money was primarily due to social and budgetary payments, as well as the growth of wages. A year earlier, mortgage interest rates were significantly lower, at 5.5% for short-term savings and 7.5% for long-term ones. The increase in current mortgage rates made deposits more attractive, leading to a growth in both current accounts and time deposits.
The significant influx of money into Yakutia's banking system in 2023 was driven by various factors, with the increase in interest rates today playing a notable role. The total volume of funds held in banks increased to 323 billion rubles, marking a substantial growth of 21%.
