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. Last Updated: 07/27/2016

Domestic Deposits Rise 1.5%

Russians increased deposits with domestic banks last month after the national currency stabilized and lenders increased interest rates on ruble accounts, Renaissance Capital said in a note Wednesday.

Individual deposits climbed to 6.23 trillion ($184.8 billion) in February, an increase of 1.5 percent compared with the previous month, while corporate deposits dropped by 2.2 percent in the month, analyst Andrei Markov wrote in the report.

Renaissance based its estimate on figures reported through March 1 by 365 banks, or more than 90 percent of Russia's banking system.

The figures were in line with comments Wednesday by Central Bank First Deputy Chairman Gennady Melikyan, who said households had increased their savings in ruble and foreign-currency denominated accounts, RIA-Novosti reported. He put the fall in corporate deposits at 1 percent, without giving a figure for households.

The decline on companies' accounts was worrying, but "there were drops throughout 2008, so it's too soon to draw any conclusions," Melikyan said.

The total loan portfolio shrank by 1 percent in the month, with every major nonstate bank recording a decline of between 1 percent and 8 percent, Renaissance said. The share of overdue loans grew to 3.7 percent of the total in February.

(Bloomberg, MT)