Determinants of the savings market in Russia
-
DOIhttp://dx.doi.org/10.21511/bbs.13(1).2018.18
-
Article InfoVolume 13 2018, Issue #1, pp. 196-208
- Cited by
- 1574 Views
-
394 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
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.
- Keywords
-
JEL Classification (Paper profile tab)D14, E21
-
References33
-
Tables11
-
Figures0
-
- 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
-
- Adeyeye, P. O., Azeez, B. A., & Aluko, O. A. (2016). Determinants of small and medium scale enterprises financing by the banking sector in Nigeria: a macroeconomic perspective. Investment Management and Financial Innovations, 13(1-1).
- Agarwal, S., & Hauswald, R. (2010). Distance and Private Information in Lending. Review of Financial Studies, 23(7), 1-32.
- Ando, A., & Modigliani, F. (1963). The “Life Cycle” Hypothesis of Saving: Aggregate Implications and Tests. The American Economic Review, 53(1), 55-84.
- Basten, C., Fagereng, A., & Telle, K. (2016). Saving and Portfolio Allocation Before and After Job Loss. Journal of Money, Credit and Banking, 2, 293-324.
- Berezina, S. (2017). Perspectives of accumulation of funds in the accumulative pension insurance system of Ukraine. Investment Management and Financial Innovations, 14(2), 128-138.
- Browning, M., & Lusardi, A. (1996). Household saving: Micro theories and micro facts. Journal of Economic Literature, 34(4), 1797-1855.
- Canova, L., Rattazzi, A. M., & Webley, P. (2005). The hierarchical structure of saving motives. Journal of Economic Psychology, 26(1), 21-34.
- Carroll, C., & Summers, L. H. (1987). Why Have Private Savings Rates in the United States and Canada Diverged? Journal of Monetary Economics, 20(2), 249-279.
- Carroll, C., Overland, J., & Weil, D. N. (2000). Saving and Growth with Habit Formation. American Economic Review, 90(3), 341-355.
- Central Bank of the Russian Federation (2018).
- Degryse, H., & Ongena, S. (2005). Distance, Lending Relationships, and Competition. Journal of Finance, 60(1), 231-266.
- Ewing, B. T., & Payne, J. E. (1998). The long-run relation between the personal savings rate and consumer sentiment. Journal of Financial Counseling and Planning, 9(1), 89-96.
- Fisher, I. (1930). The Theory of Interest, as determined by Impatience to Spend Income and Opportunity to Invest it. New York: Macmillan.
- Fisher, P. J., & Anong, S. T. (2012). Relationship of saving motives to saving habits. Journal of Financial Counseling and Planning, 23(1), 63-79.
- Friedman, M. (1948). Utility Analysis of Choices Involving Risk with Leonard Savage. Journal of Political Economy, 4(56), 38-47.
- Gurley, J. G., & Shaw, E. S. (1960). Money in a theory of finance (371 p.). Washington, DC: Brookings Institution.
- Hao Manh Quach (2016). Does access to finance improve household welfare?Investment Management and Financial Innovations, 13(2), 76-86.
- Hayashi, F., Ito, T., & Slemrod, J. (1988). Housing finance imperfections, taxation, and private saving: A comparative simulation analysis of the United States and Japan. Journal of the Japanese and International Economics, 2(3), 215-238.
- Juster, F. T., Wachtel, P., Hymans, S., & Duesenberry, J. (1972). Inflation and the Consumer. Brookings Papers on Economic Activity, 1, 71-121.
- Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. London: Macmillan.
- Leland, H. (1968). Saving and uncertainty: The precautionary demand for saving. Quarterly Journal of Economics, 82(3), 465-473.
- Melnikova, Ye. I. (2007). Экономическая природа сбережений и инвестиций домашних хозяйств [Ekonomicheskaya priroda sberezheniy i investitsiy domashnikh khosiaystv]. Izvestiya UrGEU, 2(19), 75-81.
- Ryzhakovskaya, L. Yu. (2009). Население и рынок финансовых услуг: линии защиты сбережений [Naseleniye i rynok finansovykh uslug: linii zashchity sberezheniy]. Finansy i Kredit, 10, 64-72.
- Say, J.-B. (2000). Трактат по политической экономии [Traktat po politicheskoy ekonomii]. In F. Bastiat, Экономические софизмы; Экономические гармонии [Ekonomicheskiye sofizmy; Ekonomicheskiye garmonii]. Moscow: Delo: Akad. nar. khoz-va under the government of the Russian Federation.
- Senior, N. W. (1836). An outline of the science of political economy. London: W. Clowes and Sons, Stamford Street.
- Smith, A. (1962). Исследование о природе и причинах богатства народов. Вступит. статья и комментарий В. С. Афанасьева [Issledovaniye o prirode i prichinakh bogatstva narodov. Vstupit. Statia i kommentariy V. S. Afanasieva] (684 p.). Мoscow: Izdatelstvo sotsialno-ekonomicheskoy literatury.
- Van Veldhoven, G. M., & Groenland, E. A. (1993). Exploring saving behaviour: A framework and a research agenda. Journal of Economic Psychology, 14(3), 507-522.
- Wärneryd, K. (1989). On the psychology of saving: An essay on economic behavior. Journal of Economic Psychology, 10(4), 515-541.
- Wärneryd, K. (1999). The psychology of saving. A study of economic psychology. Cheltenham: Edward Elgar Publishing.
- Xiao, J. J., & Noring, F. E. (1994). Perceived saving motives and hierarchical financial needs. Journal of Financial Counseling and Planning, 5, 25-44.
- Xiaoqing Hu (2004). Households' Savings and Portfolios. Investment Management and Financial Innovations, 1(3), 132-144.
- Yuh, Y., & Hanna, S. D. (2010). Which households think they save? The Journal of Consumer Affairs, 44(1), 70-97.
- Yunoshko, O. Yu., & Kumukova, I. D. (2013). Политика коммерческих банков Российской Федерации в области привлечения средств: анализ вкладов физических лиц [Politika kommercheskikh bankov Rosiiyskoy Federatsii v oblasti privlecheniya sredstv: analiz vkladov fizicheskikh lits]. Izvestiya IGEA, 3(89), 19-24.