Aug 5, 2020
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VTB announced the risk of a return to the situation with deposits in the 1990s

Anatoly Pechatnikov, Deputy President and Chairman of the VTB Management Board, believes that the situation with bank deposits may return to the state of the mid-1990s, when they were not perceived as a source of increasing savings. This is due to the ratio of inflation to the key rate.

Given that the inflation forecast is 4%, the key [ставка] - 4.25%, the return on basic deposits is a little over four, of course we run the risk that our real return on deposits will return to the situation of 1995-1996, when no one took deposits seriously as a source of savings and augmentation, because inflation exceeded the rate on deposits, - Pechatnikov told reporters.

In his opinion, if this situation continues, "people will look for an alternative to deposit forms of savings." The banker believes that the yield on savings accounts will decline in the same way as the yield on term deposits:

I think that in September the rates on savings accounts will be reduced and will amount to 70-80% of the basic profitability of term deposits,

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