Deposits 

(January-March 2009) 

Generally, the depositary base of the operating commercial banks has increased by 2.5 percent in the first quarter of 2009 and amounted to KGS 30.3 Billion as of the end of March. The growth of deposit residuals was conditioned by increase of the deposit volume in the foreign currency in KGS equivalent (by 5.3 percent to the amount of KGS 17.9 Billion), which was related to increase of the USD exchange rate; the USD deposits (occupying more than 90.0 percent in the depositary base in the foreign currency) in dollar equivalent has decreased. Residuals of deposits in the national currency have decreased by 1.3 percent and amounted to KGS 12.4 Billion as of the end of the period. As a result, the level of dollarization of the depositary base has increased by 1.6 p.p. and amounted to 59.2 percent compared to the beginning of the year.  

The share of deposits of population in total volume of depositary base within the reporting quarter has decreased by 23.2 percent as of the end of March (chart 2). 

In temporal structure of the depositary base the share of demand deposits has increased by 0.6 p.p. and amounted to 65.3 percent at the end of the quarter. With that the share of short-term deposits has increased by 1.1 p. p. and amounted to 25.9 percent, and the share of long-term deposits has decreased by 1.8 p.p. and amounted to 8.8 percent. Due to this, the maturity of the depositary base has decreased for 0.4 month since the beginning of the year and was equal to 4.7 months as of the end of the quarter, and for fixed deposits the duration has decreased for 1 month and was equal to 13.6 months. 

Total level of concentration of the deposits market has increased from 0.13 to 0.15 since the beginning of the year, which is equivalent to the division of the market between 7 banks with equal shares and witnesses the medium concentration of the deposit market. 

Within January-March of 2009, the volume of deposits attracted by the banks were equal to KGS 20.2 Billion, having increased by 12.2 percent compared to the same period of 2008. Growth of deposits inflow was observed on deposits in both the national currency – by 19.3 percent to KGS 9.0 Million, and in the foreign currency – by 7.1 percent to KGS 11.2 Billion. 

In temporal structure of accepted deposits the share of demand deposits has not almost changed compared to the first quarter 2008 and amounted to 75.0 percent. The share of long-term deposits in the structure of the fixed deposits has increased from 4.2 to 4.4 percent, and share of short-term deposits has decreased from 22.4 to 20.7 percent. With that, the share of deposits with maximum maturity has decreased in the structure of both long-term and short-term deposits. As a result, the maturity of newly accepted deposits in the reporting period has decreased from 2.7 to 2.3 months compared to the same period of 2008, and the maturity of fixed deposits has decreased from 10.2 to 9.4 months. 

Average interest rate on newly accepted deposits in the national currency has amounted to 2.4 percent within the period, having decreased by 0.3 p.p. compared to January-March, 2008. Decrease of rates was conditioned by growth of share of demand deposits and reduction of rates on them. With that, the average rate for fixed deposits in the national currency has increased by 1.9 p.p., having amounted to 8.4 percent, under influence of rates growth almost on all types of fixed deposits, except for deposits with the period up to one month and over three years.  

The average level of rates on fixed deposits in the national currency has decreased in seven banks compared to the same period of the previous year, and in other banks the rates have increased.  

The real rate on fixed deposits in the national currency had negative value and amounted to (-11,9) percent, meanwhile, within the same period of the previous year its value was (-16,0) percent, which is connected with the inflation level decrease (year-on-year). 

The average interest rate on newly accepted deposits in the foreign currency for the period has amounted to 1.6 percent, having grown by 0.8 p.p. The weighted average rate on fixed deposits in the foreign currency amounted to 8.0 percent, having grown by 2.4 p.p., with that, growth of value was observed for all types of fixed deposits, except for deposits with the period over three years.  

In the section of banks the average level of rates on newly accepted fixed deposits in the foreign currency in seven banks has decreased, and in other banks the rates have increased.