Household bank deposit market in Ukraine: structural and regional peculiarities

Abstract

The household bank deposit market belongs to one of the important components of the financial system of each country, leading to the need to clarify the dynamics of its development in the national economy and its regions. The purpose of the article is to determine the main regularities of functioning the household bank deposit market in terms of regions and the nature of structural changes in it, to develop recommendations for improving its environment and working conditions in the economy of Ukraine. Scientific methods of deduction and induction, analysis and synthesis, comparison and econometric modelling have been used. Structural peculiarities of the evolution of this market in 2009-20118 are evaluated at the regional level and its development is compared with similar markets in Belarus and Poland. The author has established this market had a tendency towards gradual decrease based on the reaction of households due to changes in social and economic and political conditions and violation of the banking system integrity in the years after 2014. It is determined that there was a gradual increase of regional concentration indices caused by raising differences of regional social and economic characteristics and household expectations. The following scientific and methodological approach to determining the nature of the development of the household bank deposit market by regions of Ukraine is worked out: specification of the main factors, their subsequent concretization by finding chief parameters of econometric models and clarifying the impact of identified factors on the regional structure of this market. It is found out that the improvements of social and economic conditions and activation of the labour market at the regional level, prudent policy of commercial banks concerning interest rates on deposits will create a favourable environment for the development of this market by region and achievement of positive structural transformations.