Problems of Attracting Long-Term Deposits of Individuals in Ukraine and Directions for their Solution

Abstract

The key problems that hinder the intensification of attracting long-term deposits of the population in Ukraine are identified: low demand of individuals for long-term deposits; a set of factors that prevent the intensification of long-term lending and reduce the demand of banks for long-term deposits of the population; imperfection of the current mechanism of the State-based regulation of banking activities. As part of the solution to these problems, a number of recommendations proposed were aimed at: increasing the level of financial inclusion; resumption of the possibility of early termination of bank term deposit agreements on the initiative of the depositor; abolition of personal income tax on income in the form of interest for deposits of the population for a period of more than 1 year; gradual increase in the guaranteed amount of reimbursement on deposits of individuals; increasing the level of public trust in banking institutions and the regulator; stimulating the population’s tendency to save by means of reducing inflation to the target indicator; reduction of the share of non-performing loans in the bank’s portfolio; gradual curtailment of the practice of providing banks with long-term refinancing in order to reorient the latter to attract long-term deposits of individuals; change of the conditions of the governmental program «Affordable loans 5–7–9 %»; increasing the availability of loans for the purchase of housing within the framework of the governmental program «Affordable mortgage 7 %»; development of additional mortgage crediting programs focused on the purchase of housing in the primary market; differentiation of obligatory reserve of attracted funds depending on the maturity; normative establishment of the share of long-term deposits of individuals in the total amount of bank deposits of the population; normative establishment of the share of assets of banks invested in government bonds (OVDPs).