BANK SAVINGS OF HOUSEHOLDS: STRUCTURE, DYNAMICS, TRENDS DURING CRISIS STATES OF UKRAINE'S ECONOMY

Abstract

The article is devoted to the issues assessing the state household bank savings during the crisis states of the Ukrainian economy, which were observed in 2008-2009, 2014-2016, and 2020-2022 and were caused by various reasons. Based on the analysis the structure bank savings, their types, dynamics and trends, it was concluded that the savings behavior of households had multidirectional vectors. In particular, during the crisis states the economy in 2009, 2014-2016, 2020-2021, household savings in the national currency had a downward trend, while in foreign currency – an increasing trend. The overflow of savings from national currency to foreign currency proves the existence high devaluation expectations during the crises observed in Ukraine. The assessment the structure household savings during the analyzed period showed that the lion's share of deposits in their total volume belongs to short-term deposits “on demand”, which in the current year has a growing tendency. Such a trend is threatening and carries potential risks for the stability the exchange rate dynamics of the hryvnia and the reduction of inflation rates in Ukraine. Low interest rates on longer-term household deposits and low trust in banks during economic crises are among the main reasons for this trend. It was determined that certain factors affect the saving behavior and motivation of households during economic crises, including the presence of asymmetric information, which does not make it possible to make an informed decision; insufficient level of financial literacy; the advantage of investing in foreign currency; accumulation of funds outside the banking system in various assets. It is emphasized that household savings have active and passive forms. Active savings are an investment potential for their owners and the state as a whole. Passive savings in conditions of economic growth are a factor inhibition of macroeconomic development and a lost opportunity for the country. Restoration of economic growth requires large amounts investment, the source which in any country is domestic savings.