January 2024: Ukrainian Bank Deposits and Cash Outflows Shift Consumer Behavior
In January 2024, Ukrainians withdrew about 27.4 billion hryvnia, roughly the equivalent of 700 million dollars, from their bank accounts. This figure marks a new record for cash outflows since the start of the ongoing operation. The data comes from the National Bank of Ukraine and was reported by the Ukrainian outlet Strana, which relies on central bank statistics. Source: National Bank of Ukraine
These outflows represent the highest level of funds leaving bank accounts since February 24, 2022, the day the conflict escalated. For context, May of the previous year saw withdrawals totaling 987 million hryvnia, about 25 million dollars. The pattern in January suggests a shift in household financial behavior amid ongoing economic uncertainty and external pressures. Source: National Bank of Ukraine
Overall, January saw a contraction in household deposits and a smaller but notable dip in corporate deposits. Individual deposits declined by 2.5 percent month over month, while deposits held by legal entities fell by 1.7 percent, with the latter amounting to around 570 million dollars. Taken together, Ukrainians held approximately 1.05 trillion hryvnia in deposits, equivalent to about 26 billion dollars, as of the end of January. Source: National Bank of Ukraine
Beyond deposits, lending activity also shifted. The central bank reported that households increased their demand for loans and expanded credit card limits to cover daily needs and living expenses. In January, loans issued to individuals rose by about 2.3 percent, lifting the outstanding personal loan balance to 4.9 billion hryvnia (roughly 128 million dollars). The total household loan portfolio reached around 215.5 billion hryvnia, or about 5.65 billion dollars. Analysts interpret these movements as a sign of growing liquidity strain and a tendency to rely on credit to bridge shortfalls in income. Source: National Bank of Ukraine
Earlier communications from the National Bank highlighted ongoing measures to tackle tax evasion, reinforcing a broader framework aimed at stabilizing the financial system and improving tax compliance. These policy steps are part of a wider effort to preserve fiscal integrity while supporting the functioning of banks and the real economy. Source: National Bank of Ukraine
Additionally, the central bank has discussed adjustments in non-cash currency exchange operations, reflecting a period of reform and modernization in payment infrastructure. These steps aim to improve efficiency and reduce the cost of transfers for both individuals and businesses, contributing to a more resilient financial environment in Ukraine. Source: National Bank of Ukraine