According to the National Bank of Kazakhstan (NB), deposits in deposit-taking institutions grew by 12.3 percentage points in March 2024 compared to the same period last year, reaching 3.78 trillion tenge. The total deposit volume in March amounted to 34.5 trillion tenge, showing a 1 percentage point increase from February 2024, as reported by the Institute of Economic Research.
The main driver behind the deposit growth in 2023 was the high base rate, making deposits in the national currency more attractive. This led economic agents to prioritize savings, thus curbing their demand. However, gradual reduction of the base rate has resulted in an increase in economic agents' demand.
The shift towards more favorable tenge assets is evident in the decline of foreign currency deposits. Deposits in the national currency saw a 6.9 percentage point increase in March 2024 compared to March 2023, reaching 77.1 percentage points. The share of deposits by individuals also grew significantly.
Structurally, time deposits dominate the deposit composition in March 2024, constituting 77.2 percentage points. These deposits differ from demand deposits as they accrue interest income. Demand deposits and conditional deposits are the least preferred among the population.
For companies, time deposits also prevail, accounting for 57.6 percentage points in March 2024. Demand deposits, conditional deposits, and savings deposits are less popular among businesses.
The observed growth can be attributed to factors such as economic uncertainty, inflation, and increased deposit interest rates. The high inflation in 2022 and 2023 incentivized individuals and businesses to preserve their purchasing power by placing their funds in banks.
