№ 1/2024

№ 1/2024

Nauk. pr. NDFI 2024 (1): 112–122https://doi.org/10.33763/npndfi2024.01.112

BANKING

DRACHKO-YERMOLENKO Ievgenii ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-0119-4014

The effect of household lending on savings

Ukrainian commercial banks transform household savings into income assets according to various models (retail, corporate and treasury). For the population, savings represent deferred demand or the accumulation of a certain amount for the purchase of goods. In a narrow sense, savings are represented by funds that individuals keep in current and term accounts in banks. In a broad sense, savings are alternatives to consumption or those funds that households have at their disposal after consumption. It is appropriate to distinguish between passive and active savings strategies, when the active strategy consists in placing free funds to receive investment income. In the conditions of the specific state of the financial market of Ukraine, alternatives to placing funds in banks have been narrowed down to investments in government bonds, precious metals, and pension funds. Banks and other credit institutions stimulate the demand for loans and the style of "debt consumption" as an alternative to savings. As a result, more and more households with low and middle incomes refuse to place funds in banks.

Keywords:banking system, commercial banks, savings banks, savings, lending to the population

JEL: C21, E21, E51

Drachko-Yermolenko I. . The effect of household lending on savings / I. Drachko-Yermolenko // Наукові праці НДФІ. - 2024. - № 1. - C. 112-122.

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