Return of the individual depositors to the banks which began in mid-March, continued in April and May, says the new review by the Central Bank "Liquidity of the Banking Sector and Financial Markets".
In May, following the reduction of Central Bank’s key rate from 20% to 11%, the banks curtailed their short-term high earning deposit offers at 17–20% interest, but rates on medium and long-term deposits remained elevated, which helped maintain the levels of depositors inflow.
While the banks are accumulating excess money, money supply in the economy has contracted — partially due to falling credit activity in the corporate sector: the annual growth in this segment decreased to 9.8% in April compared with 14.2% in March. As a result, the Central Bank predicts a structural liquidity surplus of 3.5–4 trillion rubles by the end of 2022, but hopes for a revival of corporate lending in the third–fourth quarters.