FACTORS FOR ATTRACTING HOUSEHOLD SAVINGS TO THE BANK DEPOSIT MARKET OF UKRAINE: REGIONAL DIMENSION
Abstract
It is important to specify the major conditions that influence the decision of households to deposit their temporarily free funds in the banking system by regions of the country. The purpose of the article is to identify the most important factors in attracting household savings to the bank deposits market in Ukraine taking into account its regions. The following scientific methods are used in the research, such as: induction and deduction, analysis and synthesis, comparison, factor analysis by the principal components method, econometric modelling. The author has substantiated that the structuring of factors of depositing households’ savings in the regional bank deposits market involves the use of such scientific and methodological approach as: determining dependent (volumes of households’ bank deposits by regions in total, national and foreign currencies) and independent variables which characterize main social and economic conditions of household activity, interest rates on deposits by types of currencies by regions; conducting factor analysis by the method of principal components in order to classify and rank factors which affect the dynamics of household bank deposits at the regional level; specifying sample regression functions as to define the types of relationships between dependent and independent variables. It is identifying that the decisions of households to deposit their savings in the bank deposits regional market in Ukraine have multifactorial origin; a special place belongs to the perception of potential depositors of the current economic situation, assessment of their welfare and labour market situation, focus on interest rates on deposits offered by banking institutions and its terms. The author has found out that the activation of attracting household savings to the bank deposits market is associated with the stabilization of social and economic conditions of development for the Ukrainian regions, positive expectations of depositors and the formation of proper deposit policy of commercial banks. It is outlined that the prospects for further research are related to the evaluation of the level of concentration of the household bank deposits market by regions of Ukraine.
References
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