Russians abandon long-term deposits as banking trust collapses, Ukraine's intel says
Photo: Central Bank of Russia (Getty Images)
Russia faces a collapse of trust in long-term bank deposits amid concerns over the unstable economy, reports Ukraine's Foreign Intelligence Service.
Three-month deposits have become the most popular, reaching 33.2% of all deposits in October. In contrast, deposits longer than a year have nearly lost demand, with their share not exceeding 7%.
Rising distrust in the banking system
"This is explained by total distrust of the banking system and the instability of the russian economy. Being wary of long-term risks, Russians seek to quickly obtain at least some benefit," the Ukrainian intelligence service said.
As deposit growth slows, Russian banks are reviewing service conditions and trying to attract clients with new "attractive offers." This trend indicates a deepening economic crisis in Russia and a loss of citizens' trust in their financial system.
Russia's economy is faltering
The Russian economy continues to weaken amid the prolonged war against Ukraine and international sanctions. Key sectors are showing decline, and the banking sector is preparing for possible state support to avoid collapse.
On September 4, Russia's Sberbank CEO Herman Gref acknowledged that the economic growth effectively stopped in the second quarter of 2025.
The International Monetary Fund previously predicted that after a short-term "military boom," Russia's economy would return to stagnation and continue losing ground compared to both developed and developing countries.
