BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/30
While households have reined back consumption, their net borrowing has turned negative. Over the past 12 months, the stock of household loans granted by banks has not changed, i.e. households’ loan repayments to banks have equalled their borrowing. Since the start of this year, however, household debt repayments have far outstripped borrowing – in fact to the extent that was seen during the 2009 recession.
Additionally, after the drop at the end of last year, household funds have flowed into banks so strongly that the flow of money from households to banks has exceeded the flow of money from banks to households in an exceptional manner. Households have been increasing their deposits to a remarkable degree by winding down their ruble and forex cash holdings.