Bank accounts held by Ukrainian households rose to UAH1.32 trillion ($32.4bn) in September, up 1.6% from the previous month, as confidence in the banking sector remained stable despite the ongoing war, the National Bank of Ukraine (NBU) said on October 21, reported Ukraine Business News.

Since the start of the year, deposits by individuals have increased by 9.1%, the central bank reported. Hryvnia deposits grew 2.2% in September to UAH886bn, while foreign currency deposits in hryvnia terms climbed 0.3% to UAH436.8bn.

Corporate deposits, including both local and foreign currency accounts, were also higher, rising 1.3% to UAH1.5 trillion.

The average interest rate on hryvnia deposits for legal entities inched up 0.1 percentage point to 10.3%, while rates for individuals remained steady at 10.6%. Interest rates on foreign-currency deposits stood at 0.7% for both businesses and households.

Meanwhile, lending activity continued to pick up. Loans issued to businesses and households increased by 1.3% in September to UAH1.28 trillion, bringing total loan growth to 15.7% since January.

Interest rates on hryvnia loans eased slightly, with business borrowing costs falling by 0.1 percentage point to 15% and consumer loan rates declining by 0.3 percentage point to 35.9%. Rates on foreign currency loans were unchanged at 6%.

The NBU has repeatedly said stabilising inflation and a resilient banking sector have encouraged savings and credit activity, while wartime government support and international aid continue to underpin liquidity in the financial system.