Specifics of the domestic deposit market and its alternatives

The Ukrainian deposit market could be considered efficient if the demand for deposits in all operating banks was equal and interest rates on deposits were optimal. This market would then reflect a model of unrestricted competition. However, in the course of the study, based on the analysis of official NBU data, we found that the Ukrainian deposit market represents a model of monopolistic competition, although in recent years state-owned banks have concentrated a much larger share of household deposits than private and foreign banks. To some extent, the market under study is characterised by a decline in demand for deposits, which is primarily due to a decrease in their price (interest rate). In addition, under the influence of negative factors related to the war, the spread of inflation, and many others, the role of alternative ways of saving savings, such as government bonds, stocks, cryptocurrencies, real estate, etc. is growing. In view of this, it is important not only to analyse the specifics of the deposit market in Ukraine, but also other possible options for saving money in the face of economic instability and high risks.