Cash In Circulation Research Articles

Household investment opportunities

Subject. This article discusses the issues related to household investing. Objectives. The article aims to identify opportunities for household investing. Methods. For the study, I used analysis and synthesis, a correlation and regression analysis, and the graphical method. Results. Based on the analysis of the possibilities and opportunities of household investing in the Russian economy, the article reveals a stable excess of the growth of stock and other forms of participation in the capital of households over their debts on bank loans and issued debt securities. The article finds that the monetary authorities have lost the ability to control the growth of the federal loan bond market through the growth of cash in circulation and the key rate of the Bank of Russia. Relevance. The identified opportunities for household investing may be of interest to the financial authorities when forming the three-year budget of the Russian Federation and the implementation of the digital ruble.

Electronic money in Ukraine:features and accounting with consideration of the factor of war

The main trends of electronic money development are investigated in the article, in particular the basic changes in the number of electronic wallets, the volume of transactions with electronic money in the conditions of martial law. The main advantages of using electronic payments by users are highlighted and the reasons for increasing trends of using electronic money are listed. It is convenience thanks to simple functionality, ease of use on the Internet, reduction of cash in circulation, ensuring control of cash flows and creation of payment infrastructure. As a result of the concept of «electronic money» it is revealed that electronic money can be considered as a means of payment, but they cannot be equated to hryvnia. The main restrictions on electronic money payments for the month and calendar year are described. The article outlines the steps you need to take to replenish your electronic purse or withdraw funds. Identified 23 banks which can issue electronic money and payment systems was indicate that banks use: Mastercard, Visa, Space, Maxi, Globalmoney, Forpost, Alfa-money, Electrum, Xpay. Highlight a smart card or other media containing the chip, which allows people to make payments at POS terminals using NFC contactless payment technology. A Pilot Project for the Issue of E-Hryvnia Based on the Blockchain System is analyzed, provided that only the National Bank of Ukraine is the issuer of the e-Hryvnia. In terms of accounting, the account 33 «Other means» is assigned to display electronic money, however in cases of purchase of goods by card, the account 37 «Settlements with different debtors» is used. The article deals with the disadvantages of displaying electronic money in these accounts. Further prospects and future challenges in using electronic payments and accounting is estimated.

Подделка денежных знаков Банка России как угроза экономической безопасности России

The article analyzes the counterfeit banknotes number growth rate, the monetary policy aimed at improving the protective elements of banknotes, the level of counterfeiting crimes detection, and the impact of counterfeiting on the Russian economic security. The purpose of the article is to analyze the growth of cash circulation level and available methods for detecting counterfeit banknotes, as well as to determine the most relevant protective elements. The author uses the statistical data of the Central Bank of Russia on the amount of cash in circulation and counterfeit banknotes, as well as statistical data of the Ministry of Internal Affairs of Russia on the number of crimes committed under the Article 186 of the Criminal Code of the Russian Federation. The research can have a positive impact on the functioning of cash in general and become a basis for creating a unified information platform for the recognition of counterfeit banknotes, which will have a positive impact on the fight against counterfeiting and ensuring Russia’s economic security.

Approaches to a secure, sustainable, and diversified Nigerian economy in a cashless society

The pervasive reliance on cybersecurity innovations by enterprise organizations for secure electronic file-sharing networks across all business transactions is critical to realizing Nigeria's sustainable diversified economy (SDE) for long-term economic growth. According to the literature, people are increasingly moving away from using cash for transactions as a result of technological advances, with only 32% of payments involving cash in the United States, 53% in the Middle East, Africa, and Nigeria, and a comparably low 58% identifying going cashless as their preferred option. Although card payments are widely preferred worldwide, Nigerians continue to be among the most likely people to keep money in their homes rather than adopting the ongoing cashless trend; the estimated percentage of cash that is kept outside of the banking system relative to the total amount of cash in circulation in the Nigerian economy is 85%. Poor organizational systems, enterprises, risks, and security threats further impede the transition from a cash-dominated economy to a cashless economy. In the age of cashless transactions, this study outlines tactics for a safe, diversified, and sustainable Nigerian economy. The conceptual framework for this study was chosen to be the security of Enterprise Information Systems (EIS). The author conducted a narrative review of previous studies and peer-reviewed articles published in the last five years, and the findings provided important insights into how to manage information security systems for organizations in a cashless economy. The findings suggest that effective adherence to security policies, control over policy enforcement, and enterprise definitions to leverage a sustainable, diverse economy can prevent or mitigate organizational security issues. The study's conclusions broaden appropriate security management procedures and preventative measures for Nigeria's transition to cashless transactions

Debt limit on ruble-denominated loans to Russian non-financial organizations

Subject. The article considers debt on loans issued to Russian non-financial organizations in rubles. Objectives. The purpose is to determine debt limit on the said loans. Methods. The study rests on systems approach, using the method of statistical analysis. Results. The study revealed a significant increase in debt on ruble-denominated loans and acquired rights of claim on loans with floating or variable interest rate; loss of debt priority on ruble-denominated loans and acquired rights of claim on loans with fixed interest rate. The paper highlights peak values of difference in weighted average interest rates on ruble-denominated loans granted by credit institutions to non-financial organizations, for terms “up to 1 year”, including “demand loans”, and “over 1 year”. It also shows a significant decrease in the difference in turnovers. Conclusions. The revealed debt limit on ruble-denominated loans to Russian non-financial organizations, which, to a greater extent, is determined by the growth dynamics of debt on loans with a floating (variable interest rate) and the ability of monetary authorities to compensate for the increase in the debt of non-financial organizations by the growth of cash in circulation within the boundaries of a value benchmark, directs the government members to certain actions. The provisions of the study expand the competence of government members to form a set of measures to improve the efficiency of the Russian economy.

Cashless Transactions Socioeconomic Determinants and Its Effectiveness in Livestock Marketing Activities among Livestock Marketers in Katsina State, Nigeria

The study analyzed cashless transactions socio-economic determinants and its effectiveness in livestock marketing activities among livestock marketers in Katsina State, Nigeria. Multi-stage sampling procedure was deployed to select and interview 366 livestock marketers. Descriptive statistics, likert scale and binary logistic regression model were used to analyze data collected. Majority (76.5%) of the livestock marketers were found to be engaged in cashless transactions. The livestock marketing in the study area is predominantly by male (100%) and married (96.45%) marketers of which most of them have some level of formal education ranging from primary (40.71%), secondary (19.94%) and tertiary education (28.43%). They have an average age of 47 years with an average experience of 21 years of marketing activities. Majority (88.25%) of them were also found to have annual income of 100,000 – 1,080,000 naira. Results further show that cashless transactions were effective only in animal selling transactions (M=3.079) and animal purchase transaction activity (M=2.349), among various livestock marketing activities. The result findings also revealed level of education (p<0.01), income of the marketers (p<0.05), cooperative members (p<0.01), and mobile phone ownership (p<0.01) to be the statistical significant factors influencing decision of livestock marketers participation in cashless transaction in the study area. Inadequate cash in circulation (98.09%), poor acceptance of transfer by some marketers (96.99%) and uncertainty of transaction success (96.72%) were major challenges of engagement in cashless transactions in the study area. It can therefore be recommended that mitigating challenges and improving contributing factors will enhance cashless transaction effectiveness in Livestock marketing activities.

Assessment of Perception of the Cashless Policy and Its Perceived Impact on Livelihood and Health-care Access in Nigeria

Abstract Background: The introduction of the cashless policy by the Nigerian government and the Central Bank of Nigeria was aimed at reducing the quantity of actual cash in circulation and promoting an increase in electronic-based transactions for the purchase of goods and services. However, the unforeseen effects of the cashless economy’s flaws have affected various industries, including the health sector. This study will, therefore, aim to assess the perception of the cashless policy and its perceived impact on livelihood and health-care access in Nigeria. Materials and Methods: We conducted a cross-sectional study among residents across three states (Oyo, Lagos, and Jigawa) in Nigeria. We assessed respondents’ opinions about the cashless policy, we assessed the perceived impact of the cashless policy on livelihood and health care, and we assessed respondents’ coping methods to the cashless policy. The opinions of respondents, the perceived impact of the cashless policy, and the coping methods were all presented in tables and appropriate graphical illustrations and charts. Results: Overall, most of our respondents believe that the cashless policy was bad. Some respondents lost their jobs and experienced reduced income while many also reported that the policy has made life generally difficult for them. Most respondents skipped meals as a way of coping with the effect of the cashless policy, while many others have had to adopt the use of smartphones and POS machines as a substitute for cash transactions. Conclusion: The analysis of our findings revealed that the cashless policy created difficulty for people and resulted in lower living standards. Given the report of loss of jobs and growing poverty, the nation faces an increased danger of crime. Hence, the government, banking sector, and other pertinent stakeholders must make sure that the infrastructures required for the seamless execution of the cashless policy are in place.

Possibilities of monetary regulation in Russia

Subject. The article investigates monetary regulation in Russia. Objectives. The focus is on determining the possibilities of monetary regulation in Russia. Methods. The study draws on systems approach, using the methods of statistical, neural network, and cluster analysis. Results. The paper unveils peak values of intraday loans, other (lombard) loans, a strong direct relationship of intraday loans with other loans, and a decrease in overnight loans. It describes monetary inflationary risks, transition to a high level of standing deposit facilities (for overnight deposits) and one-week deposit auctions. I found significant dynamics of funds in escrow accounts, brokerage accounts and debt securities, demonstrated reaching a new level of debt relations of the non-financial sector, households, and non-profit organizations serving households. The study reveals the structural importance of the population in the context of the necessary link to GDP at constant prices in rubles. Conclusions. The real range of opportunities for monetary regulation in Russia for public authorities is associated with an increase in cash in circulation, growth in the level of standing deposit facilities, maintaining the excess of the debt of non-financial sector over the debt of households and non-profit organizations serving households, the dynamics of gross domestic product in constant prices in rubles and the population. The provisions of the study expand the competence of government members in the process of formulating a set of measures aimed at improving the effectiveness of monetary regulation.

DIGITAL CURRENCIES, SWOT ANALYSIS

Abstract. The paper highlights the increased international trade and discussion in recent years of digital currencies, also known as virtual currencies or cryptocurrencies, including the bilateral trade coin bitcoin (BTC). Scholars have emphasised the need to consider different preconditions, focusing primarily on domestic perspectives of payment intermediation within individual countries. The inclusion of digital currencies in global trade is motivated by the recognition that time is playing an increasingly important role in trade dynamics. Scholars have presented arguments on the potential impact of CBDCs (central bank digital currencies), highlighting their ability to facilitate secure and seamless payment transactions in line with the primary objective of central banks. Conversely, sceptics argue that the mere issuance of CBDCs can potentially undermine the stability of the financial system. High interest rates tend to reduce the amount of cash in circulation. Therefore, higher interest rates do not stimulate digital currencies as investors seek to keep their funds tied up rather than floating. The purpose of this research is to consider the concept of digital currencies in global trade, reflecting the increasing importance of time in trade. Older generations have been reluctant to embrace this new way of doing business, and many questions have arisen. For example, digital currencies compete with traditional currencies, making government control difficult. There are also issues of trust, credibility, volatility, use across countries, use across time zones, trading time, uncertainty, disruption to current centralised economic systems, lender of last resort in the form of a central bank, as well as distance and culture in international trade. The methodology used is the well-known and classic SWOT analysis, which provides tools for analysing the pros and cons of digital currencies. It sheds light on the advantages and disadvantages of digital currencies, including strengths, weaknesses, opportunities and threats. The results vary depending on the weight of the four measures provided. The practical implications are that it is important to be aware of the measured factors when trading: Strengths, Weaknesses, Opportunities and Threats. Finally, it is believed that the value/originality of the research sheds light on issues that people need to be aware of when considering entering into a transaction using some form of digital currency.

Cash Is King: The Role of Financial Infrastructure in Digital Adoption

AbstractThis paper examines whether a one-time, extensive, but temporary shock to cash supply can affect the adoption of digital payments. We exploit the 2016 demonetization episode in India, which overnight discontinued 86% of cash in circulation. Using novel administrative data from retail debit card transactions, we identify a 12% increase in digital payments in areas adversely affected by the cash shortage, which persisted well after the restoration of cash supply. Examining mechanisms, we find a limited role for social networks and stronger support for learning by doing. Further, information frictions hinder the immediate adoption of digital payments. (JEL E5, 023)Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Problems and prospects of cash circulation development in Kazakhstan

Organization of effective cash circulation throughout the territory of the Republic of Kazakhstan is one of the main tasks of the National Bank of Kazakhstan (NBK). Against the backdrop of the rapid development of non-cash payments, cash continues to serve as an important payment instrument for the population. Research on the use of cash and non-cash money by the population has been regularly conducted in European countries for more than 10 years, in Germany - every three years, in Russia - every year. In the context of modern trends and challenges, there is a need for research in Kazakhstan. In Kazakhstan, a survey on payment preferences of economic entities was conducted for the first time by the National Bank. At the same time, the study was conducted not only among the population, but also among entrepreneurs. In Kazakhstan, despite the development of non-cash payments, in parallel, there is a steady increase in the amount of cash in circulation, which is also typical for developed countries. Accordingly, the purpose of the study is to determine the trends in the development of cash circulation, identify the factors that form the demand for cash, as well as study the use of cash and its nominal structure by economic entities.

Diagnostics of the current state of financial market of Ukraine

Methods. The theoretical and methodological basis of the research is the work of domestic and foreign scientists. The results were obtained with the application of a system of methods: the method of logical analysis made it possible to develop the logic of the research; deductions - to identify certain factors affecting the development of the financial market; generalization and synthesis - for the formation of a scientific approach to the development of the financial market. Methods of statistical analysis were used to assess the dynamics and structure of financial market components. The graphic method made it possible to visualize the obtained research results. Results. The authors of the article analyzed the current state of the money market of Ukraine as a component of the financial market. The state and trends of the functioning and prerequisites for the development of the money market in 2009–2021 were studied. The analysis of the dynamics of monetary aggregates of Ukraine, the level of monetization of the country’s economy and the level of security of the functioning of the money market was carried out. The tendencies of the development of the money market that are characteristic of the studied period are as follows: lack of control by the banking system of more than a quarter of the money supply; insignificant growth rates of monetary aggregates; growth of the share of cash in circulation; exceeding the level of security of the money market by more than three times the normative value. The diagnosis of the second component of the financial market – the capital market – was carried out, the results of which are as follows: a rapid upward trend in the volume of transactions on the capital market; dominance in the market of share securities, the share of which during the analyzed period amounted to more than 70%; the complication of the structure of securities creates conditions for the diversification of the placement of temporarily free financial resources; dominance of the secondary market with a gradual increase in its share to 99.88%. Novelty. A description of the current state of the country’s money market is given, the general trends of its development during the studied period are highlighted. Development trends of the capital market of Ukraine were determined and problems were identified that slow down the effectiveness of the transformation and integration processes of the domestic financial market. Practical value consists in the possibility of applying the developed and provided proposals regarding the formation of modern trends in the development of the financial market in general, and the money market and the capital market in particular, in order to increase the efficiency of their functioning. The obtained conclusions and research results, as well as the provided recommendations, will contribute to the effective functioning of the financial market of Ukraine.

Model for Regulating the Reproduction Process in the Economy.

The authors analyze the regulation of the reproduction process in the real and financial sectors of the economy by variations in the amount of cash in circulation and through the investment policy of the state, as well as the consequences of the collapse of the market value of securities. The production sphere is shown to unite the production system (production), banking system, market system, domestic households, and the rest of the world. It is shown that the regulators of the economic reproduction are the banking system that provides credits to production and the necessary amount and velocity of money in the real sector, the financial sector that is selling securities for cash and investing in production, and the state that pursues an investment policy for the expanded reproduction of production capital. The reproduction process of the economy of Ukraine is modeled for 2022-2024 by the statistical data of 2020 and 2021.

Did Demonetization Affect Indian Stock Market?

This study explores the impact of "2016 demonetization" on the stock market inIndia. The policy declared 86% of cash in circulation in the form of Indian rupees(INR) 500 & 1000 notes as an illegal tender effective from midnight of November8, 2016. However, India’s government progressively released new 500 and 2000INR notes over the next few months. Following the demonetization announcement, stock prices of cash-sensitive industries like consumer goods and financial services dropped rapidly, reflecting a significant reduction in demand. This study focuses on the short-term effects of demonetization on the stock prices of 100 publicly listed firms using their daily stock data. We use estimating windows within 60 days of the announcement and then capture the short-term effects of demonetization by employing the Ordinary Least Square (OLS), the Fixed Effect (FE), and the Random Effect (RE) methods. Estimation results demonstrate that demonetization effectively decreases stock prices.

Фінансовий сектор – джерело сталого фінансування в економіці

Introduction. The world economy has been experiencing a systemic financial crisis since 2008, as a result of which highly developed countries have been in a state of depression and teetering on the brink of deflation. This crisis coincided in 2020 with the global crisis of a sharp decline in real GDP caused by the COVID-19 pandemic. The conditions for a possible entry of the country's economy into stable growth are ambiguous. Problem Statement. Highly developed countries have taken steps to regulate the sharp decline in real GDP due to the pandemic, leaving financial markets overflowing with cheap liquidity. This threatens to increase inflation, the collapse of stock markets and the continuation of the global financial crisis if cheap liquidity does not become an investment resource for sustainable financing. Purpose. Study of the interaction of the real and financial sectors in the country's economy through changes in the amount of cash in circulation and with the help of the state's investment policy on sustainable financing and determining the consequences of the collapse of the value of financial securities. Materials and Methods. The data of the International Finance Corporation was used, according to which, in particular, in emerging markets, there are opportunities for climate investment worth about 23 trillion dollars. US by 2030, while in Ukraine they are estimated at 73 billion dollars. USA. Results. A study of the interaction of real and financial sectors in the economy through the state's investment policy for sustainable financing and identified the consequences of the collapse of the value of financial securities. It has been determined that an increase in cash from the financial sector proportionally reduces inflation and a decrease increases it. Therefore, when targeting inflation within specified limits, the banking system must change the amount of cash in the economy in proportion to its change in the financial sector. With a constant amount of cash in the economy, inflation decreases proportionally if the cash of the financial sector and the currency balance increase. Conclusions. Government regulation of investment in the real sector and investment by the financial sector in stable financing may be another impetus for economic growth and overcoming the systemic financial crisis.

Specifics in Introduction and Functioning of the Currency Board in Bulgaria

The article studies two main aspects of functioning of the currency board in Bulgaria: its characteristics and its specifics and peculiarities.
 Concerning the characteristics of the currency board in Bulgaria, the attention is focused on several theoretical matters of the nature of the currency board: mechanism for introduction of the currency board; choosing the foreign currency, to which the local monetary unit is to be fixed; financing the initial currency reserve, in order for the currency board to start functioning; setting the fixed exchange rate to the reserve currency; establishing the amount of coverage of the quantity of cash in circulation by the currency reserves; administration of the currency board; implementation of the function “lender of last resort” in cases of liquidity crisis; supervision of the commercial banks’ operation.
 Each country is characterized by its specifics in terms of management of public finances, condition of the real (non-financial) sector, service sector, monetary and banking system. These specifics are reflected in the monetary boards, introduced in the individual countries.
 The article provides a detailed analysis of the specifics of the currency board in Bulgaria.
 The options for an independent monetary policy of the central bank are heavily restricted, and on the other hand, the currency board attained the goal of its policy – ensuring of price stability. As of the present moment, Bulgaria joined the exchange rate mechanism (ERM II) in 2020 and makes every effort to cover the criteria for real convergence.

Main directions of cash flow improvement in Ukraine (with taking into account foreign experience)

Introduction. The main problems of cashless circulation in Ukraine are the problems of replacing or withdrawing some monetary marks from it and moving to a new (delegated) model of its organization. In solving these problems, the key role belongs to the National Bank of Ukraine. When deciding them, it is important that all participants in monetary circulation rely on foreign experience and existing scientific developments. The purpose of the paper is to study the current state of cashless circulation of Ukraine, identify the most significant problems and determine specific measures to improve cash payments and transition to the modern model of its organization. Results. The paper analyzes the main reasons for the replacement or withdrawal of cash: devaluation of the national currency; change in the scale of prices, which causes the denomination of the currency; the need to optimize the banknote-coin range of the national currency, as well as the structure of cash in circulation; economic expediency of issuing coins instead of banknotes of small denominations; insufficient protection of monetary marks from forgery; physical wear and damage to banknotes; orientation of financiers to large-scale banknotes; the risk of viral infection of people through cash; expansion of electronic money; transition to the use of plastic money; withdrawal from circulation of the Russian ruble in the territories occupied by Russia. In the modern period, in many countries, including Ukraine, it is necessary to switch from a partially controlled model of organization of cash flow to a delegated model. The essence of this model is that the central bank transfers on the terms of outsourcing some of the functions that it currently performs in the regions, other market participants – banks and companies Cash-in-Transit (SIT-companies). Conclusion. To improve cash flow in Ukraine, first of all, it is necessary to adhere to the inflation target of up to 5 %, consider the possibility of hryvnia denomination, complete the ordering of its banknote and coin series, and increase the security of large denomination banknotes. And the introduction of the delegated cash flow model should contribute not only to reducing costs for it, but also to the development of a competitive market for cash collection services.

Review of Cashless Economy in Nigeria and the Challenges of Network Infrastructures

The central Bank of Nigeria (CBN) conceptualized the idea of Cashless Economy in 2011 as part of its blueprint to drive economic development and modernise our payment system in line with the Nation’s Vision 2020 goal of being amongst the twenty most developed economies by the year 2020. The Apex bank of Nigeria then came up with a cashless policy with the view of pegging the amount of physical cash to be withdrawn or deposited at a time in commercial banks. The pilot scheme kick started in Lagos, Kano, Anambra and some other states of Nigeria’s major commercial cities with intention of spreading across all the states of federation and the Federal Capital Territory (FCT). It was designed to reduce but not eliminate the amount of physical cash in circulation and encourage more electronic driven transaction channels. A number of researchers agree that this initiative by the CBN is anchored on the fact that an efficient and digitized payment system positively correlates with economic development, which is believed to be a key indicator for economic growth provided that all other factors are constant. This policy involves deployment of Information and Communication Technology (ICT) gadgets through Computer Network Infrastructures. The Policy aims at reducing cost of banking services, improving the effectiveness of monetary policy in managing inflation as well as driving economic growth and development. However, since its inception, the policy has witnessed a number of challenges such as transaction failures resulting from poor network availability, hidden bank charges by commercial banks and cyber crime attacks. This research, therefore, is an opinion paper in which the researcher presents the challenges facing cashless policy in Nigeria and as well as proffer solutions to the identified challenges. A good number of cashless transaction channels were equally discussed and these include Electronic Cards, Automated Teller Machines (ATM), Mobile Banking, Online banking, Point of Sales (POS), and Near Field Communication (NFC). However, they all seem to have a common challenge (Network failures). The study recommends Five Nines availability (Network uptime of 99.999 percent) and Mesh Network design topology amongst others as recommendations.

Consumer payment choice and the heterogeneous impact of India’s demonetization

Consumer payment choice is based on heterogeneous preferences, availability, usage costs, and effective taxes. We examine the consequences of this choice on consumption distribution, aggregate output, welfare and the shadow economy. We analyze India’s sudden demonetization of 86% of the cash in circulation with new notes gradually being replaced over the next several months. The welfare cost of the liquidity shock was equivalent to 1% of consumption owing to the slow remonetization process. Even though all consumers experienced a decline in welfare, its extent varied depending on the degree of cash dependence and the ability to switch to non-cash payments. The middle consumption deciles were disproportionately affected.

СУЧАСНА ДЕПОЗИТНА ПОЛІТИКА БАНКІВ УКРАЇНИ ЯК СКЛАДОВА СИСТЕМИ УПРАВЛІННЯ ПАСИВАМИ

The resilience of the banking system during the war is largely determined by the availability of sufficient sources of funding – own, attracted and borrowed. One such source is bank deposits. The deposit policy of commercial banks in Ukraine has changed significantly in recent years, and banks today have ceased to depend on deposit sources, due to sufficient liquidity of banks due to cheap funds raised from the NBU as refinancing. The main differences in the deposit policy of banks in 2014–2019 and in 2020–2022 are summarized. There is a steady increase in deposits even in times of war, and demand deposits significantly outweigh time deposits, which is due to the desire of customers to have free access to their funds in conditions of uncertainty in the future. The general tendency to increase the deposit portfolio of banks is due to the restoration of confidence in the banking system, as well as the existence of the Deposit Guarantee Fund, which during martial law and three months after its termination will provide full compensation to depositors. Since 2020, we have seen a significant reduction in the level of deposit rates, which today don’t cover inflation. In addition, banks today have no economic reason to raise deposit rates, as the real economy has not had enough facilities to increase lending due to the crisis, the COVID-19 pandemic and especially the war. As an object for investment, deposits today compete with IGLBs, which have higher yields and are not taxed. Today, the main problems associated with attracting deposits in Ukraine are: uncertainty about the future, falling incomes, reduction of interest rates on bank deposits, high level of interest income taxation, significant amounts of cash in circulation, etc. Modernization of banks’ deposit policy should be based on constant analysis of the deposit market, adaptation to the conditions of its operation and the formation of adequate interest rates by banks in order to further invest in the real economy.