In H1 2018, amount of time deposits of individuals in Armenian banks decreased by 7.7% 

ArmInfo. In the banking sector of Armenia, for the first half of 2018  there was a significant 7.7%, outflow of time deposits of individuals, which by July 1 totaled 1.2 billion  drams. According to the Financial Rating of Armenian Banks, prepared by ArmInfo, call deposits, on the  contrary, grew by 6.3%, but their insignificant volume of 321.9 billion could not compensate for the losses of the system.

In quarter II of 2018 alone, time deposits of individuals decreased by 2% in parallel with the growth of call  deposits by 2.3%, which, according to analysts, is a result of the re-issuance of a certain part of funds from  fixed-term contracts to call deposits.

At the same time, the dynamics of deposits of legal entities in the first half of 2018 worsened: time deposits  slackened growth to 2.2%, while call deposits fell 8.2%. Moreover, for the II quarter, insignificant growth  of time deposits of legal entities by 1.8% was accompanied by a drop in call deposits by 5.7%. In absolute  terms, the volume of time deposits of legal entities amounted to 509.9 billion, and call deposits - 488.4  billion.

In total, in absolute figures, as of July 1, 2018, the volume of time deposits of individuals and legal entities  amounted to 1.8 trillion drams or $ 3.6 billion, and call deposits - 810.3 billion drams or $ 1.7 billion. Year-over-year dynamics of growth rates indicates a sharp slowdown in the growth of the deposit base: the  growth rate of time deposits fell from 23.9% to 2.7%, and call deposits - from 35.7% to 9.6%.

According to independent analysts, the decline in the time deposits of individuals was a consequence of the  political events that took place in the country, and the declining dynamics of growth can be continued in  connection with the uncompromising fight against corruption announced in the country, as a consequence,  people who in one way or another were previously involved in corrupt deals ,will prefer to refuse from the  deposit services of commercial banks.