Galim Khussainov
Inflation and the tengeBankingLending and mortgagesTaxationEconomy and public policyManagement

Banking · 1 min read

On the Structure of Deposits

Translated from Russian with the help of AI. Original: Russian version

Why real, rather than nominal, financial sector indicators should be used when assessing deposit growth.

Here, people often like to use nominal indicators and to call any positive change in them "growth". I cannot call that growth, because what matters is real growth, which must take into account changes in prices. For example, say you sold 10 units of a product at 1,000 tenge each. The following year prices for everything rose, and you sold 9 units at 1,200 tenge each. In real terms, that is a 10% decline; in nominal terms, it is 8% growth.

That is why it is crucial to read the figures correctly, especially those from the financial sector.

Let me give a few examples of how I interpret some of these figures.

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