At the end of May 2021 total deposits in Croatia amounted to HRK 338bn, up by 7.3% YoY.
According to the consolidated statement of financial position for monetary financial institutions which is monthly published by the Croatian National Bank (HNB), total deposits as of end May 2021 amounted to HRK 338bn, representing an increase of 7.3% YoY, while increasing 0.9% MoM. This amount represents once again an all-time high. The high level of savings points to a continued trend of suppressed spending fuelled by pandemic crises that started in April last year. Majority of funds is channelled towards demand deposits, while savings deposits are decreasing due to the fact that they are yielding almost no interest.
The majority of increase is channeled to demand deposits, reaching HRK 136.7bn, which now amount for 40% of total deposits. We can assume that Croatian citizens do not believe that times of prosperity are ahead of us, as higher savings are a sign of uncertainty.
As of end May 2021 total savings deposits amounted to HRK 201.3bn, representing a decrease of 0.4% YoY and 0.8% MoM. Same as last month, there has been an increase in local currency savings deposits. The 5.5% increase YoY to HRK 32.3bn indicates growing belief in the local currency. Foreign currency savings amounted to HRK 169.0bn, a 1.5% drop YoY, reflecting the overall trend of decrease in savings deposits. Total saving deposits at the end of May 2021 were 16% in the local currency and 84% in foreign currency, showing that showing that Croatian institutions and citizens still do not prefer holding their savings/assets in the Croatian Kuna.
When observing solely households, they hold HRK 230.6bn or 68% of total deposits. Household deposits were up 6% YoY in May, and up 0.6% MoM. 31% of Household deposits are demand deposits while 69% are savings deposits. Out of households savings deposits 60% are in foreign currency.