Total household deposits with commercial banks in BH, at the end of September 2023, amount to BAM 15.57 billion and are higher by BAM 1.35 billion or 9.5% compared to September 2022.
Of the total deposits with commercial banks, household deposits have by far the largest share, 51%, and therefore represent an important basis for the financing and operating of banks.
Since February 2023, household deposits have recorded a constant increase, which, after the turbulent period from March 2022 to January 2023, is a reliable sign of confidence in the banking sector of BH.
Observed by maturity, time and savings deposits recorded a decrease of 2.3%, while demand deposits and transaction accounts of the households recorded an increase of 15.3% on an annual level, which indicates that the population prefers a more liquid type of deposit, and that cautiously decides for the term savings. It is to be expected that there will be a change in the coming period in favour of term and savings deposits, because already in the middle of the year, several banks have launched a campaign of higher interest rates, and over 3% on term savings, with special benefits such as interest payments in advance, fixed interest rates , stimulating interest rates, etc.
If we look at household deposits by term structure, time and savings deposits at the end of September 2023 amount to BAM 4.59 billion or 29.5% of total household deposits, of which short-term deposits make up BAM 377 million (8.2%), and long-term deposits BAM 4.22 billion (91.8%). Transaction accounts and demand deposits account for KM 10.98 billion or 70.5% of total household deposits, of which transaction accounts make up for BAM 6.89 billion or 62.8%, and demand deposits for BAM 4.08 billion or 37.2%.
Regarding the currency structure, at the end of September 2023, the total household deposits in local currency amount to BAM 8.38 billion, which makes up for 53.8% of share, deposits in euro and in BAM with a currency clause pegged to the euro currency amount to BAM 6.49 billion or 41.8%, and deposits in other foreign currencies were BAM 688 million or 4.4% of total household deposits. Observed at the annual level, household deposits in BAM, at the end of September 2023, recorded an increase of 15%, and deposits in foreign currencies by 3.6%.
