Deposits of domestic sectors in Bosnia and Herzegovina (BiH) generally grew in 2024, both on a monthly and annual basis, with the most significant growth recorded in the population and private company sectors. Government institutions recorded a decrease in deposits on an annual level, while non-financial public enterprises saw a decline only on a monthly level. According to the Central Bank of BiH (CBBiH), total deposits of domestic sectors at the end of November 2024 amounted to 33.26 billion BAM, which represents an increase of 234.9 million BAM or 0.7 percent compared to October. Sector-wise, deposits of the population grew by 130 million BAM (0.8 percent), private companies by 126.1 million BAM (1.6 percent), government institutions by 5.7 million BAM (0.1 percent), and other domestic sectors by 19.9 million BAM (1.0 percent). A decrease in deposits was registered for non-financial public enterprises by 46.7 million BAM (2.3 percent). On an annual basis, deposits increased by 7.5 percent compared to November 2023, amounting to 2.33 billion BAM in absolute terms. The largest growth was recorded in the population sector, by 1.56 billion BAM (10.0 percent), private companies by 867.3 million BAM (12.3 percent), non-financial public enterprises by 25.8 million BAM (1.3 percent), and other domestic sectors by 129.9 million BAM (7.2 percent). A decrease in deposits was recorded for government institutions by 260.4 million BAM (5.8 percent).
Almost 47 percent of total deposits belong to the population
The population of BiH holds more than 15 billion BAM in banks, highlighting the significance of population savings in the overall financial system of BiH.
In the region, as of the end of August 2024, deposits of the population in Montenegro amounted to 2.01 billion euros, an increase of 12.01 percent compared to the same month of the previous year, and 2.85 percent compared to the previous month, according to a new bulletin from the Central Bank of Montenegro (CBCG).
In the term structure of population deposits at the end of August 2024, sight deposits accounted for 81.15 percent, term deposits for 18.84 percent, and the remaining 0.01 percent represented funds in escrow accounts, as specified by CBCG.
According to data from the Deposit Insurance Agency, at the end of September last year, insured funds in accounts of citizens, entrepreneurs, as well as micro, small, and medium-sized legal entities in Serbian banks amounted to 31.3 billion euros, almost 3.6 billion euros more than in the same period in 2023.
“Two-thirds of all insured deposits are deposits of individuals, i.e., citizens. As the most numerous, deposits of individuals, with about 13.5 million deposit accounts, represent a significant and stable deposit base.”
Deposits in Croatia continue to grow
According to monetary statistics, as of the end of September in Croatia, total deposits of domestic sectors amounted to 63.8 billion euros, increasing by 2.8 billion euros (4.6 percent) during the third quarter of 2024.
By sectors, during the third quarter of 2024, deposits increased across all sectors. Household deposits rose by 1.1 billion euros (3.0 percent), deposits of non-financial corporations by 1.2 billion euros (7.8 percent), and deposits of the general government by 0.4 billion euros (6.5 percent). As of the end of September 2024, household deposits amounted to 38.7 billion euros, non-financial corporations to 17.1 billion euros, and the general government to 6.0 billion euros.
Croats save an average of 77 euros per month
According to an annual survey by Erste Group on a sample of 500 respondents, 53 percent of Croatian citizens believe their financial situation has worsened in the past two to three years, while the average amount of monthly savings among savers increased by 4 euros compared to 2023, now amounting to 77 euros. Of the respondents, 23 percent do not save at all, while among savers, the largest group (31 percent) saves between 51 and 100 euros monthly. The highest average amount among those saving in Croatia, 105 euros per month, is saved by the middle-age group (35 to 59 years), followed by young people aged 15 to 34 years with 71 euros, while the older age group, 60 years and above, saves an average of 42 euros per month.
Most savers (66 percent) save by setting aside what remains at the end of the month or year, compared to 34 percent who save a predetermined fixed amount.
Compared to savers in Central and Eastern European countries, Austrians save an average of 308 euros per month, followed by Czechs (134 euros) and Slovaks (133 euros), while Hungarians save an average of 116 euros. Romanians save less than Croats (72 euros), as do Serbs (55 euros). Compared to last year, the highest increase in average monthly savings was recorded in Hungary, where savers set aside 11 euros more. On the other hand, the only country where savers saved less than last year was the Czech Republic, with a difference of 10 euros compared to the previous year’s average monthly savings.
Emergency reserves
When it comes to reasons for saving, the majority of savers in Croatia (65 percent) save to secure an emergency reserve. They are followed by those saving to create financial security for themselves and their families (45 percent), while 21 percent save for retirement. The least is saved for education and training (7 percent), while the percentage of those saving for major purchases, such as houses, apartments, cars, and similar, remained at 28 percent. Additionally, 17 percent of savers set aside money for vacations.
When it comes to BiH, banks publish the total savings of the population but do not disclose individual savings amounts, which would reflect the true social and financial picture of the population in BiH, where there is a significant disparity in personal incomes and wealth, and therefore in the ability to set aside money and save it in banks, Forbes writes.
