Household deposits with commercial banks in BiH reach 9.62 billion BAM

According to data from the Central Bank of Bosnia and Herzegovina (CBBiH), total household deposits with commercial banks in BiH, at the end of September 2015, amounted to 9.62 billion BAM, which is the highest recorded amount of deposits so far. In total deposits with commercial banks in BiH, household deposits have by far the largest share of 60%, reports the Patria news agency.

Households in BiH continuously find ways to increase their deposits despite the fact that salaries and other incomes do not record significant increases.

Thus, compared to the situation at the end of September last year, deposits increased by as much as 719 million BAM or 8.1%. If we compare household deposits with the situation at the end of December 2008, i.e., from the onset of the global crisis, we observe a constant annual increase ranging from 8-15%, which resulted in a cumulative increase in deposits of 4.41 billion BAM or 84.8%. This is an indicator of established trust in the banking sector and its stability, and is also the result of the existence of a deposit insurance system that was successfully tested in the past year, providing adequate protection for savers.

However, observed by maturity types of deposits, there are significant differences in the pace of growth. The fastest growing are demand deposits, which increased by 18.2% (or 338 million BAM) compared to the situation at the end of September 2014, followed by transaction accounts which recorded an increase of 12.7% (or 228 million BAM). Time and savings deposits are growing at a slower pace and had an annual increase of 3% (or 153 million BAM).

Time and savings deposits in September 2015 amount to 5.40 billion BAM, representing 56% of total household deposits, while transaction accounts and demand deposits amount to 4.22 billion BAM and have a share of 44%.

In terms of currency structure, household deposits in BAM currency amount to 3.98 billion BAM or 41.3% of total household deposits, deposits in euro currency amount to 5.12 billion BAM or 53.2%, and deposits in other foreign currencies amount to about 527 million BAM or 5.5%.