Increase in deposits recorded at commercial banks in BiH

Total deposits of domestic sectors at commercial banks in BiH continued with annual growth rates in June 2015, reaching a record 15.551 billion BAM. Compared to the same month in 2014, total deposits increased by 7.1% or 1.029 billion BAM, reports the Bosnian news agency Patria.

The year-on-year growth of total deposits was also contributed by the monthly increase in July and August 2014 of a total of 651 million BAM, and in April and May 2015, 276 million BAM. The largest contribution to the change in the level of deposits on an annual basis came from household deposits, which recorded an increase of 793.3 million BAM or 9.1%, and corporate deposits (public and private) of 248.5 million BAM or 7.4%.

Household deposits

Household deposits recorded a slight increase during June 2015, amounting to 9.484 billion BAM. Long-term deposits increased on a monthly basis by 27 million BAM, transaction accounts by 22 million BAM, and demand deposits by 21 million BAM, while short-term deposits recorded a decrease of 11 million BAM. Observed by currency structure, on a monthly basis, there was an increase in household deposits in foreign currency by 40 million BAM, while the increase in deposits in BAM amounted to 19 million BAM.

On an annual basis, the largest increase was recorded in demand deposits of 318 million BAM or 17.7%, followed by long-term deposits with 263 million BAM or 5.9%, transaction accounts of 254 million BAM or 14.7%, while short-term deposits recorded a decrease of 42 million BAM or 5.1%. If we look at the movement of deposits by currency structure on an annual basis, deposits in domestic currency had a more pronounced growth of 481 million BAM or 14% compared to deposits in foreign currency, which recorded growth of 312 million BAM or 5.9%. The annual growth rate is still high and amounts to 9.1%.

Corporate deposits

In the non-financial corporate sector, a further increase in deposits was recorded, which during June amounted to 40 million BAM, reaching 3.599 billion BAM. This increase is the result of an increase in other deposits by 26 million BAM and transferable deposits by 14 million BAM. Observed by currency structure, the total monthly increase relates to deposits in foreign currency, while deposits in BAM remained at the level of the previous month.

On an annual basis, transferable corporate deposits recorded an increase of 163 million BAM or 7.3%, while other deposits were higher by 86 million BAM or 7.8%. If we look at the annual movement of corporate deposits by currency structure, deposits in BAM are higher by 145 million BAM or 5.9%, while deposits in foreign currency recorded an increase of 104 million BAM or 11.3%. On an annual basis, a relative increase in total corporate deposits of 7.4% is recorded, which is a significantly higher growth rate than the previous month, suggesting that this trend could continue.