”Challenging times require careful resource management. The need for knowledge of various forms of savings is stronger than ever, guaranteeing better life and investment decisions. Even a small, everyday saving can be very important for the times that come. Your saving is only yours. Use it as the best support for your future and be a rational investor”, said Governor of the Central Bank of Bosnia and Herzegovina (CBBH), Senad Softic., on the occasion of the World Savings Day – 31 October.
According to the CBBH data, at the end of September 2021, the total household deposits with commercial banks in BH amounted to BAM 14.49 billion, this being the highest recorded level. Household deposits had by far the largest share in the total deposits with commercial banks, 53.4%, thus representing an important base for bank financing and functioning.
Observing household deposits by maturity structure, term
Households in BH continuously increased the total deposits, so, compared to the positions as of the end of September of the previous year, they increased by BAM 1.15 billion or 8.7%. However, there are significant differences in deposit trends depending on the type of deposit. Transaction accounts increased by 19.8% (i.e. BAM 854 million), while sight deposits increased by 9.3% (i.e. BAM 327 million). Term and savings deposits, reflecting savings, slightly decreased at the annual level by 0.6% (BAM 34 million). The stagnation of household term and savings deposits at the annual level was evident since April 2020.
The stagnation of term and saving deposits of households was affected by unfavourable economic circumstances during the pandemic, as income of many citizens decreased, therefore, they could not save as in earlier periods, and used some of their savings to finance their current needs.
Interest rates on household term deposits continuously declined during
Regional research shows that a rather low number of BH citizens save, around 20% said that they had savings, while only 15% of the citizens included in the survey in 2019 confirmed that they were saving continuously.
A stable domestic banking sector, with a reliable deposit insurance system, offers guarantees to citizens to keep their funds in accounts with banks, through which they carry out their current transactions or save for later periods.