Record Household Deposits in Commercial Banks in BiH

Total household deposits with commercial banks in BiH at the end of June this year amounted to 14.35 billion BAM, which is the highest level recorded so far, and economists point out that the main reasons for this are the uncertainty caused by the pandemic and the transfer of money from foreign financial institutions, eKapija writes.

The Central Bank of BiH (CBBH) told Glas Srpske that household deposits have by far the largest share when it comes to total deposits.

Their share is 54.3%, which is why they are an important basis for financing and functioning of banks – they explained in the Central Bank.

According to their data, time and savings deposits at the end of June amounted to 5.45 billion BAM or 38% of total household deposits.

Of that, short-term deposits account for 327 million BAM or 6%, and long-term deposits for 5.12 billion BAM or 94%. There were 5.03 billion BAM in transaction accounts, and demand deposits amounted to 3.87 billion BAM – the Central Bank stated.

As they point out, household deposits in domestic currency amount to 6.88 billion BAM, which is 48% of the share.

Deposits in euros and other foreign currencies, deposits in marks with a currency clause linked to the euro amount to 7.47 billion BAM or 52% of total retail deposits – said the CBBH.

Commenting on these data, the executive director of the Association of Economists of the Republic of Srpska SWOT, Sasa Grabovac, said that the record amount of deposits was a consequence of the lack of investment opportunities, which is a long-term pain in the environment in BiH.

Those who have more money are now thinking about what to invest in because of the uncertain environment. The increase in this uncertainty was certainly influenced by the coronavirus pandemic. The deposited money of the citizens is waiting for better times – Grabovac said for Glas Srpske.

Economist Goran Radivojac concludes that one of the reasons for the growth of deposits is that our people transferred their savings from banks in the EU to banks in BiH.

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