Total Household Deposits Amount to KM 15.57 Billion

Total household deposits with commercial banks in BH, at the end of September 2023, amount to KM 15.57 billion and are higher by KM 1.35 billion or 9.5% compared to September 2022.

Of the total deposits with commercial banks, household deposits have by far the largest share, 51%, and therefore represent an important basis for the financing and operating of banks.

Since February 2023, household deposits have recorded a constant increase, which, after the turbulent period from March 2022 to January 2023, is a reliable sign of confidence in the banking sector of BH.

Observed by maturity, time and savings deposits recorded a decrease of 2.3%, while demand deposits and transaction accounts of the households recorded an increase of 15.3% on an annual level, which indicates that the population prefers a more liquid type of deposit, and that cautiously decides for the term savings. It is to be expected that there will be a change in the coming period in favour of term and savings deposits, because already in the middle of the year, several banks have launched a campaign of higher interest rates, and over 3% on term savings, with special benefits such as interest payments in advance, fixed interest rates , stimulating interest rates, etc.

If we look at household deposits by term structure, time and savings deposits at the end of September 2023 amount to KM 4.59 billion or 29.5% of total household deposits, of which short-term deposits make up KM 377 million (8.2%), and long-term deposits KM 4.22 billion (91.8%). Transaction accounts and demand deposits account for KM 10.98 billion or 70.5% of total household deposits, of which transaction accounts make up for KM 6.89 billion or 62.8%, and demand deposits for KM 4.08 billion or 37.2%.

Regarding the currency structure, at the end of September 2023, the total household deposits in local currency amount to KM 8.38 billion, which makes up for 53.8% of share, deposits in euro and in KM with a currency clause pegged to the euro currency amount to KM 6.49 billion or 41.8%, and deposits in other foreign currencies were KM 688 million or 4.4% of total household deposits. Observed at the annual level, household deposits in KM, at the end of September 2023, recorded an increase of 15%, and deposits in foreign currencies by 3.6%.