Increase in Domestic Savings is the Precondition for the Further Economic Development

“In the years to come, Bosnia and Herzegovina cannot count on large volume of help from donors, so the growth in domestic savings will be necessary precondition for the further economic development. In that sense, increased deposits of citizens should represent stimulation for the faster recovery of the country in general, which, by itself, will increase level of business, more jobs and better standard of living”, said Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Kemal Kozarić referring to October 31, which is marked as the World’s Savings Day.

At the end of September 2005, citizens’ deposits in commercial banks of BH amounted to KM 3, 04 billion and are larger by 30, 2% compared to the end of September 2004.

Out of the total deposits of citizens, around KM 950 million, or 31, 2% are KM deposits, while KM 2, 09 billion, or 68, 8%, are foreign currency deposits.

Given the maturity structure, a-vista deposits take KM 1, 3 billion or 44, 3% of total deposits, while time and savings deposits take KM 1, 7 billion or 55, 7% of the total deposits.

Although the citizens’ savings are increasing each year, it is still much lower than the amounts which citizens of BH draw as loans from the banks. It is usual that the banks are taking deposits from the citizens which they direct to the other segments of the economy. However, situation in BH over the last several years is such that citizens deposit less compared to what they take from the banks.

“Saving is wisdom of spending, but in order to make this slogan feasible, the standard of citizens has to be much better. We are the consumer society, but we also know how to save, and in order to prove this we need a chance. Every individual has a role in that; very important post belongs to the commercial banks and the special role belongs to authorities who should create the environment which should make us possible to mark the World’s Savings Day”, Governor Kozarić concludes.