Household Deposits Continue to Grow

According to the data of the Central Bank of Bosnia and Herzegovina (CBBH), the total household deposits in commercial banks in BH, at the end of September 2014, amounted to BAM 8.90 billion, which is the highest amount recorded so far.

Despite very unfavourable economic conditions and negative effects on household standard during the year, household deposits, compared to the end of September last year, are higher by BAM 806 million or 10%, which represents a continuation of growth over a longer period. In addition, it should be taken into account that households realize a part of their savings by investing in securities and insurance policies.

In the total deposits of all domestic institutional sectors in commercial banks in BH, household deposits account for 58.2%.

Out of the total household deposits, term and savings deposits amount to KM 5.25 billion or 59%, while transaction accounts and sight deposits account for KM 3.65 billion or 41%. The largest share in increase of household deposits, observed by the maturity structure, is taken by long-term deposits. Compared with the end of September 2013, they recorded an increase of BAM 388 million or 9.3%. This is an indication of confidence in the banking sector and its stability, and it is a result of the existence of a system of insured deposits whose primary goal is to increase the stability of the banking system and to protect depositors.

In terms of currency structure, household deposits in BAM currency amounted to BAM 3.58 billion, or 40.2% of the total household deposits, deposits in foreign currencies amounted to BAM 5.31 billion, out of which deposits in euro accounted for BAM 4.81 billion and deposits in other foreign currencies around BAM 0.51 billion.

The World Savings Day is an occasion to remind ourselves how important it is to create financial security in the form of savings, within our capacities, and how savings enable to realize our goals in a more accessible way.

Otherwise, the World Savings Day marks the memory of the First International Savings Bank Congress, held on 31 October 1924 in Milan, where representatives of the world's savings institutions sought a way out of the crisis caused by the First World War and concluded that savings are necessary for development. The World Savings Day has been established with the aim of making savings more popular worldwide.