ZAGREB, Oct 30 (Hina) - Savings in Croatia have been rising steadily over the past two years, which is the result of re-established trust in the domestic banking system, tainted in the late 1990's due to problems in several domestic
banks. Consolidation and stronger competition in the banking sector have contributed to the re-establishment of trust, the Croatian National Bank said in a statement issued on occasion of World Savings Day. The total savings of Croatian citizens in late September amounted to 53.7 billion kuna, which is 21.3 percent more than at the end of last year. Savings account for 80% of all deposits and are the most important source of bank loans, says the statement. Most citizens still save foreign currency - in late September, 92.9 percent of all savings were foreign currency savings, with the German mark accounting for around 68% of the savings. The imminent introduc
ZAGREB, Oct 30 (Hina) - Savings in Croatia have been rising steadily
over the past two years, which is the result of re-established trust
in the domestic banking system, tainted in the late 1990's due to
problems in several domestic banks. Consolidation and stronger
competition in the banking sector have contributed to the re-
establishment of trust, the Croatian National Bank said in a
statement issued on occasion of World Savings Day.
The total savings of Croatian citizens in late September amounted
to 53.7 billion kuna, which is 21.3 percent more than at the end of
last year. Savings account for 80% of all deposits and are the most
important source of bank loans, says the statement.
Most citizens still save foreign currency - in late September, 92.9
percent of all savings were foreign currency savings, with the
German mark accounting for around 68% of the savings.
The imminent introduction of the euro has not had any major impact
on the structure of foreign currency savings, so it can be assumed
citizens trust the new European currency.
Savings are expected to continue rising at a faster rate due to the
depositing of foreign currency in commercial banks ahead of the
introduction of the euro.
It is estimated that citizens have a significant amount of foreign
currency in cash, primarily EU currency. It is expected most of that
money will be deposited in Croatian banks, which will additionally
increase the savings. The influx of cash into domestic banks has
already started and it is expected to intensify in the next several
months.
(hina) rml