As of September, household deposits in Croatia reached 38.7 billion euros, an increase of 900 million euros compared to the previous year. According to the Croatian National Bank (HNB), term deposits increased significantly by 2.2 billion euros compared to September last year, while overnight deposits decreased by 1.3 billion euros. However, HNB analysts do not expect term deposit growth to continue, citing factors such as changes in interest rates, households’ liquidity preferences and the availability of alternative investments.
In October 2023, the shift from overnight deposits to fixed deposits began due to an increase in the average interest rate on fixed deposits. Despite higher interest rates at some banks, depositors were quick to show ‘stickiness to deposits’, choosing to keep their funds with regular banks rather than moving to higher interest rate options. I did. As of mid-2024, time deposits account for approximately 29% of total deposits, and are expected to remain at a stable level going forward.
‘National’ treasury bills and government bonds, which have raised €4.7 billion in six issues, are emerging as an important alternative to term deposits. HNB experts do not foresee a significant increase in the share of fixed deposits in the future, as the European Central Bank is likely to continue lowering interest rates.
