As shown by recent CNB Comments on monetary developments, total liquid assets (M4) decreased by HRK 1.2bn (0.3%) from August to September 2020. Money (M1) was HRK 1.6bn less in September than in August, mostly as a result of the fall in demand deposits of non-financial corporations, as well as currency outside banks, which usually decreases in September as the peak summer tourist season comes to an end.
Total placements of monetary institutions to domestic sectors (excluding the central government) held steady in September relative to August (transaction-based). Total loans, which account for 98% of total domestic placements (excluding the central government), also levelled off in that period. Loans to non-financial corporations decreased by 0.5% on a monthly basis, while loans to households grew by 0.2%. General-purpose cash loans, which mostly declined for several months, remained unchanged from August to September.
Observed on an annual level, the growth in total placements picked up marginally in September, to 3.7%, with the rise in total loans and loans to non-financial corporations accelerating to 4.1% and 5.0%, respectively, due to the base effect, that is, a slightly larger decline in loans to that sector in the same period of 2019. The annual growth in household loans decelerated (3.7%), influenced by a steady slowdown in the growth in general-purpose cash loans (from 2.0% to 0.9%), while the growth in housing loans continued to accelerate (from 8.3% to 8.4%), albeit at a slower pace than in the previous several months.