The beginning of 2023 was marked by a decrease in total deposits of domestic sectors^[1], with the fall seen in overnight deposits^[2] partly reflecting the upward trend in interest rates on time deposits. Lending to domestic sectors^[1]1 remained almost unchanged in the same period as loans to non-financial corporations grew steadily, whereas loans to other domestic sectors decreased.

Total deposits of domestic sectors dropped by EUR 1.2bn or 2.2% (transaction-based) in January 2023, reflecting a fall in overnight deposits (EUR 1.6bn) and an increase in time deposits. Around three-quarters of the fall in overnight deposits related to corporations, which transferred funds to time deposits, as did insurance companies and pension funds. The halt in the growth of household overnight deposits, seen for the first time since 2016, was not associated with transfers to time deposits, which grew only marginally. The steady upward trend in the average interest rate on time deposits of domestic sectors, in particular corporations, triggered a spillover of some overnight deposits to time deposits. Observed on an annual level, the growth in total corporate deposits slowed down from 18.8% in December to 15.8% in January (transaction-based), while the increase in household deposits decelerated from 13.1% to 12.3% (Figure 1).

Figure 1 Monetary aggregates annual rates of change based on transactions	Figure 2 Placements annual rates of change based on transactions

Lending to domestic sectors edged up in January 2023 (by EUR 56m or 0.2%, transaction-based). Loans to non-financial corporations continued to grow (EUR 101m or 0.7%), mostly due to the borrowing of energy sector corporations, while loans to households and other financial institutions decreased. As regards the structure of household loans, housing loans remained virtually unchanged, which may be attributed to a significant increase in housing loans in December amid expectations of tighter credit conditions. Viewed on an annual level, growth in loans to non-financial corporations picked up from 20.9% in December to 21.8% in January, while the rise in household loans slowed from 5.9% to 5.7% (Figure 2). The increase in housing loans decelerated from 10.4% in December to 10.0% in January, while that of general-purpose cash loans went down from 3.5% to 3%.

For detailed information on monetary statistics as at January 2023, see:

Central bank (CNB)
Other monetary financial institutions

1. Excluding the general government. ↑

2. Overnight deposits are deposits which clients place at a bank overnight. The most common categories of such deposits are funds in current accounts and giro accounts (transaction accounts). ↑