The slowdown in the growth of total liquid assets (M4) and money (M1), evident since October last year, continued in February, although growth rates remained high. Total placements of monetary institutions to domestic sectors (except the central government) increased in February primarily due to the growth in placements to non-financial corporations and the slight growth in placements to households.

Total liquid assets (M4^[1]) decreased slightly in February (HRK 0.4bn or 0.1%, based on transactions, Table 1) reflecting the fall in net foreign assets (NFA) of the monetary system and the parallel growth in net domestic assets (NDA). Money (M1^[2]) increased by HRK 1.2bn on a monthly level (0.6%), with demand deposits of households increasing the most. Quasi-money decreased by HRK 1.6bn (0.7%) as a result of the decrease in kuna deposits of domestic sectors, especially of other financial institutions. The annual growth of M4 and M1 continued slowing down gradually, although still boasting high rates of 9.6% for M4 and 14.9% for M1 (Figure 1).

Figure 1 Monetary aggregates annual rates of change based on transactions	Figure 2 Placements annual rates of change based on transactions
Source: CNB.

Total placements of monetary institutions to domestic sectors (excluding the government) increased by HRK 1.4bn (0.6%) in February, totalling HRK 247.5bn at the end of the month. The annual growth rate of total placements accelerated to 4.0% in February from 3.6% in January (Figure 2). The monthly growth of placements is entirely related to loans as the predominating item in placements, with loans to non-financial corporations registering the greatest growth (HRK 1.8bn). Loans to households increased slightly (HRK 0.3bn), while loans to other financial institutions decreased (HRK 0.7bn) (Table 2). Loans to households, broken down by instruments, show that the slight growth in housing loans (HRK 0.2bn) and non-purpose cash loans (HRK 0.1bn) continued, with the growth of housing loans continuing to slow down on an annual level (from 8.4% in January to 8.0% in February) and the growth of cash non-purpose loans slightly accelerating (from 3.3% to 3.4%). The annual growth of total loans to households thus remained at the previous month’s level (4.4%).

Table 1 Summary consolidated balance sheet of monetary institutions
in billion HRK and %

¹ The sum total of asset items 2.2 to 2.8 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.
² The sum total of liability items 2 to 5 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.
Source: HNB.

Table 2 Loans (except the central government) and main components
in billion HRK and %

¹ In addition to loans to households and corporates, they also include loans to the local government and other financial institutions.
² The transactions show changes that exclude the effects of exchange rate changes, securities price adjustments, reclassification and write-off of placements, including the sale of loans in the amount of their value adjustment.
Source: CNB.

Table 3 Deposits (except the central government) and main components
in billion HRK and %

¹ Includes only kuna sources of funds of credit institutions.
² The transactions show changes that exclude the effects of exchange rate changes, securities price adjustments, reclassification and write-off of placements, including the sale of loans in the amount of their value adjustment.
Source: CNB.

For detailed information on monetary statistics as at February 2022, see:

Central bank (CNB)
Other monetary financial institutions

1. Total liquid assets (M4) as defined by the CNB represent a broader definition of currency in circulation. ↑

2. ² Money (M1) as defined by the CNB represents a narrow definition of currency in circulation. ↑