From August 2023 the comments on statistics, a short description of selected, recently issued statistical data in the area of monetary statistics and the non-residents sector statistics, are no longer published. They are replaced by Statistical releases.
Comments on monetary developments for October 2022
Total liquid assets (M4) and money (M1) continued to fall in October with their growth on an annual level continuing to slow down steadily.
Total placements of monetary institutions to domestic sectors (except the central government) continued to grow on a monthly and annual level in October, primarily reflecting growth of placements to non-financial corporations, and to a lesser extent, growth of household placements.
Total liquid assets (M4[1]) fell by HRK 2.9bn (0.7% transaction-based) in October, mirroring the fall in net foreign assets (NFA) of the monetary system, partly mitigated by the increase in net domestic assets (NDA) (Table 1). Money (M1[2]) also fell on a monthly level (HRK 1.3bn or 0.7%, transaction-based), driven by a further strong decline in currency outside credit institutions of HRK 2.9bn ahead of the introduction of the euro. The October fall in quasi-money of HRK 1.5bn or 0.6% (transaction-based) is due to the fall in foreign currency deposits that followed their sharp growth over the previous months, particularly to the fall in corporate deposits that fell by HRK 2.5bn, mainly as a result of eurobonds repayment by one large enterprise (Table 3). The growth in M1 continued to decelerate strongly on an annual level, having fallen from 18.0% at the end of last year to 7.4% in October, while the slower deceleration in the annual growth of M4 (8.4%, transaction-based, down from 10.4% at the end of the previous year, Figure 1) reflects a faster growth in quasi-money than last year.
| Figure 1 Monetary aggregates annual rates of change based on transactions |
Figure 2 Placements annual rates of change based on transactions |
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| Source: CNB. |
In October, total placements of monetary institutions to domestic sectors (except the central government) rose by HRK 1.4bn (0.5%, transaction-based) from September, continuing the acceleration in placements growth on an annual level (up to 10.8% in October from 3.9% at the end of last year, Figure 2). Loans were up HRK 2.0bn in October (Table 2), while the repayment of eurobonds by one large enterprise, partly held by domestic monetary financial institutions, led to a fall in placements. As regards the structure of loans, loans to non-financial corporations continued to rise (HRK 1.4bn), particularly loans to enterprises in the activity of electricity supply, with corporate loans continuing to accelerate on an annual level, rising from 21.4% in September to 22.3% in October. Albeit less noticeably, loans to households also contributed to the growth in total loans (HRK 0.5bn), with housing loans accounting for HRK 0.3bn and general-purpose cash loans for HRK 0.2bn of the increase. The modest acceleration in housing loans (up from 9.4% to 9.5%) coupled with only a small slowdown in general-purpose cash loans (down from 3.1% to 3.0%) kept the annual growth in household loans at the previous month’s level (5.5%).
Table 1 Summary consolidated balance sheet of monetary institutions
in billion HRK and %
1The sum total of asset items 2.2 to 2.8 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.
2The sum total of liability items 2 to 5 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.
Source: CNB.
Table 2 Loans (except the central government) and main components
in billion HRK and %
In addition to loans to households and corporates, they also include loans to the local government and other financial institutions.
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 placements in the amount of their value adjustment.
Source: CNB.
Table 3 Deposits (except the central government) and main components
in billion HRK and %
1Includes 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 placements in the amount of their value adjustment.
Source: CNB.
For detailed information on monetary statistics as at October 2022, see:
Central bank (CNB)
Other monetary financial institutions