Households started saving: In one year, deposits in banks increased by 10,4 percent

Bank / Photo: "Sloboden Pechat" / Dragan Mitreski

According to the Report of the National Bank, the annual growth of household deposits mostly results from higher deposit money and long-term deposits, in the context of a noted decline in short-term deposits

In April, compared to March, household deposits in banks and savings banks increased by 2,7 percent. If, however, it is compared with the same month of the previous year, the data of the National Bank show a jump of 10,4 percent! Households have 5,9 billion euros in bank accounts.

Experts explain that in our country, citizens still prefer to keep their money in an account rather than investing it in funds and bonds. The growth of interest rates in banks also contributed to this. Thus, the interest rates on household deposits in March (last data from the National Bank) were 1,76%, and in March 2023 they amounted to 1,04%. Interest rates on newly received household deposits are even higher - in March 2024 they amounted to 2,42 percent, and last March 2,27 percent.

According to the Report of the National Bank, the annual growth of household deposits mostly results from higher deposit money and long-term deposits, in conditions of observed decline in short-term deposits.

Saving, on the other hand, creates a solid foundation for bank financing. At the last celebration of World Savings Day, Governor Anita Angelovska-Bejoska said that "there is no doubt that saving is one of the key engines of economic growth, and in developing countries it is an important driver of income convergence."

- Citizens have high confidence in the banking sector, which is not a surprise, considering that the system in a period of multiple overlapping crises is still stable, highly capitalized and liquid - said the governor.

The deposits of companies, on the other hand, had a downward trend in April compared to March and a more modest annual growth than those of households.

"The total deposits of the corporate sector in April recorded a decrease of 1,3 percent, compared on a monthly basis. The downward change is mostly the result of the decline of short-term deposits in foreign currency and deposit money, and to a lesser extent of short-term deposits in denars, in conditions of growth of long-term deposits. The annual growth is 8 percent and is mostly due to the increase in deposit money and long-term and short-term deposits in denars, with an additional positive contribution of short-term and long-term deposits in foreign currency," the report of the National Bank reads.

And credit activity was directed more towards households than towards the population. In April, loans in the corporate sector were 3,55 billion euros, and in households 3,79 billion euros. At the same time, loans to the corporate sector achieved a monthly increase of 2 percent, while compared to last April, the growth was 6 percent. Loans to households on a monthly level had a lower growth of 0,5 percent, but on an annual level the growth was higher and amounted to 7 percent.

There is still a big difference between the interest that is given for the borrowed money, in relation to the interest that citizens and companies pay for the loans taken.

In March, the interest rate for total household loans was 5,65 percent, while a year ago it was 5,34 percent. For the newly approved loans, households on average, as calculated by the National Bank, paid 5,4 percent interest in March, and a year ago it was 5,23 percent.

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