Ahead of the Introduction of the Euro, the Highest Level of Deposits Recorded So Far, of Which Nearly 60 Percent in Euros

This year, Croatia welcomes World Savings Day in the final phase of entering the eurozone with the highest level of citizen deposits in banks so far, amounting to 263.4 billion kuna, of which nearly 60 percent is saved in euros.

The growth rate of household deposits has been accelerating since 2020, and in August it grew at a rate of about 10 percent, and this year it is likely to become double-digit due to a larger influx before the conversion of kuna to euros. Namely, it is expected that most citizens will deposit their cash into kuna accounts by the end of the year for the purpose of automated conversion at a fixed exchange rate and without costs. Supporting this is the fact that cash outside credit institutions recorded the largest monthly decline in August since the introduction of the kuna as the national currency.

The share of foreign currency deposits in total deposits was 59.4 percent (156.5 billion kuna), while the share of kuna savings and time deposits was 7.1 percent (18.9 billion kuna).

The share of deposit money, or money in citizens’ transaction accounts, amounted to 33 percent (88 billion kuna) of total household deposits. Foreign currency deposits remain the most important form of holding citizens’ funds in banks, and after joining the euro area, the vast majority of deposits will be in the domestic currency – the euro.

An increasing portion of transactions between consumers and banks, as well as payment transactions, is conducted electronically with the help of modern technologies, thanks to banks that ensure the security and quality of services along with continuous technological development.

Technological adjustments have enabled the gradual displacement of traditional internet banking in favor of issuing orders via mobile devices. The share of consumer orders via smartphones was 10 percent at the beginning of 2014, and according to the latest data, it has reached 75 percent.

The ATM network in Croatia is the most widespread in Central and Eastern Europe, which will greatly facilitate the process of converting kuna to euro and provide citizens with access to cash at any time.

Consumers increasingly recognize banks as partners that simultaneously guarantee security and the best quality-to-price ratio of services.

Croatian banks have a capital ratio greater than 25 percent, and according to this criterion, they are among the best capitalized in the world. This is a guarantee of the security of citizens’ savings as well as the banks’ ability to support further economic recovery, investments, and the creation of new jobs through the provision of services and the offering of loans.