Bank deposits in Bulgaria up by 4.7% y/y as of end-September 2012.

By bne IntelliNews November 2, 2012
Total bank deposits went up by 4.7% y/y in September to 93.4% of total gross loans, indicating high levels of liquidity in the system, according to central bank data. The annual increase in September decelerated from 5% at the end of August. Household deposits continued to post sound growth, rising by 13.7% y/y in September and covering 52.8% of total credits - a record high ratio since Jan 2008. Deposits of credit institutions declined by 29.1% y/y. Total attracted resources, which other than deposits include repos and long- and short-term financing, increased by 4.4% y/y as of the end of September, up from an annual 4.3% growth in August. The prevailing trend for interest rates on deposits in the country is downward and this should have a lagged effect on bank deposits as well towards slower growth rates in the next few months. Additionally, a recent decision of the government to introduce a 10% tax on interest earned on household deposits in 2013 may result in withdrawals or slower growth rates.

Bank deposits in Bulgaria up by 4.7% y/y as of end-September 2012.

Related Articles

EC urges Bulgaria to comply with EU rules on free movement of capital.

The EC has sent a reasoned opinion to Bulgaria over failure to comply with EU rules on the free movement of capital, the EC said on its website. The privatisation act in Bulgaria introduces ... more

Govt seeks delay of antitrust rules violation procedure against Bulgaria.

Bulgaria will be seeking an extension of the court procedure filed by the EC against the country over irregularities found in the assignment of digital broadcast spectrum, transport minister ... more

Bulgarians hold EUR 100mn in deposits in Cyprus.

Bulgarian individuals and companies hold EUR 100mn in Cypriot banks according to ECB data, BTA reported quoting Reuters. The largest EU depositors in the crisis-hit country are Greece with EUR ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss