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.

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