In the first three quarters of 2022, bank assets increased by a record 50.6 billion kuna (+10.1%) year on year, and loan quality continued to improve, the Croatian National Bank's Council concluded on Tuesday.

The main source of the increase were the deposits in the transaction accounts of households and non-financial corporations, which reflect to a considerable extent the effects of a successful tourism season and citizens’ preparation for the euro changeover, a press release said.

The bulk of the increased assets was directed into loans, notably to energy supply companies, and financial assets also continued to grow.

New lending and the continued decrease of non-performing loans resulted in a decrease of the share of the latter from 4.3% to 3.3.%.

The total capital rate decreased by almost two percentage points to 24%, but capitalisation indicators remain high.