Despite the recession caused by the pandemic, household bank deposits increased by 8% annually, the Croatian Banking Association said on Sunday on the occasion of World Savings Day, which is observed today.

The funds citizens keep in banks have been increasing throughout the pandemic. Last year savings increased between four and six percent, with a noticeable acceleration towards the end of the year, HUB said.

This year’s economic growth prompted further savings growth acceleration as a result of which, during the summer months, household deposits increased by 8% year on year, HUB added.

That confirms the key role banks have in maintaining the financial stability and security of household savings, HUB said, recalling that by helping clients with loan repayment moratoriums and reprogramming, banks had participated in overcoming last year’s crisis more easily as well as in creating the prerequisites for this year’s strong economic growth.

Household bank deposits are at about 60% of GDP, markedly higher than in previous years, HUB said.

Payment by mobile phone has become standard practice, accounting for three in four transactions in mid-2021, as against one in ten seven years ago, HUB said.

Croatia has about 6,600 ATMs, and with 160 per 100,000 population, it has the most developed national ATM network in Central and Eastern Europe. The number of EFTPOS terminals exceeds 100,000.

Croatian banks have a capital ratio of over 25%, which makes them among the best capitalised in the world under that criterion, HUB said.

That is a guarantee of the security of household savings as well as of banks’ ability to support further economic growth, investment and job creation, it added.