engleski

Citizens' attitudes about housing savings banks model: Case of Croatia

Contract model of special-purpose savings with housing savings banks exists in both developed and less developed countries. In many of them, direct government incentives play an important role in stimulating citizens to choose this model of savings. In Croatia, due to state budget restrictions in recent years, the value of disposable budgetary funds allocated to housing savings banks has significantly decreased, negatively impacting citizens' decisions related to this housing finance model. The objectives of the empirical paper are to analyse and compare savings models in housing savings banks in Western (Austria and Germany) and Central and Eastern European countries (Croatia and Slovakia), and to investigate attitudes of citizens about this savings model, putting a special emphasis on direct government incentives. We conducted a questionnaire survey via social networks and personal contacts among 88 citizens in Croatia. Our survey results showed that direct government incentives are the main motivation of citizens to choose this savings model. We found that the majority of them would not enter into contractual savings scheme with a housing savings bank if there were no direct government incentives. This raises question on the stability of this housing finance model as well as future business of housing savings banks as financial institutions in Croatia.

housing savings banks, direct government incentives

nije evidentirano