Naslov
Financial assets of households in Croatia – Changes in preferences: resons and consequences

Autori
Mišević, Petar ; Savić, Zvonimir ; Burilović, Luka

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Economic and Social Development Book of Proceedings / Dukić, Darko ; Gržinić, Jasminka ; Studzieniecki, Tomasz - Zagreb : VADEA, 2019, 412-420

Skup
49th International Scientific Conference on Economic and Social Development: Building Resilient Society

Mjesto i datum
Zagreb, Hrvatska, 13.12.2019. - 14.12.2019

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
deposits of households ; demand deposits ; savings of households ; financial assets

Sažetak
Deposits are traditionally dominant in the financial assets of households in Croatia. However, over a longer period, a new trend is becoming visible – a decrease in their share (to 50.7% in 2017). This trend is partly due to the faster growth of investments in pension funds, but also due to the decreasing dynamics of currencies and deposits' growth. Therefore, the structure of household financial assets has changed in recent years, in which the share of currencies and deposits had decreased by 7.9 percentage points between the years 2008 and 2017. Such trends are important in the context of the continued growth in total financial assets of households and the trend of growing bank deposits, which at the end of July 2019 exceeded HRK 205 billion (over EUR 27 billion). This trend is a consequence of the growth of demand deposits (by 24% YoY), but also the decrease in long-term deposits (by 10.5% YoY). The value of time deposits began to decline in 2015, and at the same time, the growth of savings deposits (on demand) and demand deposits increased. All of the above shows that the saving preferences of the population have started to change, that is, a shift towards the most liquid forms of savings is visible (demand deposits and transaction accounts). The main reason for the change in the preferences of the population towards more liquid forms of deposits is the historically low deposit interest rates, which (especially for fixed/long term savings) have become disincentive. Interest rates on time deposits have fallen sharply and have almost equalled interest rates on more liquid deposits. The global context suggests that interest rates in Croatia will remain low for some time and consequently the classic bank savings will remain unattractive. Therefore, this paper focuses on the causes of the change in savings preferences, as well as the consequences in the form of household deposits’ movements and the regional aspect of the household deposits’ distribution within credit institutions

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA