“The growth of total savings, both dinar and foreign currency, reflects citizens’ confidence in the domestic banking system”, said National Bank of Serbia Governor Jorgovanka Tabakovic.
“The level of dinar savings almost five times higher than at the end of 2012 is a confirmation that there is confidence in the monetary policy pursued by the NBS”, Tabakovic told Novosti.
As she explained, the foreign currency savings of the population in the past seven years have increased by 32 percent, with more than half of the total growth achieved in the last two years, reaching the level of almost 11 billion euros.
“Growth rates are even more pronounced in RSD savings, which, according to the latest data, exceeded 690 million euros and is even 4.8 times higher than at the end of 2012. Even in RSD savings, growth has been particularly pronounced in the last two years – 266 million euros, which is half of the total growth achieved in the previous seven years”, said Tabakovic.
She emphasized that the share of dinar savings in total savings increased from below two percent to six percent over seven years, and the maturity structure was improved by increasing the share of dinar savings over one year from below eight to over 28 percent.
Tabakovic also said that the analyzes of the dinar and foreign currency savings that are regularly carried out, for the period from 2012, unambiguously confirm the higher profitability of the dinar savings.
“The fact that savings are rising even in the context of significantly lower interest rates on savings also indicates a gradual rise in the standard of living, which can be seen also through the growth of wages and a strong decrease in unemployment”, Tabakovic said.
Given that, she added, that savings has always been an important source of bank financing, the growth of the deposit base increases the potential for lending activity.
“In Serbia, we have this healthy relationship – that the growth of credit activity, which is supported by the growth of savings, supports economic growth. This, through employment and earnings growth, opens the space for greater savings”, Tabakovic said.
Tabakovic added that the dinar is relatively stable and that there is a growing demand for it and stressed that all the indicators of our banks’ operations are the best in the region because it was done systematically.
