According to data from the Central Bank of Bosnia and Herzegovina, deposits in Bosnia and Herzegovina continue to grow more than loans.
Namely, total loans to domestic sectors at the end of October this year amounted to 28.02 billion KM, while deposits in the same period amounted to 36.58 billion KM.
“Total loans compared to the previous month increased by 226.6 million KM (0.8%). Credit growth was registered in the household sector by 161.2 million KM (1.1%), in non-financial public companies by 17.1 million KM (2.4%) and in government institutions by 58 million KM (4.5%). A decrease in credit growth on a monthly level was recorded in private companies by 8.8 million KM (0.1%) and in other domestic sectors by million KM (0.3%)”, it is written in the data of the Central Bank of Bosnia and Herzegovina.
It is further stated that the annual growth rate of total loans in October 2025 was 10.4%, nominally 2.65 billion KM.
“Annual credit growth was registered in the household sector by 1.48 billion KM (11.6%), in private companies by 777.2 million KM (7.4%), in government institutions by 90.4 million KM (7.2%), in non-financial public companies by 184.1 million KM (33.0%) and in other domestic sectors by 116.2 million KM (43.0%),” the data reads.
On the other hand, the total deposits of domestic sectors at the end of October increased by 350.2 million KM or one percent.
“The increase in deposits on a monthly level was registered in the household sector by 207.9 million KM (1.1%), in private companies by 52.7 million KM (0.6%), in non-financial public companies by 33.9 million KM (1.7%), in government institutions by 44.8 million KM (0.9%) and in other domestic sectors by 10.9 million KM (0.5%). In the structure of household deposits, the largest part refers to transaction accounts (49.4%), which compared to the previous month are higher by 1%, demand deposits (20.4%) are higher by 1%, while term deposits (30.2%) are higher by 2.1%”, the data reads.
It is emphasized that the annual growth rate of total deposits in October 2025 was 10.7%, which in absolute terms is 3.55 billion KM.
“The annual growth of deposits was registered by the household sector by 1.98 billion KM (11.6%), in the structure of which transaction accounts grew by 16.5%, demand deposits by 6.6% and term deposits by 7.6%. Deposit growth was also recorded by private companies by 756.9 million KM (9.7%), by government institutions by 669.6 million KM (15.8%) and by other domestic sectors by KM 159.4 million (8.3%). Deposits at non-financial public companies decreased by KM 18.5 million (0.9%), according to the CBH data.
Predrag Mlinarević, a professor at the Faculty of Economics in East Sarajevo, told “Nezavisne novine” that the growth of deposits in the banking sector is the result of the combined action of several interconnected macroeconomic and institutional factors.
“For the population, the key impulse comes from the growth of nominal wages, including the increase in the minimum wage, which, although partially neutralized by inflation, still resulted in higher available cash flows. This effect is further enhanced by the stable and significant inflow of remittances from abroad, which represent an important source of income for households and largely end up in the banking system. In conditions of increased uncertainty and limited alternative forms of investment, the population shows a tendency to save in banks, which further contributes to the growth of deposits,” he explains Mlinarevic.
According to him, on the side of the state and the public sector, there are inflationary trends that led to a nominal increase in public revenues, primarily through consumption and income taxes, which directly reflected on the increase in deposits of the government and government institutions.
“At the same time, the dynamics of public borrowing plays an important role, since funds collected through debt issuance in the initial phase are deposited in the banking sector before their final use. This temporarily increases the deposit base of banks, without the necessary growth of real economic activity. The growth of deposits does not only reflect the strengthening of the economy’s savings potential, but also the structural characteristics of the domestic growth model, in which transfers, fiscal flows and inflationary effects play a significant role. The reason for the slower growth of loans can be found in the banks’ conservative lending policy,” he concluded. Mlinarevic.
