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Banking Sector The governor’s report in October 2011 concluded that all of the activities carried out by the Central Bank during the current period have been realized in accordance with the planning obligations that were established in the Central Bank’s program for 2011.
Total Bank Assets and Liabilities
Total bank assets and liabilities amounted to € 2,886.4 million at end-October 2011, recording monthly and annual declines of Graphic 4. Structure of deposits, in % 0.2% and 1.1% respectively. In the structure 40.5 of total bank assets, loans accounted for Demand deposits 39.7 the main share of 67.3%, and was followed 59.5 Time deoisits 60.3 by monetary assets and deposits made by 12.4 Up to 3 months 12.1 depository institutions at 24.9%. Other asset 32.6 From 3 months up to … 34.1 items accounted for the remaining 7.8%. 11.2 From 1 to 3 year In the structure of total bank assets, the 11.0 3.3 highest monthly decrease was recorded in the Over 3 years 3.1 area of custodial operations,9.7%. Regarding 0.0 20.0 40.0 60.0 80.0 bank liabilities, deposits accounted for the main share of 64.7%, followed by borrowings Septembar2011 October 2011 at 19.9%, and total bank capital at 10%. The remaining 5.4% was other miscellaneous liabilities. At a monthly level, the highest monthly Graphic 5. Structure of deposits by sectors decrease was recorded in the area of custodial operations,45.0%. At end-October 2011, total 5.2 Financial institutions 5.6 capital amounted to € 289.5 million, showing 29.7 Non-financial institutions 30.2 decreases of 0.5% and 6.9% at monthly and 5.4 General Government annual levels, respectively. 5.0 55.1 54.7
Households 1.2 1.3
Non-profitable organisations
3.4 3.2
Other 0.0
20.0
Sep-11
40.0
60.0
Oct-11
Graphic 6. Structure of loans, in %
IX
93.50%
6.50%
Corporate and household loans
Banks and other financial institutions X
93.70%
6.70%
Graphic 7. Interest rates (IX, X) 10
9.61
9.73
3.11
3.09
0 Septembar 2011
Novembar 2011
The weighted average lending effective interest rate The weighted average deposit effective interest rate
6
Deposits Total bank deposits amounted to € 1,868.0 million at-end October. In relation to September 2011, total bank deposits were 0.5% lower, while in relation to October 2010 they were 4.4% higher. The maturity structure of total deposits shows that 60.3% of total deposits referred to time deposits, while demand deposits accounted for 39.7%. In the structure of time deposits, the highest share was recorded by deposits with maturity periods from 3 months to 1 year (56.6%), and deposits with maturity periods of up to three months (20.0%).
improvement in comparison with endOctober 2010 when it was 1.26. The loans/deposits-plus-borrowings ratio was recorded as 0.80 at end-October this year, and remained unchanged in relation to the previous month, although it did improve in comparison with October 2010 when it was recorded as 0.91. Loans that were granted to the corporate and household sectors accounted for the main share of 93.3%, while the remaining 6.7% was made up of loans granted to financial institutions, public organizations, foreign companies, the government, and various non-profit organizations.
Interest Rates In October 2011, the weighted average nominal lending interest rate (WALNIR) and the weighted average lending effective interest rate (WALEIR) amounted to 9.05% and 9.73%, respectively. WALNIR recorded a monthly decline of 0.01%, while WALEIR showed an increase of 0.12%.
Bank Liquidity Average liquid bank assets amounted to €419.9 million in October 2011, €27.3 million lower than it had been the previous month. In October 2011, liquidity ratios, both daily and ten-day, were above the prescribed minimum for the entire banking system.
Micro-credit financial institutions (MFIs)
Household deposits amounted to € 1,022.4 million at end-October 2011, thus recording a decrease of 1.2% at a monthly level. Within the maturity structure of household deposits, time deposits made up 67.4%, while demand deposits recorded a share of 32.6%.
MFI’s total assets amounted to € 44.9 million at end-October 2011, and were thus 1.3% higher than they had been in September 2011, and were 27.7% lower in comparison with the same month last year. Total MFI loans amounted to € 33.7 million, which represented the continuation of a downward trend. They declined by 1.8% in comparison with the previous month, as well as by 27.0% in comparison with October 2010.
Loans
Lending Interest Rates
Total banking loans amounted to € 1,941.3 million at end October 2011, which showed monthly and a year-on-year declines of 0.8% and 13.9%, respectively. The loans/deposits ratio amounted to 1.04 in October 2011. This ratio remained unchanged in relation to the previous month, yet showed an
In October 2011, the weighted average nominal lending interest rate (WALNIR) and the weighted average lending effective interest rate (WALEIR) amounted to 9.05% and 9.73%, respectively. WALNIR recorded a monthly decline of 0.01%, while WALEIR showed an increase of 0.12%.
Household Deposits