- Political stability
- Fiscal affairs
- Monetary policy
- Regulated markets
- Privatisation
- Macroeconomic developments
Households’ financial wealth is growing steadily
submited on 12.05.2005 in category Monetary policy | Macroeconomic developments
submited on 12.05.2005 in category Monetary policy | Macroeconomic developments
In Q1 the households’ deposits expanded by 30.7 % y-o-y, reaching close to BGN 9.7 billion. Local currency denominated deposits continue to grow at a higher pace than those denominated in foreign currencies. At the same time, long-term deposits have registered impressive annual growth. Generally, we explain this development with the increasing attractiveness of the available long-term saving options as a result of promotional campaigns undertaken by some of the banks. We expect that further deepening of this trend will be attributive to the increased deposit insurance coverage (from BGN15,000 to BGN 25,000), effective since April 2005.
At the same time, capital market went through remarkable expansion. Partially this development was related to the privatization of 35 % of BTC on the stock exchange and associated with this deal increase in the prices of compensatory instruments. Continuously increasing prices of the shares (demonstrated by the growth in the key stock exchange index SOFIX) also influenced positively the total value of household investment in shares, which registered annual growth of 242 % in Q1.
HHs indebtedness to the banking system continues to increase steadily, reaching some BGN 5.1 billion in Q1 (compared to BGN 4.4 billion by end-2004). The fastest growing component is mortgage credit with annual growth rate of some 154.2 %. Consumer credit has expanded by 64.5 % y-o-y. The long-term consumer credit tripled if measured on annual basis.
At the same time, capital market went through remarkable expansion. Partially this development was related to the privatization of 35 % of BTC on the stock exchange and associated with this deal increase in the prices of compensatory instruments. Continuously increasing prices of the shares (demonstrated by the growth in the key stock exchange index SOFIX) also influenced positively the total value of household investment in shares, which registered annual growth of 242 % in Q1.
HHs indebtedness to the banking system continues to increase steadily, reaching some BGN 5.1 billion in Q1 (compared to BGN 4.4 billion by end-2004). The fastest growing component is mortgage credit with annual growth rate of some 154.2 %. Consumer credit has expanded by 64.5 % y-o-y. The long-term consumer credit tripled if measured on annual basis.
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