The volume of retail banking decreased in May when the volume of lending to households fell to HRK 118.1 billion, down by 10.2 billion kuna or by 8% compared to May 2014, according to figures provided by the National Bank (HNB).
Raiffeisenbank Austria (RBA) analysts note that household deleveraging has been going on for 11 straight months. Compared with April, household lending increased by 0.1% or HRK 145.5 million to HRK 118.1 billion at the end of May.
Household deleveraging was on the back of the effects of the conversion of the Swiss franc-indexed loans into euro loans. Consequently, mortgages that account 44% of lending to households, decreased by HRK 52.4 billion at the end of May.
Personal loans, whose share in the household borrowing is 34%, came to 40.2 billion kuna, rising 0.6% on the months and by 2% on the year. This type of loans has been the only one to see a rise year-on-year.
((EUR 1 = HRK 7.5)