Savings in Bulgaria Banks Hit New Record High

Bulgaria's savings in bank deposits increased for a sixth consecutive month by nearly BGN 400 M to BGN 33.8 B, data from the central bank showed. File photo

Banks in Bulgaria continue to record steady growth in savings, a trend which has been gaining momentum throughout the past half year, official data shows.

The deposits of citizens in local banks increased by BGN 388 M only in June 2012, nearly two times more over the same period the previous year, according to data of the central bank BNB.

Thus the total amount of deposits of citizens hit a record-high BGN 33.8 B at the end of June 2012, marking an annual increase by 15.3%.

The deposits of companies and state institutions in local banks decreased by BGN 391 M in June 2012, but up by BGN 705 M on an annual basis to a total of BGN 20.9 B.

The central bank however provided no break-down of the figures into Bulgarian and foreign-owned accounts.

There has been recently a noticeable trend among Greek and Romanian citizens and businesses, who prefer to open deposit accounts in Bulgarian banks, bankers have commented.

The Bulgarian banks stability and their more attractive interest rate policy are the main reasons for the interest of Greek and Romanian citizens and companies, according to the bankers.

Meanwhile a survey has shown that over the last five years only 45% of Bulgaria's population disposed of sufficient incomes to be able to put aside regular savings, predominantly small sums of BGN 100 per month.

A recent analysis by Bulgaria's biggest bank UniCredit Bulbank showed an interesting trend – in times of crisis people with larger deposits tend to increase the amounts in the bank accounts, while those with smaller savings have them downloaded.

Moreover, it appeared that over two thirds of the money deposited in banks are in the hands of just 5% of the households in the country.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!