Total liquid assets (M4) grew by HRK 1.7bn (0.5%) in June 2018, standing at HRK 310.6bn at the end of the month (Table 1). The monthly increase in the broadest monetary aggregate was driven by a growth in net foreign assets (NFA) of the monetary system, while a drop in net domestic assets (NDA) contributed towards a decrease in M4. These developments were primarily due to foreign exchange inflows to the government account with the CNB, generated by a foreign government bond issue, which led to an increase in both foreign assets and foreign currency government deposits with the central bank. The annual growth of total liquid assets (M4) decelerated to 5.2% in June 2018, excluding the effect of exchange rate changes (Figure 1). As regards the components of M4, the annual growth in money (M1) decelerated to 22.8%, while the annual fall in quasi-money deepened to 3.0% at the end of June.

Figure 1 Monetary aggregates annual rates of change	Figure 2 Placements annual rates of change based on transactions
Source: CNB.

Total placements of monetary institutions to domestic sectors (except the government) continued to rise in June (based on transactions), standing at HRK 222.8bn at the end of the month, while their annual growth rate rose to 4.1% (Figure 2). The annual growth of household placements accelerated further, reaching 5.6% at the end of June, while corporate placements continued growth at a rate of 3.1% (Table 2). The nominal stock of placements increased at an annual rate of 1.5% at the end of June, which was considerably lower than the growth rate based on transactions, primarily due to the sale of non-performing placements.

Table 1 Summary consolidated balance sheet of monetary institutions
in billion HRK and %

¹The sum total of asset items 2.2 to 2.8 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.
²The sum total of liability items 2 to 5 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.

Source: CNB.

Table 2 Placements (except the central government) and main components
in billion HRK and %

¹In addition to placements to households and corporates, they also include placements to the local government and other financial institutions.
²The transactions show changes that exclude the effects of exchange rate changes, securities price adjustments, reclassification and write-off of placements, including the sale of placements in the amount of their value adjustment.

Source: CNB.

For detailed information on monetary statistics as at June 2018, see:

Central bank (CNB)
Other monetary financial institutions