Total liquid assets (M4) grew by HRK 4.0bn (1.3%) in May 2018, standing at HRK 308.9bn at the end of the month (Table 1). The monthly increase in this broadest monetary aggregate was mostly driven by growth in net domestic assets (NDA) of the monetary system mostly associated with the increase in net claims on the central government and, to a lesser extent, to a growth in placements to other domestic sectors. Net foreign assets (NFA) of the monetary system also rose in May, reflecting the rise in net foreign assets of the CNB following a purchase of foreign exchange from the banks at the foreign exchange intervention in early May. On an annual level, the growth in total liquid assets (M4) accelerated to 6.7% in May, excluding the effects of exchange rate changes (Figure 1). As regards the components of total liquid assets, the annual growth in money (M1) accelerated to 25.3%, while the annual fall in quasi-money slowed down and stood at 1.9% at the end of May.

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 May (based on transactions) and stood at HRK 221.3bn at the end of the month while their annual growth rate rose to 3.7% (Figure 2). The annual growth of placements to households accelerated to 5.3% by the end of May, while placements to corporates grew at the rate of 3.1% (Table 2). The annual growth in the nominal stock of placements, which stood at 0.9% in May, was considerably lower than the growth based on transactions, which is mostly the result of the sale of non-performing placements.

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

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

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

Source: CNB.

For detailed information on monetary statistics as at end-May 2018, see:

Central bank (CNB)
Other monetary financial institutions