Total liquid assets (M4) amounted to HRK 336.7bn at the end of September 2019, having stagnated on transactions basis from the end of August (Table 1)^[1]. The decrease in M4 was aided by a reduction in the net domestic assets (NDA) of the monetary system, primarily caused by a drop in placements to corporates, whereas net foreign assets increased, offsetting the effects of the NDA decrease on M4. The growth of total liquid assets (M4) slowed down annually to 4.4% on transactions basis in September 2019 (Figure 1). As regards the structure of total liquid assets, the annual growth in money (M1) decelerated to 14.8%, while the annual fall in quasi-money, slightly less pronounced due to an increase in foreign currency deposits, stood at –1.3% at the end of September (on transactions basis).

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

Total placements of monetary institutions to domestic sectors (excluding the government) decreased by 0.3% in September from the end of August (on transactions basis), mainly due to a decline in placements to non-financial corporations (–0.9%). As a result, the annual fall in placements to non-financial corporations accelerated from –1.9% at the end of August to –3.0% at the end of September (Figure 2). In contrast, the annual growth of household placements held steady at 7.0% in September from August. The acceleration of the annual growth of housing and general-purpose cash loans was offset by a weaker dynamics of other types of lending to the household sector. The annual growth in the nominal stock of placements was at 1.1% in September considerably lower than transaction-based growth (3.0%), primarily as a result of the sale of non-performing corporate 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 (excluding central government) and main components
in billion HRK and %

¹In addition to placements to households and corporates, also included are placements to 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 September 2019, see:

Central bank (CNB)
Other monetary financial institutions

1. The nominal decrease in total liquid assets in September resulted from a change in the statistical methodology: operating leasing liabilities, previously reported under the item "Bonds and money market instruments", have since September 2019 been reported under the item "Other liabilities". ↑