Total liquid assets (M4) grew by HRK 5.8bn (1.9%) in July 2018, standing at HRK 316.3bn at the end of the month (Table 1). The monthly increase in the broadest monetary aggregate was primarily driven by the seasonal growth in the net foreign assets (NFA) of the credit institutions, while the net foreign assets of the CNB decreased in July amid the withdrawal of funds from the government's foreign currency deposit with the CNB for the purpose of repayment of a foreign bond. Net domestic assets (NDA) of the monetary system increased slightly in July as a result of the mentioned decrease in the foreign currency deposit of the central government, which was only partly offset by the growth in the government kuna deposit after the kuna bond issue in the first part of July. On an annual level, the growth in total liquid assets (M4) held at 5.2% in July 2018, net of exchange rate effects (Figure 1). In terms of components of total liquid assets, the annual growth in the narrow monetary aggregate, money (M1) decelerated slightly, to 19.9%, while the annual decline in quasi-money slowed from 3.0% to 1.8%.

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) held steady in July (based on transactions) and stood at HRK 221.8bn at the end of the month. Their annual growth rate remained unchanged from the previous month, totalling 4.1% (based on transactions, Figure 2). The annual growth of household placements accelerated further, reaching 5.7% at the end of July, while the growth of corporate placements slowed down to 2.6% (Table 2). The nominal stock of placements increased at an annual rate of 1.2% at the end of July, 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 %

¹ The sum total of liability 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 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 July 2018, see:

Central bank (CNB)
Other monetary financial institutions