Businesses and households significantly increased their savings last year. Corporate deposits with Czech banks in 2020 increased by CZK 123 billion, by 11 percent, which is the fastest increase since 2007. Household deposits also grew similarly significantly. Last year, they increased by CZK 331 billion, by more than 12 percent. This is the largest increase in the history of the Czech Republic. In November, the volume of savings of Czech households exceeded three trillion crowns for the first time , according to calculations by CRIF.
Corporate deposits with banks amounted to CZK 1.218 trillion at the end of last year . The volume of loans increased by only three billion crowns (0.3 percent) over the same period , reaching CZK 1.123 trillion at the end of December.. “While the volume of corporate loans has been growing the slowest since 2010, the volume of corporate deposits has increased the fastest since 2007 and, even in absolute terms, has increased the most since 1993,” said CRIF analyst Věra Kameníčková.
In 2020, for the first time, the volume of corporate deposits with banks significantly exceeded the volume of loans. While at the end of 2019 the volume of corporate deposits was still CZK 25 billion lower than the volume of loans, at the end of December 2020 it was already 95 billion crowns higher. “The economic activity of the private sector froze in many respects last year. The companies did not have a sufficient degree of certainty to prepare any more fundamental decisions, so they often postponed them,” Kameníčková pointed out.
Source: CTK & CSO
