Growth in bank deposits and loans in May

In May banks in Slovakia recorded growth in the value of deposits and loans for companies as well as the continuation of dynamic growth of loans provided to households, according to the Slovak Central Bank's latest analysis. The deposits of private sector rose by 0.7 percentage point year on year to 5 percent. "Deposits of the private sector balanced the drop recorded in the previous month and it seems that the trend of deposit rate acceleration is continuing", read the analysis. The deposits of non-financial companies saw a month-on-month rise of 2.4 percent in May, fuelled by growing domestic and favourable foreign demand that translated also into revenues in economy and subsequent growth in deposits. The loans provided by banks to the private sector recorded a 7.8 percent increase year on year. Slovak households also continued to show interest in loans. "The majority of new loans was made up by real estate-related loans, supported by low interest rates", read the analysis.