Household Lending Declines
NBP data: In October, the amount of credit to individuals decreased, while savings increased by nearly PLN 4 billion.
According data on money supply released by the NBP on 14 November, households’ debt had fallen from PLN 530.8 billion at the end of September to PLN 530.2 billion at the end of the following month for the first time since January 2011. Corporate debt, however, had increased by PLN 1.8 bn. In total, corporate liabilities towards banks amount to PLN 251.4 billion.
There was a marked rise in household deposits held at banks, which went up by PLN 4 billion (up to 456.3 billion). Corporate deposits grew by PLN 0.7 billion. The total amount of corporate deposits at banks stood at PLN 181.3 billion.
As a result, the M3 money supply expanded by 0.6% on its September figure. It should be noted, however, that a portion of the savings and loans is denominated in foreign currency. The appreciation of the złoty led to a decrease in zloty-term value of the currency components of respective money aggregates. On the last day of October, the złoty was 1.5% stronger against the euro and 4.8% stronger against the dollar than a month before.
See complete money supply data October 2011