World Savings Day
The household saving rate in Slovenia is traditionally among the highest in Europe
31 October was established as the World Savings Day in 1924. At that time a meeting in Milan brought together representatives of 700 savings banks from 27 countries. The purpose was to emphasise the importance of saving for the individual and for the society as a whole.
Slovenia has a long banking tradition. Its beginnings date back to 1820 when the first savings bank was established in Ljubljana, which is the oldest financial institution in Slovenia. Later on more municipal savings and credit cooperatives were established. The Ljubljana Credit Bank, established in 1900, was the first banking institution in Slovenia.
Slovenia third in terms of the gross saving rate
Some of the household disposable income is saved, mostly for future purchases or investment. In 2015, households in Slovenia saved 14.8% of gross disposable income and were thus ranked third in Europe. More was saved by households in Sweden (18.7%) and Germany (17.0%). On the other hand, Cyprus and Latvia had a negative household saving rate, meaning that households in these two countries spent more than was at their disposal. In other words, they borrowed money. The gross household saving rate in Slovenia was above the EU-28 average of 10.1% and above the average of the euro area, which was 12.3%. Except in 2012, when the gross saving rate was the lowest in the 2005–2015 period (10.8%), households in Slovenia have always saved more than average households in the EU-28.
Deposits the most common form of household financial assets, housing loans the most common form of household financial liabilities
In Slovenia the ratio between household financial assets and liabilities has been gradually improving since 2012. According to the Bank of Slovenia, in 2015 financial assets of households in Slovenia were 2.5% higher than a year earlier. About half of assets were in the form of cash and deposits (50.1%) and about a quarter in the form of shares and other equity (25.5%). The remaining quarter of assets was in the form of insurance and pension schemes (17.1%), securities and other receivables (5.6%) and loans (1.7%).
The amount of liabilities did not change much compared to 2014. Loans represented 87.7% of total household liabilities. Households in Slovenia borrowed mainly housing loans (62.4%), followed by consumer loans (22.9%) and other loans (14.7%).