House­hold sec­tor ac­counts for 78.8% of to­tal bank de­posits by end of Au­gust 2018: CBE

DE­POSITS GROWTH RATE AT 18.79%, LO­CAL CUR­RENCY DE­POSITS AT 22%, FOR­EIGN CUR­REN­CIES DE­POSITS AT 9.7%

The Daily News Egypt - - Business -

The house­hold sec­tor ac­counted for 78.8% of the to­tal de­posits in banks op­er­at­ing in the Egyp­tian mar­ket by the end of Au­gust 2018, ac­cord­ing to the Cen­tral Bank of Egypt (CBE).

In a re­cent re­port, the CBE re­vealed that the to­tal vol­ume of de­posits in banks op­er­at­ing in the Egyp­tian mar­ket in­creased by EGP 20.7bn by the end of Au­gust 2018, reach­ing EGP 3.606tn up, from EGP 3.586tn at the end of July 2018.

Fur­ther­more, the CBE stated that the growth rate of bank de­posits stood at 18.79% by the end of Au­gust 2018.

It also de­clared that the de­posits growth rate in the do­mes­tic cur­rency amounted to about 22%, while the for­eign cur­rency de­posits growth rate was at about 9.7%.

“The to­tal de­posits of the house­hold sec­tor in banks amounted to EGP 2.413tn, of which about EGP 1.9217tn was in lo­cal cur­rency, and the equiv­a­lent was ap­prox­i­mately EGP 491.223bn in for­eign cur­ren­cies,” ac­cord­ing to the CBE.

The house­hold sec­tor ac­counts for 82.3% of the to­tal de­posits in lo­cal cur­rency, and for around 67.4% of for­eign cur­rency de­posits, an­nounced the CBE.

Ac­cord­ing to the head of the trea­sury sec­tor of a for­eign bank op­er­at­ing in the do­mes­tic mar­ket, the house­hold sec­tor has the largest pro­por­tion of sav­ings in banks, which only in­cludes all-nat­u­ral per­sons, and in­di­vid­u­als who are not com­pany own­ers.

He stressed that it is very nat­u­ral that the house­hold sec­tor or these in­di­vid­u­als oc­cupy the largest pro­por­tion of the vol­ume of de­posits in banks, not the com­pa­nies, both pub­lic and pri­vate, not­ing that in­di­vid­u­als are sav­ing, while com­pa­nies as­sign some of their liq­uid­ity in banks not for sav­ing pur­poses, but for other rea­sons re­lated to man­age­ment.

Sav­ings in banks is still pre­ferred by the house­hold sec­tor, be­cause it is deemed a risk-free in­vest­ment and grants a semi-sta­ble re­turn for long pe­ri­ods to help them or­gan­ise their re­sources, he in­di­cated.

He pointed out that the house­hold sec­tor’s sav­ings in Egypt has one of the low­est sav­ing rates in many coun­tries,due of the small size of the mid­dle class, which has the great­est sav­ings ca­pac­ity in Egypt, com­pared to other coun­tries.

In con­junc­tion to the house­hold sec­tor,there is also the pri­vate busi­ness sec­tor,which is the se­cond top sav­ing sec­tor in banks.This sec­tor in­cludes all the pri­vate com­pa­nies op­er­at­ing in the do­mes­tic mar­ket, even if the com­pany is owned by a sin­gle per­son, one fam­ily, or a non­profit or­gan­i­sa­tion.

The pri­vate busi­ness sec­tor de­posits amount of EGP 550.597bn, in­clud­ing about EGP 353.788bn in lo­cal cur­rency, and the equiv­a­lent of EGP 196.809bn in for­eign cur­ren­cies.

The pub­lic busi­ness sec­tor’s de­posits EGP 99.41bn amounts, of which EGP 58.447bn is in lo­cal cur­ren­cies, and EGP 40.963bn in for­eign cur­ren­cies.

Ac­cord­ing to the CBE, this sec­tor in­cludes pub­lic sec­tor com­pa­nies sub­ject to Law No 203 of 1991, and other pub­lic sec­tor com­pa­nies are not sub­ject to this law.

Apart from these three sec­tors, there are also govern­ment de­posits, which have reached EGP 523.307bn, in­clud­ing EGP 404.853bn in lo­cal cur­rency, and the equiv­a­lent of EGP 118.454bn in for­eign cur­ren­cies.

The size of the ex­ter­nal or non­res­i­dent sav­ings is also at EGP 20.799bn, in­clud­ing EGP 12.593bn in lo­cal cur­rency and EGP 8.206bn in for­eign cur­ren­cies.

The to­tal de­posits of the house­hold sec­tor in banks amounted to EGP 2.413tn

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