Kuwait Times - - BUSINESS -

weak­est it’s been in five years.

Lend­ing to non­bank fi­nan­cial com­pa­nies saw a healthy net gain and main­tained pos­i­tive growth from a year ago. Sec­tor debt added KD 42 mil­lion dur­ing the month, with growth com­ing in at 2.7 per­cent y/y. The sec­tor ap­pears to have largely com­pleted delever­ag­ing that be­gan in the wake of the 2008 fi­nan­cial cri­sis.

All re­main­ing credit rose by KD 231 mil­lion, though growth eased to 7.5 per­cent y/y on ba­sis ef­fects. A large part of the gain came from a KD 219 mil­lion in­crease in lend­ing for the pur­chase of se­cu­ri­ties. Other busi­ness sec­tors were mixed. Some solid gains were vis­i­ble in the con­struc­tion, real es­tate and trade sec­tors. This was off­set, how­ever, by a no­table weak­ness in crude oil & gas and “other”.

Pri­vate de­posits rose in Septem­ber, fol­low­ing three months of de­cline dur­ing the sum­mer. De­posits rose by KD 405 mil­lion. The gains were con­cen­trated in KD sight and time de­posits. Mean­while, for­eign cur­rency de­posits de­clined, par­tially off­set­ting the gains. The no­table rise in KD sight de­posits pushed growth in the nar­rower M1 money sup­ply higher to 2.3 per­cent y/y; mean­while, broad M2 money sup­ply growth slowed slightly to 2.6 per­cent y/y on base ef­fects.

Gov­ern­ment de­posits added KD 46 mil­lion on the month with growth steady at 27 per­cent. Gov­ern­ment de­posits have grown no­tably over the last twelve months at a time when pri­vate sec­tor de­posits have been un­der pres­sure; they added KD 1.4 bil­lion over

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.