Arab Today, arab today saudi bank deposits rise to sr 127tr
Last Updated : GMT 03:32:11
Arab Today, arab today
Arab Today, arab today

Saudi bank deposits rise to SR 1.27tr

Arab Today, arab today

Arab Today, arab today Saudi bank deposits rise to SR 1.27tr

Jeddah - Arabstoday

As one of the essential variables in determining the future of lending, deposits in the Saudi financial system are more than adequate to accommodate the rising credit market and its potential. The depositary base of Saudi banks has reached SR 1.27 trillion during January, according to the latest SAMA (Saudi Arabian Monetary Agency) bulletin, a rise of 13.7 percent over the same month last year. Representing the largest portion of deposits, demand deposits have increased their share to 60.2 percent by an annual gain of 15.5 percent. Businesses and individuals have added 11.9 percent Y/Y to their demand deposits while government entities amassed a staggering 87.8 percent on annual basis. The suppressed interest rate environment continues to keep investors away from time and savings deposits. “SAMA's policy is likely to mirror that of the US; consequently, we do not foresee any changes before 2014,” the National Commercial Bank (NCB) said in its report yesterday. However, time and savings deposits managed to increase by 9.1 percent Y/Y during January to reach SR 323.4 billion. Interestingly, it is still below the peak level recorded by the end of 2008 at SR 367.6 billion. Furthermore, other quasi monetary deposits increased at an annual 14.9 percent as foreign currency deposits expanded by 12.8 percent during January. Saudi banks' combined loans portfolio rose for another month to reach SR 1.01 trillion, setting an annual rate of 16.3 percent Y/Y for the month of January, a slight deceleration over the previous month. The robust economy facilitated the possibility of maintaining an elevated level of credit expansions as investments increase within the Kingdom. Local banks are expected to maintain the current level of credit with a more selective approach for 2013. “As we have projected, medium and long-term credit is outpacing short term credit growth. Despite dropping marginally on a monthly basis, medium term credit grew by 41.6 percent annually by reaching SR 196.9 billion, a level that has been doubled since March 2009,” the bank said. In addition, long-term credit accelerated at an annual pace of 16.5 percent during January to raise its share of total credit to 26.8 percent from 26.3 percent during December. Representing the bulk of credit, short-term credit stands with a share of 53.7 percent following its 9.2 percent Y/Y growth. As for the private sector, total claims expanded by 16.0 percent on an annual basis during January. The banking system is expected to soften the pace of credit to avoid overheating their balance sheets. The bank said, the pace of credit will slightly moderate during 2013. Furthermore, credit to the public sector gained 6.8 percent Y/Y as treasury bills recorded a gain of 13.5 percent annually. The risks from excess liquidity remain subdued, thus, SAMA will continue their wait-and-see approach. The growth of lending has once again outpaced deposits which contributed to the rise of the loans-to-deposits ratio to 79.9 by the end of January. As for the interbank rate, SAIBOR, the subdued interest environment will aid banks in avoiding any liquidity shortages by allowing to access funds cheaply. However, given the rise in credit which translated into larger liquidity movements, the differential between SAIBOR and LIBOR has widened to over 70 bps. The pace is far from worrying as SAMA is closely monitoring risk indicators for the Saudi financial system. SAIBOR is expected to hover around 100 bps. Source: Arab News

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi bank deposits rise to sr 127tr Arab Today, arab today saudi bank deposits rise to sr 127tr

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 01:04 2017 Tuesday ,28 February

Nokia 3310 is back — and so is 'Snake'

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday