Saudi bank deposits to rise to $338bn
SAMA policy to mirror that of the US, National Commercial Bank report says
The deposit base of Saudi banks reached $338bn during the month of January, reports said.
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The deposit base of Saudi banks reached $338bn during January, according to the latest Saudi Arabian Monetary Agency bulletin. This is a rise of 13.7 percent over the same month in 2012, it said.
Demand deposits have increased their share to 60.2 percent, an annual gain of 15.5 percent. Businesses and individuals have added 11.9 percent year on year to their demand deposits, while government entities amassed a staggering 87.8 percent on an 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.
“As we 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 $52.5 billion, a level that has been doubled since March 2009,” the bank said.
The robust economy facilitated the possibility of maintaining an elevated level of credit expansions as investments increase within the Kingdom, the bulletin said.
Local banks are expected to maintain the current level of credit with a more selective approach for 2013.
