The greater challenge going forward is, of course, the fact that demand deposits
are not necessarily very sticky.
grew 22 per cent year on year in February while time and savings deposits fell 7.
At the center of the controversy is the plan to scrap full protection of most types of demand deposits
in the event of a bank failure as part of a government plan to revise the safety-net mechanism for the banking system.
Another legislative proposal that would improve the long-run efficiency of our financial sector is elimination of the prohibition of interest on demand deposits
13) Nonetheless, the distortions to demand deposits
are sufficient that monthly growth rates of M1 since mid-1992 appear to have been distorted by as much as 5 to 7 percentage points.
While respondents have not yet formulated their strategies, they all agree that competing solely on interest rate would erode the value of demand deposit
The volume of demand deposits
grew by 19 percent by the end of Q3 compared to figures of the same period last year whereas saving deposits posted a growth rate of 4 percent, the report said.
M1B consists mainly of currency in circulation plus demand deposit
, while M2 equals M1B plus time deposit.
Economists have given two main reasons for this increase _ the advent of the Saudi Equity Market and excessive government spending, in spite of noticeable recession in the level of cash out side banks,added to on demand deposits
as well as period deposits.
A review of the developments of the components of deposits by type during the first quarter of 2008 indicates that demand deposits
rose by 9.
DUBAI: Oman's annual money supply, an indicator of future inflation, grew more than 30 per cent in October for the fourth time this year, as money held in demand deposits
surged 47pc, government data showed yesterday.
A top Liberal Democratic Party (LDP) lawmaker said Wednesday he will closely monitor debate on the issue of whether to extend the government's full protection of demand deposits
at failed banks beyond next April 1.