Because the sight deposit
rate acts as a floor for short-term money market rates, it will make little difference to these rates whether the banking system's liquidity surplus beyond a certain buffer is held as sight deposits
By providing and absorbing liquidity by means of fixed-rate loans and deposits (see separate box for definition), Norges Bank ensures that at the end of each day the banking system has sight deposits
of the order of NOK 5-12 billion in Norges Bank.
Dinar sight deposits
(KWD -198 million) and foreign currency deposits (KWD -74 million) were again behind the declines, most likely due to seasonal factors.
savings accounts and time deposits, current (checking) accounts, banker's drafts and other sight deposits
, mortgage bonds and domestic borrowings) grew by Ch$352,354 million, or 16.
There has been a shift from sight deposits
to time deposits, fuelled by the increased use of direct access channels.
1 per cent) as KWD sight deposits
dropped in February.
Gains in dinar saving and sight deposits
were partly offset by a decline in dinar time deposits.
9%) and sight deposits
and special savings plans were up by 3.
Deposits have risen in nominal terms, but growth has not kept pace with nominal GDP, and there has been a preference for sight deposits
in dollars over term deposits in pesos.
Private KWD deposits continued to grow, with sight deposits
accounting for most of the gains during the year.
In local currency deposits, time deposits declined KD 241 million while sight deposits
were up KD 157 million.
This resulted basically from the strong competitiveness in customer funds, negatively impacting time deposits spreads, the low level of interest rates that limit the capacity to make short term funds profitable, namely sight deposits
and the reduction of credit spreads as a result of the strong competitiveness in the lower risk segments.