Some 18% of its mortgages were funded through wholesale money markets, with the rest lent against its retail saving deposits
Time and saving deposits
, which reflect savings, slightly increased and grew at an annual rate of 0.3% (KM 18 million).
It said a rising minimum saving rate could boost saving deposits
but moving forward the banking sectors' profitability would be contingent upon interest rate dynamics, demand for advances, bank's investment strategy and movement in foreign exchange and capital markets.
This was mainly triggered by a LP 35 billion rise in total LP resident deposits amid a LP 212 billion growth in LP demand deposits and a LP 177 billion decline in LP saving deposits
, in addition to a LP 110 billion increase in foreign currency resident deposits (the equivalent of US$ 73 million).
Under the law which is still being drafted, individuals and firms will also have to pay tax on bank saving deposits
if the gain is over 15,000 denars a year.
In the meantime, saving deposits
hit a total of Dh156.2 billion last year, comprising 11.2 per cent of the total value of deposits.
Within customers' deposits, saving deposits
have increased by 1.9 percent (PKR 88.9 billion) while current accounts - non remunerative deposits experienced a decrease of 8.0 percent (PKR 339.4 billion).
Unlike companies, citizens saved more money and their saving deposits
increased for nearly 30 million euro or a total of 3.4 billion euro, but that still didn't recover for the denar deposits massively withdrawn in March.
The deposits - sensitive to seasonal fall in overall advances - slightly declined by 0.6 percent during Mar-16 with dip in current deposits and fixed deposits; however, saving deposits
increased by 3.6 percent.
Firstly, to completely bridge the gaps in the reserves set aside by the bank to cover non-performing debts, which amount to EGP 6.4bn, as well as customers' saving deposits
, EGP 8bn, that may have been eroded.
This half will get transmitted soon." With small saving deposits
commanding an interest rate of 8.7- 9.3 per cent, banks have been reluctant to transmit the entire policy rate to borrowers.
This has been offsetting contractions in time and saving deposits
, and was helped by the rebound in FX [foreign exchange] deposits of government entities which grew by 8.6 per cent month on month in April.