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nearly 30 million euro or a total of 3.4 billion euro, but that still didn't recover for the denar deposits massively withdrawn in March.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.