Shell invests in Mina West gas development in Egyptian Mediterranean Sea    Egypt's FM highlights 'soft power' in Mali meeting with alumni    Egypt's foreign minister opens business forum in Niger, targets new partnerships    Egypt's FM delivers Al-Sisi message to Niger's leader, seeks deeper security ties    Rafah Crossing 'never been closed for one day' from Egypt: PM    Egypt will keep pushing for Gaza peace, aid: PM    Remittances from Egyptians abroad surge 70% YoY in July–May: CBE    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    Egypt's current account gap narrows, but overall BoP records deficit    Al-Sisi urges accelerated oil, gas discoveries, lower import bill    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi calls for boosting oil & gas investment to ease import burden    EGX to close Thursday for July 23 Revolution holiday    Egypt, Senegal sign pharma MoU to unify regulatory standards    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Private banks wait on public banks to make first move to raise interest rates
Return on treasury bills for 3, 9 months increased after CBE lifted interest rate
Published in Daily News Egypt on 20 - 03 - 2016

For private banks to raise interest rates on their saving instruments, they stipulated that interest rates on treasury bills and bonds should be increased and that public banks should raise the yield on their savings certificates.
Banks operating in the local market invest most of their liquidity in treasury bills and bonds that are put forward every week. Revenue from those tools is considered to be the base on which banks set interest rates on their saving instruments.
Public banks, which account for about 50% of the volume of deposits and loans on the Egyptian market, lead the market in determining interest rates.
Banks operating in the domestic market began holding meetings on Sunday morning to discuss the future of interest rates on deposits and lending operations, following the decision taken by the Central Bank of Egypt (CBE) to raise its interest rate by 1.5% on Thursday.
Banks did not adjust the interest rates on their savings instruments despite CBE's decision, first assistant general manager of the funds sector in one of the banks Osama El-Manialawy said.
He explained that private banks will not raise their interest rates until interest rates are raised on treasury bills and bonds. Moreover, private banks will only take this step when public banks do so first.
El-Manialawy pointed out that the interest rate on some savings certificates increased automatically when CBE raised its interest rate, as some of these certificates are linked to CBE's rates.
It is unlikely that the interest rates on the return of the saving certificates will exceed the 12.5% interest rate offered by the platinum saving certificates put forward by Banque Misr and the National Bank of Egypt recently, to avoid impacting the new certificates, which offer a 15% interest rate, offered by state banks in exchange for giving up dollars, El-Manialawy said.
He also ruled out the possibility that returns on deposits will increase soon, as banks already offer distinctive interest rates on most deposits.
The Ministry of Finance announced it will lift the interest rates on the treasury bills it put forward on Sunday, which mature after three and nine months, by 1.1% and 1.76% respectively, after the CBE raised interest rates.
The ministry explained, on its website, that the lowest return on the three-month treasury bills was increased to 13.11%. The maximum return was increased to 13.3%, with an average of 13.061%, compared to 11.351%, 11.609%, and 11.591% at the last tender for the same bills before the CBE's decision.
According to the ministry, the lowest return on the nine-month bills was lifted to 13.50%, and the maximum to 14.09%, with an average of 13.987%, versus 12.40%, 12.49%, and 12.478% last week.


Clic here to read the story from its source.