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Total financial position of banks in Egyptian market approaches EGP 9trn in November 2021: CBE Bank deposits increase to EGP 6.306trn, credit facilities up to EGP 3.066trn, of which 60.2% granted to private sector
The Central Bank of Egypt (CBE) has revealed that the total financial position of banks working in the Egyptian market recorded EGP 8.954trn in November 2021, an increase of about EGP 1.006trn from July 2021. In its monthly report, the CBE explained that in terms of assets, the total cash balance in banks amounted to about EGP 61.188bn, while their reciprocal balances with banks inside and outside Egypt amounted to EGP 1.337trn and EGP 192.821bn, respectively. Lending and discount balances to customers recorded about EGP 3.066trn, while banks' investment in debt instruments and stock market reached EGP 3.207trn. Other assets that the CBE did not specify amounted to EGP 1.090trn. In terms of liabilities, the CBE stated that banks' total capital amounted to about EGP 203.391bn, and reserves recorded EGP 350.330bn, while allocations reached about EGP 189.944bn. The obligations of banks towards each other in Egypt amounted to EGP 354.621bn, while their obligations to banks abroad recorded EGP 127.383bn. The total bank deposits reached EGP 6.290trn, with bonds and long-term loans amounting to EGP 241.055bn. Other obligations that CBE did not specify were worth EGP 1.197trn. According to the CBE, customer deposits in banks operating in the Egyptian market increased to about EGP 6.306trn in November 2021, from about EGP 6.191trn in October 2021, an increase of about EGP 115bn. The monthly report also revealed that the volume of government deposits in banks recorded EGP 1.230trn, of which EGP 1.083trn were in local currency, and EGP 146.5bn in foreign currencies. The volume of non-governmental deposits in banks amounted to about EGP 5.076trn, comprising EGP 4.405trn in local currency and EGP 671.022bn in foreign currencies. According to the CBE, other sectors' bank deposits in local currency came as follows: the public business sector EGP 88.817bn, the private sector EGP 582.452bn, the household sector EGP 3.718trn, and non-residents EGP 16.463bn. As for deposits in foreign currencies, the public business sector deposited EGP 28.268bn, the private sector EGP 187.7bn, the household sector EGP 439.060bn, and non-residents EGP 16.082bn. The CBE said that the household sector accounted for 82.4% of the total deposits in banks operating in the Egyptian market in November 2021. According to the report, the household sector accounted for about 84.7% of deposits in local currency, amounting to about EGP 3.718trn, while its share of deposits in foreign currencies reached about EGP 439.060bn or 67%. The growth rate in bank deposits was 18.98% during November 2021, while it recorded 18.22% in October. The CBE pointed out that the growth rate in deposits in local currency recorded 22%, while it was 2% in foreign currencies. According to the CBE, the share of deposits in foreign currencies decreased to 12.98% of the total deposits in banks in November 2021, compared to 13.10% in October. On a different note, the CBE said that the volume of credit facilities granted by banks operating in the local market to their customers amounted to about EGP 3.066trn in November 2021, pointing out that the volume of these facilities increased by EGP 162.3bn from July to November. Credit facilities are loans granted by banks to their clients, along with documentary credits and letters of guarantee that cover import operations. The CBE attributed this increase to the rise in credit facilities granted to the government in this period, reaching about EGP 61.2bn, with a growth rate of 5.5%, and the increase in the volume of facilities granted to non-government entities by EGP 101.1bn with a growth rate of 5.6%. Most of the credit facilities granted to the government were in foreign currencies, worth equivalent to EGP 38.7bn, while facilities in local currency were worth EGP 22.5bn. The CBE indicated that the private sector obtained about 60.2% of the total credit facilities granted to non-government entities. It added that the industrial sector was among the top economic sectors financed by banks, as it alone obtained about 29.1% of those facilities, followed by the services sector, which acquired 25.4%, then the trade sector by 10.9%, and the agriculture sector by 2.4%. According to the CBE, there are other sectors that obtained about 32.2% of these facilities, of which 31.9% went to the household sector only. Meanwhile, the CBE said that net domestic assets increased, during the period from July to November 2021, by EGP 551.8bn, or 10.8%, as a result of the increase in domestic credit by EGP 332.2bn, at a rate of 6.1%, and the negative balance of net budget items decreased by about EGP 219.6bn, a rate of 69.6%. The CBE explained that domestic credit increased as a result of an increase in net liabilities of the government by EGP 226.6bn, liabilities of the private business sector by EGP 60.8bn, and the household sector by EGP 49.8bn, while the liabilities of the public business sector decreased by EGP 5bn. On the other hand, the CBE revealed a decrease in net foreign assets of the banking system by EGP 168.3bn during the period from July to November 2021, reaching EGP 83.416bn. It explained that this decline came as a result of the decline in its net foreign assets by EGP 30.4bn, and the decrease in net foreign assets in banks by EGP 137.9bn.
