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[Arabie Saoudite] Deposits with Saudi banks declined as the government withdrew the emergency funding that it had injected when oil prices fell, but it is unlikely that banks would experience shortages. liquidity.
A major bank in the Kingdom, a drop in deposits in its second-quarter financial results, announced in the past two weeks.
Deposits in the first bank dropped 19 percent from last year to 66.2 billion rials (18 billion) While deposits in Al Jazeera Bank fell 3% to 47.8 billion NCBC's riyals, the kingdom's largest bank, broke the trend of increasing deposits by 1% to 317.7 billion rupees. Deposits with the Islamic Development Bank also increased by 4%.
In 2016, the government injected deposits into the banking system to offset a shortage of financing due to falling oil prices. But the price of crude has now recovered in part, and the central bank wants to avoid the outflow of money by raising interest rates in accordance with US interests.
As a result, monetary authorities said earlier this year that it would terminate emergency financing,
Deposits of government agencies in all commercial banks fell 11.7% compared to last year to 313.6 billion riyals in June, term deposits and savings constituting this decline, according to data released Sunday by the central bank. Private has seen a sharp rise, so the total On an annualized basis, bank loans to the private sector have only increased 0.6% in June.
Central bank data show that the ratio of loans to deposits in commercial banks fell to 78.1% in June. The central bank changed the loan-to-deposit ratio equation in April, which gave more weight to longer-term deposits in order to encourage banks to offer savings products.
Source: Reuters [19] 659013]
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